In this piece we will look at the 5 High-Flying Penny Stocks to Buy. Please visit 10 High-Flying Penny Stocks to Buy, if you’d like to see an extended list and how we came up with the list of High-Flying Penny Stocks to Buy.
5. Ultrapar Participações S.A. (NYSE:UGP)
Number of Hedge Fund Holders: 18
Ultrapar Participações S.A. (NYSE:UGP) is one of the High-Flying Penny Stocks to Buy. On March 13, Jefferies analyst Alejandro Anibal Demichelis upgraded the stock to Marketperform from Underperform and also raised the price target from $3.10 to $5.60.
The improved rating comes due to better near-term prospects for the company. The analyst noted that the Brazilian government recently announced a temporary 12% tax on crude oil exports, along with cuts to fuel import taxes and diesel subsidies to curb inflation from rising global oil prices amid the Iran war.
The analyst noted that these measures ease pressure on fuel retailers such as Ultrapar Participações S.A. (NYSE:UGP) by stabilizing domestic prices and boosting margins. The firm has adopted a bullish sentiment on Brazilian fuel retailers overall and also upgraded UGP’s peer Vibra Energia to Buy from Hold. The firm noted that the upgrades reflect short-term benefits from the policy mix amid ongoing political risks.
Ultrapar Participações S.A. (NYSE:UGP) is a Brazilian conglomerate primarily engaged in the distribution and retail of automotive fuels and related products.
4. Alto Ingredients, Inc. (NASDAQ:ALTO)
Number of Hedge Fund Holders: 19
Alto Ingredients, Inc. (NASDAQ:ALTO) is one of the High-Flying Penny Stocks to Buy. On March 6, H.C. Wainwright analyst Amit Dayal reiterated a Buy rating on Alto Ingredients, Inc. (NASDAQ:ALTO) without disclosing any price targets.
The analyst highlighted the company’s turnaround to profitability and operational execution in fiscal Q4 2025 as key reasons behind the bullish sentiment. Alto Ingredients posted robust net income in the quarter along with a strong adjusted EBITDA, which was up significantly from last year’s net loss and was driven by cost discipline, higher margins in export and European sales, and better cash spread.
Moreover, the analyst also noted structural advantages such as expanding benefits from 45Z tax credits and diversification away from traditional ethanol. The analyst expects higher tax credit values in 2026, along with opportunities from lower carbon intensity, higher volumes, and supportive regulations for ethanol blends.
Alto Ingredients, Inc. (NASDAQ:ALTO) produces and distributes specialty alcohols, renewable fuels like ethanol, and essential ingredients derived mainly from corn.
3. Lexicon Pharmaceuticals, Inc. (NASDAQ:LXRX)
Number of Hedge Fund Holders: 20
Lexicon Pharmaceuticals, Inc. (NASDAQ:LXRX) is one of the High-Flying Penny Stocks to Buy. On March 12, H.C. Wainwright reiterated a Buy rating on Lexicon Pharmaceuticals, Inc. (NASDAQ:LXRX) with a $6 price target.
The analyst noted positive post-hoc analyses of sotagliflozin, which showed cardiometabolic benefits such as reduction in HbA1c, body weight, systolic blood pressure, and insulin use. Moreover, the candidate also showed fewer hypoglycemic events after one year in type 1 diabetes patients with normal or mildly reduced kidney function.
The firm noted that the data aligns with the ongoing STENO1 investigator-initiated trial, which gathers data on diabetic ketoacidosis incidence and could support regulatory decisions. The company plans to resubmit an NDA in 2026 for sotagliflozin as an insulin adjunct in type 1 diabetes. While the firm remains optimistic, he flagged risks such as trial failures, funding shortfalls, or dilutive financing.
Lexicon Pharmaceuticals, Inc. (NASDAQ:LXRX) is a biopharmaceutical company focused on the discovery, development, and commercialization of pharmaceutical products to treat human disease.
2. Fossil Group, Inc. (NASDAQ:FOSL)
Number of Hedge Fund Holders: 21
Fossil Group, Inc. (NASDAQ:FOSL) is one of the High-Flying Penny Stocks to Buy. On March 11, Fossil Group, Inc. (NASDAQ:FOSL) reported its fiscal Q4 2025 earnings. The revenue for the quarter decreased 19.8% year-over-year to $280.5 million, but topped the consensus by $31.22 million. However, the EPS of -$0.15 fell short of the consensus by $0.15.
Management noted that the decline in revenue was mainly due to the adoption of the full-price selling model and reduced discounts to protect brand value. Moreover, store closures contributed around 4% to the decline as part of rationalization efforts. Notably, gross margins for the quarter were 57.4%, reflecting a 350 basis points increase year-over-year driven by full-price selling and operational improvements.
Looking ahead, the company forecasts revenue in the range of $945 million and $965 million, reflecting a 4% to 6% decline due to $21 million in store closure impacts.
Fossil Group, Inc. (NASDAQ:FOSL) is a global design, marketing, distribution, and innovation company focused on lifestyle accessories like watches, jewelry, handbags, small leather goods, belts, and sunglasses.
1. Clear Channel Outdoor Holdings, Inc. (NYSE:CCO)
Number of Hedge Fund Holders: 43
Clear Channel Outdoor Holdings, Inc. (NYSE:CCO) is one of the High-Flying Penny Stocks to Buy. On March 12, Clear Channel Outdoor Holdings, Inc. (NYSE:CCO) announced securing a 10-year contract with the Omaha Airport Authority to manage ads at Omaha Eppley Airfield.
Management noted that this new contract comes as Omaha Eppley Airfield continues its $950 million terminal expansion. As part of the agreement, the company will introduce a reimagined media program to modernize the facility for its 5.2 million annual passengers. The company also highlighted that the extended partnership comes after a competitive bid process and builds on the company’s 16 years of partnership.
As part of the partnership, Clear Channel Outdoor Holdings, Inc. (NYSE:CCO) has also announced to commit $1 million for a next-generation program that matches the terminal’s design and boosts passenger engagement. The program is expected to roll out in phases starting in 2027 and coincides with the opening of the new terminal.
Clear Channel Outdoor Holdings, Inc. (NYSE:CCO) leads the out-of-home advertising sector, delivering displays like billboards and digital screens in high-traffic spots to connect advertisers with mass audiences.
While we acknowledge the potential of CCO 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 CCO and that has 100x upside potential, check out our report about this cheapest AI stock.
READ NEXT: 40 Most Popular Stocks Among Hedge Funds Heading Into 2026 and 10 Unstoppable Stocks That Could Double Your Money.
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.
