15 Best NYSE Penny Stocks to Buy According to Hedge Funds

In this article, we will take a look at some of the best penny stocks listed on the New York Stock Exchange that are currently being highly favored by hedge funds.

On July 3, Reuters reported that global stocks were on course for their strongest weekly performance in over two months after the release of a weaker-than-expected U.S. employment report.

As the week concluded on Friday, the STOXX 600 index in Europe touched yet another record high. With a 2.6% jump, it registered its strongest weekly performance since mid-May. Across the Asian side, Tokyo’s Nikkei was up by 1.5%, and South Korea’s volatile KOSPI index increased by roughly 6%.

U.S. employment growth slowed sharply in June, and the payroll reports for the prior two months were revised lower, signaling a weakening labor market. The data reduced expectations for a near-term interest rate increase by the Federal Reserve, with rates expected to be kept on hold until October.

Reuters cited comments from TD Securities’ Head of Global Economics, James Rossiter, who said the firm’s key expected risk for 2026 was global shipping and that this risk had been anticipated even before the U.S.-Iran conflict. He further stated that because of the closure of the Strait of Hormuz, ships have been redirected all over the world. This led to reduced shipping capacity worldwide, suggesting that its price impacts were continuing to affect the world economy.

With that background, let’s explore our 15 Best NYSE Penny Stocks to Buy According to Hedge Funds.

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Our Methodology

To identify relevant stocks for this article, we screened NYSE-listed companies with market capitalizations above $200 million and share prices below $5. Next, we identified the number of hedge funds holding positions in these stocks as of the end of the first quarter of 2026. Finally, we selected 15 stocks with the highest number of hedge funds holding stakes and ranked them in ascending order.

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 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).

15. GCT Semiconductor Holding Inc. (NYSE:GCTS)

With an increased emphasis on AI infrastructure buildout, GCT Semiconductor Holding Inc. (NYSE:GCTS) makes it to our list of 15 best NYSE penny stocks to buy according to hedge funds.

On June 23, GCT Semiconductor Holding Inc. (NYSE:GCTS) announced a renewed strategic commitment to enabling the worldwide buildout. Such strategic focus will enable the company to tap into a rapidly growing AI infrastructure segment, beyond the conventional telecom space.

The company highlighted that AI is now becoming part of real-time environments across enterprise, industrial, and consumer segments. In this scenario, GCT is committed to establishing its Non-Terrestrial Network capabilities and 5G satellite communications as the key wireless foundation linking the physical world to cloud intelligence. Such commitment will position that company as a major stakeholder in AI-led advancements over the next 10 years, as per the CEO of GCT, John Schlaefer:

“AI is moving into every device and every industry.” He added, “Our mission is to enable the wireless pipeline necessary for real‑time AI everywhere. This commitment positions GCT at the center of the next decade of AI‑driven growth.”

The company also shed light on how its connectivity solutions can facilitate a rapid increase in edge computing, which involves processing data close to the source, such as smartphones, sensors, IoT devices, and industrial machines. By managing data locally instead of routing all data back to remote cloud servers, edge computing conserves bandwidth, minimizes delays, and allows immediate decision-making for AI systems operating across the field.

With the aim of enabling edge AI solutions, the company has its core focus on AI Wireless Last Mile, NTN & Satellite Integration, Spatial & Wearables Computing, and Enterprise & Hyperscaler Alignment.

GCT Semiconductor Holding Inc. (NYSE:GCTS) is a fabless semiconductor company that creates wireless communication semiconductors for industrial as well as retail applications. The company’s wireless communication offerings include modems, RF transceivers, IoT chipsets, and system-on-chip services.

14. Integra Resources Corp. (NYSE:ITRG)

A recent feasibility report around the Florida Canyon Mine is inspiring confidence in Integra Resources Corp. (NYSE:ITRG), which is one of the 15 best NYSE penny stocks to buy according to hedge funds.

On June 25, Integra Resources Corp. (NYSE:ITRG) disclosed its latest Technical Report covering its Florida Canyon Mine, based in Nevada. The company acquired Florida Canyon for a price of $68 million less than two years back, and since then has reshaped it into a larger asset with a longer life, along with a 74% rise in Proven and Probable Mineral Reserves. Moreover, the company has raised its yearly gold production capacity by 17%.

