In this article, we will discuss the 13 Best Canadian Penny Stocks to Buy Right Now.
Penny and small-cap stocks have lagged the overall market amid heightened focus on large caps during the artificial intelligence boom. While the Russell 2000 has added about 10% year to date, it has underperformed the S&P 500, which is up about 15% over the same period, and the 20% surge in the NASDAQ 100.
Nevertheless, things could change as focus shifts to cheap valuations in pursuit of opportunities, even as equity markets are at all-time highs.
“Small caps are cheap relative to large caps and that’s certainly a notch in their favor, but in almost every case, valuation discrepancies need a catalyst — and that’s what’s lacking at the moment,” said Ed Clissold, chief US strategist at Ned Davis Research Inc.
Smaller companies are on course to deliver faster earnings growth than their larger counterparts. According to Scotiabank strategist Hugo Ste-Marie, corporate profits are on course to grow by 14%, topping the 12% expected growth for the S&P 500. Likewise, strategists on Wall Street expect their relatively cheap valuations to trigger a wave of corporate deals that would boost market sentiment.
Chris Tessin, chief investment officer at Acuitas Investments LLC, expects further interest rate cuts to bolster profits at small firms with relatively higher debt burdens. Tessin expects the companies to outperform in 2026 as valuations and earnings growth profiles take center stage.
“I don’t think the world has changed so dramatically that bigger trees grow faster,” he said. “Do you really think that the redwoods are always going to outpace the saplings in terms of growth?”
While the market is at a point where valuations really matter, now would be the best time to look at some of the best Canadian penny stocks to buy.
Source: Pexels
Our Methodology
To compile the list of Canadian penny stocks to buy right now, we used Finviz Screener and other online sources to identify stocks trading for less than $5 a share. We further trimmed our list to stocks with an upside potential of more than 20% as of November 23 and also detailed the number of hedge funds holding stakes in them, as of the second quarter of 2025. Finally, we ranked the stocks in ascending order by their upside potential.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research shows 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).
Best Canadian Penny Stocks to Buy Right Now
13. BlackBerry Limited (NYSE:BB)
Share Price: $4.17
Stock Upside potential: 23.08%
Number of Hedge Fund Holders: 20
BlackBerry Limited (NYSE:BB) is one of the Canadian penny stocks to buy right now. On November 17, BlackBerry Limited (NYSE:BB) confirmed the appointment of John Wall as the president of its market-leading QNX division.
The appointment comes as the company seeks to expand and pursue opportunities beyond the automotive sector. Wall is to oversee the company’s push for opportunities in the industrial automation and robotics sectors. The QNX division develops embedded software for various industries using its SDP 8.0 operating system.
“John’s experience and strong reputation in the industry position him uniquely to help drive the QNX business forward. As we embark on the next phase of the QNX growth journey, John’s deep knowledge of the product portfolio and the wider embedded software market will ensure we’re well-placed to address the incredible opportunities we have in front of us,” said CEO John Giamatteo.
Wall is to replace Mattias Eriksson, who is stepping down to pursue other opportunities.
BlackBerry Limited (NYSE:BB) is a Canadian technology company that specializes in enterprise software and services. It focuses on cybersecurity and the Internet of Things (IoT). The company provides intelligent security software, endpoint management services, and foundational software for critical embedded systems.
12. Standard Lithium Ltd. (NYSE:SLI)
Share Price: $3.78
Stock Upside potential: 28.51%
Number of Hedge Fund Holders: 6
Standard Lithium Ltd (NYSE:SLI) is one of the Canadian penny stocks to buy right now. On November 12, Roth MKM analyst Joseph Reagor reiterated a Buy rating on Standard Lithium Ltd., maintaining a price target of $5.50. The call followed the company’s November 10 earnings release, where Standard Lithium reported a net loss of $6.1 million, wider than the $4.8 million loss in the same quarter last year. Despite the miss, shares edged higher as investors focused on key operational milestones.
During the quarter, Standard Lithium completed and published a Definitive Feasibility Study for its South West Arkansas (SWA) Project, confirming its cost-effectiveness and potential as the company’s first commercial-scale development. The firm also announced record lithium-in-brine grades in North America, strengthening the outlook for its Franklin Project in East Texas.
To support growth, the company also closed an upsized $130 million underwritten public follow-on equity offering. It plans to use net proceeds from the offering to fund capital expenditures at the South West Arkansas Project and the Franklin Project in East Texas. Standard Lithium exited the quarter with cash and working capital of $32.1 million and $29.1 million, respectively.
“Following quarter close, we took a further de-risking step by completing a capital raise, supported by strong investor demand, that will put us in a position to reach FID at SWA, as well as progress our Franklin and other projects in East Texas. Looking ahead, we expect to provide multiple updates in the coming months as we seek to conclude our ongoing project financing and customer off take processes, finalize selection of our key SWA Project vendors and approve FID before beginning construction at SWA in 2026,” said David Park, Chief Executive Officer.
Standard Lithium Ltd. (NYSEA:SLI) is a company focused on developing lithium brine projects in the United States to produce battery-grade lithium. It uses a proprietary Direct Lithium Extraction (DLE) and purification process to extract lithium from brine resources, particularly in the Smackover Formation in Arkansas and Texas.
