On November 12, Scott Chronert, Citi US equity strategist, joined CNBC’s ‘The Exchange’ to discuss why he favors the small and mid-cap stocks and what spurs the earnings growth in smaller stocks. Chronert explained that as the market moves toward the end of the year, it is increasingly paying for 2026 earnings growth expectations. While he believes that there will certainly be follow-through from the MAG7 AI-affected part of the market next year, he thinks that the setup becomes incrementally more constructive as investors move down the cap. He cited consensus expectations which forecast the small and mid-cap part of the market to accelerate from low single-digit earnings growth this year to low double-digit earnings growth next year.

More importantly, he highlighted that during the Q3 2025 reporting period, companies in the SMID space have delivered a beat and raise plus, which means that they have raised Q4 and 2026 guidance, and have shown an outperformance dynamic that is even above that of the S&P 500. Chronert concluded that the focus is shifting to 2026 earnings growth setups, which, while present in large-cap, have more of a down-cap bias fundamentally for the catch-up trade. Furthermore, the market could see another Fed rate cut or two, which would allow the rate-sensitive component of the SMID space to kick in. Chronert summarized that the US SMID has a higher level of economic sensitivity versus large cap, and as the market moves through a period of policy indigestion to the other side, the economic setup, with help from the Fed, should, at the margin, be pretty good for small and mid-cap companies.

That being said, we’re here with a list of the 13 best NYSE penny stocks to invest in right now.

Our Methodology

We sifted through the Finviz stock screener to compile a list of the top NYSE penny stocks trading under $5. We then selected 13 stocks that were popular among elite hedge funds and that had an upside potential of over 25%. The stocks are ranked in ascending order of their upside potential. We have also added the hedge fund sentiment for each stock, as of Q2 2025, which was sourced from Insider Monkey’s database.

Note: All data was sourced on November 17. 

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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).

13 Best NYSE Penny Stocks to Invest in Right Now

13. Gray Media Inc. (NYSE:GTN)

Share Price as of November 17: $4.91

Number of Hedge Fund Holders: 26

Average Upside Potential as of November 17: 27.16%

Gray Media Inc. (NYSE:GTN) is one of the best NYSE penny stocks to invest in right now. On November 10, Benchmark analyst Daniel Kurnos raised the price target on Gray Media to $10 from $9, while keeping a Buy rating. The sentiment was posted after the company reported Q3 2025 revenue of $749 million, which was in line with consensus and at the high end of the company’s guidance, along with over $12 million of EBITDA upside. Kurnos believes that Gray Media is now gaining momentum into 2026.

As Gray Media reported its Q3 financial results just days prior, the company demonstrated strong cost management, as operating expenses came in $17 million below the low end of guidance. Despite these positive indicators, the company also reported a net loss of $23 million. However, the anticipated momentum can be tied to Gray Media’s upcoming strategic initiatives, with the company planning to enter 6 new markets and create 11 new Big 4 full duopolies through M&A.

Gray Media Inc. (NYSE:GTN) is a multimedia company that owns and operates television stations and digital assets in the US. It operates through Broadcasting, Production Companies, and Other segments.

12. Brandywine Realty Trust (NYSE:BDN)

Share Price as of November 17: $3.42

Number of Hedge Fund Holders: 14

Average Upside Potential as of November 17: 45.99%

Brandywine Realty Trust (NYSE:BDN) is one of the best NYSE penny stocks to invest in right now. On November 14, Evercore ISI analyst Steve Sakwa reiterated a Hold rating on Brandywine Realty with a $4.00 price target.

On the same day, Evercore ISI lowered the firm’s price target on Brandywine Realty to $4 from $5 and kept an In Line rating on the shares. This change was made as a part of Evercore ISI’s cautious outlook on the overall office REITs. The analyst told investors that office REITs in West Coast markets are under particular pressure.

This sentiment comes despite the conclusion of Q3 2025 and expectations for solid leasing activity to continue into Q4 for the entire sector. In its Q3 earnings report, the company reported that the total leasing activity amounted to 343,000 square feet, comprising 164,000 square feet in its wholly owned portfolio and 179,000 square feet in JVs. Looking ahead, the company supports a strong leasing pipeline of 1.7 million square feet, including 72,000 square feet in advanced negotiations.

Brandywine Realty Trust (NYSE:BDN) is one of the largest, publicly traded, full-service, integrated real estate companies in the US with a focus in Philadelphia, PA, and Austin, TX.