9 Best Rising Penny Stocks to Buy According to Wall Street Analysts

In this article, we will look at the 9 Best Rising Penny Stocks to Buy According to Wall Street Analysts.

​On June 27, Jefferies’ DeSanctis appeared on a CNBC Television interview to discuss what’s next for small-cap stocks. DeSanctis recently raised the Russell 2000 price target to 3,190 and noted that he is pleasantly surprised by the strength of the small-caps this year. He expects the small-caps to continue to outperform their larger counterparts.

​However, DeSanctis highlighted that the rally might lose its momentum as high beta stocks lose momentum. He noted that this is good for the sector, as if the index stays higher for longer due to higher inflation and high-beta momentum stocks, it is going to erode the index’s reputation. He noted that due to this loss in momentum, the Russell 2000 is expected to have higher-quality and cheaper stocks. DeSanctis also expects the index to get a cheaper benchmark valuation, which he indicates is a good sign. Lastly, he also sees the earnings growth accelerating among the small-cap stocks.

​With that, let’s take a look at the 9 Best Rising Penny Stocks to Buy According to Wall Street Analysts.

Stocks

Our Methodology

To curate the list of 9 Best Rising Penny Stocks to Buy According to Wall Street Analysts, we used the Finviz Stock Screener, CNN, and Insider Monkey’s hedge fund database. Using the Screener, we aggregated a list of penny stocks (trading below $5) that have gained close to 10% over the past month and that the Street expects to have more than 20% upside. Next, we cross-checked the performance and the upside potential from CNN and ranked the stocks in ascending order of the upside. Please note that the data was recorded on Friday, June 26.

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. Insider Monkey’s 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).

9 Best Rising Penny Stocks to Buy According to Wall Street Analysts

9. ​Lexicon Pharmaceuticals, Inc. (NASDAQ:LXRX)

One Month Performance: 15.38%

Number of Hedge Fund Holders: 28

Analyst Upside Potential: 21.57%

Lexicon Pharmaceuticals, Inc. (NASDAQ:LXRX) has gained more than 15% over the past month, mainly driven by the stock’s inclusion in the Russell 3000 index and strong Q1 2026 earnings. Wall Street expects more than 21% upside over the next 12-months making Lexicon Pharmaceuticals, Inc. (NASDAQ:LXRX) one of the Best Rising Penny Stocks to Buy According to Wall Street Analysts.

​During the fiscal Q1 2026 earnings, the company posted $21.1 million in revenue, surpassing the expectations of $9.78 million by a huge margin. Revenue for the quarter grew 1,523% year-over-year, driven by $20 million in development milestones from the Novo Nordisk licensing agreement for the LX9851 obesity program.

Moreover, liquidity also strengthened with a new $100 million loan facility from Hercules Capital, with an initial $55 million funded to support operations for at least the next 12 months. Management also highlighted that the progress for the SONATA-HCM Phase 3 trial remains strong and that the company plans to resubmit the ZYNQUISTA New Drug Application for type 1 diabetes by mid-2026.

​Last month, on May 11, Citi raised the price target on Lexicon Pharmaceuticals, Inc. (NASDAQ:LXRX) to $3.10 from $2.30 and maintained a Buy rating on the shares.

Lexicon Pharmaceuticals, Inc. (NASDAQ:LXRX) is a biopharmaceutical company focused on developing and commercializing therapies for human disease.

8. Portillo’s Inc. (NASDAQ:PTLO)

One Month Performance: 11.27%

Number of Hedge Fund Holders: 19

Analyst Upside Potential: 26.58%

Portillo’s Inc. (NASDAQ:PTLO) has gained roughly 10% over the past month, and the Street expects more than 26% upside from the current level. The gains come despite a slight revenue miss during fiscal Q1 2026, where the company posted $182.62 million in revenue, which fell below the expectation of $183.19 million. Portillo’s Inc. (NASDAQ:PTLO) ranks among our Best Rising Penny Stocks to Buy According to Wall Street Analysts.

