In this article, we will look at the 11 Hot Penny Stocks to Buy Right Now.
On July 1, Royce Investment released its Q2 2025 small-cap research report. The report noted that after a turbulent and bearish first quarter, the Russell 2000 rebounded strongly, gaining 8.5% in Q2 2025. This recovery was part of a broader market resilience seen across all market caps despite ongoing volatility and uncertainty.
Notably, the quarter’s returns did not follow a typical pattern based on market capitalization. The report highlighted that both mega-cap stocks and higher growth stocks led the gains. The Russell Microcap Index surged 15.5% whereas the large-cap Russell 1000 rose 11.1%. However, the Russell 2000 remained below its previous peak from late 2024, down about 10.1% from that high.
Despite the strong second quarter, year-to-date returns were mixed due to the steep declines in the first quarter. Small and micro-cap stocks were still negative for the year, with the Russell 2000 down -1.8% and the Russell Microcap down -1.1%. The report noted that volatility remained a key theme in 2025. VIX, which is a measure of market fear, was unusually calm except for a spike after “Liberation Day” in April. Royce Investment believes that volatility is expected to rise again due to trade uncertainties, including tariffs on the European Union and threats to other countries. On the bright side, valuations for the small cap remain attractive with the Russell 2000 trading near a 25-year low relative to large-cap stocks based on the EV/EBIT metric.
With that, let’s take a look at the 11 hot penny stocks to buy right now.
Our Methodology
To curate the list of 11 hot penny stocks to buy right now, we used the Finviz stock screener and Yahoo Finance. Using the screener, we aggregate a list of penny stocks (trading below $5) that have gained more than 30% during the past 6 months. Next, we cross-checked the 6-month performance of each stock from Yahoo Finance and ranked the stocks in ascending order of the number of hedge funds sourced from the Insider Monkey Q1 2025 database. Please note that the data was recorded on July 4th, 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 Hot Penny Stocks to Buy Right Now
11. Ultrapar Participações S.A. (NYSE:UGP)
Price: $3.38
6-months Performance: 32.03%
Number of Hedge Fund Holders: 11
Ultrapar Participações S.A. (NYSE:UGP) is one of the 11 Hot Penny Stocks to Buy Right Now. On May 7, the company announced its results for the fiscal first quarter of 2025. The company reported facing some market challenges during the quarter.
During the first quarter of 2025, Ultrapar Participações S.A. (NYSE:UGP) reported a recurring EBITDA of BRL 1.322 billion. Management noted that this figure excludes a significant negative impact of BRL 139 million from the share of loss in Hidrovias, which experienced one of the worst drops in its North and South corridors. As a result, when accounting for this loss, the EBITDA fell 9% year-over-year. Moreover, the net income for the quarter reached BRL 502 million, reflecting a 20% year-over-year decline considering the Hidrovias loss.
On the bright side, Ultragaz’s LPG sales volume grew 1% year-over-year, driven by a 2% increase in bottled LPG sales due to stronger market demand. In addition, Ipiranga’s recurring EBITDA rose 6% year-over-year to BRL 826 million, benefiting from higher margins due to inventory gains from fuel price adjustments and resolution of tax irregularities.
Ultrapar Participações S.A. (NYSE:UGP) is a Brazilian conglomerate primarily engaged in the distribution and retail of automotive fuels and related products. It operates through 5 main business segments, including Gas Distribution (Ultragaz), Fuel Distribution (Ipiranga), Chemicals (Oxiteno), Storage (Ultracargo), and Drugstores (Extrafarma).
10. Lloyds Banking Group plc (NYSE:LYG)
Price: $4.16
6-months Performance: 54.65%
Number of Hedge Fund Holders: 13
Lloyds Banking Group plc (NYSE:LYG) is one of the 11 Hot Penny Stocks to Buy Right Now. On July 2nd, Lloyds Banking Group plc (NYSE:LYG) announced partnering with British AI startup UnlikelyAI to test a groundbreaking neuro-symbolic AI technology aimed at improving innovation and customer experience in banking.
