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12 Best NYSE Penny Stocks To Buy

In this article, we will take a detailed look at the 12 Best NYSE Penny Stocks To Buy. For a quick overview of such stocks, read our article 5 Best NYSE Penny Stocks To Buy.

Markets wavered as latest data showed inflation in January 2024 was hotter-than-expected. But many analysts believe the markets overreacted as a single month’s data can only delay the Fed’s planned rate cuts for 2024. UBS Global Wealth Management on February 20 said it expects the Federal Reserve to begin cutting rates in June instead of May. UBS expects the first rate cut to be of 25 basis points.

“Given the upside surprises to both payrolls and inflation, we now expect the Fed to wait a bit longer before cutting rates,” UBS economists said in a note.

UBS is expecting 75 bps of cuts in 2024, lower than its previous estimate of 100 bps cuts.

The era of elevated interest rates might be prolonged amid a resilient labor market and stubborn inflation but sooner or later the Fed will begin to cut rates. That means good times might be coming for small-cap stocks or risky equities, including penny stocks, which have hitherto suffered as investors’ shunned smaller companies to find refuge in high quality stocks like Apple Inc (NASDAQ:AAPL), Amazon.com Inc (NASDAQ:AMZN) and NVIDIA Corp (NASDAQ:NVDA). Historical data showed small-cap stocks perform exceptionally well in the first 12 months of the Fed’s first rate cut.

Lord Abbett in its December 2023 report took a detailed look at what the private investment management company called a dovish “pivot” of the Federal Reserve where it hinted that its interest rate cycle might have peaked. The Lord Abbett report also said small-cap companies perform well during rate cuts.

“Currently, in fixed income, we find the short duration space to be attractive and underallocated. A “bull-steepening” environment, like what we’ve seen when the Fed turns dovish on policy, favors short duration. At the same time, the normalized rate environment can make active, opportunistic credit an attractive diversifier with expected returns at current yields rivaling equities. Equities, particularly small caps, historically have done very well when inflation falls and in Fed rate-cut cycles while growth equities have done well when growth slows. Finally, a more normalized rate environment means less of the “financing for everyone” that was prevalent in the zero-interest-rate era. Going forward, quality companies with greater financial strength should be able to differentiate in terms of financial performance and demand a premium. All in all, the Fed’s dovish December pivot shocked the markets and set the table for better performance by risk assets in 2024. What a difference a week can make,” the report added.

Image: Depositphotos

Methodology

For this article we first used a stock screener to identify NYSE stocks trading under $5. From the resultant data set we picked 12 penny stocks with the highest number of hedge fund investors. Hedge funds’ top 10 consensus stock picks outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here).

12. Ginkgo Bioworks Holdings Inc (NYSE:DNA)

Number of Hedge Fund Investors: 20

While Ginkgo Bioworks Holdings Inc (NYSE:DNA) shares have lost about 42% over the past one year, 20 hedge funds tracked by Insider Monkey had stakes in Ginkgo Bioworks Holdings Inc (NYSE:DNA) as of the end of the third quarter.

According to Yahoo Finance data the stock’s one-year average price estimate is $3.08 while its stock price as of February 3 was $1.25. This shows the stock has an upside potential of 146%.

Ginkgo is a small company and unlike stocks like Apple Inc (NASDAQ:AAPL), Amazon.com Inc (NASDAQ:AMZN) and NVIDIA Corp (NASDAQ:NVDA), which are highly popular among hedge funds, this stock does not have a high number of hedge fund investors.

11. E2open Parent Holdings Inc (NYSE:ETWO)

Number of Hedge Fund Investors: 20

Supply chain management platform company E2open Parent Holdings Inc (NYSE:ETWO) ranks 11th in our list of the best NYSE penny stocks to buy according to hedge funds. Earlier this month E2open Parent Holdings Inc (NYSE:ETWO) posted fiscal third quarter results. Adjusted EPS in the period came in at $0.04, meeting estimates. Revenue fell 5.2% year over year to $156.4 million, beating estimates by $2.14 million.

