In this article, we will take a look at the 11 Must-Buy Penny Stocks to Buy Now.
Markets have continued to rally, with the S&P 500 already up by about 15% for the year. Amid the significant gains, analysts at Morgan Stanley and Goldman Sachs have warned of a potential reality check. The sentiments come on equities hitting record highs, thanks to artificial intelligence-driven gains and expectations of interest rate cuts.
“It’s likely there’ll be a 10 to 20% drawdown in equity markets sometime in the next 12 to 24 months,” said Goldman Sachs CEO David Solomon at the Global Financial Leaders’ Investment Summit in Hong Kong. “Things run, and then they pull back so people can reassess.”
Meanwhile, Wells Fargo believes that an aggressive interest rate cut by the US Federal Reserve could fuel demand for riskier assets in the market.
“The Fed’s more aggressive start to its easing cycle also leaves financial markets exposed to increased volatility by encouraging a rotation into risk assets and leveraging, anticipating an early growth recovery vulnerable to rising inflation and higher interest rates,” Wells Fargo wrote in a research note to investors.
While considered risky bets, penny stocks attract significant interest from investors eyeing exposure to smaller or newer firms that can offer long-term growth opportunities at much lower prices. While large-cap technology stocks have driven gains in the US, the focus is slowly shifting towards small-cap and penny stocks, which are likely to benefit from a favorable interest rate environment and discounted investment opportunities.
With that in mind, let’s take a look at some of the must-buy penny stocks to buy now.
Our Methodology
To identify the must-buy penny stocks to buy now, we used the Finviz stock screener along with other online sources to compile a list of companies trading below $5 per share. We narrowed the pool to stocks that have gained over 50% year-to-date (as of November 17), carry Strong Buy ratings from analysts, and are popular among elite hedge funds. We determined the stocks’ popularity using hedge fund holdings data from Q2 2025 13F filings available in Insider Monkey’s database. The list is sorted in ascending order of upside potential.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research shows 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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
Must-Buy Penny Stocks to Buy Now
11. AbCellera Biologics Inc. (NASDAQ:ABCL)
Share Price as of November 17: $3.69
Upside Potential: 50.89%
Number of Hedge Fund Holders: 17
AbCellera Biologics Inc. (NASDAQ:ABCL) is a must-buy penny stock to buy now. On November 13, at the Stifel 2025 Healthcare Conference, AbCellera Biologics Inc. (NASDAQ:ABCL) reaffirmed its strategic evolution into a company focused on developing clinical assets. The company will no longer operate under a partnership model but will develop its own assets backed by a strong financial position.
With over $500 million in cash and equivalents, AbCellera is focused on the development of ABCL635, a first-in-class antibody medicine for the non-hormonal treatment of moderate to severe menopausal hot flashes. The company is also working on ABCL575, an antibody for the treatment of moderate-to-severe atopic dermatitis (AD).
Even as the company continues to work on its clinical assets, strategic partnerships with big Pharma, including Eli Lilly and AbbVie, are crucial. The internal clinical assets are only seen as a presale activity for future licensing. Amid the new strategic focus, on November 7, TD Cowen analyst Brendan Smith reiterated a Buy rating, as Stifel Nicolaus analyst Stephen Wiley echoed similar sentiments with a Buy rating and a $7 price target.
AbCellera Biologics Inc. (NASDAQ:ABCL) is a clinical-stage biotechnology company that discovers and develops antibody-based medicines for a range of diseases, including cancer, metabolic and endocrine conditions, and autoimmune disorders.
10. indie Semiconductor, Inc. (NASDAQ:INDI)
Share Price as of November 17: $3.84
Upside Potential: 66.45%
Number of Hedge Fund Holders: 13
indie Semiconductor, Inc. (NASDAQ:INDI) is a must-buy penny stock to buy now. On November 10, UBS resumed coverage of indie Semiconductor, Inc. (NASDAQ:INDI) with a Neutral rating and raised its price target to $5 from $4.50, noting supply-driven earnings shortfalls and cautious December guidance, while highlighting stable ADAS trends but limited upside until a potential earnings inflection in late 2026. Benchmark Co reiterated a Buy rating on the stock on November 7 and set an $8 price target, following better-than-expected third-quarter results.
On November 6, the company delivered strong third-quarter results characterized by a strategic backlog increasing to $7.4 billion. The better-than-expected results underscore the strength of design-win momentum across ADAS and growth in industrial markets, including quantum and robotics.