The Neuro Symbolic AI approach combines neural networks with symbolic reasoning. The hybrid method aims to produce AI outputs that are more accurate, transparent, explainable, and free from hallucinations. UnlikelyAI was founded by William Tunstall-Pedoe, who also created the Evi voice assistant acquired by Amazon and integrated into Alexa.
Lloyds Banking Group plc (NYSE:LYG) is conducting a proof-of-concept experiment within its Innovation Sandbox to explore how this AI can be used responsibly across the Group to deliver consistent, accurate, and compliant support for customers and staff.
Lloyds Banking Group plc (NYSE:LYG) is a major UK-based financial services company that primarily serves retail and commercial customers. It operates through three main business segments, including Retail, Commercial, Insurance, Pensions, & Investment Banking.
9. NovaGold Resources Inc. (NYSEAMERICAN:NG)
Price: $4.52
6-months Performance: 32.55%
Number of Hedge Fund Holders: 14
NovaGold Resources Inc. (NYSEAMERICAN:NG) is one of the 11 Hot Penny Stocks to Buy Right Now. On June 25, NovaGold Resources Inc. (NYSEAMERICAN:NG) announced its second quarter 2025 report. The company also shared updates on its Tier One gold development project called Donlin Gold, which is owned 60 percent by NOVAGOLD and 40 percent by funds managed by Paulson Advisers LLC.
The company highlighted that it acquired an additional 10% economic interest in Donlin Gold LLC from Barrick Mining Corporation for $200 million, raising its ownership from 50% to 60%. Moreover, Paulson Advisers acquired a 40% interest for $800 million, thereby establishing a new partnership with equal governance rights between NovaGold Resources Inc. (NYSEAMERICAN:NG) and Paulson to advance the project.
NovaGold Resources Inc. (NYSEAMERICAN:NG) is also progressing a 15,000-meter drill program focused on converting and expanding mineral reserves and resources. Management noted that the drilling began in February 2025, with over 8,400 meters completed by mid-year. Moreover, efforts to update the Feasibility Study are underway, with contracts expected to be awarded by year-end 2025. The company reported a net loss of $54,275, primarily due to a non-cash, non-recurring charge of $39,607 related to warrants issued under a backstop commitment agreement.
NovaGold Resources Inc. (NYSEAMERICAN:NG) is a precious metals company focused on the development of the Donlin Gold project. The Donlin Gold project is recognized as the world’s largest and highest-grade undeveloped gold deposit.
8. Tuya Inc. (NYSE:TUYA)
Price: $2.45
6-months Performance: 40.80%
Number of Hedge Fund Holders: 16
Tuya Inc. (NYSE:TUYA) is one of the 11 Hot Penny Stocks to Buy Right Now. On May 27, Forbes China released its China AI Tech Enterprises Top 50 list for 2025. The list recognized Tuya Inc. (NYSE:TUYA) as one of China’s top AI technology companies.
Tuya Inc. (NYSE:TUYA) was the only notable AI cloud platform featured in the list. The company’s platform integrates cutting-edge AI technologies with IoT, enabling developers and businesses to create smart, AI-driven products efficiently. The Forbes China list highlighted outstanding companies driven by AI innovation. It noted that companies that combine advanced technologies with industry expertise are poised to shape the technological era.
Tuya Inc. (NYSE:TUYA) is also supporting developers through events like the TUYA Global Developer Summit and AI Innovation Hardware Competition. Eva Na, Vice President of Marketing and Strategic Cooperation and CMO of Tuya Smart, noted that they will continue to leverage their technological strengths and open ecosystem to lower barriers of entry to AI adoption.
7. fuboTV Inc. (NYSE:FUBO)
Price: $3.70
6-months Performance: 156.94%
Number of Hedge Fund Holders: 17
fuboTV Inc. (NYSE:FUBO) is one of the 11 Hot Penny Stocks to Buy Right Now. On July 2, Wedbush analyst Alicia Reese reiterated a Buy rating on fuboTV Inc. (NYSE:FUBO) with a price target of $5.
