5 Best NASDAQ Penny Stocks To Invest In

In this article, we discuss 5 best NASDAQ penny stocks to invest in. If you want to read our discussion on the stock market, head over to 13 Best NASDAQ Penny Stocks To Invest In. 

5. Sirius XM Holdings Inc. (NASDAQ:SIRI)

Number of Hedge Fund Holders: 24

Share Price as of February 11: $4.90

Sirius XM Holdings Inc. (NASDAQ:SIRI) is a North American audio entertainment company operating in two segments – Sirius XM and Pandora and Off-platform. On February 1, Sirius XM Holdings Inc. (NASDAQ:SIRI) reported a Q4 GAAP EPS of $0.09, beating market estimates by $0.01. The revenue of $2.29 billion came in-line with Wall Street expectations. In the fourth quarter of 2023, SiriusXM gained around 131,000 new self-pay subscribers. Sirius XM Holdings Inc. (NASDAQ:SIRI) is one of the best penny stocks to monitor. 

According to Insider Monkey’s third quarter database, 24 hedge funds were bullish on Sirius XM Holdings Inc. (NASDAQ:SIRI), compared to 19 funds in the last quarter. Cliff Asness’ AQR Capital Management is the leading stakeholder of the company, with 14.6 million shares worth over $66 million. 

4. Plug Power Inc. (NASDAQ:PLUG)

Number of Hedge Fund Holders: 26

Share Price as of February 11: $4.33

Plug Power Inc. (NASDAQ:PLUG) specializes in delivering clean hydrogen and zero-emissions fuel cell solutions for different applications, including supply chain, logistics, on-road electric vehicles, and stationary power markets. Plug Power Inc. (NASDAQ:PLUG) ranks 4th on our list of the best penny stocks to buy. 

On February 3, Roth MKM, an investment advisory firm, upgraded Plug Power Inc. (NASDAQ:PLUG) stock from Neutral to Buy, expressing confidence in the smooth progress of the company’s Georgia green hydrogen plant ramp-up.

According to Insider Monkey’s third quarter database, 26 hedge funds were bullish on Plug Power Inc. (NASDAQ:PLUG), compared to 20 funds in the prior quarter. Israel Englander’s Millennium Management is a prominent stakeholder of the company, with a position worth $25.7 million. 

3. Sabre Corporation (NASDAQ:SABR)

Number of Hedge Fund Holders: 28

Share Price as of February 11: $4.14

Sabre Corporation (NASDAQ:SABR) offers software and technology solutions for the global travel industry. The company operates in two segments – Travel Solutions and Hospitality Solutions. It is one of the best penny stocks to consider. In January 2024, Sabre Corporation (NASDAQ:SABR) and Hawaiian Airlines announced a multi-year distribution agreement. This agreement ensures long-term access to Hawaiian Airlines’ HA Connect NDC and traditional EDIFACT content for Sabre-connected agencies through the Sabre travel marketplace. Additionally, Sabre Corporation (NASDAQ:SABR) has entered into another multi-year distribution agreement with International Airlines Group to enhance their existing partnership and facilitate modern travel retailing practices.

According to Insider Monkey’s third quarter database, 28 hedge funds were bullish on Sabre Corporation (NASDAQ:SABR), same as the prior quarter. Terry Smith’s Fundsmith LLP is the leading stakeholder of the company, with 22.5 million shares worth $101.25 million. 

2. Grab Holdings Limited (NASDAQ:GRAB)

Number of Hedge Fund Holders: 34

Share Price as of February 11: $3.43

Grab Holdings Limited (NASDAQ:GRAB) ranks 2nd on our list of the best penny stocks. Grab Holdings Limited (NASDAQ:GRAB) operates as a superapp provider in Southeast Asian countries, including Cambodia, Indonesia, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam. The company’s Grab ecosystem serves as a single platform with superapps, connecting driver and merchant partners with consumers. On November 9, 2023, Grab Holdings Limited (NASDAQ:GRAB) reported a Q3 GAAP EPS of -$0.02, in-line with market consensus. Revenue for the quarter increased 61% year-over-year to $615 million, outperforming Wall Street estimates by $27.02 million. 

According to Insider Monkey’s third quarter database, 34 hedge funds were bullish on Grab Holdings Limited (NASDAQ:GRAB), compared to 25 funds in the prior quarter. Chase Coleman’s Tiger Global Management is the largest stakeholder of the company, with 51.3 million shares worth $181.6 million. 

Artisan Developing World Fund made the following comment about Grab Holdings Limited (NASDAQ:GRAB) in its Q1 2023 investor letter:

“Bottom contributors to performance for the quarter included Southeast Asian technology platform Grab Holdings Limited (NASDAQ:GRAB). Grab fell due to concerns about a slowdown in its food delivery business despite continued growth and recovery in ride hailing, and perhaps due to the technical selling pressure from prominent pre-IPO shareholders.”

1. Peloton Interactive, Inc. (NASDAQ:PTON)

Number of Hedge Fund Holders: 35

Share Price as of February 11: $4.55

Peloton Interactive, Inc. (NASDAQ:PTON) operates an interactive fitness platform globally, providing connected fitness products such as Peloton Bike, Peloton Bike+, Peloton Tread, Peloton Tread+, Peloton Guide, and Peloton Row. Peloton Interactive, Inc. (NASDAQ:PTON) is one of the top penny stocks to buy. On February 1, the company announced its financial results for second quarter fiscal 2024. Peloton reported a GAAP EPS of -$0.54, falling short of Wall Street estimates by $0.02. The revenue of $743.6 million exceeded market consensus by $9.36 million. 

According to Insider Monkey’s third quarter database, 35 hedge funds were bullish on Peloton Interactive, Inc. (NASDAQ:PTON), compared to 46 funds in the last quarter. Ricky Sandler’s Eminence Capital is a significant position holder in the company, with 7.26 million shares worth $36.7 million. 

Here is what Merion Road Capital specifically said about Peloton Interactive, Inc. (NASDAQ:PTON) in its Q3 2022 investor letter:

“Peloton Interactive, Inc. (NASDAQ:PTON) is quite a different story. You may recall from my Q1 letter that I initiated a position in the stock given the potential for a new CEO to leverage the company’s passionate and engaged user base. The investment had meaningful upside potential (multiples of the then trading price), but also presented real downside risk; as such, I kept our exposure to just a few percentage points of the portfolio. Fast forward six months and underlying trends like churn, engagement, and new users weakened dramatically. I sold our shares as the likelihood for the company to achieve financial success has become increasingly remote.”

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