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12 Penny Stocks With Biggest Upside

In this article, we discuss the 12 penny stocks with the biggest upside. If you want to read about some more penny stocks with the biggest upside, go directly to 5 Penny Stocks With Biggest Upside.

Even though the United States economy has been rattled by recession fears in the past few months, there are reasons to be optimistic about the near-term future of the market. Recent data suggests that employment growth remains strong, and many measures of economic activity are growing, even if more slowly than last year. Oil and food prices have been falling at the wholesale level. The major concern remains inflation and lowering energy prices are helping offset some of the impact it is having on the economy. 

Further, the monetary policy tightening has raised the cost of capital for companies and has slowed down earnings growth momentum. However, businesses are now beginning to bounce back. The benchmark S&P 500 racked up a second consecutive month of gains in November, as investors became ever more positive that the Federal Reserve would deliver a smaller rate hike in December. The index gained 5.4% in the month, including a 3.1% rally in the final session, after a sustained period of losses. 

Prominent stocks like Amazon.com, Inc. (NASDAQ:AMZN), Microsoft Corporation (NASDAQ:MSFT), and Meta Platforms, Inc. (NASDAQ:FB) are all benefiting as a result, even though they are not out of the woods just yet. Investors eager to get back to investing in stocks would be much better served by exploring options in the penny stock universe, a sector of the market that offers explosive growth potential at cheap prices. In an uncertain market, these bets carry lower levels of risk. 

Our Methodology

The companies that have upcoming growth catalysts and were priced under $5 per share, as of December 20, were selected for the list. Special importance was assigned to outlining the basic business fundamentals and analyst ratings for each firm to provide readers with some context so they can make more informed investment choices. Data from around 900 elite hedge funds tracked by Insider Monkey in the third quarter of 2022 was used to identify the number of hedge funds that hold stakes in each firm.

Penny Stocks With Biggest Upside

12. XWELL, Inc. (NASDAQ:XWEL)

Number of Hedge Fund Holders: N/A 

Share Price as of December 20: $0.40 

XWELL, Inc. (NASDAQ:XWEL) is a health and wellness services company that provides spa services at airports. On November 2, Xwell Inc announced the opening of Treat at Salt Lake City International Airport with a ribbon-cutting ceremony. Treat is an upscale health and wellness center for people on the go. As the pandemic recedes and international travel resumes on a large scale, the health and wellness centers of the company are expected to witness increased foot traffic, especially from China. The firm posted over $10 million in revenue in Q3. 

11. American Resources Corporation (NASDAQ:AREC)

Number of Hedge Fund Holders: 4  

Share Price as of December 20: $1.18 

American Resources Corporation (NASDAQ:AREC) engages in the extraction, processing, transportation, distribution, and sale of metallurgical coal to the steel industries. The stock has been soaring since the company announced that the board of directors had approved a stock buyback program worth $10 million. Under the program, the firm is authorized to repurchase shares through the open market, in privately-negotiated transactions, or otherwise in accordance with applicable federal securities laws. The share repurchase authorization will expire in September 2023.

At the end of the third quarter of 2022, 4 hedge funds in the database of Insider Monkey held stakes worth $2.7 million in American Resources Corporation (NASDAQ:AREC), compared to 2 in the preceding quarter worth $681,000. 

10. Sunworks, Inc. (NASDAQ:SUNW)

Number of Hedge Fund Holders: 5    

Share Price as of December 20: $1.92  

Sunworks, Inc. (NASDAQ:SUNW) provides photovoltaic and battery-based power and storage systems for the agricultural, commercial, industrial, public works, and residential markets in the United States. On October 23, Sunworks revealed that it is advancing its commitment to sustainable practices with the launch of a nationwide, long-term recycling program in contract with Zeep Technology, an asset disposal firm. The agreement between the company emerged after Sunworks recycled 293 decommissioned panels in 2021 and recognized the need to formalize the program. 

At the end of the third quarter of 2022, 5 hedge funds in the database of Insider Monkey held stakes worth $2.5 million in Sunworks, Inc. (NASDAQ:SUNW), compared to 3 the preceding quarter worth $1.8 million.

9. HOOKIPA Pharma Inc. (NASDAQ:HOOK)

Number of Hedge Fund Holders: 8  

Share Price as of December 20: $0.78   

HOOKIPA Pharma Inc. (NASDAQ:HOOK) is a clinical-stage biopharmaceutical company that develops immunotherapeutics targeting infectious diseases and cancers based on its proprietary arenavirus platform. The stock has climbed since late October after Roche, a pharmaceutical company, signed a license agreement with HOOKIPA to develop immunotherapy HB-700 for KRAS-mutated cancers and a second undisclosed novel arenaviral immunotherapy. Under the agreement, HOOKIPA will receive $25 million upfront. 

