On July 3, Lisa Shallet, Morgan Stanley Wealth Management CIO, joined ‘Closing Bell’ on CNBC to share her investment strategy, particularly as stock markets were at record highs and the economy had seemingly sidestepped the anticipated impact of tariffs. Shallet disagreed with this sentiment and stated that it was too early to definitively know the full impact. She explained that most people recognize that the resolution of some tariff policies is still pending, with deals not yet secured from the majority of countries. She partly attributed the Fed’s current on-hold stance to this ongoing uncertainty. However, she observed that the market itself seemed to have moved on, operating under the assumption that any impacts from tariffs would be digestible
Therefore, the prevailing market narrative is now focused on the next 6 to 12 months, with hopes for stimulus, particularly in the form of corporate tax benefits from a new tax bill. This anticipated stimulus would encourage capital spending and productivity. Shallet also suggested that in the very short term, the market is inclined to rise. She cited several indicators supporting this view: the trading activity, the market’s momentum, and its leadership. She noted that the market’s leadership continued to be dominated by the same old MAG7. Furthermore, she mentioned that market positioning was only average, and technical factors like sentiment and positioning did not yet indicate an overbought market.
That being acknowledged, we’re here with a list of the 11 cheap penny stocks to buy now.
A portfolio manager studying various stocks and other securities on a tablet.
Methodology
We used the Finviz stock screener to compile a list of cheap penny stocks that had a forward P/E ratio under 15 and were trading under $5. We then selected the 11 stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q1 2025.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
11 Cheap Penny Stocks to Buy Now
11. Nexa Resources (NYSE:NEXA)
Share Price as of July 2: $4.98
Forward P/E Ratio as of July 2: 3.45
Number of Hedge Fund Holders: 4
Nexa Resources (NYSE:NEXA) is one of the cheap penny stocks to buy now. On June 30, Nexa Resources announced that the operations at its Cajamarquilla smelter have fully resumed at normal capacity utilization. This follows the successful conclusion of negotiations between the company and its operator employees, who were represented by their labor union, on the evening of June 27.
The temporary suspension of operations at the smelter lasted 3 days. Despite this interruption, Nexa confirmed that its 2025 sales guidance remains unchanged. The company emphasized its commitment to the health and safety of its employees, contractors, and host communities and stated its continued dedication to open and constructive dialogue in compliance with applicable regulations.
The company currently operates 5 mines: 4 long-life underground polymetallic mines, 2 in Peru & 2 in Brazil, and 1 low-cost polymetallic open-pit mine also in Peru. Nexa also operates 3 smelters: 2 in Brazil, and 1 in Peru, which is recognized as the largest smelter in the Americas.
Nexa Resources (NYSE:NEXA) engages in the zinc mining and smelting business worldwide.
10. OPAL Fuels Inc. (NASDAQ:OPAL)
Share Price as of July 2: $2.58
Forward P/E Ratio as of July 2: 1.93
Number of Hedge Fund Holders: 9
OPAL Fuels Inc. (NASDAQ:OPAL) is one of the cheap penny stocks to buy now. During mid-May, OPAL Fuels announced a new joint venture with an affiliate of Republic Services Inc. (NYSE:RSG). The partnership will establish a biogas-to-renewable natural gas/RNG facility at Republic’s Charlotte Motor Speedway Landfill in Concord, North Carolina.
The new RNG facility will be jointly owned by OPAL and its minority partner, the Republic Services affiliate. It is designed to have an initial annual production capacity of ~1.4 million MMBtu. The project involves the conversion of an existing renewable electricity facility at the site, which was previously owned by OPAL. The JV has also secured a new long-term gas rights agreement for the RNG plant.
The facility will utilize proven technology to capture biomethane, which is a natural byproduct of decomposing organic material from the landfill, and convert it into RNG. This RNG serves as a low-carbon and cost-effective transportation fuel.
OPAL Fuels Inc. (NASDAQ:OPAL) produces and distributes renewable natural gas/RNG for use as a vehicle fuel for heavy and medium-duty trucking fleets throughout the US. Republic Services Inc. (NYSE:RSG) offers environmental services in the US and Canada.
9. Taseko Mines Limited (NYSE:TGB)
Share Price as of July 2: $3.35
Forward P/E Ratio as of July 2: 10.87
Number of Hedge Fund Holders: 10
Taseko Mines Limited (NYSE:TGB) is one of the cheap penny stocks to buy now. On June 23, Taseko Mines published its annual Sustainability Report, titled: C2 (Copper x Community). The report highlights the company’s operational and sustainability achievements in 2024, noting the connection between copper production and social environments that benefit from the company’s projects.
In the year 2024, Taseko’s flagship operation, called the Gibraltar Mine, completed 20 years of successful operations under the company. As Canada’s second-largest copper mine, Gibraltar’s copper production was 105.6 million pounds, and molybdenum production was 1.4 million pounds in that year.