Out of the 910 funds tracked by Insider Monkey, 20 funds had stakes in E2open Parent Holdings Inc (NYSE:ETWO). The biggest hedge fund stakeholder of E2open Parent Holdings Inc (NYSE:ETWO) during this period was Snehal Amin’s Windacre Partnership which owns a $131 million stake in E2open Parent Holdings Inc (NYSE:ETWO).

Liberty Park Capital made the following comment about E2open Parent Holdings, Inc. (NYSE:ETWO) in its Q2 2023 investor letter:

“E2open Parent Holdings, Inc. (NYSE:ETWO) reported much lower-than-expected forward guidance when it announced its fiscal 2023 results. Given the tailwinds that other supply chain software companies are taking advantage of, we lost confidence in the company’s current ability to execute and closed the position. We continue to view the supply chain software space favorably and would consider revisiting the stock in the future.”

10. Nextdoor Holdings Inc (NYSE:KIND)

Number of Hedge Fund Investors: 21

Hyperlocal social networking platform company Nextdoor Holdings Inc (NYSE:KIND) ranks tenth in our list of the best NYSE penny stocks to buy according to hedge funds. In November last year Nextdoor Holdings Inc (NYSE:KIND) announced a cost reduction plan which included layoffs affecting 25% of its workforce. Nextdoor Holdings Inc (NYSE:KIND) also said its CFO was departing.

As of the end of the third quarter of 2023, 21 hedge funds out of the 910 funds tracked by Insider Monkey were long Nextdoor Holdings Inc (NYSE:KIND). The most notable stake in Nextdoor Holdings Inc (NYSE:KIND) is owned by Catherine D. Wood’s ARK Investment Management which owns a $13 million stake in Nextdoor Holdings Inc (NYSE:KIND).

9. Perimeter Solutions SA (NYSE:PRM)

Number of Hedge Fund Investors: 21

Perimeter Solutions SA (NYSE:PRM) was trading at $4.99 as of mid-day trading on February 3.

Of the 910 hedge funds in Insider Monkey’s database of elite money managers, 21 funds had stakes in the firefighting products and lubricant additives company Perimeter Solutions SA (NYSE:PRM).

Here is what Weitz Multi Cap Equity Fund has to say about Perimeter Solutions, SA (NYSE:PRM) in its Q3 2023 investor letter:

Perimeter Solutions, SA (NYSE:PRM), the leading provider of fire retardants and firefighting foam, experienced weakened quarterly results due to a decline in wildfire activity, particularly in its largest market, California. Acres burned this year have been significantly below average, diminishing cash flow and obscuring the company’s potential earnings power in a more typical year.”

8. Nerdy Inc (NYSE:NRDY)

Number of Hedge Fund Investors: 22

Online learning platform company Nerdy Inc (NYSE:NRDY) is one of the top penny stocks on the NYSE. As per Insider Monkey’s database of 910 hedge funds 22 funds had stakes in Nerdy Inc (NYSE:NRDY).

According to Nerdy Inc’s (NYSE:NRDY) third quarter results posted in November 2023, Nerdy Inc’s (NYSE:NRDY) revenue in the period jumped 26.7% year over year.

In addition to NRDY, hedge funds are also piling into Apple Inc (NASDAQ:AAPL), Amazon.com Inc (NASDAQ:AMZN) and NVIDIA Corp (NASDAQ:NVDA).

7. Archer Aviation Inc (NYSE:ACHR)

Number of Hedge Fund Investors: 22

eVTOL aircraft company Archer Aviation Inc (NYSE:ACHR) shares have gained about 56% over the past one year. It is one of the best NYSE penny stocks to buy according to hedge funds.

Last month Archer Aviation Inc (NYSE:ACHR) said it entered into a deal with NASA. The partnership will focus on studying high-performance battery cells and safety testing targeted for Advanced Air Mobility and space applications. NASA intends to test Archer Aviation Inc’s (NYSE:ACHR) battery cell and system design and share the results to push the entire Advanced Air Mobility industry forward.

