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.
10. Alvotech (NASDAQ:ALVO)
Price: $4.85
Upside: 106.19%
Number of Hedge Fund Holders: 12
Alvotech (NASDAQ:ALVO) is one of the Best Penny Stocks That Will Skyrocket. On February 5, Alvotech (NASDAQ:ALVO) announced strong initial results from a key clinical trial for AVT80. AVT80 is a potential biosimilar to the blockbuster drug, Entyvio, from Takeda.
Management noted that the randomized, double-blind study successfully fit all primary goals, including proving AVT80 matches Entyvio’s pharmacokinetics. The trial also passed all safety, tolerability, and immune response criteria.
“We are very pleased with this result, which is an important milestone in the development of our proposed biosimilar to Entyvio, allowing us to proceed towards regulatory submissions,” noted Joseph McClellan, Chief Operating Officer.
Management also highlighted that the potential approval targets a significant market opportunity. The combined worldwide revenue for Entyvio in 2025 was roughly around $6.4 billion. Biosimilars like AVT80/AVT16 could slash costs for patients and payers once approved.
Alvotech (NASDAQ:ALVO) is a biotechnology company specializing in the development, manufacturing, and commercialization of biosimilar medicines to provide affordable biologic alternatives globally.
9. Vizsla Silver Corp. (NYSE AMERICAN:VZLA)
Price: $3.88
Upside: 77.86%
Number of Hedge Fund Holders: 15
Vizsla Silver Corp. (NYSE AMERICAN:VZLA) is one of the Best Penny Stocks That Will Skyrocket. On February 10, Don DeMarco from National Bank downgraded Vizsla Silver Corp. (NYSE AMERICAN:VZLA) from Buy to Hold with a $4.73 price target.
The rating comes after the company reported a security incident at its PANUCO project site in Concordia, Mexico, on January 28. The earlier statements by the company confirmed that at least 10 people were taken from the site. As per more recent reports, management confirmed that a number of people who were taken from the site have been found deceased. The company is still waiting on confirmation from the Mexican authorities.
Analysts at National Bank noted they see the project being pushed out due to the security incident, hence they have downgraded the stock to Hold. Michael Konnert, President & CEO, in a recent security and operations update, said,
“This is an incredibly painful time for the families of our colleagues, for our team, and for the community of Concordia. We stand with the families and are doing what we can to support them, while also looking after our colleagues during this difficult period.”
Vizsla Silver Corp. (NYSE AMERICAN:VZLA) is a Canadian mineral exploration and development company focused on advancing its 100%-owned Panuco silver-gold project in Sinaloa, Mexico.
8. Eve Holding, Inc. (NYSE:EVEX)
Price: $3.07
Upside: 128.01%
Number of Hedge Fund Holders: 20
Eve Holding, Inc. (NYSE:EVEX) is one of the Best Penny Stocks That Will Skyrocket. On February 11, Austin Moeller from Canaccord Genuity reiterated a Buy rating on the stock with a $7.5 price target. Earlier on February 10, Amit Dayal from H.C. Wainwright also reiterated a Buy rating on Eve Holding, Inc. (NYSE:EVEX) with a $8 price target.
The positive ratings follow the company’s second binding order from AirX, announced on February 3. Eve Holding, Inc. (NYSE:EVEX) reported signing a binding order for up to 50 eVTOL planes, marking their first order from the Asia-Pacific region. Management noted that the deal entails two initial deliveries in 2029, with demand scalable to 50 planes. AirX will deploy these planes for urban routes like sightseeing and “last-mile” trips in Tokyo and Osaka, focusing on zero-emission, low-noise transport. Johann Bordais, chief executive officer at Eve Air Mobility, said,
”Our first agreement in Asia-Pacific, achieved in partnership with AirX in Japan, is more than a milestone; it launches a new era that will redefine urban mobility.”
Eve Holding, Inc. (NYSE:EVEX), operating as Eve Air Mobility, develops electric vertical takeoff and landing (eVTOL) aircraft for urban air mobility missions. Its segments cover eVTOL design and global sales to operators, a full suite of support services like maintenance and training, and urban air traffic management software called Vector.
7. AtaiBeckley Inc. (NASDAQ:ATAI)
Price: $3.97
Upside: 202.27%
Number of Hedge Fund Holders: 21
AtaiBeckley Inc. (NASDAQ:ATAI) is one of the Best Penny Stocks That Will Skyrocket. Wall Street is bullish on AtaiBeckley Inc. (NASDAQ:ATAI) with analysts’ 12-month median price target reflecting more than 202% upside. Recently, on January 28, Patrick Trucchio from H.C. Wainwright reiterated a Buy rating on the stock with a $15 price target. Earlier, Eddie Hickman from Guggenheim also initiated AtaiBeckley Inc. (NASDAQ:ATAI) with a Buy rating and a $11 price target.
