In this article, we will look at the 12 Best Penny Stocks That Will Skyrocket.
On January 26, American Century Investments released a report on small-cap stocks, discussing how the sector is well-positioned to continue leading in 2026. The report highlighted that the increasing demand for AI infrastructure has created a trickle-down demand for many small companies across multiple industries. According to FactSet’s MSCI ACWI IMI regions forecasts, small-cap stocks are expected to post 21.8% EPS growth in 2026, substantially higher compared to the 16% EPS growth expectation for large-cap stocks. For reference, small-caps grew EPS by 12.2% in 2025 as compared to 13.9% growth by large-caps.
The report further highlighted that, as major companies, including Meta, Apple, Google, and Microsoft, continue to spend heavily on AI, demand for energy, industrial, and utility industries will remain strong throughout 2026. Moreover, this trend is not limited to the US only, as Europe has also started to ramp up defense infrastructure spending, which is expected to boost demand for smaller companies in the region.
With that, let’s take a look at the 12 Best Penny Stocks That Will Skyrocket.
Our Methodology
To curate the list of Best Penny Stocks That Will Skyrocket, we used the Finviz Stock Screener, CNN, and Insider Monkey’s Q3 2025 database as our sources. Using the screener, we aggregated a list of penny stocks (trading below $5) for which analysts expect more than 50% upside. Next, we cross-checked the upside from CNN and ranked the stocks in ascending order of the number of hedge fund holders.
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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
12 Best Penny Stocks That Will Skyrocket
12. VinFast Auto Ltd. (NASDAQ:VFS)
Price: $3.34
Upside: 79.64%
Number of Hedge Fund Holders: 7
VinFast Auto Ltd. (NASDAQ:VFS) is one of the Best Penny Stocks That Will Skyrocket. On February 10, VinFast Auto Ltd. (NASDAQ:VFS) announced signing a Memorandum of Understanding with Exposure SARL, a company in the Democratic Republic of the Congo, for potentially supplying green taxi services in Kinshasa.
This marks an important milestone for VinFast’s international expansion strategy. Management noted that as part of this deal, VinFast and Exposure will develop a rollout for the first batch of EVs, focusing on commercial models including Limo Green and Herio Green. The aim is to kickstart an all-electric taxi fleet, cutting urban emissions in Kinshasa’s passenger transport. Moreover, Exposure has also expressed interest in becoming the official distributor for VinFast in Congo.
That said, VinFast Auto Ltd. (NASDAQ:VFS) is also looking to grow its vehicle deliveries in 2026. On February 9, the company announced that it aims to deliver 300,000 electric vehicles in fiscal 2026. Moreover, two-wheeler vehicles delivered are also expected to be at least 2.5 times the 2025 deliveries. Fiscal Q4 2025 and full-year results are expected to be released on March 16, 2026.
VinFast Auto Ltd. (NASDAQ:VFS) is a Vietnamese electric vehicle (EV) manufacturer, part of Vingroup, focused on designing and producing smart electric cars, e-scooters, and electric buses for global markets, aiming to make EVs accessible with premium features, advanced tech, and sustainable mobility solutions.
11. FuboTV Inc. (NYSE:FUBO)
Price: $1.38
Upside: 117.39%
Number of Hedge Fund Holders: 11
FuboTV Inc. (NYSE:FUBO) is one of the Best Penny Stocks That Will Skyrocket. On February 3, Laura Martin from Needham reiterated a Buy rating on the stock but lowered the price target from $4.25 to $3. The rating follows the company’s fiscal Q1 2026 earnings release on the same day.
FuboTV reported quarterly revenue of $1.549 billion, up 40% year-over-year and ahead of consensus by $183.72 million. However, the EPS of negative $0.02 fell short of the expectations by $0.02. Management attributed revenue growth to subscriber gains and Hulu integration.
Laura Martin from Needham noted the price reduction reflects caution over Fubo suspending guidance and losing NBCUniversal sports content in 2026. The analyst added that NBCUniversal sports content included crucial events like the Super Bowl, the Olympics, and the World Cup. However, the firm maintained a Buy rating on FuboTV Inc. (NYSE:FUBO), noting benefits from Disney’s ownership stake in fuboTV.
FuboTV Inc. (NYSE:FUBO) is a live TV streaming service primarily focused on sports, news, and entertainment, acting as a cable TV alternative. It allows users to stream over 400 live sports, news, and entertainment networks over the internet without a contract, offering features such as cloud DVR and 4K streaming.