As of the end of the third quarter of 2023, 22 hedge funds out of the 910 funds tracked by Insider Monkey were long Archer Aviation Inc (NYSE:ACHR).

In November, during its Q3 earnings call, the company talked about its long-term plans:

“I’m excited about our announcement earlier today that Archer and InterGlobe Enterprises, India’s foremost air travel and hospitality conglomerate, plan to launch an electric air taxi service together across India in 2026. Earlier this week in New Delhi, my team held a signing ceremony with Rahul Bhatia, the Group Managing Director of InterGlobe, to announce our plans to work with InterGlobe to bring safe, sustainable and low-noise electric air taxi services to some of the most highly populated cities in the world. As part of the initiative, we will work with InterGlobe to set up an entity and will work with select in-country business partners to operate Archer’s Aircraft, enhance and build vertiport infrastructure, and train pilots and other personnel needed for these operations.

InterGlobe and Archer also anticipate the purchase of up to 200 of our Midnight aircraft as we bring up operations. India is an incredibly important market for eVTOL, and it has the potential to be one of the largest in the world, with Delhi, Bengaluru and Mumbai being our initial focus where congestion costs cities over $22 billion annually. In these cities, traffic congestion contributes to 20% to 25% of the outdoor pollution, and I hope that Archer can be a part of reducing that over the next decade. I founded Archer to help give back time to millions of people and to make cities smarter, better, cleaner, more efficient places to live. Now that Midnight is flying and we are well along the pathway to commercialization, it’s clear that major cities around the world have the same goals as Archer does.”

Read the entire earnings call transcript here.

6. Baytex Energy Corp (NYSE:BTE)

Number of Hedge Fund Investors: 24

Canadian crude oil and natural gas company Baytex Energy Corp (NYSE:BTE) is one of the best NYSE penny stocks to buy according to smart money investors.

In December, Baytex Energy Corp (NYSE:BTE) said its board approved a FY 2024 budget for $1.2 billion -$1.3 billion in exploration and development spending. Baytex Energy Corp (NYSE:BTE) targets full-year production of 150K-156K boe/day.

As of the end of the third quarter of 2023, 24 hedge funds out of the 910 funds in Insider Monkey’s database of funds were long Baytex Energy Corp (NYSE:BTE).

Click to continue reading and see the 5 Best NYSE Penny Stocks To Buy.

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Disclosure. None. 12 Best NYSE Penny Stocks To Buy was initially published on Insider Monkey.

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

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.

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AI, Tariffs, Nuclear Power: One Undervalued Stock Connects ALL the Dots (Before It Explodes!)

Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!

AI is eating the world—and the machines behind it are ravenous.

Each ChatGPT query, each model update, each robotic breakthrough consumes massive amounts of energy. In fact, AI is already pushing global power grids to the brink.

Wall Street is pouring hundreds of billions into artificial intelligence—training smarter chatbots, automating industries, and building the digital future. But there’s one urgent question few are asking:

Where will all of that energy come from?

AI is the most electricity-hungry technology ever invented. Each data center powering large language models like ChatGPT consumes as much energy as a small city. And it’s about to get worse.

Even Sam Altman, the founder of OpenAI, issued a stark warning:

“The future of AI depends on an energy breakthrough.”

Elon Musk was even more blunt:

“AI will run out of electricity by next year.”

As the world chases faster, smarter machines, a hidden crisis is emerging behind the scenes. Power grids are strained. Electricity prices are rising. Utilities are scrambling to expand capacity.

And that’s where the real opportunity lies…

One little-known company—almost entirely overlooked by most AI investors—could be the ultimate backdoor play. It’s not a chipmaker. It’s not a cloud platform. But it might be the most important AI stock in the US owns critical energy infrastructure assets positioned to feed the coming AI energy spike.

