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.
10. InflaRx (NASDAQ:IFRX)
Share Price as of July 22: $0.84
Number of Hedge Fund Holders: 11
InflaRx (NASDAQ:IFRX) is one of the best penny stocks under $1 to buy now. As May came to an end, InflaRx announced that its Phase 3 trial for vilobelimab in pyoderma gangrenosum/PG would be discontinued due to futility. The recommendation came from the Independent Data Monitoring Committee/IDMC after an unblinded interim analysis of data from the first 30 enrolled patients.
The IDMC noted no unexpected adverse events. Following the recommendation, InflaRx intends to halt further development of vilobelimab for the PG indication. The company will now re-prioritize its resources on INF904, which is an orally administered small molecule inhibitor of C5a-induced signaling via the C5a receptor. Topline Phase 2a data readouts for INF904 in chronic spontaneous urticaria/CSU and hidradenitis suppurativa/HS are anticipated in the summer of 2025.
GOHIBIC (vilobelimab) remains available in the US under an Emergency Use Authorization/EUA granted by the FDA. The authorization is for the treatment of COVID-19 in hospitalized adults when initiated within 48 hours of receiving invasive mechanical ventilation/IMV or extracorporeal membrane oxygenation/ECMO. Vilobelimab is a first-in-class, intravenously delivered, anti-C5a monoclonal antibody that selectively blocks free C5a, which is a potent inflammatory mediator.
InflaRx (NASDAQ:IFRX) is a clinical-stage biopharmaceutical company that discovers and develops inhibitors using C5a technology in Germany and the US.
9. ChargePoint Holdings Inc. (NYSE:CHPT)
Share Price as of July 22: $0.64
Number of Hedge Fund Holders: 12
ChargePoint Holdings Inc. (NYSE:CHPT) is one of the best penny stocks under $1 to buy now. On July 2, ChargePoint introduced a home charging solution for European company car fleets. It combines the Flex Plus charger with ChargePoint’s Driver Management Solution.
This directly addresses the challenge of home charging for company vehicles, which constitute 60% of new car sales in Europe. The Flex Plus is the first charger to be built on ChargePoint’s new AC charging architecture.
It incorporates features like real-time dynamic load management, which automatically adjusts charging speeds to optimize power usage without requiring expensive electrical service upgrades to the home. The charger also boasts smart home compatibility.
ChargePoint Holdings Inc. (NYSE:CHPT) is a company that provides EV charging networks and charging solutions in North America and Europe.
8. Ovid Therapeutics Inc. (NASDAQ:OVID)
Share Price as of July 22: $0.64
Number of Hedge Fund Holders: 12
Ovid Therapeutics Inc. (NASDAQ:OVID) is one of the best penny stocks under $1 to buy now. On June 25, Ovid Therapeutics announced a definitive agreement with Immedica Pharma AB. Under this agreement, Ovid will sell its future royalty rights related to sales of ganaxolone outside of China for $7 million in cash.
In 2024, Ovid recorded ~$566,000 in ganaxolone royalty revenues. This transaction will not impact Ovid’s current pipeline, as the company has not been actively developing ganaxolone. The sale of royalty rights to Immedica includes those stemming from an exclusive patent license agreement Ovid entered into with Marinus Pharmaceuticals Inc. in February 2022.
Under that prior agreement, Ovid was entitled to receive royalties on ganaxolone sales for CDKL5 deficiency disorder/CDD in the US and Europe. In a related development, Immedica announced the completion of its acquisition of Marinus in February this year. Immedica has also agreed to acquire or license Ovid’s global ganaxolone intellectual property/IP portfolio and amend the existing license to cover additional indications.
Ovid Therapeutics Inc. (NASDAQ:OVID) is a biopharmaceutical company that develops impactful medicines for patients and families with epilepsies and seizure-related neurological disorders in the US.
7. Ring Energy Inc. (NYSE:REI)
Share Price as of July 22: $0.80
Number of Hedge Fund Holders: 12
Ring Energy Inc. (NYSE:REI) is one of the best penny stocks under $1 to buy now. On June 24, Ring Energy announced the selection of Veriforce as its exclusive contractor management partner. Veriforce is a global provider of contractor management and workforce qualification solutions and will help Ring Energy streamline its contractor oversight processes and enhance its safety and compliance capabilities.
