Earlier on January 8, Royce Investment Partners co-chief investment officer Francis Gannon appeared on Yahoo Finance’s ‘Market Domination Overtime’ to suggest that it is time for investors to get on board with small-cap stocks. Gannon noted that the Russell 2000 had then gained over 3% so far in 2026. He believes that a leadership shift is occurring, with small caps outperforming the S&P 500 by about 400 basis points since April of the previous year. This shift was driven by the end of a two-year earnings recession for small-cap companies. Gannon described valuations as exciting and noted that they are at 25-year lows relative to large caps, which presents a significant long-term opportunity.
Regarding interest rates, Gannon explained that 40% of the debt in the Russell 2000 is variable, meaning previous Fed hikes have already been baked in. While he watches the 10-year Treasury yield, specifically the 4.5% level, he believes that the powerful earnings story for small caps will likely overshadow rate concerns this year. He also anticipates that the Trump administration’s focus on deregulation and reindustrialization will disproportionately benefit small-cap companies, particularly those in the emerging market of the American Midwest.
That being said, we’re here with a list of the 13 best penny stocks under $1 to buy right now.
Our Methodology
We used screeners to identify stocks that are trading below $1 per share, and limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. These stocks are also popular among analysts and elite hedge funds.
Note: All data was sourced on February 24.
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 Penny Stocks Under $1 to Buy Right Now
13. X3 Holdings Co. Ltd. (NASDAQ:XTKG)
X3 Holdings Co. Ltd. (NASDAQ:XTKG) is one of the best penny stocks under $1 to buy right now. On February 24, X3 Holdings officially entered the AI healthcare sector by securing a partnership to manage the global operations of an AI-powered healthcare smartwatch. This collaboration tasking X3 Holdings with the international commercialization and operational deployment of the device aims to transition healthcare from passive treatment to proactive management.
The smartwatch functions as a neuro-digital health tool designed to monitor and regulate emotional and neurological balance, supporting long-term physiological stability through continuous, adaptive intervention. The technology behind the wearable integrates a non-invasive brainwave sensing chip with digital frequency modulation to target 27 functional brain-related points. Using a health data platform built on 7 million user records and 25,000 physiological indicators, the device processes real-time signals through cloud-based AI analytics to create a closed-loop system of monitoring and adjustment.
Clinical validation has shown high effectiveness in neurological and behavioral applications, providing a pharmaceutical-free and non-invasive method for managing cognitive support, emotional health, and chronic discomfort. X3 Holdings Co. Ltd. (NASDAQ:XTKG) expects to generate revenue from its first service contract under this agreement starting in March 2026.
X3 Holdings Co. Ltd. (NASDAQ:XTKG), through its subsidiaries, provides software applications and technology services to corporate and government customers in the People’s Republic of China.
12. Wheels Up Experience Inc. (NYSE:UP)
Wheels Up Experience Inc. (NYSE:UP) is one of the best penny stocks under $1 to buy right now. On February 19, Wheels Up Experience reported earnings for Q4 2025, achieving its first-ever positive Adjusted EBITDAR of $37 million and a 67% year-over-year improvement in net loss. While total revenue remained flat sequentially at $184 million, the company benefited from a stronger mix of profitable membership flying and the early results of a $70 million cost-reduction initiative.
The quarter was further supported by a sale-leaseback transaction involving ten aircraft, which generated $30 million in net cash proceeds to support future fleet acquisitions. Operational performance reached record levels during the period, with a 99% completion rate and 91% on-time performance. The company is also accelerating its fleet transformation, with premium Phenom and Challenger jets now making up 40% of its controlled fleet.
To enhance the passenger experience, Wheels Up Experience Inc. (NYSE:UP) has begun installing high-speed satellite Wi-Fi across these aircraft, with nearly full fleet coverage expected by the end of 2026. Commercial momentum is being driven by the new Signature Membership program and a deepening partnership with Delta Air Lines, which contributed to a 35% year-over-year growth in corporate membership sales.
Wheels Up Experience Inc. (NYSE:UP) provides private aviation services in the US and internationally. The company offers the Wheels Up Membership program that consists of two primary membership categories, and UP for Business membership for small and medium enterprises.