As demand from AI data centers explodes, this company is gearing up to profit from the most valuable commodity in the digital age: electricity.

The “Toll Booth” Operator of the AI Energy Boom

  • It owns critical nuclear energy infrastructure assets, positioning it at the heart of America’s next-generation power strategy.
  • It’s one of the only global companies capable of executing large-scale, complex EPC (engineering, procurement, and construction) projects across oil, gas, renewable fuels, and industrial infrastructure.
  • It plays a pivotal role in U.S. LNG exportation—a sector about to explode under President Trump’s renewed “America First” energy doctrine.

Trump has made it clear: Europe and U.S. allies must buy American LNG.

And our company sits in the toll booth—collecting fees on every drop exported.

But that’s not all…

As Trump’s proposed tariffs push American manufacturers to bring their operations back home, this company will be first in line to rebuild, retrofit, and reengineer those facilities.

AI. Energy. Tariffs. Onshoring. This One Company Ties It All Together.

While the world is distracted by flashy AI tickers, a few smart investors are quietly scooping up shares of the one company powering it all from behind the scenes.

AI needs energy. Energy needs infrastructure.

And infrastructure needs a builder with experience, scale, and execution.

This company has its finger in every pie—and Wall Street is just starting to notice.

Wall Street is noticing this company also because it is quietly riding all of these tailwinds—without the sky-high valuation.

While most energy and utility firms are buried under mountains of debt and coughing up hefty interest payments just to appease bondholders…

This company is completely debt-free.

In fact, it’s sitting on a war chest of cash—equal to nearly one-third of its entire market cap.

It also owns a huge equity stake in another red-hot AI play, giving investors indirect exposure to multiple AI growth engines without paying a premium.

And here’s what the smart money has started whispering…

The Hedge Fund Secret That’s Starting to Leak Out

This stock is so off-the-radar, so absurdly undervalued, that some of the most secretive hedge fund managers in the world have begun pitching it at closed-door investment summits.

They’re sharing it quietly, away from the cameras, to rooms full of ultra-wealthy clients.

Why? Because excluding cash and investments, this company is trading at less than 7 times earnings.

And that’s for a business tied to:

  • The AI infrastructure supercycle
  • The onshoring boom driven by Trump-era tariffs
  • A surge in U.S. LNG exports
  • And a unique footprint in nuclear energy—the future of clean, reliable power

You simply won’t find another AI and energy stock this cheap… with this much upside.

This isn’t a hype stock. It’s not riding on hope.

It’s delivering real cash flows, owns critical infrastructure, and holds stakes in other major growth stories.

This is your chance to get in before the rockets take off!

Disruption is the New Name of the Game: Let’s face it, complacency breeds stagnation.

AI is the ultimate disruptor, and it’s shaking the foundations of traditional industries.

The companies that embrace AI will thrive, while the dinosaurs clinging to outdated methods will be left in the dust.

As an investor, you want to be on the side of the winners, and AI is the winning ticket.

The Talent Pool is Overflowing: The world’s brightest minds are flocking to AI.

From computer scientists to mathematicians, the next generation of innovators is pouring its energy into this field.

This influx of talent guarantees a constant stream of groundbreaking ideas and rapid advancements.

By investing in AI, you’re essentially backing the future.

The future is powered by artificial intelligence, and the time to invest is NOW.

Don’t be a spectator in this technological revolution.

Dive into the AI gold rush and watch your portfolio soar alongside the brightest minds of our generation.

This isn’t just about making money – it’s about being part of the future.

So, buckle up and get ready for the ride of your investment life!

Act Now and Unlock a Potential 100+% Return within 12 to 24 months.

We’re now offering month-to-month subscriptions with no commitments.

For a ridiculously low price of just $9.99 per month, you can unlock our in-depth investment research and exclusive insights – that’s less than a single fast food meal!

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 $9.99.

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!


No worries about auto-renewals! Our 30-Day Money-Back Guarantee applies whether you’re joining us for the first time or renewing your subscription a month later!