At the end of the third quarter of 2022, 8 hedge funds in the database of Insider Monkey held stakes worth $23.5 million in HOOKIPA Pharma Inc. (NASDAQ:HOOK), compared to 9 in the previous quarter worth $29.4 million.

8. Meta Materials Inc. (NASDAQ:MMAT)

Number of Hedge Fund Holders: 9

Share Price as of December 20: $1.30    

Meta Materials Inc. (NASDAQ:MMAT) invents, designs, develops, and manufactures various functional materials and nanocomposites. The company recently approved the oil and gas spinoff of the firm, named Next Bridge Hydrocarbons, that has an estimated market capitalization of more than $1 billion. On December 7, FINRA approved the exchange of the company’s Series A preferred shares for common shares of the spinoff company. As the spinoff raises money, it is expected to pay back $20 million in loans to the parent firm. 

Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Millennium Management is a leading shareholder in Meta Materials Inc. (NASDAQ:MMAT) with 3.2 million shares worth more than $2 million. 

In its Q4 2021 investor letter, Singular Research, an asset management firm, highlighted a few stocks and Meta Materials Inc. (NASDAQ:MMAT) was one of them. Here is what the fund said:

“To combat rising inflation, the Fed and Jerome Powell announced they would double the pace of purchasing Treasuries and mortgage-backed securities, and that they are expecting three rate hikes in 2022. As a result of these comments, markets were jittery, making December the most volatile month in 2021. Oil prices rose 14 percent and 10-year yields ended the month moderately higher. Looking ahead, inflation warning signs persist, and many are left to wonder just how much 2022 interest rate hikes have already been priced into markets. Meta Materials Inc. (NASDAQ:MMAT) was also a poor performer as the firm is the defendant in several class-action lawsuits for issuing materially misleading business information to the public.”

7. Skillz Inc. (NYSE:SKLZ)

Number of Hedge Fund Holders: 10 

Share Price as of December 20: $0.63 

Skillz Inc. (NYSE:SKLZ) operates a mobile games platform that connects players in fair, fun, and meaningful competition. On October 12, Citi analyst Jason Bazinet maintained a Neutral rating on Skillz Inc. (NYSE:SKLZ) stock and lowered the price target to 95c from $1.50, noting that the only change in the target price reflects updated probabilities related to the company’s ability to generate free cash flow. 

Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Wild Cat Capital Management is a leading shareholder in Skillz Inc. (NYSE:SKLZ) with 21.6 million shares worth more than $22 million. 

6. Uranium Energy Corp. (NYSE:UEC)

Number of Hedge Fund Holders: 11  

Share Price as of December 20: $3.17    

Uranium Energy Corp. (NYSE:UEC) engages in the exploration, pre-extraction, extraction, and processing of uranium and titanium concentrates in the United States, Canada, and Paraguay. Uranium Energy shares have climbed, along with other uranium mining companies like Denison and Cameco, after recent reports that Germany will extend the life of all three of its nuclear power plants until mid-April 2023 in the face of an unprecedented energy crisis.  

On October 19, H.C. Wainwright analyst Heiko Ihle maintained a Buy rating on Uranium Energy Corp. (NYSE:UEC) stock and raised the price target to $8.25 from $7.25.

At the end of the third quarter of 2022, 11 hedge funds in the database of Insider Monkey held stakes worth $24.5 million in Uranium Energy Corp. (NYSE:UEC), compared to 8 in the previous quarter worth $32.2 million.

In contrast to Amazon.com, Inc. (NASDAQ:AMZN), Microsoft Corporation (NASDAQ:MSFT), and Meta Platforms, Inc. (NASDAQ:FB), Uranium Energy Corp. (NYSE:UEC) is one of the cheaper stocks with the biggest upside potential. 

Click to continue reading and see 5 Penny Stocks With Biggest Upside.

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Disclosure. None. 12 Penny Stocks With Biggest Upside is originally published on Insider Monkey.

AI, Tariffs, Nuclear Power: One Undervalued Stock Connects ALL the Dots (Before It Explodes!)

Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!

AI is eating the world—and the machines behind it are ravenous.

Each ChatGPT query, each model update, each robotic breakthrough consumes massive amounts of energy. In fact, AI is already pushing global power grids to the brink.

Wall Street is pouring hundreds of billions into artificial intelligence—training smarter chatbots, automating industries, and building the digital future. But there’s one urgent question few are asking:

Where will all of that energy come from?