11. Datavault AI Inc. (NASDAQ:DVLT)
Datavault AI Inc. (NASDAQ:DVLT) is one of the best penny stocks under $1 to buy right now. On February 23, Datavault AI and Wellgistics Health Inc. (NASDAQ:WGRX) announced an expansion of their partnership to develop a Healthcare-as-a-Service/HaaS model powered by blockchain-enabled smart contracts. This initiative builds on their existing PharmacyChain technology, which currently digitizes the tracking of prescription drugs from script to fulfillment.
The expanded collaboration will integrate Datavault AI Inc.’s (NASDAQ:DVLT) patented intellectual property to consolidate data from hospitals, clinics, diagnostic labs, and wearables into a single, comprehensive healthcare solution. By using these diverse data streams, the companies aim to improve patient outcomes and reduce the total cost of care through secure, AI-driven insights.
Wellgistics intends to use its upcoming iOS app update as the primary vehicle for patient adoption, employing a hub-and-spoke delivery model. Under this system, the online Wellgistics Pharmacy will serve as the main distribution channel for prescriptions and OTC products, while a network of over 6,500 independent pharmacies provides local touchpoints for urgent fulfillment and complex healthcare referrals. The partnership aims to capitalize on the rapidly growing blockchain healthcare market, which is projected to reach $214 billion by 2030.
Datavault AI Inc. (NASDAQ:DVLT) is a data sciences technology company that owns and operates data management platforms with supercomputing capabilities in North America, Asia Pacific, Europe, and internationally.
10. Alight Inc. (NYSE:ALIT)
Alight Inc. (NYSE:ALIT) is one of the best penny stocks under $1 to buy right now. On February 19, Alight reported full-year 2025 revenue of $2.3 billion, though Q4 results highlighted several operational hurdles. The company fell short of internal financial targets as both recurring and project revenues declined in Q4. A significant non-cash goodwill impairment charge of $803 million was recognized during the quarter, and adjusted EBITDA margins were pressured by increased compensation expenses intended to drive future execution.
The company’s CEO attributed the recent underperformance to execution challenges rather than strategy, emphasizing a need for better client management and technological innovation. To address these gaps, Alight plans to invest $100 million in 2026 to modernize its business foundations and systems. Despite these investments, the company anticipates a difficult start to the 2026 fiscal year, forecasting a high single-digit decline in Q1 revenue and significant pressure on EBITDA margins due to lower-than-expected renewals from the previous year.
The leadership also clarified that while the renewal cohort for 2026 is 30%–40% smaller than in 2025, the company has not seen significant client loss due to in-house AI adoption. Alight Inc. (NYSE:ALIT) remains focused on using its proprietary data lake to provide predictive employee experiences, which remains a key competitive advantage. With $273 million in cash and a $330 million undrawn credit facility, the company maintains a solid liquidity position as it undergoes a cultural and operational shift to restore sustainable growth.
Alight Inc. (NYSE:ALIT) is a technology-enabled services company worldwide. The company provides Alight Worklife, which is an intuitive, cloud-based employee engagement platform.
9. Sabre Corporation (NASDAQ:SABR)
Sabre Corporation (NASDAQ:SABR) is one of the best penny stocks under $1 to buy right now. On February 18, Sabre Corp. reported strong financial performance for 2025, which was highlighted by a 10% year-on-year increase in normalized adjusted EBITDA and a margin improvement to 19%. Despite facing external headwinds, including a US government shutdown that slowed Q4 bookings, Sabre Corp. ended the year with $2.8 billion in revenue and a robust cash balance of $910 million.
The company is positioning itself as a leader in travel-based AI, launching several industry-first solutions and expanding partnerships with entities like PayPal and MindTrip. While NDC bookings grew to represent 4% of total air distribution by year-end, management expects further scaling through 2026. However, Sabre Corp. anticipates 2026 pro forma free cash flow to be negative $70 million, largely due to $60 million in restructuring costs aimed at long-term efficiency.