In March last year, Taseko acquired the remaining 12.5% interest in Gibraltar, bringing its ownership to 100%. Construction at Florence Copper, which will be Taseko’s second operational mine. Construction of the commercial production facility commenced in January 2024, and by year-end, the project was ~56% complete. The first copper production is expected in Q4 2025.
Taseko Mines Limited (NYSE:TGB) is a mining company that acquires, develops, and operates mineral properties. It explores for copper, molybdenum, gold, niobium, and silver deposits.
8. TELUS International (Cda) Inc. (NYSE:TIXT)
Share Price as of July 2: $3.73
Forward P/E Ratio as of July 2: 5.27
Number of Hedge Fund Holders: 12
TELUS International (Cda) Inc. (NYSE:TIXT) is one of the cheap penny stocks to buy now. Towards the end of May, TELUS announced its acquisition of Gerent. Gerent is a US-based Salesforce-focused consultancy that delivers enterprise-scale implementation and integration projects, as well as agentic AI solutions.
Following the acquisition, Gerent’s full portfolio of services is now offered by TELUS Digital, and the Gerent brand is slated for retirement by the end of Q3 2025. Gerent is recognized as a Salesforce Summit Partner and supports 1,800 certifications across the entire Salesforce product suite. Its workforce has completed 1,000+ Salesforce projects globally by now. The company has also maintained a strong customer satisfaction score of 4.9 out of 5.0.
The move aligns with TELUS Digital’s fusion-based growth strategy, which combines talent with advanced technologies to create future workforces. These workforces will integrate AI-enabled humans and autonomous AI agents to deliver smarter, faster, and more personalized CX at scale.
TELUS International (Cda) Inc. (NYSE:TIXT) offers digital customer experience and digital solutions internationally.
7. Lloyds Banking Group (NYSE:LYG)
Share Price as of July 2: $4.03
Forward P/E Ratio as of July 2: 10.48
Number of Hedge Fund Holders: 13
Lloyds Banking Group (NYSE:LYG) is one of the cheap penny stocks to buy now. Towards the end of May, Lloyds Banking Group announced a partnership with Lumio, which is a financial management application, to enhance money management for couples and households. The collaboration aims to simplify shared financial management.
The new initiative is to be introduced to select Lloyds customers who manage joint bills, with a rollout scheduled between May and August this year. During this period, participants will receive a complimentary trial of Lumio Couples Pro. The Lumio app currently serves 40,000+ couples. Users can utilize a real-time IOU tracker to split expenses and aim to reduce disputes by providing an accurate record of financial transactions for both parties.
Lumio is a graduate of the Lloyds 2024 Launch Innovation programme, which facilitates commercial experiments between selected fintech startups and Lloyds Banking Group. Lloyds also unveiled the next cohort of startups for its 2025 Launch Innovation programme, which focuses on supporting emerging fintech and insurtech companies with expert guidance and resources.
Lloyds Banking Group (NYSE:LYG) provides a range of banking & financial products and services in the UK and internationally.
6. Baytex Energy Corp. (NYSE:BTE)
Share Price as of July 2: $1.87
Forward P/E Ratio as of July 2: 11.65
Number of Hedge Fund Holders: 15
Baytex Energy Corp. (NYSE:BTE) is one of the cheap penny stocks to buy now. On June 27, Baytex Energy announced that it had received strong support from its lending syndicate for the extension of its bank credit facilities.
The company’s $1.1 billion revolving credit facilities have been extended by one year from the earlier anticipated May 2028 to June 2029. Additionally, the revolving credit facilities are not borrowing base facilities, and, therefore, do not require annual or semi-annual reviews.
This provides Baytex with flexible and stable financial management. Baytex is headquartered in Calgary, Alberta, but its main operating areas are within the Western Canadian Sedimentary Basin and the Eagle Ford in the US.
Baytex Energy Corp. (NYSE:BTE) is an energy company that acquires, develops, and produces crude oil & natural gas.
5. Repay Holdings Corporation (NASDAQ:RPAY)
Share Price as of July 2: $4.90
Forward P/E Ratio as of July 2: 6.03
Number of Hedge Fund Holders: 22
Repay Holdings Corporation (NASDAQ:RPAY) is one of the cheap penny stocks to buy now. On June 10, Repay Holdings announced significant enhancements to its integration with MeridianLink Inc. (NYSE:MLNK). The new capabilities allow credit unions and banks within MeridianLink’s network to offer new members streamlined account funding through various methods, such as debit card, ACH, and digital wallets like Apple Pay & Google Pay.
The expanded account funding options are facilitated by REPAY’s integrated payment technology and enable financial institutions utilizing MeridianLink Opening to accept funds into new member accounts rapidly. The simplification of the onboarding process benefits both credit unions and their members.
The enhancements complement REPAY’s existing integration with MeridianLink Collect, which is designed to optimize loan collection operations by simplifying accounting and consumer payment processes. Through this integration, MeridianLink’s network of financial institution customers can streamline processing efficiencies by accepting ACH and card payments via web, mobile, Interactive Voice Response/IVR, or text.
