In this piece we will look at the 5 Best Penny Stocks That Could Skyrocket in 2026. Please visit 10 Best Penny Stocks That Could Skyrocket in 2026 if you’d like to see an extended list and how we came up with the list of Best Penny Stocks That Could Skyrocket in 2026.

​5. UWM Holdings Corporation (NYSE:UWMC)

Number of Hedge Fund Holders: 40

Upside Potential: 95.31%

UWM Holdings Corporation (NYSE:UWMC) is one of the Best Penny Stocks That Could Skyrocket in 2026. The stock has recently declined to hit an all-time low of $2.38 after declining 23% over the past month. Despite the decline, the analysts’ 12-month average price target suggests more than 95% upside from the current level.

​Recently, on June 5, Keefe, Bruyette & Woods kept its Market Perform rating on UWM Holdings Corporation (NYSE:UWMC) with a price target of $4.5. The firm noted that the main concern for the company is leverage. The firm explained that in a “higher-for-longer” interest rate environment, the company’s balance sheet looks stretched compared to mortgage banking peers.

​Moreover, the firm believes that a dividend reduction is likely once the pending TWO acquisition is resolved, and also noted the deal to be less attractive, particularly if it’s structured primarily as a cash transaction. KBW thinks a dividend cut, while painful for the short-term, would ultimately be a positive for the company.

UWM Holdings Corporation (NYSE:UWMC) is a wholesale residential mortgage lender. The company is based in Pontiac, Michigan and was founded in 1986.

​4. Iovance Biotherapeutics, Inc. (NASDAQ:IOVA)

Number of Hedge Fund Holders: 33

Upside Potential: 137.50%

Iovance Biotherapeutics, Inc. (NASDAQ:IOVA) is one of the Best Penny Stocks That Could Skyrocket in 2026. On June 4, Joseph Pantginis from H.C. Wainwright reiterated a Buy rating on Iovance Biotherapeutics, Inc. (NASDAQ:IOVA) with a price target of $9. The analyst noted two key positive developments for AMTAGVI, which is Iovance’s lead therapy.

​Firstly, AMTAGVI received conditional approval in Australia. The analyst noted that the Australian market is prominent due to a high burden of advanced melanoma. Pantginis sees this as a meaningful regulatory validation and a new revenue opportunity that diversifies Iovance beyond the US market.

​The analyst noted that the Australian rollout is expected to be slow initially as treatment centers need time to onboard for a complex cell therapy. However, he believes the commercial contribution will build progressively over time.

Secondly, the long-term data presented by management at ASCO 2026 reinforced AMTAGVI’s durability of benefit in heavily pretreated melanoma patients. As a result, Pantginis sees a compelling risk-reward setup, with international expansion and supportive clinical data combining to justify his bullish stance on the stock.

Iovance Biotherapeutics Inc. (NASDAQ:IOVA) is a biopharmaceutical company that develops and commercializes cell therapies as novel cancer immunotherapy products.

​3. Nuvation Bio Inc. (NYSE:NUVB)

Number of Hedge Fund Holders: 41

Upside Potential: 150.00%

Nuvation Bio Inc. (NYSE:NUVB) is one of the Best Penny Stocks That Could Skyrocket in 2026. On June 9, Reuters reported that GSK agreed to acquire cancer drug developer Nuvalent for a deal worth $10.6 billion. On the same day, RBC Capital reiterated a Buy rating on Nuvation Bio Inc. (NYSE:NUVB) with a price target of $20.

​The firm sees the acquisition of Nuvalent as a positive sign for Nuvation Bio, as Nuvalent competes directly with the company in the ROS1 non-small cell lung cancer space. The firm noted that GSK attributed up to $3.5 billion, almost 25% to 33% of the deal value, to Nuvalent’s ROS1 asset. RBC sees meaningful upside potential based on the ROS1 drug, Ibtrozi, alone. Moreover, GSK management explicitly said it would consider acquiring a separate ROS1 inhibitor. RBC noted that this comment puts Nuvation Bio in the spotlight as a potential target.

​That said, Nuvation Bio Inc. (NYSE:NUVB) reported its fiscal Q1 2026 results. During the quarter, the company delivered $83.2 million in revenue, exceeding the estimation of $62.7 million. The net product revenue from IBTROZI reached $18.5 million during the quarter, reflecting 18% year-over-year increase.

​Analysts remain bullish on the stock, with the 12-month average price target suggesting roughly 150% upside from the current level.

​Nuvation Bio Inc. (NYSE:NUVB) is an oncology company focused on developing therapies for cancer treatment.

​2. Precigen, Inc. (NASDAQ:PGEN)

Number of Hedge Fund Holders: 29

Upside Potential: 180.90%

Precigen, Inc. (NASDAQ:PGEN) is one of the Best Penny Stocks That Could Skyrocket in 2026. On June 2, H.C. Wainwright reiterated a Buy rating on Precigen, Inc. (NASDAQ:PGEN) with a price target of $14. The reiterated bullish sentiment comes after the company presented data for PAPZIMEOS at a major oncology conference on May 30.

​PAPZIMEOS is the company’s treatment for recurrent respiratory papillomatosis, which is a condition where tumors grow in the airways. The long-term follow-up data from the pivotal study of PAPZIMEOS were presented at the American Society of Clinical Oncology’s annual meeting. Results showed that 15 out of 18 responders, around 83%, demonstrated ongoing complete response for at least 36 months, without requiring any additional treatment for RRP. Notably, 5 complete responders have ongoing responses beyond 4 years.

​The firm noted that durability was a key highlight of the presentation, as every complete responder had at least three years of follow-up, with some tracked for up to 51 months. Notably, the median duration of complete response has not yet been reached. H.C. Wainwright sees this data as further validation of PAPZIMEOS and maintains its positive outlook on the stock.

Precigen, Inc. (NASDAQ:PGEN) is a clinical-stage biopharmaceutical company developing gene and cell therapies.

​1. AtaiBeckley Inc. (NASDAQ:ATAI)

Number of Hedge Fund Holders: 35

Upside Potential: 280.58%

​AtaiBeckley Inc. (NASDAQ:ATAI) is one of the Best Penny Stocks That Could Skyrocket in 2026. Wall Street is bullish on the stock as all 14 analysts covering the stock maintain a Buy rating, and their 12-month average price target suggests more than 280% upside from the current level.

​Recently, on June 8, H.C. Wainwright reiterated its Buy rating and $25 price target on AtaiBeckley Inc. (NASDAQ:ATAI). The rating comes after the firm met the company’s management on June 2. The discussion reinforced the firm’s conviction that BPL-003, which is an intranasal formulation of 5-MeO-DMT, remains the primary driver for the company. Moreover, management told the firm that they are preparing to launch their Phase 3 program, called ReConnection, targeting treatment-resistant depression.

​H.C. Wainwright highlighted several practical advantages of BPL-003’s profile, including an 8 mg dose that balances efficacy and tolerability, a short in-clinic session duration, flexible retreatment options, and clinic economics that fit neatly into a two-hour interventional psychiatry model. The firm believes that these positive points make it operationally attractive for treatment centers.

AtaiBeckley Inc. (NASDAQ:ATAI) is a clinical-stage biopharmaceutical company focused on developing treatments for mental health disorders.

READ NEXT:  10 Good Stocks to Invest in Now and 10 Most Undervalued US Stocks According to Hedge Funds. 

Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.