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.

9. InspireMD, Inc. (NASDAQ:NSPR)

Upside Potential as of September 19, 2025: 83.67%

According to the latest filing with the SEC, Parkman Healthcare Partners LLC has increased its position in InspireMD, Inc. (NASDAQ:NSPR) by 37.1% during the first quarter. Following the purchase of 316,700 shares, the institutional investor now owns 1,171,416 shares of the company’s stock, which translates to an ownership of nearly 3.82%.

Powered by a clear procedure-agnostic strategy, InspireMD, Inc. (NASDAQ:NSPR) is the first company to invest in the broadest toolkit of carotid procedures, strengthening not only carotid artery stenting, commonly known as CAS, but also transcarotid artery revascularization, known as TCAR.

The company’s ongoing hiring plans aren’t something hidden. With a stellar team of sales and clinical support specialists, InspireMD, Inc. (NASDAQ:NSPR) has already begun to see its engagement enhanced and market position strengthened. A testament to this is the company’s recent appointment of Mike Lawless as the new CFO, who brings decades of financial stewardship and a strong commitment to InspireMD’s mission.

InspireMD, Inc. (NASDAQ:NSPR) is a Florida-based medical device company that develops and commercializes treatments for carotid artery and other vascular diseases. The core offerings of this company include CGuard carotid embolic prevention system (EPS), CGuard Prime Stent System, and SwitchGuard neuroprotection system.

8. Bragg Gaming Group Inc. (NASDAQ:BRAG)

Upside Potential as of September 19, 2025: 117.99%

Mcfadgen, an analyst at Cormark, has reduced the FY2025 EPS guidance for Bragg Gaming Group Inc. (NASDAQ:BRAG) from a loss of $0.08 to $0.23. The company’s consensus estimate for full-year earnings stands at ($0.14) per share.

Although the market sentiment is currently bearish, Bragg Gaming Group Inc. (NASDAQ:BRAG) has some positives that are often overlooked. A major takeaway is the company’s business model, which alone has the potential to facilitate expansion in the US and other markets at a low incremental cost.

To say the least, Bragg Gaming Group Inc. (NASDAQ:BRAG) is poised to deliver double-digit revenue growth, together with solid margins, in the years ahead. This potential acceleration is fueled by progress in proprietary content. As expressed by the CEO, Matevz Mazij,

“I am pleased with the way we’re making significant strides in the proprietary space. Our strategy to diversify and expand in growth markets in a margin-accretive way is working, and we are confident in our ability to keep building momentum.”

Bragg Gaming Group Inc. (NASDAQ:BRAG) is a Canadian iGaming content and technology solutions provider offering services to online and land-based gaming operators. The company’s core products include games, studios, proprietary content, and sportsbook technology.

7. LiveOne, Inc. (NASDAQ:LVO)

Upside Potential as of September 19, 2025: 240.01%

Sean McGowan, an analyst at Roth Capital, has reaffirmed his ‘Buy’ rating on LiveOne, Inc. (NASDAQ:LVO), while reducing the price target to $1.30 from $1.50, implying a potential upside of nearly 143% from the current level. Despite a 13.33% decline in the guidance, the analyst remains confident about the company’s performance.

Just recently, LiveOne, Inc. (NASDAQ:LVO) revised its previously authorized $12 million stock repurchase program. According to the announcement, senior executives, directed by Robert Ellin, chairman and CEO, are set to purchase as many as 5 million shares. As expressed by Ellin,

“We believe our stock remains significantly undervalued, and this commitment reflects our strong confidence in LiveOne’s growth trajectory and long-term value.”

What’s truly interesting about LiveOne, Inc. (NASDAQ:LVO) is its strategic partnerships and financial resilience. During its earnings call, the management highlighted its collaboration with a Fortune 500 giant that has the potential to surpass 30 million paying subscribers, on track to outshine the previous Tesla deal.

LiveOne, Inc. (NASDAQ:LVO) is a California-based digital media company operating through three segments: PodcastOne, Slacker, and Media Group. Founded in 2009, the company is committed to becoming an “all-in-one” destination for media consumers.