Looking ahead, the company’s CEO expressed confidence in mid-single-digit volume growth for 2026, driven by market share gains and a new multi-source low-cost carrier solution. Sabre Corporation (NASDAQ:SABR) remains focused on the agentic travel ecosystem, arguing that its foundational infrastructure is essential for AI companies to manage complex transaction volumes.
Sabre Corporation (NASDAQ:SABR), together with its subsidiaries, operates as a software and technology company for the travel industry in the US, Europe, Asia-Pacific, and internationally.
8. Canaan Inc. (NASDAQ:CAN)
Canaan Inc. (NASDAQ:CAN) is one of the best penny stocks under $1 to buy right now. On February 23, Canaan significantly expanded its North American footprint by acquiring Cipher Mining’s 49% equity interest in three West Texas mining projects, collectively known as the ‘ABC Projects.’ This all-stock transaction, valued at ~$39.75 million, was funded by issuing over 800 million Class A ordinary shares to Cipher, making them a significant shareholder in Canaan.
The deal also includes the acquisition of 6,840 Avalon A15Pro mining rigs, which were previously deployed at a Cipher site now transitioning into an AI-HPC data center. The acquired assets provide Canaan with access to 120 MW of operational power capacity and an operating hashrate of ~4.4 EH/s. Located in the competitive ERCOT market, these sites benefit from exceptionally low power costs, averaging sub-3 cents/kWh, through long-term grid contracts and off-grid wind power integration.
By partnering with WindHQ, which retains a 51% stake, Canaan Inc. (NASDAQ:CAN) integrates its proprietary ASIC technology with localized expertise in energy infrastructure and grid stabilization. This acquisition marks a strategic shift for Canaan toward a systematic, asset-heavy energy model centered on direct US power applications.
Canaan Inc. (NASDAQ:CAN) researches, develops, designs, and sells ICs, as well as leases final mining equipment by integrating IC products for bitcoin mining and related components in the People’s Republic of China.
7. SelectQuote Inc. (NYSE:SLQT)
SelectQuote Inc. (NYSE:SLQT) is one of the best penny stocks under $1 to buy right now. On February 5, SelectQuote reported a 12% year-over-year revenue increase to $537 million for FQ2 2026, driven by a strong performance in its senior segment and a 26% revenue jump for SelectRx. To support its expansion, SelectQuote secured a $415 million senior credit facility, effectively refinancing its debt with extended maturities to 2031 and improving overall capital flexibility.
Despite these gains, the company lowered its FY2026 guidance to account for a $40 million impact resulting from a national carrier’s marketing budget cuts and changes in pharmacy benefit manager/PBM reimbursements. The PBM shift alone is expected to create a $20 million headwind to 2026 EBITDA. However, a new multi-year agreement signed in January with a major PBM will provide greater stability and predictability in reimbursement rates moving forward.
The company’s CEO emphasized that the company’s scale, managing over 100,000 complex members, significantly strengthened its negotiating position. While the industry faces concerns regarding CMS advance rate notices, SelectQuote Inc. (NYSE:SLQT) remains confident that its high-quality, diversified model will allow it to navigate market shifts better than its competitors.
SelectQuote Inc. (NYSE:SLQT) operates a technology-enabled, direct-to-consumer distribution and engagement platform that sells insurance policies and healthcare services in the US.
6. BARK Inc. (NYSE:BARK)
BARK Inc. (NYSE:BARK) is one of the best penny stocks under $1 to buy right now. On February 5, BARK reported an adjusted EBITDA of $(1.6) million for FQ3 2026, aligning with prior guidance and the previous year’s performance. The company achieved a consolidated gross margin of 62.5% and recorded its strongest average order value in nearly two years at $31.41. Operational efficiency was a major theme, highlighted by the generation of $1.6 million in positive free cash flow and a transition of last-mile delivery to Amazon, which is expected to further reduce shipping costs and accelerate delivery times.
However, revenue of $98.4 million fell below guidance, largely due to a deliberate $11 million reduction in marketing spend. This pullback is part of a broader strategy to prioritize high-quality customer acquisition over sheer volume, resulting in a 40% year-over-year decrease in marketing expenses. While this shift pressured revenue and contributed to a shrinking subscriber base, management maintains that the focus on bottom-line durability is necessary to navigate a volatile macroeconomic environment.
