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.
11. Hudson Pacific Properties Inc. (NYSE:HPP)
Share Price as of November 17: $2.08
Number of Hedge Fund Holders: 34
Average Upside Potential as of November 17: 46.34%
Hudson Pacific Properties Inc. (NYSE:HPP) is one of the best NYSE penny stocks to invest in right now. On November 10, Piper Sandler lowered the firm’s price target on Hudson Pacific to $2.50 from $3 while maintaining a Neutral rating.
Q3 2025 showed a split among REITs: some maintained their positive outlooks while others reduced expectations. This period made it clear that earnings growth is a necessity in the said sector. Given the overall underperformance of REITs, Piper Sandler believes that the primary focus for Hudson Pacific Properties must be on achieving cash flow growth.
The company’s Q3 earnings report showed a focus on earnings and cash flow growth, even as total revenue decreased. Total revenue for the quarter was $186.62 million, which was down 6.87% year-over-year. However, the company achieved internal efficiency and grew Funds From Operations to $0.04 per diluted share.
Hudson Pacific Properties is now positioning its portfolio for future cash flow recovery. The company executed 515,000 square feet of office leasing activity in Q3, with 67% consisting of new deals set to drive future rental income. This activity lifted the office portfolio occupancy to 75.9%, a sequential increase of 0.8%.
Hudson Pacific Properties Inc. (NYSE:HPP) is a real estate investment trust, or REIT.
1o. Ready Capital Corporation (NYSE:RC)
Share Price as of November 17: $2.57
Number of Hedge Fund Holders: 15
Average Upside Potential as of November 17: 55.95%
Ready Capital Corporation (NYSE:RC) is one of the best NYSE penny stocks to invest in right now. On November 14, UBS lowered the firm’s price target on Ready Capital to $2.75 from $3.50 and maintained a Neutral rating on the shares.
Earlier on November 12, Keefe Bruyette cut the price target on Ready Capital to $2.50 from $3.50 and kept an Underperform rating on the shares. Keefe Bruyette remains cautious on the company due to credit uncertainty, as well as limited long-run earnings visibility.
A few days before the announcement of this sentiment, Ready Capital Corp reported its Q3 2025 financial results. The quarter was defined by a decline in core interest income, along with credit uncertainty. Net Interest Income declined to $10.5 million due to a reduction in the loan portfolio and negative credit migration. Indicating potential credit risk, the total loan portfolio’s delinquency rate reached 5.9%.
Discussions regarding the company’s future strategy focused heavily on managing debt and addressing the limited long-run earnings visibility tied to market access and leverage.
Ready Capital Corporation (NYSE:RC) operates as a real estate finance company in the US. It operates through two segments: LMM Commercial Real Estate and Small Business Lending.
9. Magnachip Semiconductor Corporation (NYSE:MX)
Share Price as of November 17: $2.32
Number of Hedge Fund Holders: 15
Average Upside Potential as of November 17: 72.79%
Magnachip Semiconductor Corporation (NYSE:MX) is one of the best NYSE penny stocks to invest in right now. On November 3, Magnachip Semiconductor Corporation announced an agreement with Hyundai Mobis Company Limited/MOBIS to use advanced and high-performance Insulated Gate Bipolar Transistor/IGBT technology.
The move is intended to facilitate the expansion of Magnachip’s business. MOBIS is a global auto parts provider focusing on mobility solutions, has been collaborating with Magnachip since 2015, which is a 10-year collaboration, to develop IGBTs specifically for traction inverters used in hybrid electric vehicles/HEVs and EVs. Under this partnership, MOBIS managed the structural design, while Magnachip provided its expertise in semiconductor process technology.
IGBTs are crucial power semiconductors that are used in high-power systems that necessitate both high voltage and high current. Due to their impact on inverter performance, their efficiency and reliability are paramount, and only a few market leaders possess the capabilities for stable mass production.
Magnachip Semiconductor Corporation (NYSE:MX) designs, manufactures, and supplies analog and mixed-signal semiconductor platform solutions for communications, the IoT, consumer, computing, industrial, and automotive applications.
8. Butterfly Network Inc. (NYSE:BFLY)
Share Price as of November 17: $1.98
Number of Hedge Fund Holders: 22
Average Upside Potential as of November 17: 74.13%
Butterfly Network Inc. (NYSE:BFLY) is one of the best NYSE penny stocks to invest in right now. On November 17, Butterfly Network announced the launch of Compass AI. This latest generation of its enterprise software platform is an AI-powered operating system designed to transform point-of-care ultrasound/POCUS programs for health systems, making them compliant, scalable, and revenue-ready by reducing workflow friction.
Compass AI replaces traditional, radiology-style, order-based POCUS workflows, which often lead to documentation delays, skipped orders, and subsequently, many exams being undocumented, unreviewed, or unreimbursed. These conventional methods typically capture only about 15% of compliant studies, which means that up to 85% go unbilled.