Through the partnership, Ring Energy gains a centralized solution for efficient management of its entire contractor base. Beyond core compliance management, Ring Energy will use Veriforce’s expert-led workforce training programs, which include SafeLand and Hydrogen Sulfide/H2S awareness courses.
This ensures that contractors meet safety training requirements before commencing work on site. Veriforce is a global leader in contractor management and offers an integrated SaaS platform that combines contractor qualification, training, evaluation, and compliance tracking.
Ring Energy Inc. (NYSE:REI) is an independent oil & natural gas company that acquires, explores, develops, and produces oil & natural gas properties.
6. Context Therapeutics Inc. (NASDAQ:CNTX)
Share Price as of July 22: $0.84
Number of Hedge Fund Holders: 13
Context Therapeutics Inc. (NASDAQ:CNTX) is one of the best penny stocks under $1 to buy now. Earlier in June, Context Therapeutics presented a Trial in Progress poster for its Phase 1 clinical trial evaluating CTIM-76 at the 2025 American Society of Clinical Oncology/ASCO Annual Meeting. The meeting took place from May 30 to June 3 this year in Chicago, IL.
The presentation, titled “A phase 1, first-in-human study of CTIM-76, a claudin-6 (CLDN6)-directed bispecific antibody, in patients with recurrent ovarian cancer and other advanced solid tumors,” was held on June 2. The Phase 1 trial for CTIM-76 is an open-label, dose escalation and expansion study. Its primary objective is to evaluate the safety, tolerability, and pharmacokinetics of CTIM-76 in patients with CLDN6-positive advanced or metastatic ovarian, endometrial, and testicular cancers.
Secondary objectives include assessing anti-tumor activity based on overall response rate, duration of response, and disease control rate. Context Therapeutics has made significant progress with the trial, having dosed the first patient in January 2025 and currently administering treatment to cohort 3. The company anticipates sharing initial data from this Phase 1 trial in H1 2026.
Context Therapeutics Inc. (NASDAQ:CNTX) is a biopharmaceutical company that develops products for the treatment of solid tumors.
5. Immunic Inc. (NASDAQ:IMUX)
Share Price as of July 22: $0.95
Number of Hedge Fund Holders: 13
Immunic Inc. (NASDAQ:IMUX) is one of the best penny stocks under $1 to buy now. On June 24, Immunic reported positive long-term open-label extension/OLE data from its Phase 2 EMPhASIS trial. The trial evaluated vidofludimus calcium (IMU-838), which is an orally available nuclear receptor-related 1 (Nurr1) activator, in patients with relapsing-remitting multiple sclerosis/RRMS.
The cumulative data from the EMPhASIS OLE period, which shows ~952 treatment years, further support the favorable safety and tolerability profile of vidofludimus calcium, showing low discontinuation rates and minimal treatment-emergent and serious adverse events. Importantly, no new safety signals have emerged during treatment durations extending up to 5.5 years. The Phase 2 EMPhASIS trial was an international, multicenter, double-blind, placebo-controlled, randomized, parallel-group study that initially randomized 268 RRMS patients.
Vidofludimus calcium (IMU-838) is an orally administered investigational small molecule drug in late-stage clinical trials for multiple sclerosis. Its unique dual mode of action combines neuroprotective, anti-inflammatory, and anti-viral effects. It acts as a selective immune modulator by activating the neuroprotective transcription factor Nurr1, which provides direct and indirect neuroprotective benefits.
Immunic Inc. (NASDAQ:IMUX) is a biotechnology company that develops a pipeline of selective oral immunology therapies for the treatment of chronic inflammatory and autoimmune diseases in the US and Germany.
4. Mersana Therapeutics Inc. (NASDAQ: MRSN)
Share Price as of July 22: $0.37
Number of Hedge Fund Holders: 13
Mersana Therapeutics Inc. (NASDAQ:MRSN) is one of the best penny stocks under $1 to buy now. Earlier in June, Mersana Therapeutics presented additional positive interim Phase 1 clinical data for emiltatug ledadotin (Emi-Le; XMT-1660) at the American Society of Clinical Oncology/ASCO 2025 Annual Meeting in Chicago, Illinois. Emi-Le is the company’s B7-H4-directed Dolasynthen ADC.