The reiterated bullish sentiment comes after the company on June 26 announced its multi-year agreement with Weigel Broadcasting Co. for the distribution of seven networks. The networks include MeTV, H&I, MOVIES!, and WCIU, The U. MeTV is known as America’s top classic TV entertainment network.
As a result of this agreement, Fubo’s Pro and Elite plan subscribers can now watch Weigel’s national entertainment networks. Moreover, for viewers in the Chicago area, there is even more content as they get access to WCIU-TV, which offers local sports, news, and entertainment.
fuboTV Inc. (NYSE:FUBO) is a TV streaming company that offers subscribers access to live sports events each year, along with other entertainment content.
6. Microvast Holdings, Inc. (NASDAQ:MVST)
Price: $3.61
6-months Performance: 51.05%
Number of Hedge Fund Holders: 17
Microvast Holdings, Inc. (NASDAQ:MVST) is one of the 11 Hot Penny Stocks to Buy Right Now. On May 19, Microvast Holdings, Inc. (NASDAQ:MVST) showcased a broad range of its high-performance battery products at the 17th China International Battery Fair in Shenzhen. The company’s products target various sectors, including Battery Energy Storage Systems (BESS), commercial vehicles, construction machinery, and specialized vehicles.
One of the key highlights of the company’s offering was its fast-charging battery series called the HpTO, MpCO, and HpCO. These batteries can reach 80% charge in just 15 to 20 minutes under standard power conditions. The batteries can reach 80% charge in just 15 to 20 minutes under standard power conditions.
In addition, Microvast Holdings, Inc. (NASDAQ:MVST) also introduced batteries with high energy density and long endurance. For instance, the HnSO 70Ah battery delivers 300 Wh/kg and lasts up to 4,000 cycles, ideal for long-range battery electric vehicles. Moreover, the HnCO 120Ah battery offers 265 Wh/kg with up to 5,000 cycles, designed for high-utilization scenarios requiring enhanced safety.
Microvast Holdings, Inc. (NASDAQ:MVST) specializes in advanced battery technologies, focusing on battery solutions for electric vehicles and energy storage systems. The company serves three main sectors, including electric commercial vehicles, energy storage systems (ESS), and battery components.
5. Ambev S.A. (NYSE:ABEV)
Price: $2.47
6-months Performance: 39.55%
Number of Hedge Fund Holders: 21
Ambev S.A. (NYSE:ABEV) is one of the 11 Hot Penny Stocks to Buy Right Now. On May 8, Ambev S.A. (NYSE:ABEV) released its results for Q1 2025. The company delivered a strong start to the year with top-line momentum and double-digit bottom-line growth.
During the first quarter, the company grew its consolidated volumes by 0.7% driven by positive performance in Brazil and Latin America. This led to a 6.7% year-over-year increase in total revenue, supported by a 5.9% growth in net revenue per hectoliter. Ambev S.A. (NYSE:ABEV) was focused on avoiding disruptions, maintaining momentum, and building a stronger company altogether.
Management noted that Ambev S.A. (NYSE:ABEV) is now a digitally enabled company, as its B2B platform usage increased, with monthly active buyers up by high single digits, and SKU per point of contact ratio improved. The company highlighted that Q1 2025 was a significant quarter as it showed execution across all three pillars of its strategy, thereby setting the tone for a stronger full year.
4. B2Gold Corp. (NYSEAMERICAN:BTG)
Price: $3.66
6-months Performance: 42.41%
Number of Hedge Fund Holders: 23
B2Gold Corp. (NYSEAMERICAN:BTG) is one of the 11 Hot Penny Stocks to Buy Right Now. On June 30, B2Gold Corp. (NYSEAMERICAN:BTG) announced the first gold pour at the Goose Mine, located in the Back River Gold District in Nunavut, Canada.
This first pour marks the first operating asset of the company in Canada and its fourth processing unit. Management noted that the first ore processing began on June 24, with the mill operating at about 50% of its planned capacity during this initial phase. The company aims to achieve steady-state operations and full design capacity by the third quarter of 2025, which involves synchronizing remaining generators and optimizing all processing circuits.