Hickman from Guggenheim noted that the company is a differentiated leader in next-generation psychiatry. The analyst also highlighted the recent merger with Beckley Psytech, which gives the company full ownership of BPL-003. BPL-003 is a lead asset that treats treatment-resistant depression and has shown compelling results in Phase IIIb efficacy and durability. The analyst believes that BPL-003 is strongly positioned for rapid clinical adoption and commercial scaling.
Phase 2 trials of BPL-003 showed sustained MADRS score reductions, with 63% responder rates and 48% remission rates after a second dose. Moreover, Phase 3 trials are planned for Q2 2026 following FDA Breakthrough Therapy Designation.
AtaiBeckley Inc. (NASDAQ:ATAI) is a clinical-stage biopharmaceutical company that researches, develops, and commercializes mental health treatments in the US, Germany, and Canada.
6. Bitfarms Ltd. (NASDAQ:BITF)
Price: $2.17
Upside: 176.50%
Number of Hedge Fund Holders: 25
Bitfarms Ltd. (NASDAQ:BITF) is one of the Best Penny Stocks That Will Skyrocket. On February 6, Bitfarms Ltd. (NASDAQ:BITF) announced its Board of Directors has approved the plan to move from Canada to the US to form a US entity under Delaware law.
This strategic shift reflects management’s year-long effort to boost shareholder value and also marks a significant pivot from Bitcoin mining to building high-performance computing and AI data centers across North America. The new entity is expected to be called Keel Infrastructure. The reincorporation is subject to shareholder and court approval, and is set to be completed by April 1 this year.
“Our new name reflects how we think about infrastructure, how we’re building this company, and how we want to serve our future customers.”
CEO Ben Gagnon.
Management further highlighted that the transition will open new sources of capital for the company, unlock eligibility for inclusion in indexes, and will also simplify the investment thesis for US investors.
That said, earlier on February 2, Jade Rahmani from KBW reiterated a Hold rating on the stock and maintained a $3 price target. Overall, analysts’ 12-month price target reflects more than 176% upside from the current level.
Bitfarms Ltd. (NASDAQ:BITF) is a Canada-based company focused on Bitcoin mining and vertically integrated data centers. It sells computational power (hashing) to mining pools for Bitcoin rewards, while owning and operating facilities in the US, Canada, Paraguay, and Argentina.
5. Playtika Holding Corp. (NASDAQ:PLTK)
Price: $3.41
Upside: 46.63%
Number of Hedge Fund Holders: 27
Playtika Holding Corp. (NASDAQ:PLTK) is one of the Best Penny Stocks That Will Skyrocket. Wall Street is bullish on the stock as it approaches fiscal Q4 2025 earnings, expected to be released on February 26. Analysts’ 12-month price target reflects more than 51% upside from the current levels.
Recently, on January 29, Jason Bazinet from Citi reiterated a Buy rating on Playtika Holding Corp. (NASDAQ:PLTK) with a price target of $7. Earlier on January 15, Wedbush also reiterated a Buy rating on the stock with a $7 price target.
Management during fiscal Q3 2025 results reaffirmed its full-year revenue guidance range of $2.70 billion – $2.75 billion, along with adjusted EBITDA in the range of $715 million – $740 million. For fiscal Q4, Wall Street expects the company to post around $660.32 million in revenue with $0.14 in GAAP EPS.
That said, Playtika Holding Corp. (NASDAQ:PLTK) has been working towards cutting costs as the industry shifts towards AI. On January 13, management had announced laying off roughly 15% of its workforce with the aim of having a leaner team powered by AI automation by Q1 2026. During the fiscal Q3 2025 earnings call, Craig Abrahams, Playtika’s President and Chief Financial Officer, noted that the company is on track to finish the year within its capital expenditure guidance.
Playtika Holding Corp. (NASDAQ:PLTK) is a developer and publisher of free-to-play mobile games, known for titles such as Slotomania, Bingo Blitz, and June’s Journey. The company primarily generates revenue through in-app purchases of virtual items and digital currency within its games.
4. Aurora Innovation, Inc. (NASDAQ:AUR)
Price: $4.36
Upside: 175.23%
Number of Hedge Fund Holders: 39
Aurora Innovation, Inc. (NASDAQ:AUR) is one of the Best Penny Stocks That Will Skyrocket. Recently, on February 12, Oppenheimer reiterated a Buy rating on the stock with a $15 price target. On the same day, Cantor Fitzgerald also reiterated a Buy rating on the stock with a price target of $12.
The ratings follow Aurora’s fiscal Q4 and full-year 2025 earnings announced on February 11. The company revealed major software updates and tripled its driverless network to 10 routes across the US Sun Belt. Moreover, management projects to be a positive free cash flow company by 2028 with more than 200 driverless trucks on the road by year’s end.
Oppenheimer noted that the company is making material progress and expects next-generation hardware to be available by fiscal Q3 2026. Notably, the positive rating by the firm is despite the company missing revenue estimates by $473,000. The sentiment is based on the company’s target of having 200 driverless vehicles by the end of 2026, which the firm calls “full commercialization” of the Aurora platform.
