In this article, we will discuss the 11 best penny stocks trending on Robinhood.
There are various reasons why an investor might want to invest in penny stocks. Apart from being easy on the pockets, penny stocks tend to be overlooked by the market and investors can unlock value by finding companies with solid fundamentals and robust product pipelines. No investment comes without some degree of risk, and penny stocks are often riskier than mature and established businesses. One should remember that volatility goes both ways. For investors that have the temperament for risk-taking, penny stocks can offer incredible returns and be some of the highest-returning components of their portfolios. For every successful penny stock investment, there are many more that fail. However, the potential rewards of investing in penny stocks are attractive and they can offer investors the chance to make large profits in a short period of time. Finally, some investors simply enjoy the challenge of finding and investing in penny stocks. These investors may find the process of research and analysis to be enjoyable and may view their investments as a way to “beat the market”.
Robinhood Markets, Inc. (NASDAQ:HOOD) is an American financial services company that pioneered the commission-free trading of stocks, exchange-traded funds, and cryptocurrencies. Robinhood Markets, Inc. (NASDAQ:HOOD) is one of the most popular apps used by retail investors and traders. The company was founded in 2013 and its mobile app was launched in March of 2015. As of 2022, Robinhood Markets, Inc. has more than 15 million monthly active users. In this article, we will discuss in detail some of the best penny stocks that Robinhood investors are buying right now.
While penny stocks may be a good way to get started with investing and experimenting in the stock market, some investors simply do not have the stomach for the high degree of risk that comes with investing in these securities. For investors that want to play it safe, blue chip stocks are the best option. Some of the top blue chip stocks to own for the long term include Microsoft Corporation (NASDAQ:MSFT), The Coca-Cola Company (NYSE:KO), and Johnson & Johnson (NYSE:JNJ).
Photo by Chris Liverani on Unsplash
Our Methodology
To determine the best penny stocks to buy on Robinhood, we scoured the Robinhood app, Robinhood forums on Reddit including r/RobinHoodPennyStocks and r/RobinHood and looked at what retail investors are currently watching. We narrowed down our selection to stocks that had bullish calls associated with them and had positive market sentiment. Along with each stock, we have included the hedge fund sentiment, analyst ratings, and salient features that make them good investment options. These stocks are ranked according to their popularity among elite hedge funds.
11 Popular Penny Stocks On Robinhood
11. Sayona Mining Limited (OTC:SYAXF)
Share Price as of October 27: $0.17
Number of Hedge Fund Holders: N/A
Sayona Mining Limited (OTC:SYAXF) is a Canadian mining company focused on sourcing and developing the highest-grade lithium deposits in the world. The company also explores graphite and gold deposits. Sayona Mining Limited has a large portfolio of prospective lithium projects in Australia and Canada and is expected to benefit from the growing global demand for battery-grade lithium. The stock is ranked among the best penny stocks to buy now.
Sayona Mining Limited is experiencing high levels of activity on Wall Street. As of October 27, the stock has a 3-month average trading volume of 1.32 million and has gained 89% year to date. The company has also come to the attention of Wall Street analysts and, on October 17, Canaccord analyst Reg Spencer took coverage of Sayona Mining Limited with a Hold rating and an A$0.21 price target.
10. Jupiter Wellness, Inc. (NASDAQ:JUPW)
Share Price as of October 27: $0.93
Number of Hedge Fund Holders: N/A
Jupiter Wellness, Inc. (NASDAQ:JUPW) develops CBD-based medical therapeutics. The company has a strong portfolio of health & wellness products and a growing customer base. The company’s products are backed by clinical research and development. Jupiter Wellness, Inc. has a growing global footprint and is well-positioned to capitalize on the global trends in health & wellness. On October 6, Jupiter Wellness, Inc. announced that it has commenced a triple-blinded clinical study for a possible treatment for tinnitus. The stock is one of the best penny stocks to buy now according to investors on Robinhood.
While Jupiter Wellness, Inc. has the potential to capture further market share, its shares have been on a wild ride in 2022. For investors with low risk tolerance, some of the top stocks to own include Microsoft Corporation, The Coca-Cola Company, and Johnson & Johnson.
9. Mullen Automotive, Inc. (NASDAQ:MULN)
Share Price as of October 27: $0.55
Number of Hedge Fund Holders: 2
Mullen Automotive, Inc. (NASDAQ:MULN) is an American electric vehicle company that manufactures and distributes electric vehicles. The company also operates a digital platform known as CarHub which facilitates the buying and selling of cars using artificial intelligence. Moreover, the company offers battery technology solutions. Mullen Automotive, Inc. has a secular growth story and is well-positioned to benefit from the speedy transition to electric vehicles. The stock ranks among the best penny stocks to buy now.