The new AI-enhanced, encounter-based workflow is purpose-built for POCUS, which enables documentation compliance rates of up to 94% without increasing clinicians’ workload. This transformation can translate into as much as 5x more revenue from the same clinical volume by capturing value that was previously missed.
Butterfly Network Inc. (NYSE:BFLY) develops, manufactures, and commercializes ultrasound imaging solutions in the US and internationally.
7. Alta Equipment Group Inc. (NYSE:ALTG)
Share Price as of November 17: $4.65
Number of Hedge Fund Holders: 14
Average Upside Potential as of November 17: 115.06%
Alta Equipment Group Inc. (NYSE:ALTG) is one of the best NYSE penny stocks to invest in right now. On November 12, DA Davidson cut the firm’s price target on Alta Equipment to $7 from $8 with a Neutral rating on the shares after the company posted its Q3 2025 earnings miss. The company saw a loss per share of $1.31 in the said quarter. Given these circumstances, DA Davidson is now lowering its adjusted EBITDA outlook for 2025 and 2026 due to the impact of tariffs, the presence of mixed end markets, and the persistent competitive pricing dynamics within the Construction Equipment segment.
In the company’s Q3 2025 earnings report, Alta Equipment Group detailed a quarter challenged by soft equipment sales but marked by strategic and operational improvements. The company experienced an organic reduction in revenue of 5.8% year-over-year, with total equipment sales facing challenges in Q3. However, demand improved through September and into October, which was the strongest month of the year for new equipment sales.
Alta Equipment Group Inc. (NYSE:ALTG) owns and operates integrated equipment dealership platforms in the US and Canada. It has three segments: Material Handling, Construction Equipment, and Master Distribution.
6. Perfect Corp. (NYSE:PERF)
Share Price as of November 17: $1.81
Number of Hedge Fund Holders: 12
Average Upside Potential as of November 17: 121.61%
Perfect Corp. (NYSE:PERF) is one of the best NYSE penny stocks to invest in right now. On November 10, Perfect Corp. launched the YouCam AI Beauty Agent. This launch represents the next generation of conversational AI in the beauty, skincare, and fashion sectors, bringing a decade of the company’s AI expertise into a natural, conversational experience.
The new suite of intelligent conversational agents is designed to lead the market by acting as more than a smart assistant: it is a creative partner that listens, understands, and answers user questions and brings their ideas to life across beauty, skincare, and fashion styles.
The YouCam AI Agent is a family of smart assistants built to simplify creative tasks across YouCam apps and web platforms. The AI Beauty Agent, available live in the YouCam Makeup app, introduces the first consumer-facing conversational AI beauty experience and acts as a personal beauty consultant. Furthermore, Perfect Corp. offers Enterprise Customization, which is a brand-adaptable version that allows beauty and fashion companies to integrate the conversational AI into their own platforms.
Perfect Corp. (NYSE:PERF) is an AI software as a service company that provides AI and AR-powered solutions for the beauty, fashion, and skincare industries worldwide.
5. Jeld-Wen Holding Inc. (NYSE:JELD)
Share Price as of November 17: $1.97
Number of Hedge Fund Holders: 23
Average Upside Potential as of November 17: 127.85%
Jeld-Wen Holding Inc. (NYSE:JELD) is one of the best NYSE penny stocks to invest in right now. On November 5, Goldman Sachs lowered the price target on Jeld-Wen to $3.75 from $5.25 with a Neutral rating on the shares. Goldman Sachs believes that Jeld-Wen’s financial results will continue to face pressure in the upcoming quarters due to pricing headwinds. Furthermore, the ongoing loss of market share is expected to counteract any positive impact from the company’s cost reduction initiatives.
On the same day, Barclays also lowered the firm’s price target on Jeld-Wen to $3 from $5 with an Equal Weight rating on the shares under the same reasons.
These announcements followed Jeld-Wen’s Q3 2025 earnings report, which was marked by softening market conditions that resulted in $809 million in recorded revenue for the quarter, which was a 10% decline year-over-year. Given the market softness, the company revised its full-year 2025 financial guidance. Full year 2025 sales guidance was revised down to $3.1 to $3.2 billion, from the prior range of $3.2 to $3.4 billion. The company now expects a revenue decline of 10% to 13% for the full year.
Jeld-Wen Holding Inc. (NYSE:JELD) designs, manufactures, and sells wood, metal, and composite materials doors, windows, and related building products in North America and Europe.
4. Vertical Aerospace Ltd. (NYSE:EVTL)
Share Price as of November 17: $3.94
Number of Hedge Fund Holders: 10
Average Upside Potential as of November 17: 150.22%
Vertical Aerospace Ltd. (NYSE:EVTL) is one of the best NYSE penny stocks to invest in right now. On November 13, Vertical Aerospace announced that it received the crucial Permit to Fly approval from the UK Civil Aviation Authority/CAA. This regulatory milestone allows the company to begin ‘Phase 4 – Transition’ flight testing, the final stage of its VX4 prototype flight-test programme.