The company posted $53.7 million in revenue with a non-GAAP gross margin of 49.6%. On the other hand, the company’s operating loss narrowed to $11.3 million compared to $16.8 million in the same quarter last year. With the backlog increasing to $7.4 billion, the company remains on track to become profitable.
During the quarter, Indie Semiconductor successfully designed a Robotaxi for a North American self-driving OEM. It also launched DFB laser products with 10X lower frequency noise for quantum computing applications.
indie Semiconductor, Inc. (NASDAQ:INDI) designs and sells automotive-grade semiconductors and software solutions for driver assistance systems, in-cabin user experience, and vehicle electrification. The company focuses on edge sensors, including LiDAR, radar, ultrasound, and computer vision, and its products are utilized in various automotive applications.
9. Stagwell Inc. (NASDAQ:STGW)
Share Price as of November 17: $4.79
Upside Potential: 72.23%
Number of Hedge Fund Holders: 15
Stagwell Inc. (NASDAQ:STGW) is a must-buy penny stock to buy now. On November 4, Needham analyst Laura Martin reiterated a Buy rating on Stagwell Inc. (NASDAQ:STGW) and lifted the price target from $6.36 to $7.25, impressed by the strategic partnership the company has inked with technology companies.
According to the analyst, deals with OpenAI, Google, Apple, and Amazon underscore the role the company is playing in enhancing the marketing efforts of these tech giants. The analyst expects new product launches and consumer-facing advertisements to drive product adoption and monetization. The remarks come as Stagwell delivers strong third-quarter results with double-digit growth in non-advocacy work and strong organic growth in almost all areas.
Revenue in the quarter increased 4% year over year to $743 million, as net income attributable to shareholders rose to $25 million, compared to $3 million in the same quarter last year. Consequently, earnings per share attributable to common shareholders tripled to $0.09 compared to $0.03 per share as of the third quarter of last year.
Mark Penn, chairman and CEO of Stagwell, said, “With double-digit growth in non-advocacy work, strong organic growth in nearly all areas, enhanced cash flow and increased non-advocacy margin, this quarter again demonstrates how Stagwell is a winner in an industry undergoing significant transformation. Our newly announced partnership with Palantir is yet another example of how Stagwell is a leader in the application of AI for marketing.”
Stagwell Inc. (NASDAQ:STGW) is a global marketing and communication services company that provides digital-first solutions for brands. It operates through segments, including the Integrated Agencies Network, Brand Performance Network, and Communications Network, offering services that combine creativity with technology to drive business results for its clients.
8. Sana Biotechnology, Inc. (NASDAQ:SANA)
Share Price as of November 17: $3.84
Upside Potential: 75.54%
Number of Hedge Fund Holders: 16
Sana Biotechnology Inc. (NASDAQ:SANA) is a must-buy penny stock according to analysts. On November 7, Bank of America Securities analyst Alec Stranahan reaffirmed a Buy rating on Sana Biotechnology (NASDAQ: SANA) and set a price target of $6.00.
TD Cowen analyst Marc Frahm also maintained a Buy rating on Sana Biotechnology Inc., citing the company’s decision to focus on its high‑potential SC451 program while pausing allogeneic CAR T development to conserve cash, extending its runway into late 2026.
Management has gained FDA clarity on key steps toward an IND filing for SC451 in 2026 and is advancing its SG293 program, with an IND possible by 2027. With a cash position of $170 million, these moves highlight Sana’s strategic focus and financial stability, supporting Frahm’s bullish stance.
Earlier, on October 30 analysts at Citizens initiated coverage of Sana Biotechnology Inc. with a Market Perform rating. The positive stance comes on the heels of EMJ Capital Eric Jackson reiterating that the company has what it takes to be the next 100-bagger platform.
Jackson sees Sana Biotechnology becoming a $100 billion company, driven by its diabetes therapy reaching 10% of the global Type 1 diabetes population, for $100,000 per patient. With $143 million in cash as of August, the company also remains in a solid financial position to enhance its diabetes program.
Sana Biotechnology, Inc. (NASDAQ:SANA) develops engineered cells as medicines to treat diseases, focusing on therapies that repair genes, replace damaged cells, and address conditions like cancer, diabetes, and autoimmune disorders. It employs a cell therapy approach, where cells are collected and modified outside the body (ex vivo).
7. Eve Holding, Inc. (NYSE:EVEX)
Share Price as of November 17: $4.10
Upside Potential: 80.00%
Number of Hedge Fund Holders: 11
Eve Holding Inc. (NYSE:EVEX) is a must-buy penny stock to buy now. On November 5, H.C. Wainwright analyst Amit Dayal reiterated a Buy rating on Eve Holding Inc. (NYSE:EVEX), impressed by the company’s progress in the electric Vertical Takeoff and Landing (eVTOL) market. Additionally, Cannacord Genuity analyst Austin Moeller reiterated a Buy rating on the stock on November 6 and set a $7.50 price target.