Repay Holdings Corporation (NASDAQ:RPAY) is a payments technology company that provides integrated payment processing solutions in the US. MeridianLink Inc. (NYSE:MLNK) is a SaaS company that provides software solutions for banks, credit unions, mortgage lenders, specialty lending providers, and consumer reporting agencies in the US.
4. B2Gold Corp. (NYSE:BTG)
Share Price as of July 2: $3.66
Forward P/E Ratio as of July 2: 7.45
Number of Hedge Fund Holders: 23
B2Gold Corp. (NYSE:BTG) is one of the cheap penny stocks to buy now. On June 30, B2Gold Corp. announced its first gold pour at the Goose Mine, located in Nunavut, Canada. This marked a significant milestone as the Goose Mine, which is a part of the Back River Gold District, became B2Gold’s 4th producing mine globally and its 1st operating asset in Canada.
Ore processing at the Goose Mine began on June 24, with the mill initially operating at ~50% of its nameplate capacity, as planned. The company’s focus for Q3 2025 is to continue steady-state operations and ramp up throughput to full design capacity.
This involves synchronizing the remaining generators and ensuring optimal performance across all process circuits. B2Gold expects to achieve commercial production at the Goose Mine in Q3 2025.
B2Gold Corp. (NYSE:BTG) is a gold producer company in Canada.
3. Clarivate (NYSE:CLVT)
Share Price as of July 2: $4.45
Forward P/E Ratio as of July 2: 6.84
Number of Hedge Fund Holders: 25
Clarivate (NYSE:CLVT) is one of the cheap penny stocks to buy now. On June 24, OverDrive and Innovative announced a joint strategy for deep integration of their respective digital library solutions. The integration centers on OverDrive’s Libby app, Kanopy, and Clarivate’s Vega LX platform, which further includes Vega Discover and Vega Program.
The goal is to use each company’s technologies to improve how readers and library staff interact with both print and digital materials in a library’s catalog. OverDrive and Innovative from Clarivate are actively seeking input and prioritization from library partners through a series of meetings with the OverDrive Advisory Group and at upcoming Digipalooza 2025 partner roundtable meetings.
More updates on the collaboration will be shared later in 2025, with new tools and benefits expected to roll out in 2026. This is a non-exclusive initiative, so new tools will be available to all approved OverDrive partners.
Clarivate (NYSE:CLVT) is an information services provider that operates through three segments: Academia & Government, Life Sciences & Healthcare, and Intellectual Property. OverDrive is a mission-based company that supports libraries and schools.
2. New Gold Inc. (NYSE:NGD)
Share Price as of July 2: $4.90
Forward P/E Ratio as of July 2: 11.11
Number of Hedge Fund Holders: 28
New Gold Inc. (NYSE:NGD) is one of the cheap penny stocks to buy now. On June 4, New Gold announced the publication of its 2024 Sustainability Report. This marks a decade of the company annually reporting on sustainability topics considered critical to its communities, stakeholders, and business.
The 2024 Sustainability Report was prepared by the Global Reporting Initiative/GRI Standards, which include the newly released GRI 14 Mining Sector supplement, the Sustainability Accounting Standards Board/SASB Metals & Mining Standards, and the Mining Local Procurement Reporting Mechanism/LPRM.
Some of the highlights from the report include a 7.8% reduction in Scope 1 and Scope 2 greenhouse gas emissions from 2023, which contributes to an overall 15% reduction from New Gold’s 2020 baseline. The company also achieved its lowest consolidated total recordable injury frequency rate/TRIFR in its history, decreasing from 0.80 in 2023 to 0.72 in 2024, which was a 42% decrease since 2021 and showed its safety-first culture.
New Gold Inc. (NYSE:NGD) is an intermediate gold mining company that develops and operates mineral properties in Canada.
1. Gray Media Inc. (NYSE:GTN)
Share Price as of July 2: $4.87
Forward P/E Ratio as of July 2: 1.13
Number of Hedge Fund Holders: 28
Gray Media Inc. (NYSE:GTN) is one of the cheap penny stocks to buy now. On June 2, Gray Media and Paramount Global (NASDAQ:PARA) announced that they had entered into an agreement that renews 52 of Gray’s existing 53 CBS network affiliations.
Under this agreement, the CBS affiliates, which are being renewed, will continue to be available locally to subscribers on Paramount+ and therefore also be widely distributed across all traditional and virtual MVPD platforms.
Effective August 16 this year, Gray’s Atlanta station WANF will cease its affiliation with the CBS Network and operate as an independent television station hyper-focused on the Atlanta market.
Gray Media Inc. (NYSE:GTN) is a multimedia company that owns and/or operates television stations and digital assets in the US. Paramount Global (NASDAQ:PARA) is a global media, streaming, and entertainment company.
While we acknowledge the potential of GTN to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than GTN and that has 100x upside potential, check out our report about this cheapest AI stock.
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