BARK Inc. (NYSE:BARK) ended the quarter with $22 million in cash after successfully repaying a $45 million convertible note. The company’s CFO noted that inventory levels were reduced by $10 million sequentially, a trend the company plans to continue to support cash conversion. Moving forward, BARK’s priorities remain centered on diversifying revenue streams and maintaining strict operational discipline to ensure long-term profitability.
BARK Inc. (NYSE:BARK) is a dog-centric company that provides products, services, and content for dogs. The company operates in two segments: Direct-to-Consumer and Commerce.
5. Gossamer Bio Inc. (NASDAQ:GOSS)
Gossamer Bio Inc. (NASDAQ:GOSS) is one of the best penny stocks under $1 to buy right now. On February 23, Gossamer Bio announced topline results from its Phase 3 PROSERA study evaluating seralutinib for Pulmonary Arterial Hypertension/PAH. The study achieved a placebo-adjusted improvement of +13.3 meters in the Six-Minute Walk Distance at Week 24. However, with a p-value of 0.0320, the trial narrowly missed its stringent prespecified statistical alpha threshold of 0.025.
Despite this, the drug showed significant activity in a heavily pre-treated population, where 55% of participants were already on triple or quadruple background therapies. The treatment demonstrated a more pronounced clinical impact in higher-risk patients, a finding consistent with previous Phase 2 data. Secondary endpoints, including a significant reduction in NT-proBNP levels, a key biomarker for heart stress, also favored seralutinib, reinforcing the drug’s non-vasodilatory mechanism of action.
Seralutinib was generally well tolerated, with a safety profile consistent with prior clinical experience. Gossamer Bio Inc. (NASDAQ:GOSS) plans to meet with the FDA to discuss a potential path forward for the drug. In the meantime, the company has paused enrollment in its SERANATA study to further analyze regional discrepancies in placebo responses observed during the PROSERA trial.
Gossamer Bio Inc. (NASDAQ:GOSS) is a clinical-stage biopharmaceutical company that develops and commercializes seralutinib for the treatment of pulmonary arterial hypertension in the US.
4. Nakamoto Inc. (NASDAQ:NAKA)
Nakamoto Inc. (NASDAQ:NAKA) is one of the best penny stocks under $1 to buy right now. On February 20, Nakamoto successfully completed the acquisition of BTC Inc. and UTXO Management, transforming the company into a vertically integrated Bitcoin-native enterprise. The all-stock transaction involved the issuance of ~364.8 million shares, valued at ~$81.6 million. With this move, BTC Inc (a global leader in Bitcoin media) and UTXO (a specialized investment firm) become wholly owned subsidiaries, positioning Nakamoto across the media, finance, and advisory sectors of the digital asset economy.
BTC Inc. brings a global footprint to the portfolio, generating $65.3 million in revenue and $26.5 million in net income for the 12 months ending September 2025. It operates 27 media brands, including the industry’s longest-running publication, Bitcoin Magazine, and organizes The Bitcoin Conference, which drew 67,000 attendees globally in 2025. Its ‘Bitcoin for Corporations’ platform, which supports companies using Bitcoin as a treasury asset, maintains a five-year partnership with Strategy Inc.
UTXO adds a sophisticated financial arm to Nakamoto, serving as the adviser to the Bitcoin-focused hedge fund 210k Capital, LP. In the same 12-month period, UTXO generated $18.2 million in revenue and $13.6 million in net income. The acquisition was overseen by a Special Committee of independent directors to ensure fairness. Combined, the two entities generated over $80 million in revenue and $40 million in net income, providing Nakamoto Inc. (NASDAQ:NAKA) with a profitable foundation for its Bitcoin-centric growth strategy.
Nakamoto Inc. (NASDAQ:NAKA) develops and invests in a global portfolio of Bitcoin-native companies. The company provides commercial and financial infrastructure for the capital markets.