Aurora Innovation, Inc. (NASDAQ:AUR) develops the Aurora Driver, a scalable platform of self-driving hardware, software, and data services that powers autonomous operations across various vehicle types, from trucks to passenger cars.
3. Snap Inc. (NYSE:SNAP)
Price: $4.99
Upside: 60.32%
Number of Hedge Fund Holders: 50
Snap Inc. (NYSE:SNAP) is one of the Best Penny Stocks That Will Skyrocket. On February 12, Ronald Josey from Citi reiterated a Hold rating on the stock and lowered the price target from $10 to $6. Earlier, on February 6, Mark Kelley from Stifel Nicolaus upgraded Snap Inc. (NYSE:SNAP) from Sell to Hold, while maintaining a $5.5 price target.
The ratings follow Snap Inc.’s fiscal Q4 2025 earnings released on February 4. The company grew its quarterly revenue by 10.22% year-over-year to $1.72 billion and surpassed estimates by $16.4 million. The EPS of $0.19 also topped estimates by $0.03. Management attributed revenue growth to the 946 million global monthly active users during the quarter. Moreover, CEO Evan Spiegel noted that the improved results were due to the company’s strategic pivot towards profitable growth.
However, despite the earnings beat, Snap Inc. (NYSE:SNAP) has declined more than 40% year-to-date. Stifel upgraded the stock despite the share price decline. The firm noted that the decline has already incorporated many headwinds, including headwinds like slowing user growth and weak ad momentum. As a result, Stifel find the current valuation of SNAP attractive, hence the upgrade.
Snap Inc. (NYSE:SNAP) is a technology company operating in North America, Europe, and internationally. The company offers Snapchat, a visual messaging application with various tabs including Camera, visual messaging, Snap Map, Stories, and Spotlight.
2. Grab Holdings Limited (NASDAQ:GRAB)
Price: $4.23
Upside: 63.12%
Number of Hedge Fund Holders: 59
Grab Holdings Limited (NASDAQ:GRAB) is one of the Best Penny Stocks That Will Skyrocket. Wall Street remains bullish on Grab Holdings Limited (NASDAQ:GRAB) despite mixed fiscal Q4 2025 earnings. Recently, on February 11, Venugopal Garre from Bernstein reiterated a Buy rating on the stock with a $5.8 price target.
The rating follows Grab’s fiscal Q4 2025 earnings release, where the company posted $906 million in revenue, reflecting 18.59% year-over-year growth. Despite the growth, revenue missed estimates by $34.6 million, while EPS of $0.04 topped estimates by $0.03.
Bernstein finds the results to be an “overhang-clearing event” that removes prior stock pressures. The market was anticipating conservative fiscal 2026 guidance and also potential cuts to Indonesia’s two-wheeler ride-hailing commission caps from 20% to around 10%.
However, the company’s guidance came in slightly ahead of expectations. Moreover, Grab also presented a three-year plan aiming for $1.5 billion in adjusted EBITDA by FY28. The firm finds the projection to be realistic, considering the market penetration of the company and its ecosystem advantages.
Grab Holdings Limited (NASDAQ:GRAB) is a leading Southeast Asian “superapp” that provides mobility, delivery, and digital financial services across eight countries. It connects consumers with driver and merchant partners for services including ride-hailing, food/grocery delivery, and digital payments.
1. Peloton Interactive, Inc. (NASDAQ:PTON)
Price: $4.32
Upside: 67.82%
Number of Hedge Fund Holders: 62
Peloton Interactive, Inc. (NASDAQ:PTON) is one of the Best Penny Stocks That Will Skyrocket. On February 10, John Staszak from Argus Research downgraded the stock from Buy to Hold, without disclosing any price targets. Earlier on February 6, Bernie McTernan also reiterated a Hold rating on the stock without disclosing any price target.
The ratings come after the company released its fiscal Q2 2026 earnings on February 5. During the quarter, Peloton Interactive, Inc. (NASDAQ:PTON) posted $656.5 million in revenue, reflecting a 2.58% decline year-over-year and below expectations by $18.63 million. The EPS was also negative $0.03, but exceeded consensus by $0.02. The decline was mainly due to a 7% year-over-year decline in Ending Paid Connected Fitness Subscriptions.
Analyst at Argus noted the downgrade to be driven by continued challenges in the fitness market. The firm added that competition from gyms and in-home fitness companies has led to a decline in Peloton’s subscriptions since the pandemic ended, a trend the firm expects to persist. Moreover, the once-popular online cycling classes have also lost appeal. However, Argus continues to expect that the company can reclaim its lost leadership in the in-home fitness sector.
Peloton Interactive, Inc. (NASDAQ:PTON) is a global fitness company that blends hardware like the Peloton Bike, Bike+, Tread, Row, and Guide with a subscription platform for live and on-demand classes.
While we acknowledge the potential of PTON to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than PTON and that has 100x upside potential, check out our report about this cheapest AI stock.
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