On July 18, Greg Tuorto of Goldman Sachs joined CNBC’s ‘Closing Bell’ to state that the small-cap market is starting to show signs of life. Tuorto said that despite recognized issues with the small-cap index itself, his team still identifies opportunities within it. He noted that the current month was proving favorable for small-cap stocks relative to large-cap stocks due to the presence of catalysts within these stocks, their low valuations, and the underlying economic environment. He also highlighted that the anticipation of the Fed cutting interest rates in the latter half of the year provides additional tailwinds for small caps.
Tuorto also confirmed that a broadening M&A landscape is highly beneficial for small-cap companies, although it has been notably quiet this year. He mentioned that bank CEOs, including their own, have indicated building backlogs in M&A activity, which they anticipate will materialize in H2 of the year. When asked about specific sectors within small caps that might see catalysts, Tuorto explained that the consumer sector had been the primary driver of performance up to that point. On the notion that increasing trade limitations due to tariffs and geopolitical tensions could favor domestically focused pure plays, Tuorto agreed and called it a great tagline for small caps. He emphasized the domesticity of the asset class and noted that many small-cap companies are heavily focused on the US market because going and sourcing overseas incurs significant costs. He also explained that while the largest and market-driving semiconductors generate a lot of buzz, the small-cap market features many picks and shovels companies that are crucial for connectivity, such as those connecting data centers.
That being said, we’re here with a list of the 12 best penny stocks under $1 to buy now.
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Methodology
We sifted through the Finviz stock screener to compile a list of the top penny stocks under $1 as of July 22. We then selected the 12 stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q1 2025.
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 Best Penny Stocks Under $1 to Buy Now
12. Aspire Biopharma Holdings Inc. (NASDAQ:ASBP)
Share Price as of July 22: $0.40
Number of Hedge Fund Holders: 10
Aspire Biopharma Holdings Inc. (NASDAQ:ASBP) is one of the best penny stocks under $1 to buy now. On July 9, Aspire Biopharma Holdings announced positive initial consumer feedback for its new sublingual pre-workout supplement, called BUZZ BOMB.
The product features 50mg of caffeine and provides sustained energy and mental focus to athletes and fitness enthusiasts, using a sublingual nano technology that delivers caffeine rapidly to the bloodstream. This delivery method allows for nearly instant energy.
Aspire began a soft launch of BUZZ BOMB last month and introduced it to strength trainers, consultants, and fitness professionals. The company positions BUZZ BOMB as a science-driven brand focused on optimizing nutrition and performance. Initial production of BUZZ BOMB has already commenced, and the product will be available in 30-unit packs across 4 flavors.
Aspire Biopharma Holdings Inc. (NASDAQ:ASBP) is an early-stage biopharmaceutical company that develops and markets disruptive technology for novel sublingual delivery mechanisms in the US.
11. Brand Engagement Network Inc. (NASDAQ:BNAI)
Share Price as of July 22: $0.31
Number of Hedge Fund Holders: 10
Brand Engagement Network Inc. (NASDAQ:BNAI) is one of the best penny stocks under $1 to buy now. Earlier in June, a collaborative effort was announced between the University of KwaZulu-Natal/UKZN, Valio Technologies, and Brand Engagement Network/BEN to launch an inclusive and AI-powered mental health program.
The initiative provides private, 24/7 mental health support to students in South Africa, particularly in underserved communities where access to traditional care is limited. The program will initially roll out at UKZN, and insights gained from this implementation will help guide its expansion across the region.
The core of this program is BEN’s proprietary iSKYE platform, which is an AI-powered system designed to offer personalized mental health support.
Brand Engagement Network Inc. (NASDAQ:BNAI) is a technology company that provides conversational AI assistants.
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