In this article, we will look at the 11 Most Oversold Penny Stocks to Buy Now.
On August 20, Venu Krishna, the head of US equity strategy at Barclays, joined CNBC television to discuss the probable market response to the Federal Reserve’s policy signals, particularly in light of the upcoming Jackson Hole event. Krishna is maintaining his stance in the minority group that believes the Fed will remain hawkish and won’t cut rates in September.
He noted that if the Fed actually decides not to cut rates in September, small-cap stocks could face some negative impacts. Krishna noted that market enthusiasm is focused on certain sectors, including the small-cap value segment, home builders, retail, and financials, which have reacted strongly to expectations of a rate cut. However, that optimism has risen sharply, and the probability of a rate cut has recently fallen from 100% to around 85% signaling a Hawkish approach from the Fed.
Despite this uncertainty, Krishna believes that there are potential buying opportunities. He advised that for small-caps, investors have to be selective in picking quality stocks. Moreover, the financial sector remains vulnerable to a hawkish Fed; however, it has shown strong earnings, positive revisions, and benefits from increased corporate and capital markets activity. Thus, these sectors remain an attractive investment opportunity.
With that, let’s take a look at the 11 most oversold penny stocks to buy now.
A portfolio manager studying various stocks and other securities on a tablet.
Our Methodology
To curate the list of 11 most oversold penny stocks to buy now, we used the Finviz stock screener and CNN as our sources. Using the screener, we aggregated a list of penny stocks (trading under $5) that have declined at least 20% on a year-to-date basis, but for which analysts expect a greater upside potential. Next, we cross-checked the YTD decline and upside potential from CNN and ranked the stocks in ascending order of the number of hedge fund holders sourced from Insider Monkey’s Q1 2025 database.
Please note that the data was recorded on August 20, 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 Most Oversold Penny Stocks to Buy Now
11. Studio City International Holdings Limited (NYSE:MSC)
Price: $4.30
YTD Performance: -22.52%
Analyst Upside Potential: 155.81%
Number of Hedge Fund Holders: 4
Studio City International Holdings Limited (NYSE:MSC) is one of the Most Oversold Penny Stocks to Buy Now. On July 31, Studio City International Holdings Limited (NYSE:MSC) announced results for its fiscal second quarter of 2025. Although the company posted a year-over-year increase across revenue and operating income, the stock has declined by around 6% since the release.
Studio City International Holdings Limited (NYSE:MSC) delivered $190.1 million in quarterly operating revenue, up from $161.5 million a year ago. Management noted that this growth was driven by improved mass market casino operations and higher non-gaming revenues. The casino’s gross gaming revenue increased to $359.6 million, compared to $339.3 million last year. Notably, the non-gaming revenue reached $106.3 million, up from $99.4 million in Q2 2024.
On the other hand, the operating income saw a big jump from just $3 million a year ago to $23.1 million; management attributed this to its strategic repositioning and better market performance.
Studio City International Holdings Limited (NYSE:MSC) is an integrated resort in Cotai, Macau, offering gaming and hospitality services.
10. LiveWire Group, Inc. (NYSE:LVWR)
Price: $3.67
YTD Performance: -23.06%
Analyst Upside Potential: 97.55%
Number of Hedge Fund Holders: 8
LiveWire Group, Inc. (NYSE:LVWR) is one of the Most Oversold Penny Stocks to Buy Now. On July 30, LiveWire Group, Inc. (NYSE:LVWR) reported results for its fiscal second quarter of 2025. The company delivered some progress despite tough market conditions; however, the stock has lost around 7.56% since the release.
The company delivered consolidated revenue of $5.9 million, down 9% year-over-year. Management noted facing continued supply chain problems driven by the overall economic condition. Despite a decline in revenue, the company improved its operating loss considerably from $28.2 million to $18.3 million, reflecting a 35% improvement year-over-year. This was driven by cost-cutting, administrative, and engineering expenses of $7.6 million through streamlining efforts.
Notably, the STACYC segment, which sells electric balance bikes for kids, saw a strong 25% revenue increase year-over-year. However, this was offset by a decline in electric motorcycle revenue. Management decided not to provide any guidance due to the ongoing challenges, but showed optimism regarding two prototype electric motorcycle models displayed at the Harley-Davidson Homecoming event.
LiveWire Group, Inc. (NYSE:LVWR) is an all-electric motorcycle company focused on the two-wheel electric motorcycle market.
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