While the company posted a wider-than-expected net loss of $46.9 million, compared to $35.8 million in the same quarter last year, it was attributed to higher research and development expenses. Research and development expenses rose to $44.9 million compared to $32.4 million in the same quarter last year. The increase comes as the company continues to demand increased engineering engagement with Embraer.
Additionally, H.C. Wainwright notes that the company is expanding its manufacturing and testing facilities. Nevertheless, the company boasts a positive outlook, owing to its expanding list of potential customers, supplemented by a significant pipeline of orders and service opportunities. Eve Holding has also secured funding to support its development programs through 2027, raising $30 million in an equity placement.
Eve Holding, Inc. (NYSE:EVEX) develops urban air mobility (UAM) solutions, including the design and production of electric vertical take-off and landing (eVTOL) aircraft, a comprehensive global services and support network for eVTOLs, and air traffic management solutions for a UAM ecosystem.
6. Nuvation Bio Inc. (NYSE:NUVB)
Share Price as of November 17: $4.80
Upside Potential: 85.19%
Number of Hedge Fund Holders: 36
Nuvation Bio Inc. (NYSE:NUVB) is a must-buy penny stock to buy now. On November 4, H.C. Wainwright analyst Robert Burns reiterated a Buy rating on the stock and set a $10 price target. The Buy rating was issued after Nuvation Bio Inc. (NYSE:NUVB) announced the enrollment of 204 new patients in its trial of IBTROZI, a cancer therapy for non‑small cell lung cancer.
The enrollment comes on IBTROZI, showing a robust durability profile with a 50-month median duration of response. In September, the company’s partner, Nippon Kayaku, secured approval from Japan’s Ministry of Health for the use of the drug in patients with advanced ROS1+ NSCLC. Consequently, the company is on track to receive a $25 million milestone payment upon establishing the reimbursement price in Japan.
“Our early launch progress underscores our team’s expertise in rare disease and ability to execute, as well as the positive sentiment of the community for the value of our medicine,” said David Hung, M.D., Founder, President, and Chief Executive Officer of Nuvation Bio.
For the three months ended September, Nuvation generated $5.4 million in revenue from collaboration and license agreements, compared to $0.7 million for the same period last year. The increase was due to $3.8 million generated from its agreement with Nippon Kayaku.
Nuvation Bio Inc. (NYSE:NUVB) is a biopharmaceutical company focused on developing and commercializing novel oncology (cancer) therapies. Its work involves creating drugs to treat difficult-to-treat cancers, with a pipeline of candidates that target specific cancer pathways to improve patient outcomes and overcome resistance to current treatments.
5. Alight, Inc. (NYSE:ALIT)
Share Price as of November 17: $2.23
Upside Potential: 152.19%
Number of Hedge Fund Holders: 30
Alight Inc. (NYSE:ALIT) is a must-buy penny stock to buy now. On November 6, analysts on Wall Street reiterated a “Buy” rating on the stock, despite Alight Inc. (NYSE:ALIT) delivering disappointing third-quarter financial results. UBS analyst Kevin McVeigh maintained a Buy rating on the stock, with a $4 price target. Peter Heckmann of D.A. Davidson echoed a Buy rating, also with a $6 price target.
The positive stance comes on the heels of Alight delivering a 4% decline in Q3 2025 revenue to $533 million, attributed to lower project revenue, net commercial activity, and $$ million from the impact of Payroll and Professional Services business divestment. Loss from continuing operations widened to $1.25 billion, compared to a loss of $53 million in the same quarter last year.
Amid the disappointing results, Chief Executive Dave Guilmette echoed the progress the company is making and its long-term outlook.
“We have seen a favorable step-change in accelerating our client management and delivery capabilities, and reimagining the client and participant experience in line with our long-term strategy. Through our AI and automation investments and rapidly expanding partner collaborations, we are bringing immediate benefits to clients and strengthening our competitive advantages for the long run,” said CEO Dave Guilmette.
Likewise, the board of directors has approved a quarterly dividend of $0.04 per share, payable on December 15, to shareholders of record as of December 1. Likewise, management has reaffirmed its full-year outlook, expecting revenue to be between $2,252 million and $2,282 million, with adjusted EPS between $0.54 and $0.58.