6. Aclaris Therapeutics, Inc. (NASDAQ:ACRS)

Upside Potential as of September 19, 2025: 311.5%

According to the recent Form 13F filing with the SEC, Acadian Asset Management LLC expanded its holdings in Aclaris Therapeutics, Inc. (NASDAQ:ACRS) by 25.9% in the first quarter. With the purchase of 451,044 shares, the investment manager now owns 2,195,191 shares of the company’s stock, representing an ownership stake of 2.03%.

Despite the company’s history of failures, Aclaris Therapeutics, Inc. (NASDAQ:ACRS) appears to be on the right track for future success. Just recently, the company announced that new data from its Phase 2a trial of ATI-2138 for atopic dermatitis will be highlighted as a late-breaking abstract at the 2025 EADV Congress in Paris.

ATI-2138, a leading selective oral covalent inhibitor of ITK and JAK3, serves as a solution for moderate to severe atopic dermatitis. The session, delivered by Dr. Jessica Beaziz-Tordjman, covered the drug’s effectiveness in treating the condition.

Aclaris Therapeutics, Inc. (NASDAQ:ACRS) is a Pennsylvania-based clinical-stage biopharmaceutical company that develops novel drug candidates targeting immune-inflammatory diseases. Incorporated in 2012, the company operates through two segments: Therapeutics and Contract Research.

5. Adverum Biotechnologies, Inc. (NASDAQ:ADVM)

Upside Potential as of September 19, 2025: 418.7%

During the first quarter, Trexquant Investment LP reduced its stake in Adverum Biotechnologies, Inc. (NASDAQ:ADVM) by 80.5%. Following the offload of 77,303 shares, the institutional investor now owns 18,694 shares of the company’s stock, valued at approximately $82,000. According to the recent 13F filing with the SEC, the firm has an ownership of 0.09%.

Last month, Adverum Biotechnologies, Inc. (NASDAQ:ADVM) announced its financial results, highlighting its pipelines and future plans. The management revealed impressive advancement in the ARTEMIS Phase 3 trial, with enrollment fueled by growing enthusiasm from retina specialists and patients. The company seems to be well ahead of schedule, and as momentum grows, strategic partnership talks continue to build.

As the senior executive stated,

“This progress, along with increasing recognition of Ixo-vec’s potential as a best-in-class therapy, supports our active and ongoing partnering discussions. We are also excited about the recent vote of confidence from Frazier Life Sciences, one of our largest investors.”

Adverum Biotechnologies, Inc. (NASDAQ: ADVM), based in Redwood City, California, and incorporated in 2006, is a clinical-stage company that focuses on gene therapy product candidates for ocular diseases.

4. Bionano Genomics, Inc. (NASDAQ:BNGO)

Upside Potential as of September 19, 2025: 430.73%

Bionano Genomics, Inc. (NASDAQ: BNGO) has launched a public offering of 5 million shares, priced at $2.00 per share. This offering of both Series E and short-term Series F warrants is anticipated to generate $10 million in gross proceeds. If the warrants are fully exercised, the company could raise an additional $20 million.

Intended to support general corporate needs, these funds will provide a solid foundation for Bionano Genomics, Inc. (NASDAQ:BNGO). The company’s plans to expand into clinical and anatomic pathology aren’t something hidden. While emphasizing routine users of the company’s optical genome mapping (OGM) and VIA software across new instrument placements, the strategic efforts of September 2024 have already started to bear fruit.

What’s truly noteworthy is the strategy that Bionano Genomics, Inc. (NASDAQ:BNGO) has adopted. The company is now focused on enhancing utilization among routine users, strengthening the already installed base, accelerating VIA adoption, and developing reimbursement support for OGM. It plans to do so to expand profits and reduce costs.

Bionano Genomics, Inc. (NASDAQ: BNGO), based in San Diego, California, is a provider of genome analysis solutions. Founded in 2003, the company is dedicated to transforming the world’s view of the genome.

