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12 Best American Penny Stocks to Buy Right Now

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The S&P 500 is set to outperform the Russell 2000 in annual performance for the 10th time over the past 12 years. During this time, the broad market index, the S&P 500, has made more than twice the gains of the smaller-cap Russell 2000.

As of November 6, the S&P 500 has gained 14.51% year-to-date. In comparison, the Russell 2000 has gained only 8.39%.

In September 2025, Jordan Irving, a small-cap portfolio manager at Glenmede Investment Management, said:

“They have underperformed relative to large caps for eons … so you get to a point where the bar to clear is pretty darn low.”

Irving also used forward price-to-earnings estimates and highlighted that the profit-generating companies in the Russell 2000 are trading at a significant discount compared to the S&P 500.

Mark Hackett, chief market strategist at Nationwide, said:

“We’re now going to see growth rates next year faster for small caps than large caps.”

The performance of small-cap companies is closely linked to the economy. According to Mark Luschini, chief investment strategist at Janney Montgomery Scott, smaller companies can be more affected by domestic growth than big multinational firms.

However, in August 2025, strategists at the Wells Fargo Investment Institute downgraded US small-cap stocks to “unfavorable.” They believe that economic growth won’t be strong enough to help small caps outperform large caps in 2026.

With this background in mind, let’s take a look at the 12 best American penny stocks to buy right now.

Image: Depositphotos

Our Methodology

To compile our list of the 12 best American penny stocks to buy right now, we used the Finviz stock screener to find stocks with a share price of under $5 as of November 6, 2025. We sorted our results based on market capitalization and picked the 30 largest American stocks. Next, we focused on the top 12 stocks most favored by institutional investors. Data for the hedge fund sentiment surrounding each stock was taken from Insider Monkey’s Q2 2025 database of 983 elite hedge funds. Finally, the 12 best American penny stocks to buy were ranked in ascending order based on the number of hedge funds holding stakes in them as of Q2 2025.

Why do we care about what hedge funds do? 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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).

12 Best American Penny Stocks to Buy Right Now

12. Plug Power Inc. (NASDAQ:PLUG)

Share Price: $2.51

Number of Hedge Fund Holders: 23

Plug Power Inc. (NASDAQ:PLUG) is one of the best American penny stocks to buy right now. On October 30, Plug Power Inc. (NASDAQ:PLUG) shared that it signed a binding supply agreement with Allied Biofuels FE LLC (ABF) for up to 2 gigawatts (GW) of GenEco PEM electrolyzer systems.

This deal will help ABF develop sustainable aviation fuel (SAF), electro-sustainable aviation fuel (eSAF), and green diesel. According to the report by Plug Power Inc. (NASDAQ:PLUG), the final investment decision is expected in the fourth quarter of 2026.

Previously, Plug Power Inc. (NASDAQ:PLUG) partnered with Allied Green Ammonia in Australia for 3 GW. With this new supply agreement for 2 GW with ABF, the total contracted electrolyzer capacity between Plug Power Inc. (NASDAQ:PLUG) and its Allied partners has now reached 5 GW.

The company’s technology will be used at ABF’s sustainable aviation fuel (SAF) and electro-sustainable aviation fuel (eSAF) plant in Uzbekistan, a strategically chosen site that can serve global sustainable fuel markets.

Plug Power Inc. (NASDAQ:PLUG) is a global company specializing in hydrogen fuel-supply solutions. It provides electrolyzers, liquid hydrogen, fuel cell systems, storage tanks, and fueling infrastructure to various industries, including material handling, industrial applications, and energy producers.

11. Bit Digital, Inc. (NASDAQ:BTBT)

Share Price: $3.03

Number of Hedge Fund Holders: 27

Bit Digital, Inc. (NASDAQ:BTBT) is one of the best American penny stocks to buy right now. On October 31, Bit Digital, Inc. (NASDAQ:BTBT) shared its preliminary financial estimates for the third quarter ended September 30, 2025. These estimates were included in a filing with the Securities and Exchange Commission (SEC).

According to the filing, Bit Digital, Inc. (NASDAQ:BTBT) expects its preliminary unaudited revenue for the quarter ending September 30, 2025, to be between $28.9 million and $32.0 million. The cost of revenue, excluding depreciation, is expected to be between $11.5 million and $12.7 million. Additionally, the company expects cash and cash equivalents as of September 30, 2025, to range from $173.7 million to $184.5 million.

Bit Digital, Inc. (NASDAQ:BTBT) pointed out that these preliminary numbers are based on information that is currently available and are subject to the completion of the financial closing process. The actual results for the third quarter may differ from these preliminary estimates.

Previously, on October 7, Bit Digital, Inc. (NASDAQ:BTBT) also announced that it had acquired 653 Ethereum during the month of September 2025. The total average Ethereum acquisition price for all holdings as of September 30, 2025, was $2,643.27.

Bit Digital, Inc. (NASDAQ:BTBT) is a digital asset platform company that focuses on Ethereum-native treasury and staking strategies. It operates one of the largest Ethereum staking infrastructures in the world.

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The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

The best part? You can discover everything about this company and its groundbreaking technology right now.

I’ve compiled everything you need to know about this groundbreaking company in a detailed, members-only report.

Trust me — you’ll want to read this report before putting another dollar into any tech stock.

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Wall Street calls this $3 stock a “Melting Ice Cube.” They said the same thing about BTI before it returned 90%.

Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

My name is Inan Dogan. I’m the co-founder and Research Director of Insider Monkey. I have an important message for you today.

Since March 2017, my stock picks have returned 16.5% annually. Today, I’ve found an opportunity even bigger than my British American Tobacco call.

Two years ago, Wall Street wrote off British American Tobacco (BTI) as a “melting ice cube.” The stock had crashed 40% from its peak, and consensus said the business was dying.

We looked under the cover and realized they were wrong.

We alerted our subscribers, and BTI returned 90% in just 16 months.

Now if you had invested just $10,000 in BTI in June 2024, you’d be sitting on $19,000 in October 2025.

Today, we have identified a nearly identical pattern in a digital-first giant trading at $3.

While the market panics over a surface-level revenue decline, our PhD-led research shows management has actually surgically cut $100 million in waste to focus on high-margin growth.

This pattern is a hallmark of our 16.5% annual return track record. The current opportunity offers a 400% upside potential—dwarfing even our 90% BTI return.

Get the ticker for our new “Underdog” pick and the full BTI case study for just 99 cents.

This exclusive offer is for NEW newsletter subscribers ONLY! Join our Premium Readership Newsletter for only $0.99 and become part of a savvy investor community.!

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Regular price $9.99/mo. Cancel anytime.

Space is Limited! Only 1000 spots are available for this exclusive offer. Don’t let this chance slip away – subscribe to our Premium Readership Newsletter today and unlock the potential for a life-changing investment.

Here’s what to do next:

1. Head over to our website and subscribe to our Premium Readership Newsletter for just $0.99.

2. Enjoy a month of ad-free browsing, exclusive access to our in-depth report on the Trump tariff and nuclear energy company as well as the revolutionary AI-robotics company, and the upcoming issues of our Premium Readership Newsletter.

3. Sit back, relax, and know that you’re backed by our ironclad 30-day money-back guarantee.

Don’t miss out on this incredible opportunity! Subscribe now and take control of your AI investment future!

Regular price $9.99/mo. Cancel anytime.