The presentation focused on data from Emi-Le’s Phase 1 dose escalation and backfill cohorts, with a data cut-off of March 8, 2025. These cohorts included patients with triple-negative breast cancer/TNBC, hormone-receptor-positive and human epidermal growth factor receptor 2-negative breast cancer, ovarian cancer, endometrial cancer, and adenoid cystic carcinoma type 1 (ACC-1).
The safety and tolerability profile of Emi-Le, as of the March 8, data cut-off, was consistent with initial data reported in January this year, with no new safety signals observed. Mersana Therapeutics is focusing its initial expansion work on patients with TNBC who have been previously treated with a topoisomerase-1 inhibitor ADC, recognizing this as a population with high unmet need.
Mersana Therapeutics Inc. (NASDAQ:MRSN) is a clinical-stage biopharmaceutical company that develops antibody-drug conjugates/ADC for cancer patients with unmet needs.
3. Tilray Brands Inc. (NASDAQ:TLRY)
Share Price as of July 22: $0.79
Number of Hedge Fund Holders: 14
Tilray Brands Inc. (NASDAQ:TLRY) is one of the best penny stocks under $1 to buy now. On June 26, Tilray Brands, through its medical division, Tilray Medical, published a new scientific study on the bioavailability of different cannabinoid formulations.
This research, conducted on healthy volunteers, compared Tilray’s oral THC:CBD extract with oromucosally administered nabiximols.
The findings show that Tilray’s oral extract resulted in higher and faster concentrations of THC and CBD in the bloodstream.
Tilray Brands Inc. (NASDAQ:TLRY) is a lifestyle consumer products company that researches, cultivates, processes, and distributes medical cannabis products in Canada, the US, Europe, Australia, New Zealand, Latin America, and internationally.
2. Biodesix Inc. (NASDAQ:BDSX)
Share Price as of July 22: $0.37
Number of Hedge Fund Holders: 17
Biodesix Inc. (NASDAQ:BDSX) is one of the best penny stocks under $1 to buy now. On June 10, Biodesix announced a new partnership with the Association of Pulmonary Advanced Practice Providers/APAPP. The collaboration aims to deliver the nation’s first CME-accredited medical education program for Advanced Practice Providers/APPs, focusing on the clinical application of diagnostic biomarkers in lung nodule and lung cancer programs.
The partnership will introduce new educational resources for Lung Health providers, specifically on innovative lung nodule risk assessment testing, such as the Nodify Lung blood-based tests, and cancer treatment decision support testing, such as the IQLun blood-based tests.
According to the American Lung Association, lung cancer remains the deadliest of all cancers, claiming nearly as many American lives annually as breast, prostate, and colon cancers combined.
Biodesix Inc. (NASDAQ:BDSX) is a diagnostic solutions company that offers blood-based lung tests to assess the risk of lung cancer and identify the appropriate treatment pathway.
1. Sangamo Therapeutics Inc. (NASDAQ:SGMO)
Share Price as of July 22: $0.49
Number of Hedge Fund Holders: 20
Sangamo Therapeutics Inc. (NASDAQ:SGMO) is one of the best penny stocks under $1 to buy now. On June 24, Sangamo Therapeutics announced positive topline results from its registrational Phase 1/2 STAAR study. This global, open-label, single-dose, dose-ranging, multicenter clinical study evaluated isaralgagene civaparvovec (ST-920), which is a wholly-owned investigational gene therapy for the treatment of adults with Fabry disease.
The study included male and female patients who were either on enzyme replacement therapy/ERT, ERT pseudo-naïve (off ERT for 6 or more months), or ERT-naïve. The median age of enrolled patients was 42, with a median follow-up duration of 24 months, and the longest-treated patient had achieved 4.5 years of follow-up.
The US FDA agreed that this eGFR slope will serve as an intermediate clinical endpoint for potential approval under the Accelerated Approval pathway. Key secondary endpoints in the study were also positive. All 18 patients who began the study on ERT have successfully discontinued it and remain off ERT as of the announcement date. Fabry disease is a lysosomal storage disorder caused by mutations in the galactosidase alpha gene/GLA, leading to deficient alpha-galactosidase A (α-Gal A) enzyme activity.
Sangamo Therapeutics Inc. (NASDAQ:SGMO) is a clinical-stage genomic medicine company that translates science into medicines that transform the lives of patients and families afflicted with serious diseases in the US.
While we acknowledge the potential of SGMO 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 SGMO and that has 100x upside potential, check out our report about this cheapest AI stock.
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