The stock gained in June mainly due to the company’s announcement regarding the opening of a new flagship restaurant on Michigan Avenue in downtown Chicago. This marks a significant milestone as this will be the company’s first in-line location within the city.

​Management noted that the restaurant will be located at 304 North Michigan Avenue, near Millennium Park and Navy Pier. The restaurant building is around 5,500 square feet and has close to 100 seats. Management highlighted that this is a smaller, urban-friendly format designed for busy, high-foot-traffic areas and is different from Portillo’s typical larger suburban restaurants.

​Moreover, a full signature menu will be available at the new site, including Italian beef sandwiches, Chicago-style hot dogs, burgers, salads, and the famous chocolate cake. The stock has gained more than 14% since the release.

Portillo’s Inc. (NASDAQ:PTLO) is a U.S. fast‑casual restaurant chain known for Chicago‑style hot dogs, Italian beef, burgers, and shakes, with locations across several states.

7. ​Ironwood Pharmaceuticals, Inc. (NASDAQ:IRWD)

One Month Performance: 14.72%

Number of Hedge Fund Holders: 26

Analyst Upside Potential: 38.01%

​Ironwood Pharmaceuticals, Inc. (NASDAQ:IRWD) has gained more than 14.72% over the past month, and Wall Street expects more than 38% upside from the current level. The stock also ranks as one of the Best Rising Penny Stocks to Buy According to Wall Street Analysts.

​Much of the gains are driven by healthy momentum from fiscal Q1 2026 earnings released last month on May 7. During the quarter, Ironwood Pharmaceuticals, Inc. (NASDAQ:IRWD) reported $106.51 million in revenue and topped the expectations of $92.1 million. The growth was driven by a 97% year-over-year increase in the US LINZESS net sales, which reached $272.5 million. Management noted that the drug sales improved due to a strategic 50% list price reduction that eliminated costly inflationary rebates and boosted net pricing.

​Investors remain concerned regarding the company’s heavy reliance on LINZESS. On the bright side, the company remains on track to initiate the confirmatory Phase 3 STARS-2 clinical trial for Apraglutide in the second quarter of 2026. Moreover, management reiterated its 2026 outlook, projecting total revenue between $450 million and $475 million and adjusted EBITDA exceeding $300 million.

Ironwood Pharmaceuticals, Inc. (NASDAQ:IRWD) is a biopharmaceutical company focused on developing and commercializing transformative therapies for gastrointestinal (GI) and rare diseases.

6. Rimini Street, Inc. (NASDAQ:RMNI)

One Month Performance: 13.98%

Number of Hedge Fund Holders: 8

Analyst Upside Potential: 50.46%

Rimini Street, Inc. (NASDAQ:RMNI) is one of the Best Rising Penny Stocks to Buy According to Wall Street Analysts. Recently, on June 18, Rimini Street, Inc. (NASDAQ:RMNI) announced its partnership with One New Zealand to manage and stabilize its Oracle software systems. One New Zealand is a major telecommunications company that serves more than 2 million customers.

​The partner, One New Zealand, noted choosing the company based on a previous positive experience and highlighted the need to keep core systems secure and reliable while freeing up the team to focus on AI-driven transformation and innovation projects.

In this partnership, Rimini Street will provide dedicated engineering support, guaranteed fast response times, and cost savings of up to 90% compared to standard vendor support. Management noted that a key win came when Microsoft ended support for Internet Explorer 11, which One NZ’s CRM depended on. Rimini Street’s interoperability solution allowed the CRM to run on modern browsers like Chrome and Edge seamlessly. Moreover, the company also helped One NZ migrate its billing engine to new hardware without disruption.

