In this article, we will list the 5 Best Fundamentally Strong Penny Stocks to Invest In Now. Please visit 8 Best Fundamentally Strong Penny Stocks to Invest In Now, if you would like to see the extended list and the methodology behind it.
5. Keel Infrastructure Corp. (NASDAQ:KEEL)
Upside Potential as of May 1, 2026: 55.48%
On April 27, TheFly reported that Bill Papanastasiou from Chardan started coverage of Keel Infrastructure Corp. (NASDAQ:KEEL) with a Buy rating and a price target of $4.50. The firm noted that the company, along with Galaxy Digital and Riot Platforms, is shifting its power offerings to high-performance compute (HPC) workloads from bitcoin mining. This is being done to capitalize on a “significant valuation re-rate opportunity afforded by stable cash flows attached to long- duration lease agreements.”
With AI-driven applications and use cases, “we have only begun to scratch the surface,” Chardan stated. The firm believes that the compute demand will increase as complex tasks are directed to technology. The investors seeking potential upside exposure “need not look any further” beyond these three stocks, said the firm, thus making the stock one of the best penny stocks to buy now.
As stated by the analyst,
“We think the stock offers an attractive risk-reward profile given the existing portfolio of North American data center sites deemed feasible for high-performance computing workloads and a disconnected market valuation that does not fully capture the potential re-rating opportunity, unlike peers (who pivoted early on and secured anchor tenants).”
Keel Infrastructure Corp. (NASDAQ:KEEL) is a New York-based digital and energy infrastructure company specializing in HPC and AI. Founded in 2017, the company operates data centers housing computers, sells computational power, and provides electrical services.
4. Grab Holdings Limited (NASDAQ:GRAB)
Upside Potential as of May 1, 2026: 72.39%
On April 20, Ranjan Sharma, an analyst at JPMorgan, trimmed the price target on Grab Holdings Limited (NASDAQ:GRAB) to $5.90 from $6.10 and reiterated an Overweight rating.
BofA Securities, too, remains positive on Grab Holdings Limited (NASDAQ:GRAB) as it believes that the risk-reward is favorable. The firm expects the upcoming results conference call to center on the impact of increased fuel prices on demand, along with the influence of higher driver subsidies. The firm maintained a price target of $6.20 and a Buy rating on the company on April 17.
On March 23, Jefferies maintained a Buy rating on Grab Holdings Limited (NASDAQ:GRAB) with a price target of $6.70 after the company announced Taiwan’s foodpanda acquisition. Thomas Chong, an analyst at the firm, says the deal came as a surprise to the market, enabling the company to mirror its Southeast Asian delivery success in Taiwan. This will be driven by affordability, reliability, and technology.
The deal includes a cash consideration of $600 million, reflecting a 30% discount to the price Uber suggested in 2024. Grab Holdings Limited (NASDAQ:GRAB) views the acquisition as a factor behind the boost in 2026 revenue and adjusted EBITDA in 2028, after accounting for integration expenses.
Grab Holdings Limited (NASDAQ:GRAB) is Southeast Asia’s leading superapp by GMV across food delivery, mobility, and financial services. From necessities to earning opportunities, the company claims to be an all-in-one platform.
3. Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX)
Upside Potential as of May 1, 2026: 75.70%
On April 30, TheFly reported that JPMorgan trimmed the price target on Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX) from $11 to $10 and reiterated an Overweight rating. With the highest 1-year price target among analysts, the firm’s estimate implies 192.83% upside potential. Overall, the stock has a Buy rating from 38% of the analysts, with the remaining 63% neutral.
During a Morgan Stanley webcast on April 15, Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX) highlighted its AI-powered drug discovery platform. The leadership outlined the way technology is being utilized for target identification, molecule design, and clinical development.
According to management, AI-driven initiatives have already resulted in a 30% to 50% improvement in patient enrollment. Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX) also adopts AI for protocol design and patient stratification. In contrast to industry norms of 2,500 to 5,000 compounds over a span of four to five years, the company accelerated a compound to clinical trials after designing nearly 330 molecules in a period of 17 months. With a focus on AI and an impressive quarterly revenue growth (YoY) of 681.70%, RXRX is among the best fundamentally strong penny stocks to invest in now.
Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX) is a Utah-based clinical-stage biotechnology company specializing in the decoding of biology and chemistry. Founded in 2013, the company develops its solutions by integrating technological advancements.
2. Genius Sports Limited (NYSE:GENI)
Upside Potential as of May 1, 2026: 150.28%
On April 21, Truist cut the price target on Genius Sports Limited (NYSE:GENI) to $10 from $13 and reiterated a Buy rating. This re-rating is part of a broader research note. According to the firm, the sector lags in preference, but regionals appear to be in a good position heading into Q1 results.
Several other analysts are backing their positive narratives, making the stock one of the best fundamentally strong penny stocks to buy. On April 8, Citizens reaffirmed a Market Outperform rating on Genius Sports Limited (NYSE:GENI) with a price target of $11. According to the firm’s observations, U.S.-listed online gaming companies typically begin Q2 near their all-time lows. The legalization catalysts in the near-term remain limited, the firm added.
Thanks to positive handle dynamics, monetization of prediction markets, and current cost-efficiency initiatives, Citizens views a favorable operating environment. The firm highlighted that states are avoiding gaming tax hikes amid ongoing legislative sessions, given the prediction market risk adoption if taxes become cost-inefficient. That said, the firm anticipates promotion and marketing expenses to decline into 2027, supporting robust EBITDA flow-through relative to current expectations.
Back on April 1, Benchmark reiterated a Buy rating and a price target of $10 on Genius Sports Limited (NYSE:GENI). The firm sees the company exceeding estimates and raising guidance in Q1FY26. This is supported by the Betting segment execution and enhanced Media performance.
Genius Sports Limited (NYSE:GENI) is a London-based provider of technology-led products and services to serve certain industries, particularly sports, sports betting, and sports media. Founded in 2001, the company offers technology infrastructure, streaming solutions, and end-to-end integrity services.
1. MannKind Corporation (NASDAQ:MNKD)
Upside Potential as of May 1, 2026: 165.49%
On April 8, TheFly reported that Truist trimmed the price target on MannKind Corporation (NASDAQ:MNKD) to $6 from $7 and reiterated a Buy rating. This downward revision in price was a part of a broader research note previewing Q1 earnings in the biotechnology space. The firm is among the 88% of analysts bullish on the stock, having a consensus one-year price target of $7.50.
In a research note, the analyst says that the sector is becoming less sensitive to regulatory and policy changes, with a recent pickup in deal activity having the potential to drive momentum through the rest of the year into midterms. What builds the case for MannKind Corporation (NASDAQ:MNKD) is a strong pipeline of catalysts that could power growth. These include the pediatric Afrezza label expansion PDUFA, scheduled for May 29; the Furoscix ReadyFlow autoinjector PDUFA, set for July 26; and the MNKD-201 in IPF updates, Truist noted.
Although MannKind Corporation (NASDAQ:MNKD) has consistently underperformed the S&P 500, the company’s YoY quarterly revenue growth of 45.80% and upside potential of nearly 165% position it among the best fundamentally strong penny stocks to invest in now.
MannKind Corporation (NASDAQ:MNKD) is a Connecticut-based biopharmaceutical company that specializes in chronic disease care. Incorporated in 1991, the company provides solutions for serious conditions, such as diabetes, pulmonary hypertension, and fluid overload.
While we acknowledge the potential of MNKD 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 MNKD and that has 100x upside potential, check out our report about the cheapest AI stock.
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