12 Cheap Penny Stocks to Invest In Now

7. Frontier Group Holdings, Inc. (NASDAQ:ULCC)

On March 20, Citi lowered its price target on Frontier Group Holdings, Inc. (NASDAQ:ULCC) to $3.50 from $5 while maintaining a Neutral rating, citing increased fuel price assumptions that could pressure earnings across the airline sector. The firm highlighted downside risks to near-term estimates but noted that such pressures do not necessarily translate into negative stock performance, as relative positioning within the industry could still drive outperformance.

On March 16, UBS also reduced its price target on Frontier Group Holdings, Inc. (NASDAQ:ULCC) to $4 from $6 and maintained a Neutral rating, pointing to expectations that airlines may guide toward the midpoint of prior outlooks amid fuel cost volatility. Despite these concerns, the firm noted that limited fuel inventory exposure and stable demand trends could help mitigate earnings impact, while revenue per available seat mile (RASM) remains supported.

Frontier Group Holdings, Inc. (NASDAQ:ULCC) is the parent company of Frontier Airlines, a leading ultra-low-cost carrier in the United States. Founded in 1994 and headquartered in Denver, Colorado, the company’s low-cost operating model and focus on price-sensitive travelers position it to benefit from resilient travel demand and industry consolidation trends, offering potential upside as cost pressures stabilize and making it one of the cheap penny stocks to invest in now.