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.
9. Cosan S.A. (NYSE:CSAN)
Price: $3.92
YTD Performance: -26.59%
Analyst Upside Potential: 74.09%
Number of Hedge Fund Holders: 13
Cosan S.A. (NYSE:CSAN) is one of the Most Oversold Penny Stocks to Buy Now. On August 14, Cosan S.A. (NYSE:CSAN) reported results for its fiscal second quarter of 2025. Management noted that facing a challenging macroeconomic environment led by tight interest rates and new US tariffs internationally.
As a result of these challenges, the net income for the quarter decreased from negative $41.2 million a year ago to $171.78 million. Management highlighted that despite a negative operating income, the overall portfolio showed strong performance, with Rumo witnessing increased transported volumes and improved market share in exports, and Compass distributing more natural gas and improving its sales mix.
Cosan S.A. (NYSE:CSAN) is a Brazilian company focused on energy and agriculture. It produces and distributes sugarcane products, sells fuel, and distributes natural gas through its business segments.
8. Baytex Energy Corp. (NYSE:BTE)
Price: $1.97
YTD Performance: -25.66%
Analyst Upside Potential: 47.25%
Number of Hedge Fund Holders: 15
Baytex Energy Corp. (NYSE:BTE) is one of the Most Oversold Penny Stocks to Buy Now. On August 1, RBC Capital analyst Gregory Pardy maintained a Buy rating on Baytex Energy Corp. (NYSE:BTE) with a price target of C$5.
The bullish sentiment follows the company’s fiscal second quarter 2025. The company delivered a strong quarter with its wells in the Pembina Duvernay region achieving record performance and delivering the highest average 30-day peak oil rates in the West Shale Basin. Management noted that they also witnessed good results from its heavy oil operations in the Eagle Ford region.
Moreover, Baytex Energy Corp. (NYSE:BTE) also completed two refracturing projects in the Lower Eagle Ford, which helped extend the production life and capital efficiency. As a result, the overall production reached 148,095 barrels of oil equivalent per day, up 2% year-over-year. Looking ahead, the company aims to produce about 148,000 boe/d annually.
Baytex Energy Corp. (NYSE:BTE) is a Canadian energy company that explores, develops, and produces crude oil and natural gas.
7. RPC, Inc. (NYSE:RES)
Price: $4.38
YTD Performance: -28.55%
Analyst Upside Potential: 41.55%
Number of Hedge Fund Holders: 17
RPC, Inc. (NYSE:RES) is one of the Most Oversold Penny Stocks to Buy Now. On August 14, Piper Sandler lowered the firm’s price target on RPC, Inc. (NYSE:RES) from $5 to $4, while maintaining an Underweight rating on the stock.
The firm noted that they talked with many companies dealing in drilling, completion, production, and power across North America and in the international market. The discussion with these companies revealed that the Oilfield Services and Equipment sector remains flat due to many conflicting market factors. Moreover, the industry is also dealing with the oil price shock in an environment characterised by deflation and sticky production in US land markets. The firm notes that as a result of these persisting challenges, the future of RPC, Inc. (NYSE:RES) and the overall sector remains uncertain; thus, Piper Sandler remains cautious.
RPC, Inc. (NYSE:RES) provides specialized oilfield services and equipment. It serves companies exploring and producing oil and gas in the US and some international markets.
6. Kosmos Energy Ltd. (NYSE:KOS)
Price: $1.65
YTD Performance: -55.65%
Analyst Upside Potential: 136.36%
Number of Hedge Fund Holders: 24
Kosmos Energy Ltd. (NYSE:KOS) is one of the Most Oversold Penny Stocks to Buy Now. On August 5, Matthew Smith from Bank of America Securities reduced the firm’s price target on Kosmos Energy Ltd. (NYSE:KOS) from $5 to $4.2, while maintaining a Buy rating on the stock.
The cautious outlook follows the company’s fiscal second-quarter results, where the company missed both top and bottom line estimates. The company delivered $393.52 million in revenue, down 12.73% year-over-year and below consensus by $4.82 million. The EPS of negative $0.19 also came below the expectations by $0.10.
Management noted that they are focused on increasing production, reducing costs, and strengthening the balance sheet. It now expects full-year production to be between 65,000 – 70,000 boepd.
Kosmos Energy Ltd. (NYSE:KOS) is an oil and gas exploration and production company focused on deepwater fields. The company holds interests in multiple offshore assets across West Africa.
5. MannKind Corporation (NASDAQ:MNKD)
Price: $3.96
YTD Performance: -40.0%
Analyst Upside Potential: 127.27%
Number of Hedge Fund Holders: 29
MannKind Corporation (NASDAQ:MNKD) is one of the Most Oversold Penny Stocks to Buy Now. On August 6, Faisal Khurshid from Leerink Partners reiterated a Buy rating on MannKind Corporation (NASDAQ:MNKD) with a price target of $7.
The analyst noted that the company reported solid results during the fiscal second quarter of 2025 and is developing its drug pipeline at a steady rate. Khurshid highlighted the company’s progress in treating idiopathic pulmonary fibrosis, nontuberculous mycobacterial lung disease, and pediatric uses of Afrezza.