Rimini Street Inc. (NASDAQ:RMNI) is a software support provider, covering Oracle and SAP enterprise solutions. The company delivers managed services, enterprise software services, Agentic AI, and other solutions. It also offers an array of other solutions, including Rimini Agentic UX, Rimini Support, Rimini Manage, and Rimini Protect.

​5. Pacific Biosciences of California, Inc. (NASDAQ:PACB)

One Month Performance: 12.24%

Number of Hedge Fund Holders: 30

Analyst Upside Potential: 59.09%

Pacific Biosciences of California, Inc. (NASDAQ:PACB) has gained more than 12% over the past month and roughly 35% since the global launch of SPRQ-Nx sequencing chemistry. Wall Street expects more than 59% upside from the current level, making it one of the Best Rising Penny Stocks to Buy According to Wall Street Analysts.

Stocks

Pacific Biosciences of California, Inc. (NASDAQ:PACB) on May 26 launched SPRQ-Nx, a new sequencing chemistry for its Revio HiFi platform. Management noted that one of the key benefits of the new sequencing chemistry is cost, as genome sequencing drops to a list price of $345, with the potential to go below $300 at scale. This reflects a 30% reduction from the previous chemistry.

​Moreover, management also highlighted a key innovation, which is a reusable SMRT Cell consumable, suggesting that the same physical component can be used multiple times, directly cutting costs. Notably, beta testing across more than 1,400 runs at 20 sites worldwide showed higher yields and lower failure rates compared to the prior version.

The company also upgraded its AI-powered accuracy tool, DeepConsensus. The tool has been developed in partnership with Google, and the updates enabled by Google’s AlphaEvolve coding agent improve both speed and data quality. The company also plans to bring the chemistry to its smaller Vega benchtop system later in 2026.

Pacific Biosciences of California, Inc. (NASDAQ:PACB) is a firm that develops, manufactures, and markets advanced sequencing solutions for genetic analysis. It operates through America, Europe, the Middle East, and Africa, and Asia Pacific segments.

​4. MannKind Corporation (NASDAQ:MNKD)

One Month Performance: 13.74%

Number of Hedge Fund Holders: 25

Analyst Upside Potential: 69.08%

MannKind Corporation (NASDAQ:MNKD) is one of the Best Rising Penny Stocks to Buy According to Wall Street Analysts. Recently, on June 23, MannKind Corporation (NASDAQ:MNKD) announced receiving a grant from Breakthrough T1D, which is a leading type 1 diabetes research organization.

​The grant is to support the INHALE-1ST clinical trial evaluating inhaled insulin in newly diagnosed pediatric patients. The stock has gained more than 4% since the release and around 13% over the past month.

​Management noted that the trial in question focuses on Afrezza, the company’s inhaled insulin product, used alongside a daily injectable basal insulin in patients aged 10 to 17 who have recently been diagnosed with type 1 diabetes. The study aims to assess both safety and efficacy in this younger population.

​The grant reflects external validation of Afrezza’s potential and builds on a recent FDA approval allowing Afrezza’s use in children as young as six. The insulin works by delivering insulin through the lungs at mealtime using the company’s Technosphere platform, enabling rapid absorption that closely mimics the body’s natural insulin response. Management noted that if the new product is successful, it can open a new market for the company.

MannKind Corporation (NASDAQ:MNKD) is a 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.

​3. ECARX Holdings Inc. (NASDAQ:ECX)

One Month Performance: 11.43%

Number of Hedge Fund Holders: 21

Analyst Upside Potential: 156.32%

ECARX Holdings Inc. (NASDAQ:ECX) is one of the Best Rising Penny Stocks to Buy According to Wall Street Analysts. Recently, on June 22, ECARX Holdings Inc. (NASDAQ:ECX) announced entering into a definitive agreement to acquire the entire Flyme software business, including Flyme Auto and Flyme OS. The deal is worth $266 million (RMB 1.8 billion). The stock has gained more than 17% since the announcement.