3. Soluna Holdings Inc. (NASDAQ:SLNH)
Soluna Holdings Inc. (NASDAQ:SLNH) is one of the best penny stocks under $1 to buy right now. On February 17, Soluna Holdings announced a six-megawatt expansion of its partnership with Blockware at the Project Dorothy 1 site in West Texas. This development marks the third time the two companies expanded their collaboration, highlighting a successful model of scaling HPC within existing renewable-powered infrastructure. Deployment for this new capacity commenced in January and is on schedule to reach full completion by the end of February.
The partnership focuses on using behind-the-meter digital infrastructure to convert excess renewable energy into power for intensive computing applications like Bitcoin mining and AI. By expanding within an established facility, Soluna is able to support Blockware’s growth with minimal capital friction while improving the efficiency of the site.
Soluna’s broader strategy involves a 1 GW+ pipeline of these renewable-first data centers, which are designed to use energy that would otherwise be wasted due to grid curtailment. Soluna CEO noted that repeat business from partners like Blockware validates their operational model and infrastructure reliability. Blockware CEO echoed this sentiment and cited Soluna’s proven track record for uptime and performance in a renewable-powered environment as the primary reason for their ongoing commitment to the site.
Soluna Holdings Inc. (NASDAQ:SLNH), together with its subsidiaries, mines cryptocurrency through data centres. It operates through three segments: Cryptocurrency Mining, Data Center Hosting, and HPC Services.
2. MaxCyte Inc. (NASDAQ:MXCT)
MaxCyte Inc. (NASDAQ:MXCT) is one of the best penny stocks under $1 to buy right now. On February 24, MaxCyte launched the ExPERT DTx, which is a high-throughput 96-well electroporation platform designed to accelerate research and drug discovery. This modular system allows labs to transfect primary cells and various cell lines with minimal cellular stress, facilitating deep biological insights at the discovery stage.
By providing a reliable foundation for early-stage experiments, the platform enables researchers to transition seamlessly from initial discovery to larger transfection volumes without compromising cell health. The ExPERT DTx streamlines laboratory workflows by processing up to 96 samples in a single three-minute run. Its specialized R-50×96 assembly uses 12 detachable 8-well strips, allowing for parallel processing of different cell and cargo combinations with unique parameters.
Furthermore, optimized processes can be transferred to other ExPERT instruments, simplifying the scale-up to cGMP-compliant manufacturing by eliminating the need for workflow re-optimization. To maximize laboratory efficiency, the platform features a specialized software suite that includes the DTx Designer. This tool allows researchers to design experiments remotely and upload them once the system is available, significantly increasing instrument uptime in busy, multi-user environments.
MaxCyte Inc. (NASDAQ:MXCT) is a life sciences company that discovers, develops, and commercializes cell therapeutics in the US and internationally.
1. Yimutian Inc. (NASDAQ:YMT)
Yimutian Inc. (NASDAQ:YMT) is one of the best penny stocks under $1 to buy right now. On February 5, Yimutian Group entered into a preliminary agreement to acquire Hunan Jiufeng Agriculture, which is a prominent producer of premium camellia oil. This transaction represents a significant strategic pivot for Yimutian, moving beyond its traditional B2B digital platform toward a vertically integrated ecosystem that includes direct production and consumer-facing markets.
By securing Jiufeng’s established resources in Hunan Province, a premier region for oil-tea cultivation, Yimutian aims to enhance its influence over the entire agricultural value chain. Jiufeng Agriculture manages a comprehensive operation that includes cultivation, processing, refining, and branded sales. The company has invested approximately RMB 110 million in high-standard plantations and oversees a consortium managing over 150,000 mu of farmland.
This acquisition provides Yimutian Inc. (NASDAQ:YMT) with stable access to high-quality raw materials and a robust production infrastructure, which are essential for maintaining product consistency and meeting the rising demand for high-value health products. Yimutian intends to modernize the camellia oil supply chain by deploying its proprietary AI and digital tools to optimize planting, processing, and distribution. These technologies will focus on improving quality control, increasing manufacturing efficiency, and expanding market reach through AI-powered marketing.
Yimutian Inc. (NASDAQ:YMT), through its subsidiaries, provides agricultural B2B platform services for agricultural product transactions in the People’s Republic of China.
While we acknowledge the potential of YMT 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 YMT and that has 100x upside potential, check out our report about this cheapest AI stock.
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