This phase focuses on testing the prototype’s defining maneuver: seamlessly shifting between hover (helicopter mode) and wingborne flight (airplane mode). The ‘Phase 4 – Transition’ testing follows the successful completion of Phases 1-3 earlier in the year, which confirmed the VX4’s flying qualities and included flying in open airspace for the first time.
To prepare for the piloted transition flight, the company’s teams completed extensive simulation, ground, and flight testing, verifying all 200 Minimum Safe Aircraft requirements in collaboration with the UK CAA. In support of the Permit to Fly, Vertical updated and submitted more than 20,000 pages of safety and technical information to the CAA.
Vertical Aerospace Ltd. (NYSE:EVTL) is an aerospace and technology company that designs, manufactures, and sells zero operating emission electric vertical takeoff and landing/eVTOL aircraft for use in the advanced air mobility market in the UK.
3. Aspen Aerogels Inc. (NYSE:ASPN)
Share Price as of November 17: $3.16
Number of Hedge Fund Holders: 21
Average Upside Potential as of November 17: 201.11%
Aspen Aerogels Inc. (NYSE:ASPN) is one of the best NYSE penny stocks to invest in right now. On November 7, Canaccord analyst George Gianarikas lowered the price target on Aspen Aerogels to $5 from $10 with a Buy rating on the shares. Gianarikas projects that the company’s liquidity will remain healthy due to a solid balance sheet and minimal capital expenditure needs. Looking beyond 2026, Canaccord anticipates a return to robust levels of EBITDA, which is expected to result in a material flow through to free cash flow.
Just a day prior, on November 6, Aspen Aerogels announced its financial results for Q3 2025, where the total revenue stood at $73.02 million, which was a 37.77% year-over-year decline and also a 6% sequential drop. The net loss per share reported in this quarter was $0.06.
Aspen Aerogels also updated its full-year 2025 financial outlook to reflect the lower near-term EV production in North America. The updated guidance for revenue is now $270 to $280 million, down from the prior outlook of $297 to $317 million. Most significantly, the Adjusted EBITDA outlook was reduced to a range of $7 to $15 million from the prior outlook of $35 to $45 million.
Aspen Aerogels Inc. (NYSE:ASPN) is an aerogel technology company that designs, develops, manufactures, and sells aerogel materials primarily for use in the energy industry, sustainable insulation materials, and EV markets in the US, Canada, Asia, Europe, and Latin America.
2. Evolent Health Inc. (NYSE:EVH)
Share Price as of November 17: $4.18
Number of Hedge Fund Holders: 33
Average Upside Potential as of November 17: 273.60%
Evolent Health Inc. (NYSE:EVH) is one of the best NYSE penny stocks to invest in right now. On November 6, Evolent Health and American Oncology Network announced a new national partnership. The initiative unveils an innovative model designed to provide high-quality, more affordable, and connected cancer care while eliminating the prior authorization burden for adherent providers. The model is expected to roll out in select markets in the year ahead.
American Oncology Network’s Chief Medical Officer, Dr. Stephen Divers, stated that this goes beyond common strategies like shifting to biosimilars to tackle major drivers of quality and cost in cancer care, which often burden community oncology practices.
To accelerate the time to treatment, it also eliminates prior authorization: providers who demonstrate consistent adherence to high-quality treatment pathways will be gold-carded, which means that they will no longer be required to seek authorization from payers for most tests and treatments.
Evolent Health Inc. (NYSE:EVH) provides specialty care management services in oncology, cardiology, and musculoskeletal markets in the US. The company offers an integrated platform for health plan administration and value-based business infrastructure.
1. Sable Offshore Corp. (NYSE:SOC)
Share Price as of November 17: $3.85
Number of Hedge Fund Holders: 32
Average Upside Potential as of November 17: 596.77%
Sable Offshore Corp. (NYSE:SOC) is one of the best NYSE penny stocks to invest in right now. On November 11, Jefferies lowered the firm’s price target on Sable Offshore to $20 from $38 but kept a Buy rating on the shares after the company announced its $250 million share placement. The company’s management clarified its future strategy by electing to focus on the OS&T option.
A day prior, on November 10, Roth Capital also cut the firm’s price target on Sable Offshore to $22 from $26 with a Buy rating on the shares. This sentiment was also driven by the company’s announcement of the $250 million share placement. Roth Capital noted that Sable Offshore is an attractive prospect because it is a high-growth company with low base declines and strong field margins.
On November 10, the company entered into subscription agreements for a private placement of common stock with institutional investors. Sable Offshore agreed to issue a total of 45,454,546 shares of its common stock at a purchase price of $5.50 per share. The transaction is expected to generate gross proceeds of ~$250 million.
Sable Offshore Corp. (NYSE:SOC) operates as an independent oil and gas company in the US. The company operates through three platforms located in federal waters offshore California.
While we acknowledge the potential of SOC to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than SOC and that has 100x upside potential, check out our report about the cheapest AI stock.
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Disclosure: None.