​Management noted that Flyme Auto is already running in over 2 million ECARX-powered vehicles, making this an acquisition of technology the company already relies on heavily. Moreover, Flyme OS brings over 15 years of development history that spans smartphones, wearables, and vehicles.

​Notably, the deal is structured as a clean carve-out from DreamSmart Group, with all key IP, R&D teams, OEM contracts, and engineering resources transferring to ECARX within six months of closing. Moreover, the financing is split roughly 70% through Chinese bank loans and 30% from internal sources. ECARX will also inject an additional RMB 200 million post-closing to support operations.

​The acquisition is expected to enable the company to compete more aggressively in the fast-growing in-car intelligence market.

ECARX Holdings Inc. (NASDAQ:ECX) is an automotive technology company focusing on the automotive sector’s shift towards software-defined vehicles, especially in the electric vehicle and intelligent car markets.

​2. C4 Therapeutics, Inc. (NASDAQ:CCCC)

One Month Performance: 16.39%

Number of Hedge Fund Holders: 34

Analyst Upside Potential: 158.22%

C4 Therapeutics, Inc. (NASDAQ:CCCC) has gained roughly 16% over the past month, mainly driven by positive phase 1 clinical trial data for Cemsidomide. The data was presented on June 11, following which the stock rose more than 13%. The Street expects more than 158% upside from the current level, making C4 one of the Best Rising Penny Stocks to Buy According to Wall Street Analysts.

​Cemsidomide is C4 Therapeutics, Inc. (NASDAQ:CCCC)’s oral drug candidate for relapsed/refractory multiple myeloma, and the data from the phase 1 trial were presented at the European Hematology Association 2026 Congress. Management noted that the drug targets IKZF1, which is a foundational approach in myeloma treatment that also stimulates immune function.

​The data presented covered 73 heavily pretreated patients. Management noted that at the highest dose the drug achieved a 53% overall response rate, a strong result in such a difficult-to-treat population. Notably, responses deepened over time as several patients improved from partial responses to deeper responses, including two achieving MRD negativity. Moreover, the drug was also generally well tolerated, and no discontinuations were recorded.

C4 Therapeutics Inc. (NASDAQ:CCCC) is a clinical-stage biopharmaceutical company that is involved in developing novel targeted protein degradation (TPD) therapies.

1. Angel Studios, Inc. (NYSE:ANGX)

One Month Performance: 13.43%

Number of Hedge Fund Holders: 10

Analyst Upside Potential: 164.80%

Angel Studios, Inc. (NYSE:ANGX) has gained more than 13% over the past month, and the Street expects more than 164.8% upside over the next 12-months. Angel Studios, Inc. (NYSE:ANGX)  among our Best Rising Penny Stocks to Buy According to Wall Street Analysts.

The gains have been driven by the strong momentum from Q1 2026 earnings and membership growth. The company released its fiscal Q1 2026 earnings on May 1. During the quarter, the revenue reached $115.11 million, ahead of the expected $106.78 million. Moreover, although the EPS was negative $0.05 (or -$0.08 GAAP), it exceeded the expected negative $0.12 mark.

​Angel Studios, Inc. (NYSE:ANGX) is built on a unique model that allows Guild members to vote on which films and TV shows get distributed on the platform. On June 11, the company announced adding nearly 200,000 new Guild members since Q1 2026 earnings. This brings the company’s total to nearly 2.4 million. Moreover, the company also added two new features to its platform, including the Guild Age Rating and Guild Theater Seating. The age rating feature allows members to select age recommendations for new titles, while the theater seating will allow members to see and sit near fellow Guild members when buying movie tickets through the Angel app.

Angel Studios Inc. (NYSE:ANGX) is a community-driven film studio and streaming platform that lets audiences fund, choose, and distribute family-friendly movies and shows, often with faith-based or positive themes, by leveraging equity crowdfunding and its “Angel Guild” to bypass traditional Hollywood gatekeepers.

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