3. Dyadic International, Inc. (NASDAQ:DYAI)

Upside Potential as of September 19, 2025: 554.21%

Analysts at Craig-Hallum have started coverage on Dyadic International, Inc. (NASDAQ:DYAI) with a ‘Buy’ rating and a price target of $5.00, reflecting an upside potential of nearly 405.7%. The research firm highlights the company’s strategic focus on commercializing its proprietary C1-cell protein production platform and Dapibus platforms following four long years of dedicated research and development.

The company previously focused on utilizing its technology to accelerate vaccine development more quickly and cost-effectively, but it has now transitioned toward commercial applications. The outcome of this step is what the firm calls “already bearing fruit” for Dyadic International, Inc. (NASDAQ:DYAI). What’s even more interesting is that the company could realize $100 million in monetary gains over the next five years.

The management, too, has high hopes for the future. During the latest earnings call, Joseph P. Hazelton, President & COO, highlighted that Dyadic International, Inc. (NASDAQ:DYAI) has reached a commercial inflection point, positioning itself to compete and win in these markets. With its partnerships, we can certainly conclude that while many companies plan big but fail to execute successfully, this one proves otherwise.

Dyadic International, Inc. (NASDAQ:DYAI) is a Florida-based biotechnology platform company that specializes in industrial enzymes and other proteins. Incorporated in 1979, the company is committed to revolutionizing biotechnology.

2. Jaguar Health, Inc. (NASDAQ:JAGX)

Upside Potential as of September 19, 2025: 1405.38%

On September 9, 2025, Jaguar Health, Inc. (NASDAQ:JAGX) signed securities purchase agreements with some investors for the issuance and sale of nearly 951 shares of Series N Perpetual Preferred Stock. The funds from this $2.38 million private placement transaction will be allocated to working capital, general corporate purposes, and repayment of certain existing notes.

The year 2025 marked a pivotal year of convergence for Jaguar Health, Inc. (NASDAQ:JAGX). During its latest earnings call, management highlighted an intersection of clinical and regulatory catalysts that could prove transformative for the company. With a clear strategy to pursue business development partnerships for licensed rights, the company is committed to achieving the impossible.

What’s even more interesting is that Jaguar Health, Inc. (NASDAQ:JAGX) is now enhancing its product portfolio by supporting investigator-initiated trials in adult patients living with short bowel syndrome and intestinal failure. While patient treatment has already begun, results aren’t expected until 2026.

Jaguar Health, Inc. (NASDAQ:JAGX), headquartered in San Francisco, California, is a commercial-stage pharmaceuticals company specializing in plant-based prescription medicines for people and animals suffering from gastrointestinal distress. The company operates through two segments: Animal Health and Human Health.

1. AIM ImmunoTech Inc. (NYSEAMERICAN:AIM)

Upside Potential as of September 19, 2025: 2,811%

Jason McCarthy, an analyst at Maxim Group, initiated coverage on AIM ImmunoTech Inc. (NYSEAMERICAN:AIM) with a ‘Buy’ rating and $6.00 price target. This implies a potential upside of nearly 133%.

Earlier this month, AIM ImmunoTech Inc. (NYSEAMERICAN:AIM) shared the positive progress from its Ampligen clinical program in pancreatic cancer at the 5th Annual Marie Sklodowska-Curie Symposium on Cancer Research and Care, hosted at Poland’s National Institute of Oncology.

The management outlined data from the company’s pancreatic cancer Early Access Program, along with recent developments in the Phase 2 DURIPANC pancreatic cancer clinical trial, which is currently being conducted at Erasmus University Medical Center, located in the Netherlands.

As stated by CEO Thomas K. Equels,

“Ampligen continues to demonstrate its potential for the treatment of late-stage metastatic and locally advanced pancreatic cancer. Our growing body of positive data continues to bolster our confidence. This lethal malignancy is a high unmet need.”

AIM ImmunoTech Inc. (NYSEAMERICAN:AIM), headquartered in Ocala, Florida, is an immuno-pharma company that researches and develops solutions for various types of cancers, viral diseases, and immune deficiency disorders.

READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.

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 address below.