Alight, Inc. (NYSE:ALIT) is a cloud-based human capital and technology services provider that helps large organizations manage their employee benefits and human resources. It offers solutions for health, wealth, and wellbeing, as well as managing employee leaves, and uses its Alight Worklife platform to provide personalized benefits administration and data-driven insights to a global client base.
4. Taysha Gene Therapies Inc. (NASDAQ:TSHA)
Share Price as of November 17: $4.20
Upside Potential: 154.24%
Number of Hedge Fund Holders: 34
Taysha Gene Therapies Inc. (NASDAQ:TSHA) is a must-buy penny stock to buy now. On November 13, Piper Sandler analyst Biren Amin reaffirmed his Buy rating on Taysha Gene Therapies, assigning a $9 price target. On November 5, Truist Financial analyst Joon Lee also reaffirmed a Buy rating on Taysha Gene Therapies Inc. (NASDAQ:TSHA) following the company’s third‑quarter results.
On November 4, Taysha Gene Therapies Inc.’s Chief Executive Officer reiterated that the company has made progress and is poised for a potentially transformative period. The company achieved significant milestones, including achieving FDA Breakthrough Designation for TSHA-102.
The breakthrough Designation is of the company’s flagship treatment for Rett Syndrome. Additionally, the company finalized FDA alignment on the REVEAL Pivotal Trial Protocol and SAP for TSHA-102. In addition, the company confirmed it has regained full rights to the TSHA-102 program following the expiration of a 2022 option agreement with Astellas.
“With Breakthrough Therapy designation and finalized FDA alignment, together with our strong balance sheet and regained global rights to TSHA-102, we believe we are strongly positioned to initiate our REVEAL pivotal trial and accelerate execution toward BLA submission. We remain on track to dose the first patient in the REVEAL pivotal trial this quarter and expect additional enrollment to continue at multiple sites this quarter,” said Sean P. Nolan, Chairman and Chief Executive Officer of Taysha.
Taysha Gene Therapies generated a net loss of $32.7 million, or $0.09 per share, compared to a loss of $25.5 million, or $0.10 per share, in the same quarter last year. It also exited the quarter with $297.3 million in cash and cash equivalents, sufficient to meet planned operating expenses and capital requirements through 2028.
Taysha Gene Therapies Inc. (NASDAQ:TSHA) is a clinical-stage biotechnology company that develops and commercializes adeno-associated virus (AAV)-based gene therapies for severe genetic diseases of the central nervous system (CNS). Its focus is on treating monogenic diseases, which are caused by a mutation in a single gene. A key program is TSHA-102, a gene therapy for Rett syndrome.
3. Rezolve AI PLC (NASDAQ:RZLV)
Share Price as of November 17: $2.85
Stock Upside Potential: 217.28%
Number of Hedge Fund Holders: 8
Rezolve AI PLC (NASDAQ:RZLV) is one of the top stocks offering high upside potential in data centers and AI. On November 7, Northland Securities analyst Michael Latimore reaffirmed his Buy rating on Rezolve AI PLC (NASDAQ:RZLV), assigning a $7 price target.
Earlier on November 5, Rezolve AI PLC announced the expansion of its commercial operations across the US and Europe, securing $200 million in financing. Consequently, it has appointed Elizabeth Lachhar, a former Microsoft executive, to spearhead the commercial expansion drive. As senior vice president of US sales, Lachhar will oversee the company’s go-to-market strategy, focusing on accelerating the enterprise adoption of the Brain Commerce platform.
Additionally, Rezolve AI plans to expand its sales team to 40 professionals in the US and by between 20 and 30 in Europe by the end of the second quarter of next year. The expanded sales and marketing team will focus on accelerating the deployment of the company’s Brain Commerce platform, which includes Conversational Commerce, Visual Search, and Brain Checkout.
“Agentic Commerce is no longer a concept; it’s happening now. With Elizabeth’s leadership and deep enterprise experience, we believe we are assembling the building blocks that will enable us to turn years of innovation into market dominance. Rezolve has the capital, technology, and team to lead the trillion-dollar transformation of how people and brands transact,” said Daniel M. Wagner, Founder, Chairman, and CEO of Rezolve Ai.
Rezolve AI PLC (NASDAQ:RZLV) is a leader in AI-powered commerce solutions that helps retailers and brands enhance customer engagement, streamline operations, and drive revenue growth. The company is focused on pioneering “Agentic Commerce,” where autonomous AI systems can search, decide, and transact on behalf of consumers.
