In this article, we will take a look at some of the best fundamentally strong penny stocks to buy right now.
We often hear that price doesn’t determine the value, and experience says that this is true, particularly in the case of stocks. But the real magic happens when high value is combined with low price.
Penny stock, as the name suggests, is a company’s share that is trading at a very low price, typically under $5. History has shown time and again that these stocks have performed quite well. From speculative trading gains to having more room to grow, what these stocks offer is a chance to get in early on emerging companies.
Betting on penny stocks requires the investor to be wise enough to differentiate between a good and a bad investment. As quoted in the 24th Australasian Finance and Banking Conference 2011 Paper,
“The trading strategies that buying small or value penny stocks and short selling large or growth penny stocks do make considerable abnormal profits both over short- and long-term holding periods, even after all of the risk factors are controlled for.”
Given this, we will take a look at some of the best penny stocks to invest in.
Our Methodology
We have compiled a list of the 12 best fundamentally strong penny stocks to buy right now. Using Finviz screener, we filtered for stocks trading under $5 that have an over 5% EPS growth over the past 5 years. Additionally, we targeted those stocks that have a positive sales growth over the past 5 years and EPS growth over the next 5 years. These are then ranked in ascending order according to their upside potential, calculated using one-year price targets by Yahoo Finance.
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).
12. Quipt Home Medical Corp. (NASDAQ:QIPT)
Upside Potential as of September 19, 2025: 31.39%
During the first quarter, Nuveen LLC acquired a new stake in Quipt Home Medical Corp. (NASDAQ:QIPT) through the purchase of 150,046 shares, valued at approximately $350,000. According to the recent disclosure with the SEC, the global asset management firm now owns nearly 0.35% of the company.
We already know that Quipt Home Medical Corp. (NASDAQ:QIPT) is fueling its growth engine through strategic partnerships. The company recently announced the completion of its previously planned venture transaction with three key health systems and two hospitals.
The $17.4 million acquisition of Hart Medical Equipment (“Hart”) translates to the company’s ownership interest of 60%, with the remaining jointly owned by Henry Ford Health, McLaren Health Care, Blanchard Valley Health System, Wood County Hospital, and The Bellevue Hospital. Collaborations like this one have dual impacts. While they bring stabilized revenue and adjusted EBITDA, such initiatives are crucial for a deep pipeline of additional opportunities.
Quipt Home Medical Corp. (NASDAQ:QIPT) is a Kentucky-based company that provides durable and home medical equipment and supplies. With a commitment to delivering high-quality home care for patients, the company specializes in nebulizers, invasive ventilation, and home medical equipment.
11. MDxHealth SA (NASDAQ:MDXH)
Upside Potential as of September 19, 2025: 45.99%
On September 15, 2025, MDxHealth SA (NASDAQ:MDXH) announced the completion of its acquisition of Bio-Techne Corporation’s ExoDx business, including the ExoDx Prostate test. This $15 million transaction is part of the company’s plan to strengthen its precision diagnostics portfolio.
Earlier on August 5, 2025, MDxHealth SA (NASDAQ:MDXH) signed a definitive agreement for the takeover with payment structured over the next few years. Under the terms, $5 million in stock will be paid at closing, while $2.5 million will be paid annually in the course of four years, half in cash and half in either cash or stock, at the company’s discretion.
Overall, MDxHealth SA (NASDAQ:MDXH) offers a diverse range of precision diagnostics, targeting all stages of prostate cancer and advanced UTI detection, a market worth $4.9 billion in itself. Despite potential competition from big names, the company’s “sticky adoption” is an incredibly bullish hint.
MDxHealth SA (NASDAQ:MDXH), headquartered in Herstal, Belgium, is a commercial-stage precision diagnostics company that offers Select mdx, Confirm mdx, and Resolve mdx. Incorporated in 2003, the company is committed to improving patient care and healthcare economics.
10. Butterfly Network, Inc. (NYSE:BFLY)
Upside Potential as of September 19, 2025: 71.35%
In the first quarter, Acadian Asset Management LLC raised its position in Butterfly Network, Inc. (NYSE:BFLY) by a whopping 270.5%. Following the purchase of 1,167,055 shares, the institutional investor now owns 1,598,552 shares of the company’s stock. With an ownership of 0.65%, the firm’s investment is worth $3,642,000.
During its latest earnings call, the management highlighted that the second quarter marked the highest quarterly revenue for Butterfly Network, Inc. (NYSE:BFLY), with gross margins reaching an all-time high at 64%. What investors eye most is the company’s recent large-scale enterprise-wide collaboration with one of the top 5 leading health systems globally.
It doesn’t stop there. Analysts, too, remain bullish on Butterfly Network, Inc. (NYSE:BFLY). TD Cowen has reiterated its ‘Buy’ rating on the stock, with a price target of $3.50. This optimism stems from the results of the POCUS-CARE trial, which highlighted that the company’s iQ3 handheld ultrasound device can significantly reduce hospital expenses and patient stays.
Butterfly Network, Inc. (NYSE:BFLY) is a Massachusetts-based company that develops and commercializes ultrasound imaging solutions. Founded in 2011, the company is committed to contributing to global health.
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