The management shared that the Florida Canyon is now anticipated to deliver after-tax free cash flows of over $0.8 billion from gold manufacturing, based on 685,000 ounces of cumulative payable gold production over the mine’s life. This would include 2 years of gold production from residual leaching, which is expected to begin in 2033. The cash flows will be utilized by the company to finance growth investments, with the aim of improving the production profile and increasing the mine’s life.

As per the management’s base case metal price estimates, after-tax NPV from these operations is projected at 5% of $601 million. Based on spot metal price assumptions, the figure jumps up to around $723 million.

Integra Resources Corp. (NYSE:ITRG) produces precious metals and explores and develops mining sites across the Western U.S., with an emphasis on gold and silver. One of its flagship projects is the DeLamar Project, which involves unpatented lodes, millsite claims, and placer and tax parcels.

13. Accendra Health Inc. (NYSE:ACH)

Accendra Health Inc. (NYSE:ACH) is one of the 15 best NYSE penny stocks to buy according to hedge funds.

On June 23, Accendra Health Inc. (NYSE:ACH) disclosed the final settlement of its previously disclosed offer, involving its outstanding 4.5% senior notes due 2029 and 6.625% senior notes due 2030. These have been exchanged with fresh 9% senior secured first-lien notes expiring in 2032 and 9.75% senior secured second-lien notes expiring in 2033.

As part of the Exchange Offers, Accendra issued or anticipates issuing $539.25 million in First Lien Notes, including New Money Notes Issuance. For Second Lien Notes, the amount is projected to be around $698.1 million.

Back on June 17, based on Accendra’s initiation of these latest exchange offerings, S&P Global Ratings confirmed the company’s ‘B’ issuer rating and also changed its outlook from negative to stable. The rating agency also allocated a rating of ‘CCC+’ to the company’s second-lien notes with minimal recovery expectations, and ‘B+’ to its first-lien notes having strong recovery prospects.

The outlook highlights anticipated short-term earnings strain from acquisition and separation costs, along with a loss of a large commercial contract. This is expected to be balanced out by improving credit metrics. The S&P Global Ratings-adjusted leverage is projected to trend towards approximately 5x, while the FOCF-to-debt ratio is expected to exceed 3%.

Accendra Health Inc. (NYSE:ACH) is a provider of healthcare solutions. Its offerings include diabetes medication, in-home care, respiratory treatment, and other patient support services. It also provides equipment for ostomy care, wound care, urology, and incontinence products.

12. Baytex Energy Corp. (NYSE:BTE)

Recent price target adjustments, along with the renewal of a share buyback program, make Baytex Energy Corp. (NYSE:BTE) one of the 15 best NYSE penny stocks to buy according to hedge funds.

On June 10, CIBC increased its target price for Baytex Energy Corp. (NYSE:BTE) from $5.12 to $5.3, which results in an adjusted upside potential of over 30%. The firm reiterated its Neutral rating on the stock.

On June 26, Baytex Energy Corp. (NYSE:BTE) announced that the Toronto Stock Exchange approved the renewal of the company’s normal course issuer bid (NCIB). This allows the company to repurchase up to 70.9 million shares of its common stock over a one-year period between July 2, 2026, and July 1, 2027.

The company is returning cash to its shareholders through both quarterly dividend payouts and share buybacks. The renewal of the NCIB allows the management to continue rewarding shareholders with a combination of both. Management believes that buybacks are an effective way to enhance per-share metrics and return capital to investors.

Under the latest NCIB renewal, the total number of shares available for buyback is approximately 10% of the company’s free float of 712.59 million shares as of June 19. Management highlighted that the buyback of shares will be executed in the open market at prevailing market rates. This will be done using services from the New York Stock Exchange, Toronto Stock Exchange, or alternative platforms across Canada and the United States.

Baytex Energy Corp. (NYSE:BTE) is an oil and gas company that produces and develops crude oil and natural gas within the Western Canadian Sedimentary Basin. It produces various types of hydrocarbon products, including light oil, condensate, heavy oil, natural gas liquids, and natural gas.

11. Vertical Aerospace Ltd. (NYSE:EVTL)

Vertical Aerospace Ltd. (NYSE:EVTL) offers a compelling investment case, based on its long-term strategic engagements with key industry players, making it one of the 15 best NYSE penny stocks to buy according to hedge funds.

On June 29, Vertical Aerospace Ltd. (NYSE:EVTL) entered into a long-term contract with Astronics Corp. (NASDAQ:ATRO), which is a leading supplier of advanced technologies for mission-critical industries, defense, aerospace, and other important industries.

