This article looks at the 14 Best Multibagger Penny Stocks to Buy Right Now.
The Russell 2000 Index has hit fresh highs heading into 2026, signaling renewed interest in small companies. The index is already up by more than 13% for the year as market rotation from large-cap stocks gathers pace.
The renewed focus on penny and small-cap stocks comes as investors rotate into higher-risk, higher-reward assets. The shift also underscores growing confidence in the broader economy and corporate sector, as they are expected to deliver growth amid the ongoing US Federal Reserve easing cycle.
After lagging for years as mega-cap and AI-driven stocks surged, small caps and penny stocks have become relatively undervalued. Similarly, interest in small companies has picked up amid the view that monetary policy is no longer tightening.
A third Federal Reserve rate cut and the prospect of more easing to come are fuelling interest in small companies, as the Russell 2000 Index is outperforming the S&P 500 heading into year-end. Strategists at Bank of America Corp., JPMorgan Chase & Co., BTIG LLC, and Polar Capital America Corp expect the rotation to extend into 2026.
“Small caps are a good place to be generally, and globally, in part because they’ve been overlooked for a long period of time,” said Dan Boston, head of the global small company team at Polar Capital America. “What we see going forward is small caps doing well vis-a-vis large caps.”
According to Jonathan Krinsky, managing director and chief market technician at BTIG, investors are set to take some profits from big tech in 2026 amid concerns about high valuations. Consequently, let’s take a look at some of the best multibagger penny stocks to buy right now.
Our Methodology
To compile our list of the best multibagger penny stocks to buy right now, we used Finviz screener and CNN to identify stocks trading for less than $5 a share (as of December 16). We focused on penny stocks with an upside potential of more than 100% and that were popular among elite hedge funds in the third quarter of 2025. Finally, we ranked the stocks in ascending order based on 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 Multibagger Penny Stocks to Buy Right Now
14. ADC Therapeutics S.A. (NYSE:ADCT)
Share price: $4.18
Analysts upside potential: 102.11%
Number of hedge fund holders: 19
ADC Therapeutics (NYSE:ADCT) is one of the best multibagger penny stocks to buy right now. On December 4, Guggenheim analyst Michael Schmidt reaffirmed his Buy rating on ADC Therapeutics (NYSE:ADCT) and set a price target of $10.00. On December 3, RBC Capital reiterated an Outperform rating and $5.00 price target in response to interim Phase Ib data from the LOTIS-7 trial.
Data from the LOTIS-7 trial evaluating the safety and efficacy of ZYNLONTA demonstrated a manageable safety profile and strong efficacy, including deep and durable responses in patients with relapsed or refractory diffuse large B-cell lymphoma.
The trial demonstrated an overall response rate of 89.8% and a complete response rate of 77.6% across 49 efficacy-evaluable patients. The topline results affirm the potential of ZYNLONTA and glofitamab as the best-in-class bispecific antibody-based combination in 2L+ DLBCL.
“Taken together with the LOTIS-5 trial, for which top-line results are anticipated in the first half of 2026, we believe ZYNLONTA-based combinations offer complementary approaches with the potential to improve outcomes for 2L+ DLBCL patients,” said Ameet Mallik, Chief Executive Officer of ADC Therapeutics.
Amid positive trial results, ZYNLONTA has already received accelerated approval from the FDA and conditional approval from the European Commission as a treatment option for relapsed or refractory diffuse large B-cell lymphoma.
ADC Therapeutics S.A. (NYSE:ADCT) is a commercial-stage biotech company that develops targeted cancer drugs called Antibody-Drug Conjugates (ADCs), using its proprietary Pyrrolobenzodiazepine (PBD) technology. It uses the technology to link potent chemotherapy to antibodies that find and kill cancer cells, with an approved drug (Zynlonta) for lymphoma.
13. Repay Holdings Corporation (NASDAQ:RPAY)
Share price: $3.40
Analysts upside potential: 105.88%
Number of hedge fund holders: 21
Repay Holdings Corp (NASDAQ:RPAY) is one of the best multibagger penny stocks to buy right now. Repay Holdings (RPAY) holds a Moderate Buy rating, with a $7 average target (range $4–$12), implying ~106% upside from the current price.
On November 20 at the Stephens Annual Investment Conference, the company reiterated its focus on expanding its market presence and enhancing its technology offerings. The remarks come as the company continues to move from negative growth and margin pressures.
In a bid to accelerate growth, Repay Holdings is increasingly investing in technology and sales development to drive future growth. It’s also accelerating its focus on business-to-business payments and consumer engagement through innovative solutions. The push is part of an effort to bolster EBITDA margins and achieve free cash flow of over 50%.
“During the third quarter, REPAY achieved solid normalized growth with strong Adjusted EBITDA margins and robust Free Cash Flow generation. We opportunistically deployed capital towards our organic growth initiatives, repurchased shares, and retired a significant portion of convertible notes,” said John Morris, Chief Executive Officer of REPAY.
Some of the drivers expected to accelerate growth include digital transformation in payments and the business back office. In addition, the company has set its sights on capitalizing on market opportunities in the $5.6 trillion market, with a focus on non-discretionary transactions.
Repay Holdings Corporation (NASDAQ:RPAY) is a payment technology company offering integrated solutions for businesses to accept and send electronic payments, serving sectors like personal loans, auto finance, and B2B, through its Consumer and Business Payments segments.