The analyst acknowledged that while doubts regarding the upcoming TETON-2 study results for Tyvaso in IPF persist, the company’s current valuation remains attractive. This is mainly due to the royalties from Tyvaso DPI in pulmonary arterial hypertension and pulmonary hypertension linked to interstitial lung disease.
MannKind Corporation (NASDAQ:MNKD) develops and sells inhaled therapeutic products for endocrine and rare lung diseases.
4. Blend Labs, Inc. (NYSE:BLND)
Price: $3.01
YTD Performance: -21.61%
Analyst Upside Potential: 52.82%
Number of Hedge Fund Holders: 33
Blend Labs, Inc. (NYSE:BLND) is one of the Most Oversold Penny Stocks to Buy Now. On August 8, Karl Keirstead from UBS lowered the firm’s price target on Blend Labs, Inc. (NYSE:BLND) from $4 to $3.5 while maintaining a Hold rating on the stock.
The cautious rating follows the company’s fiscal second quarter 2025 results. Blend Labs, Inc. (NYSE:BLND) delivered strong results with revenue growing 10% year-over-year to reach $31.5 million, while the GAAP gross margins rose to 74% coming in higher than a year ago. Management noted that most of the revenue came from software platform services, while the professional services added $2.1 million.
The company witnessed increased sales with 23 new or expanded deals in Q2, twice as many as in Q1. These deals included new clients, like three independent mortgage banks, and deeper partnerships with existing customers. Looking ahead, management expects fiscal third quarter revenue in the range of $31.5 million – $33.5 million.
Blend Labs, Inc. (NYSE:BLND) provides a cloud-based digital platform that helps banks, credit unions, and mortgage lenders streamline loan and account origination.
3. Iovance Biotherapeutics, Inc. (NASDAQ:IOVA)
Price: $2.60
YTD Performance: -66.62%
Analyst Upside Potential: 188.46%
Number of Hedge Fund Holders: 37
Iovance Biotherapeutics, Inc. (NASDAQ:IOVA) is one of the Most Oversold Penny Stocks to Buy Now. On August 18, Iovance Biotherapeutics, Inc. (NASDAQ:IOVA) announced receiving conditional approval for Amtagvi from Health Canada. Amtagvi is a tumor-derived T cell immunotherapy designed for adult patients with unresectable or metastatic melanoma.
Management noted that this is the first approval of Amtagvi outside the United States and marks a major milestone for the company. Moreover, the company also plans to open its first Canadian treatment center soon and expand availability to other countries with high rates of advanced melanoma.
Although the approval is conditional and is dependent on further clinical trials confirming its benefits.
Iovance Biotherapeutics, Inc. (NASDAQ:IOVA) develops and delivers tumor-infiltrating lymphocyte therapies for solid tumor cancers.
2. Alight, Inc. (NYSE:ALIT)
Price: $3.85
YTD Performance: -42.96%
Analyst Upside Potential: 81.82%
Number of Hedge Fund Holders: 41
Alight, Inc. (NYSE:ALIT) is one of the Most Oversold Penny Stocks to Buy Now. On August 6, Needham analyst Kyle Peterson reiterated a Buy rating on Alight, Inc. (NYSE:ALIT) with a price target of $6.
The analyst noted that the company delivered strong results for the second quarter of 2025, which were better than expected. Peterson also likes the steady growth in recurring revenue along with good control over expenses. He acknowledged that the company lowered its fiscal 2025 outlook due to longer deal cycles, which caused the share price to drop. However, despite this, Perterson remains optimistic about the company’s future as the management confirmed its EBITDA, EPS, and free cash flow guidance.
In addition, Alight, Inc. (NYSE:ALIT) also announced a new partnership with Goldman Sachs Asset Management, which is expected to improve the company’s Worklife platform.
Alight, Inc. (NYSE:ALIT) provides cloud-based human capital management solutions to organizations, which help organizations manage employee benefits like health, wealth, and leave programs.
1. Geron Corporation (NASDAQ:GERN)
Price: $1.43
YTD Performance: -60.28%
Analyst Upside Potential: 179.72%
Number of Hedge Fund Holders: 41
Geron Corporation (NASDAQ:GERN) is one of the Most Oversold Penny Stocks to Buy Now. On August 12, Faisal Khurshid, an analyst from Leerink Partners, reiterated a Buy rating on Geron Corporation (NASDAQ:GERN) with a price target of $3.
The analyst noted that the company is taking bold steps to overcome the challenges in launching its new drug called Rytelo. Khurshid also noted the appointment of new CEO, Harout Semerjian, who brings relevant experience in hematology. The analyst sees this as a positive move toward the successful launch of Rytelo.
Moreover, the management remains optimistic regarding steady growth, and the recent second-quarter results have also shown a significant increase in demand.
Geron Corporation (NASDAQ:GERN) is a biopharmaceutical company focused on developing treatments for blood disorders.
While we acknowledge the potential of GERN 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 GERN and that has 100x upside potential, check out our report about this cheapest AI stock.
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