AI is the most electricity-hungry technology ever invented. Each data center powering large language models like ChatGPT consumes as much energy as a small city. And it’s about to get worse.

Even Sam Altman, the founder of OpenAI, issued a stark warning:

“The future of AI depends on an energy breakthrough.”

Elon Musk was even more blunt:

“AI will run out of electricity by next year.”

As the world chases faster, smarter machines, a hidden crisis is emerging behind the scenes. Power grids are strained. Electricity prices are rising. Utilities are scrambling to expand capacity.

And that’s where the real opportunity lies…

One little-known company—almost entirely overlooked by most AI investors—could be the ultimate backdoor play. It’s not a chipmaker. It’s not a cloud platform. But it might be the most important AI stock in the US owns critical energy infrastructure assets positioned to feed the coming AI energy spike.

As demand from AI data centers explodes, this company is gearing up to profit from the most valuable commodity in the digital age: electricity.

The “Toll Booth” Operator of the AI Energy Boom

  • It owns critical nuclear energy infrastructure assets, positioning it at the heart of America’s next-generation power strategy.
  • It’s one of the only global companies capable of executing large-scale, complex EPC (engineering, procurement, and construction) projects across oil, gas, renewable fuels, and industrial infrastructure.
  • It plays a pivotal role in U.S. LNG exportation—a sector about to explode under President Trump’s renewed “America First” energy doctrine.

Trump has made it clear: Europe and U.S. allies must buy American LNG.

And our company sits in the toll booth—collecting fees on every drop exported.

But that’s not all…

As Trump’s proposed tariffs push American manufacturers to bring their operations back home, this company will be first in line to rebuild, retrofit, and reengineer those facilities.

AI. Energy. Tariffs. Onshoring. This One Company Ties It All Together.

While the world is distracted by flashy AI tickers, a few smart investors are quietly scooping up shares of the one company powering it all from behind the scenes.

AI needs energy. Energy needs infrastructure.

And infrastructure needs a builder with experience, scale, and execution.

This company has its finger in every pie—and Wall Street is just starting to notice.

Wall Street is noticing this company also because it is quietly riding all of these tailwinds—without the sky-high valuation.

While most energy and utility firms are buried under mountains of debt and coughing up hefty interest payments just to appease bondholders…

This company is completely debt-free.

In fact, it’s sitting on a war chest of cash—equal to nearly one-third of its entire market cap.

It also owns a huge equity stake in another red-hot AI play, giving investors indirect exposure to multiple AI growth engines without paying a premium.

And here’s what the smart money has started whispering…

The Hedge Fund Secret That’s Starting to Leak Out

This stock is so off-the-radar, so absurdly undervalued, that some of the most secretive hedge fund managers in the world have begun pitching it at closed-door investment summits.

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Why? Because excluding cash and investments, this company is trading at less than 7 times earnings.

And that’s for a business tied to:

  • The AI infrastructure supercycle
  • The onshoring boom driven by Trump-era tariffs
  • A surge in U.S. LNG exports
  • And a unique footprint in nuclear energy—the future of clean, reliable power

You simply won’t find another AI and energy stock this cheap… with this much upside.

This isn’t a hype stock. It’s not riding on hope.

It’s delivering real cash flows, owns critical infrastructure, and holds stakes in other major growth stories.

This is your chance to get in before the rockets take off!

Disruption is the New Name of the Game: Let’s face it, complacency breeds stagnation.

AI is the ultimate disruptor, and it’s shaking the foundations of traditional industries.

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As an investor, you want to be on the side of the winners, and AI is the winning ticket.

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A New Dawn is Coming to U.S. Stocks

I work for one of the largest independent financial publishers in the world – representing over 1 million people in 148 countries.

We’re independently funding today’s broadcast to address something on the mind of every investor in America right now…

Should I put my money in Artificial Intelligence?

Here to answer that for us… and give away his No. 1 free AI recommendation… is 50-year Wall Street titan, Marc Chaikin.

Marc’s been a trader, stockbroker, and analyst. He was the head of the options department at a major brokerage firm and is a sought-after expert for CNBC, Fox Business, Barron’s, and Yahoo! Finance…

But what Marc’s most known for is his award-winning stock-rating system. Which determines whether a stock could shoot sky-high in the next three to six months… or come crashing down.

That’s why Marc’s work appears in every Bloomberg and Reuters terminal on the planet…

And is still used by hundreds of banks, hedge funds, and brokerages to track the billions of dollars flowing in and out of stocks each day.

He’s used this system to survive nine bear markets… create three new indices for the Nasdaq… and even predict the brutal bear market of 2022, 90 days in advance.

Click to continue reading…