On October 19, Mullen Automotive, Inc. announced that it has acquired a bankrupt EV company, Electric Last Mile Solutions. Mullen Automotive, Inc. now owns the company’s manufacturing plant, inventory, and intellectual property. With the acquisition of ELMS’ manufacturing plant, Mullen Automotive, Inc. will be able to produce over 50,000 vehicles per year.
At the end of Q2 2022, 2 hedge funds were long Mullen Automotive, Inc. and held stakes of $121,000 in the company.
8. Pineapple Energy Inc. (NASDAQ:PEGY)
Share Price as of October 27: $3.76
Number of Hedge Fund Holders: 3
Pineapple Energy Inc. (NASDAQ:PEGY) is a renewable energy company that provides photovoltaic solar energy systems to residential homeowners in the United States. The company is well-positioned to benefit from the growing demand for renewable energy in the United States and is one of the best penny stocks that are attracting the attention of Robinhood investors. As of October 27, Pineapple Energy Inc. has a 3-month average trading volume of over 6.6 million and has gained 19% over the past six months.
At the close of Q2 2022, 3 hedge funds held stakes in Pineapple Energy Inc.. The total value of these stakes amounted to $792,000. This is compared to 1 hedge fund in the previous quarter with stakes worth $892,000.
7. CleanSpark, Inc. (NASDAQ:CLSK)
Share Price as of October 27: $3.71
Number of Hedge Fund Holders: 5
CleanSpark, Inc. (NASDAQ:CLSK) is a technology company that provides advanced energy software and bitcoin mining solutions. The company’s software allows customers to optimize energy use and control their energy costs. On October 25, CleanSpark, Inc. announced that its bitcoin mining hash rate topped 5 EH/s, up 150% since January 2022. The company revised its year-end guidance to 5.5 EH/s and also said that it aims to meet its 2023 year-end guidance of 22.4 EH/s, which would make it rank among the world’s largest public bitcoin mining companies.
CleanSpark, Inc. is gaining popularity among Robinhood investors and is one of the best penny stocks to buy now. As of October 27, the stock has a 3-month average trading volume of over 2.6 million. Over the past 3 months, two Wall Street analysts have given Buy ratings on CleanSpark, Inc.. The stock has an average price target of $10.5, which implies an upside of 188% from current levels.
At the end of Q2 2022, 5 hedge funds were eager on CleanSpark, Inc. and held stakes worth $3.4 million in the company. Of those, Intrinsic Edge Capital was the top shareholder and disclosed stakes of $1.68 million in the company.
6. PDS Biotechnology Corporation (NASDAQ:PDSB)
Share Price as of October 27: $5.10
Number of Hedge Fund Holders: 6
PDS Biotechnology Corporation (NASDAQ:PDSB) is a clinical-stage immunotherapy company. The company is involved in developing and commercializing its proprietary immunotherapy and drug delivery platform technologies for the treatment of cancer. The stock has come to the attention of Robinhood investors and is ranked high among the best penny stocks to buy now. The stock has a 3-month average trading volume of over 250,000.
Over the past 3 months, PDS Biotechnology Corporation has received 5 Buy ratings from Wall Street analysts and has a consensus Strong Buy rating. The stock’s average price target sits at $18 and represents an upside of 252% from current levels.
At the close of Q2 2022, 6 hedge funds disclosed ownership of stakes in PDS Biotechnology Corporation. These funds held collective stakes of $4.4 million in the company. As of June 30, Two Sigma Advisors is the most prominent shareholder in PDS Biotechnology Corporation and has stakes worth $1.98 million in the company.
While PDS Biotechnology Corporation has a long way to go and may experience excessive volatility, for investors that want to park cash in stable and less volatile stocks, some of the best options are Microsoft Corporation, The Coca-Cola Company, and Johnson & Johnson.
5. SelectQuote, Inc. (NYSE:SLQT)
Share Price as of October 27: $0.57
Number of Hedge Fund Holders: 9
SelectQuote Inc. (NYSE:SLQT) provides various insurance products in the United States. The company has three business divisions: Senior, Life, and Auto & Home. The stock is trending on Robinhood and is among the best penny stocks to buy now. As of October 27, SelectQuote, Inc. has a 3-month average trading volume of 3.4 million.
Wall Street analysts are also watching SelectQuote, Inc.. This August, Citi analyst Daniel Grosslight revised his price target on SelectQuote, Inc. to $1.50 from $2.75 and reiterated a Neutral rating on the shares. On August 30, RBC Capital analyst Ben Hendrix adjusted his price target on SelectQuote, Inc. to $2 from $3 and maintained a Sector Perform rating on the shares. The stock’s average price target sits at $1.75 and implies an upside of 211.5% from current levels.
At the end of Q2 2022, 9 hedge funds disclosed having stakes in SelectQuote, Inc.. These funds held collective stakes of $87 million in the company. As of June 30, Kynam Capital Management is the leading shareholder in SelectQuote, Inc. and has stakes worth $43.8 million in the company.