Under the agreement, Astronics will deliver low-voltage power distribution capabilities to Vertical’s Valo electric vertical take-off and landing (eVTOL) aircraft. This will include distribution hardware and power conversion to safeguard electrical power for the aircraft’s underlying systems.

The distribution system has the ability to transform high-voltage electrical power from the eVTOL propulsion framework into low-voltage power that supports flight control and critical aircraft functions.

What is also driving a favorable sentiment towards Vertical Aerospace Ltd. (NYSE:EVTL) is the successful execution of the company’s recent testing campaign. Back on June 9, the management revealed that its most recent full-sized aircraft prototype concluded its inaugural piloted flight in the UK at the Company’s Flight Test Center.

This marked the beginning of an extended flight testing campaign. According to the company, the new prototype is the last aircraft to become part of its flight testing fleet prior to Critical Design Review. It sets the design baseline for certification.

Vertical Aerospace Ltd. (NYSE:EVTL) is an aerospace technology company that designs and manufactures zero-emission electric vertical takeoff and landing aircraft. Through its flagship VX4 aircraft, the company is on a mission towards advanced air mobility and to make urban travel more sustainable.

10. Gray Media Inc. (NYSE:GTN)

Gray Media Inc. (NYSE:GTN) is one of the 15 best NYSE penny stocks to buy according to hedge funds. The company’s acquisitive strategy, backed by strategic financing arrangements, appears captivating. On July 1, Gray Media Inc. (NYSE:GTN) agreed to purchase six TV stations from American Spirit for $50 million.

The companies executed the initial closing, with Gray paying out $40 million to American Spirit and initiating the stations’ limited local management arrangement. The initial payment was financed through proceeds from a $70 million private placement of the 7.25% Senior Secured First Lien Notes due in 2033. Gray expects to complete the remaining portion of the purchase during the fourth quarter, with its cash balance.

Earlier on June 30, Gray Media Inc. (NYSE:GTN) completed a $70 million private offering of its 7.25% Senior Secured First Lien Notes, which are due in 2033. Gray issued the notes at par value plus accrued interest to accredited investors.

A portion of the proceeds will finance the buyback of the company’s 50,000 Series A Perpetual Preferred shares, while the remaining proceeds will be utilized for the initial closing of the company’s American Spirit Media acquisitions, as highlighted above.

The Perpetual Preferred shares repurchase had a liquidation preference of $50 million; however, the company incurred just $30 million in cost in addition to the accrued dividends.

Gray Media Company Inc. (NYSE:GTN) specializes in multimedia assets, including local television affiliates and digital assets. These are organized into multiple reporting segments such as Broadcasting, Production Companies, and Digital Media Agency. It also offers digital marketing services.

9. AMC Entertainment Holdings Inc. (NYSE:AMC)

External financing arrangements during recent weeks, along with analyst revisions to the stock’s target price, have led to optimism around AMC Entertainment Holdings Inc. (NYSE:AMC), which is one of the 15 best NYSE penny stocks to buy according to hedge funds.

On June 24, AMC Entertainment (AMC) entered into an agreement with some institutional investors for a sale of 95.25 million shares, to raise an estimated $200 million in gross proceeds. Part of these proceeds will be utilized to redeem $125.5 million of its 6.125% Senior Subordinate Notes due 2027 and to pay for associated costs.

The management also aims to use the proceeds for other corporate needs, which include capital outlays across theatres for a better customer experience, debt repayments, and increasing cash reserves.

Back on June 11, Drew Crum from B. Riley increased the firm’s target price on AMC Entertainment Holdings Inc. (NYSE:AMC) from $2 to $2.25, while maintaining a Buy rating on the stock. Crum noted the company’s stronger-than-expected May domestic box office performance and greater confidence in second-quarter numbers.

However, the analyst believes that much of this confidence seems to have already been priced into the current share price, which limits further upside potential. It also leads to a more selective investment stance, even though ongoing box office growth, windowing advancements, and guild renewal tailwinds could offer more support.

AMC Entertainment Holdings Inc. (NYSE:AMC) is a media company that promotes cinematic entertainment. The company has received international recognition for its media services. It manages and has interests across various theatres.

8. Comstock Inc. (NYSE:LODE)

Comstock Inc. (NYSE:LODE) is one of the 15 best NYSE penny stocks to buy according to hedge funds.