B2Gold Corp. (NYSEAMERICAN:BTG) projects gold production for 2025 to be between 120,000 and 150,000 ounces. The company has a strong focus on exploration, with a corporate exploration budget of $61 million in 2025, including $32 million dedicated to the Back River Gold District.
B2Gold Corp. (NYSEAMERICAN:BTG) is an international gold producer based in Canada. The company engages in the exploration, development, and operation of gold mines across multiple countries.
3. Ardagh Metal Packaging S.A. (NYSE:AMBP)
Price: $4.51
6-months Performance: 51.85%
Number of Hedge Fund Holders: 23
Ardagh Metal Packaging S.A. (NYSE:AMBP) is one of the 11 Hot Penny Stocks to Buy Right Now. On July 2, Anthony Pettinari from Citi reiterated a Buy rating on Ardagh Metal Packaging S.A. (NYSE:AMBP) and raised the price target on the stock from $4 to $5. The price target upgrade comes after the company announced the schedule for its Q2 2025 earnings call, which is planned to take place on July 24.
Ardagh Metal Packaging S.A. (NYSE:AMBP) reported strong results in its Q1 2025. The company reported total revenue of $1.268 billion, up 11% year-over-year and driven by 6% global shipments growth and double-digit growth in Adjusted EBITDA. Its strong demand for non-alcoholic beverages led to an increased global shipments with 7% growth in the Americas, 5% in Europe, and an 8% increase in North America.
Moreover, the company reported an adjusted EBITDA of $155 million, representing a 16% increase. Management is anticipating adjusted EBITDA for the second quarter to be between the range of $195 million and $205 million.
Ardagh Metal Packaging S.A. (NYSE:AMBP) is a Luxembourg-based company specializing in the production and supply of metal beverage cans.
2. Banco Bradesco S.A. (NYSE:BBD)
Price: $3.10
6-months Performance: 67.57%
Number of Hedge Fund Holders: 24
Banco Bradesco S.A. (NYSE:BBD) is one of the 11 Hot Penny Stocks to Buy Right Now. On May 8, Citi analyst Gustavo Schroden upgraded Banco Bradesco S.A. (NYSE:BBD) from Neutral to Buy, while also raising the price target on the stock from R$13.60 to R$19.50.
The analyst noted key drivers behind the upgrade to be the company’s improved return on investment, which is expected to improve both in the short and long term. Schroden also expects net interest income of Banco Bradesco S.A. (NYSE:BBD) to improve in 2025 due to better funding costs and a more favorable asset mix.
Looking ahead into 2026, the analyst suggests that the cost discipline is anticipated to have a stronger impact on results through operating leverage. Citi anticipates the bank’s sustainable ROE could reach 16.5% by late 2026.
1. New Gold Inc. (NYSEAMERICAN:NGD)
Price: $4.99
6-months Performance: 92.66%
Number of Hedge Fund Holders: 28
New Gold Inc. (NYSEAMERICAN:NGD) is one of the 11 Hot Penny Stocks to Buy Right Now. On June 24, National Bank analyst Shane Nagle raised the firm’s price target on New Gold Inc. (NYSEAMERICAN:NGD) from C$6.75 to C$8, while keeping an Overweight rating.
The improved outlook comes after the company announced its Q1 2025 results, which showed improved production profiles. The consolidated production outlook reached 52,186 ounces of gold and 13.6 million pounds of copper, representing approximately 15% of the midpoint of annual consolidated production guidance of 325,000 to 365,000 ounces of gold.
As a result, the consolidated revenue reached $209.1 million, ahead of $192.1 revenue a year ago. Moreover, New Gold Inc. (NYSEAMERICAN:NGD) released two new technical reports that outlined robust production profiles with lower costs for both New Afton and Rainy River. These reports provide a roadmap for increased production, reduced costs, and extended mine life, which are expected to drive shareholder value.
New Gold Inc. (NYSEAMERICAN:NGD) is a Canadian intermediate gold mining company. The company is engaged in mining and the production of gold, silver, and copper.
While we acknowledge the potential of NGD 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 NGD and that has 100x upside potential, check out our report about this cheapest AI stock.
READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
Hedge Fund Resource Center