4. Canopy Growth Corporation (NYSE:CGC)
Share Price as of October 27: $3.10
Number of Hedge Fund Holders: 10
Canopy Growth Corporation (NYSE:CGC) is a leading cannabis company with operations across the globe. The company has a diversified product portfolio and a strong presence in key markets, including Canada, the United States, and Europe. The company is well-positioned to capitalize on the growing global demand for legal cannabis products with its industry-leading brands, including Tweed and Spectrum Therapeutics. Canopy Growth Corporation is rising in popularity among Robinhood investors and, as of October 27, the stock has a 3-month average trading volume of 13.1 million. The stock ranks high among the best penny stocks to buy now.
On October 26, Canaccord analyst Matt Bottomley raised his price target on Canopy Growth Corporation to $4.25 from $2.75 and upgraded the stock to Hold from Sell. This October, Alliance Global Partners analyst Aaron Grey raised his price target on Canopy Growth Corporation to C$4 from C$3.50 and reiterated a Neutral rating on the shares.
At the close of Q2 2022, 10 hedge funds were long Canopy Growth Corporation and held stakes worth $21 million in the company. Of those, Millennium Management is the top investor in the company and has stakes worth $8.98 million.
3. Taysha Gene Therapies, Inc. (NASDAQ:TSHA)
Share Price as of October 27: $1.82
Number of Hedge Fund Holders: 13
Taysha Gene Therapies, Inc. (NASDAQ:TSHA) is a clinical-stage gene therapy company that is involved in the development and commercialization of gene therapies for the treatment of monogenic central nervous system disorders. On August 11, Taysha Gene Therapies, Inc. announced that it has cash and cash equivalents of $66.2 million and can continue to fund its operating expenses into the fourth quarter of 2023. The stock is one of the best penny stocks to buy now.
This August, Wedbush analyst Laura Chico revised her price target on Taysha Gene Therapies, Inc. to $5 from $9 and maintained an Outperform rating on the shares. On October 26, Baird analyst Jack Allen adjusted his price target on Taysha Gene Therapies, Inc. to $21 from $26 and reiterated an Outperform rating on the shares.
At the end of Q2 2022, 13 hedge funds held stakes in Taysha Gene Therapies, Inc.. The total value of these stakes amounted to $14.7 million. This is compared to 10 positions in the previous quarter with stakes worth $17.7 million. As of June 30, Nantahala Capital Management is the largest investor in Taysha Gene Therapies, Inc. and has stakes of $6.1 million in the company.
2. Tilray, Inc. (NASDAQ:TLRY)
Share Price as of October 27: $3.58
Number of Hedge Fund Holders: 14
Tilray, Inc. (NASDAQ:TLRY) is a leading global provider of cannabis and cannabinoids, serving consumers in Canada, the United States, Europe, the Middle East, and Africa. The company is dedicated to advancing the science of medical cannabis and to making it accessible to patients in need around the world. Tilray, Inc. has a strong portfolio of products and brands and is well-positioned to capitalize on the growing global demand for medical cannabis and CBD products. The stock ranks high among the best penny stocks to buy now.
Tilray, Inc. is creating a lot of buzz on Wall Street and has come to the attention of analysts. Over the past 3 months, Tilray, Inc. has received 2 Buy ratings and 4 Hold ratings from Wall Street analysts. As of October 27, the stock has a 3-month average trading volume of 24 million.
At the close of Q2 2022, 14 hedge funds were long Tilray, Inc. and held stakes worth $12.5 million in the company. Of those, Citadel Investment Group was the most prominent investor in the company and disclosed a stake of $5.3 million.
1. Immunic, Inc. (NASDAQ:IMUX)
Share Price as of October 27: $1.84
Number of Hedge Fund Holders: 15
Immunic, Inc. (NASDAQ:IMUX) is a clinical-stage biopharmaceutical company that focuses on the development of oral therapies for the treatment of chronic inflammatory and autoimmune diseases. Immunic, Inc. is trending on Robinhood and has a 3-month average trading volume of 3.2 million, as of October 27. The stock is ranked among the best penny stocks to buy now.
Immunic, Inc. has come to the attention of institutional investors, Wall Street analysts, and retail investors. On September 19, H.C. Wainwright analyst Gobind Singh took coverage of Immunic, Inc. with a Buy rating and a $26 price target. Over the past 3 months, the stock has received 3 Buy ratings and 1 Hold rating from Wall Street analysts. The stock’s average price target sits at $18.25 and implies an upside of 914% from current levels. On October 24, Steve Cohen’s Point72 Asset Management disclosed that it owns roughly 1.91 million shares of Immunic, Inc., which represents a 4.9% stake in the company.
At the end of Q2 2022, 15 hedge funds were bullish on Immunic, Inc. and held stakes worth $20 million in the company.
You can also take a look at 10 Best TSX Stocks To Buy and 10 Best International Dividend Stocks To Buy.
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This article is originally published at Insider Monkey.
