In this article, we will take a detailed look at the 13 Best Multibagger Penny Stocks to Buy According to Analysts.

It’s time to pivot towards micro and small-cap stocks as the US Federal Reserve prepares to cut interest rates. A cooler inflation print for July has bolstered Morgan Stanley’s sentiments for more interest rate cuts than initially anticipated, as stagflation fears fade away.

The CME FedWatch tool, signaling three-quarter percentage point cuts before year-end, is fueling sentiments around micro and small-cap stocks that thrive in a low-interest-rate environment. Improving monetary policy outlook could be a boon for micro-cap companies that have generated significant returns over the past year, according to Morgan Stanley analysts.

“What if we don’t see material signs of inflation pressure in the July CPI report? Bond market pricing of a September cut (currently at a ~90% probability) could rise further,” Mike Wilson, chief U.S. equity strategist at Morgan Stanley. “This has the potential to catalyze a more durable rotation to small caps and lower quality stocks should it play out.”

With the S&P 500 up by about 8% year-to-date and at all-time highs, valuation concerns are increasingly ringing alarm bells. Amid the expected changes in interest rates, penny stocks trading at highly discounted valuations could offer a way out of the current premium valuations.

While the focus has been on large-cap companies for the better part of the year, several companies with intriguing innovations have been pushed into the penny stock territory. With that in mind, let’s take a look at some of the best multibagger penny stocks to buy according to analysts.

Our Methodology

To create the list of the 13 Best Multibagger Penny Stocks to Buy According to Analysts, we utilized the Finviz stock screener to filter for stocks trading below $5 per share. We then focused on penny stocks that have generated a return of over 100% over the past year (as of August 18) and are popular among elite hedge funds (as of Q1 2025). We also analyzed the stocks’ upside potential (above 30%) based on analysts’ estimates. Finally, we ranked the stocks in ascending order based on their one-year return.

Why are we interested in the stocks that hedge funds pile into? The reason is straightforward: our research has demonstrated that we can outperform the market by replicating 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).

Best Multibagger Penny Stocks to Buy According to Analysts

13. Akebia Therapeutics, Inc. (NASDAQ:AKBA)

Stock One Year Return: 144.44%

Share Price: $3.30

Stock Upside Potential: 110.84%

Number of Hedge Fund Holders: 19

Akebia Therapeutics, Inc. (NASDAQ:AKBA) is one of the best multibagger penny stocks to buy according to analysts. On August 7, the company delivered its second-quarter results, which showed strong momentum in the addition of new prescribers and expansion of patient access to its key therapy, Vafseo.

Revenue in the quarter surged to $62.5 million, surpassing consensus estimates of $47.64 million, driven by strong sales of Vafseo and Auryxia. Vafseo revenue came in at $13.3 million as prescription demand grew 55% over the first quarter, contributing to the overall revenue growth. Akebia expects dialysis organizations to operationalize protocols that enable Vafseo prescription access to more than 75,000 patients, expected to strengthen the revenue base.

The company also bounced back to profitability, reporting a net income of $0.2 million, up from a net loss of $8.6 million in the second quarter of 2024. An increase in net product revenues drove the net income increase. Akebia exited the quarter with $137.3 million in cash and cash equivalents sufficient to support future growth initiatives.

Akebia Therapeutics, Inc. (NASDAQ:AKBA) is a biopharmaceutical company focused on developing and commercializing therapies for kidney disease. It has developed products like vadadustat (Vafseo), an oral HIF prolyl hydroxylase inhibitor used for anemia related to chronic kidney disease (CKD), and ferric citrate (Auryxia), which manages phosphorus levels and iron deficiency anemia in CKD patients.

12. Gevo, Inc. (NASDAQ:GEVO)

Stock One Year Return: 127.85%

Share Price: $1.80

Stock Upside Potential: 223.89%

Number of Hedge Fund Holders: 14

Gevo, Inc. (NASDAQ:GEVO) is one of the best multibagger penny stocks to buy according to analysts. On August 11, the company delivered its first-ever profitable quarter in the second quarter of 2025. The company posted a net income of $2.1 million. Adjusted earnings totaled $17 million or $0.1 a share compared to an expected loss of $0.07 a share.

It generated operating revenue of $38.2 million, attributed to a $37.2 million revenue increase from GevoND and a $0.9 million revenue increase from the sale of Isooctane. Total revenue in the quarter totaled $43.41 million, a $14 million increase from the first quarter. The better-than-expected results come as Gevo continues to explore ways to diversify its revenue streams and build a sustainable business.

A key contributor to the better-than-expected results was revenue from carbon credits, as the segment has become an essential part of the business. The credits generated approximately $21 million in net income during the first half of the year.

Gevo, Inc. (NASDAQ:GEVO) is a renewable chemical and advanced biofuels company. They focus on producing sustainable fuels and chemicals using renewable resources, to replace fossil-based fuels and chemicals. Their technology leverages renewable energy and bio-based feedstocks to create energy-dense liquid hydrocarbons.

11. Precigen, Inc. (NASDAQ:PGEN) 

Stock One Year Return: 132.17%

Share Price: $2.67

Stock Upside Potential: 98.30%

Number of Hedge Fund Holders: 12

Precigen, Inc. (NASDAQ:PGEN) is one of the best multibagger penny stocks to buy according to analysts. On August 15, the stock exploded by more than 70% after the US Food and Drug Administration approved PAPZIMEOS for treating adults with recurrent respiratory papillomatosis (RRP).

The rally in the market came as the approval made PAPZIMEOS the first and only FDA-approved therapy for adult RRP patients. The FDA approved the treatment option without requiring Precigen to conduct a confirmatory clinical trial, despite the initial submission being made under an accelerated approval pathway.

“With the landmark FDA approval of PAPZIMEOS and broad label, all adult RRP patients are now eligible for access to the first and only approved therapy that targets the root cause of the disease,” said Helen Sabzevari, President and CEO of Precigen.

Precigen has established Papzimeos SUPPORT, a patient support program offering services including insurance navigation and financial assistance. The program is part of the company’s push to promote the newly FDA-approved treatment.

Precigen, Inc. (NASDAQ:PGEN) is a biopharmaceutical company that focuses on developing and commercializing gene and cell therapies using precision medicine technologies. They are dedicated to addressing complex diseases in immuno-oncology, autoimmune disorders, and infectious diseases.