On June 29, Comstock Inc. (NYSE:LODE) and Comstock Metals LLC announced the completion of the delivery and assembly of all precision equipment and unit operations for their industry-scale facility. The companies revealed that three of the nine unit operations, i.e., the robotic loading arms, Eddy system, and a washing system, have undergone commissioning and testing processes and are now being integrated.

This represents another milestone in the progression of achieving complete commissioning and operation of the solar panel recycling production line with a capacity of 100,000 tons per year.

President of Comstock Metals, Dr. Fortunato Villamagna, said that the startup of a facility is comparable to tuning an orchestra; all nine unit operations will receive their own individual performance tuning, retuning, and stress testing before starting full production.

Back on June 22, Comstock Inc. (NYSE:LODE) disclosed that it has signed a Securities Purchase Agreement to transfer 100% of its mining assets to Mackay Precious Metals Inc., for a total consideration of over $45 million. According to Comstock, the divestiture is anticipated to decrease ongoing costs, generating over $1.5 million in annual savings.

Comstock Inc. (NYSE:LODE) is involved in technologies and underlying processes for extraction and conversion of waste and under-utilized natural resources into clean energy and other clean-energy-related products for the U.S. market. It offers technology to extract lignocellulosic biomass, which is useful in producing intermediates for advanced biofuels.

7. Gerdau S.A. (NYSE:GGB)

Gerdau S.A. (NYSE:GGB) is one of the 15 best NYSE penny stocks to buy according to hedge funds.

As of the close of play on July 7, Gerdau S.A. (NYSE:GGB) carried a moderately bullish consensus sentiment. Based on a median 1-year price target of $5.63, the stock yields more than 28% upside potential for investors.

On June 25, JPMorgan increased its target price for Gerdau S.A. (NYSE:GGB) from $5.50 to $6, resulting in an adjusted upside potential in excess of 36% at the prevailing level. The firm reiterated an Overweight rating on the stock.

Earlier on June 22, Gerdau S.A. (NYSE:GGB) announced that it entered into an agreement to purchase a 23.03% stake held by Companhia Paranaense de Energia (Copel) in Dona Francisca Energĩ S.A. This will result in the company’s 100% ownership of the hydropower company, located in Rio Grande do Sul.

The deal values DFESA at around 150 million Reais, equivalent to $27 million. Gerdau will finance the acquisition with its own funds, subject to customary approvals by relevant authorities. The agreement also entails Copel giving up its pre-emptive rights on another transaction, which involves utility company Celesc.

Gerdau S.A. (NYSE:GGB) produces steel and operates across various locations. It also deals in various other products such as rebars, bars, wire, thick plate, hot-rolled coil, and specialty steels for the agricultural, automotive, construction, and industrial markets.

6. Dakota Gold Corp. (NYSE:DC)

Dakota Gold Corp. (NYSE:DC) is one of the 15 best NYSE penny stocks to buy according to hedge funds.

On July 6, Dakota Gold Corp. (NYSE:DC) disclosed extra assay results from its 2026 drill campaign at the Richmond Hill Oxide Heap Leach Gold Project. This campaign amounted to 17,273 meters of drilling in 112 holes and comprised a mix of fill-in, geotechnical, and extension drilling.

Results from the drill campaigns of 2025 and 2026 are being included in a Pre-Feasibility Study that will be released during the fourth quarter of 2026. It will be aimed towards backing a revised mineral resource assessment, improving the geo-metallurgical model, and providing a unified, optimized mining plan with scheduling.

The company mentioned that expansion drill holes RH26C-437 and RH26C-432 intersected high-quality silver and gold mineralization across the Northern Expansion region, whereas expansion drilling in the northeast Project site remains open in every direction. It continues to return grades surpassing the mean grade in the July 2025 Initial Assessment, with cash flow indicated and measured in the mining plan.

The company also revealed the assay outcomes on June 11, highlighting a 30% increase in drill holes relative to those that guided the mineral resource projections presented in the Initial Assessment in July 2025. Management noted that these improvements strengthen the project definition and support the ongoing progress of Richmond Hill towards development.

Dakota Gold Corp. (NYSE:DC) acquires and develops mineral properties across the United States. The company is focused on the commercialization of the Richmond Hill Oxide Heap Leach Gold Project. It aims to advance the legacy of the Homestake Gold Mining District.

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