2. Compass Therapeutics Inc. (NASDAQ:CMPX)
Share Price as of November 17: $4.83
Upside Potential: 217.39%
Number of Hedge Fund Holders: 15
Compass Therapeutics Inc. (NASDAQ:CMPX) is a must-buy penny stock to buy now. On November 10, Pipe Sandler analyst Biren Amin reiterated that Compass Therapeutics Inc. (NASDAQ:CMPX) is a Buy and set a $12 price target. The positive stance stems from the company’s announcement that it has made significant progress in developing its clinical pipeline.
HC Wainwright analyst Joseph Pantginis also reiterated a Buy rating on the stock. They set a $24 price target on November 10, buoyed by the development of CTX-10726, a tetravalent antibody that hinders tumor angiogenesis.
While delivering the third-quarter 2025 results, Thomas Schuetz, the Chief Executive Officer, affirmed significant milestones in the development of the company’s drug pipeline. For starters, the company is recording lower mortality rates on a randomized trial of tovecimig in patients with advanced BTC. It is also on track to deliver OS and PFS data in the first quarter of next year.
“These secondary endpoint data will build on the statistically significant primary endpoint of overall response rate we previously reported, and we expect could support our first BLA filing in the second half of 2026. Recent claims-based market research shows ~25,000 patients are diagnosed with BTC annually in the United States alone, and tovecimig could provide hope for the vast majority of patients in the second line who have no approved therapeutic option,” said Schuetz.
Nevertheless, the company posted a net loss of $14.3 million, or $0.08 per share, wider than the net loss of $10.5 million delivered in the same quarter last year. A wider-than-expected net loss is attributed to research and development expenses increasing to $12.8 million from $8.6 million in the same period the previous year.
Compass Therapeutics Inc. (NASDAQ:CMPX) is a clinical-stage biopharmaceutical company focused on developing proprietary antibody-based therapies for cancer. The company’s scientific focus is on the relationship between angiogenesis (the formation of new blood vessels), the immune system, and tumor growth.
1. Atai Beckley N.V. (NASDAQ:ATAI)
Share Price as of November 17: $4.00
Upside Potential: 217.75%
Number of Hedge Fund Holders: 17
Atai Beckley NV (NASDAQ:ATAI) is a must-buy penny stock to buy now. On November 12, TD Cowen’s Ritu Baral reaffirmed a Buy rating on Atai Beckley NV (NASDAQ:ATAI), pointing to encouraging clinical progress and solid financial footing. Positive Phase 2b results for BPL‑003 in treatment‑resistant depression, a favorable safety profile, and the choice of an 8mg dose for Phase 3 trials strengthen confidence in the program. With a cash runway extending to 2029, recent equity financing, expected FDA feedback, and the merger with Beckley, ATAI is seen as well‑positioned for growth, supporting Baral’s bullish stance.
On the same day, ATAI Life Sciences reported third‑quarter revenue of $749,000, far above expectations of $55,560, while unveiling the formation of AtaiBeckley to strengthen its position in next‑generation mental health therapies. The FDA’s Breakthrough Therapy designation for BPL‑003 marked a key milestone in treating resistant depression, supported by positive Phase 2a and 2b results ahead of pivotal development discussions.
The Phase 2b open-label extension (OLE) study for BPL-003 showed sustained and enhanced responses. The candidate drug achieved remission and response rates of 67% and 81%, respectively, by day 57. Following the positive trial results, management remains confident that BPL-003 can be integrated into existing patient care frameworks.
The fact that patients using BPL-003 were discharged within two hours highlights the promising prospects of the candidate drug compared to Spravato. The results emphasize the drug’s advantageous clinical profile as management plans to guide the Phase 3 trial.
ATAI also advanced its pipeline with full enrollment in the EMP‑01 Phase 2a study for social anxiety, expanded trial sites for VLS‑01, and secured a NIDA grant to explore 5‑HT2A/2C receptor agonists for opioid use disorder. Backed by fresh financing, the company remains focused on driving innovation and reshaping mental health treatment.
Atai Beckley NV (NASDAQ:ATAI) is a clinical-stage biopharmaceutical company focused on developing and commercializing novel mental health treatments. Its pipeline of therapies includes psychedelic-based drugs, designed to treat conditions like depression and anxiety.
While we acknowledge the potential of Atai Beckley NV (NASDAQ:ATAI) as an investment, 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 ATAI and that has 100x upside potential, check out our report about this cheapest AI stock.
READ NEXT: 13 Best Blue Chip Stocks to Buy Now and Top 9 Undervalued Asset Management Stocks to Buy.
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 below.
