12 Hot Penny Stocks On the Rise

In this article, we discuss 12 hot penny stocks on the rise.

Penny stocks usually trade under $5 and are favored by new investors or market participants who prefer day trading. Some key indicators that penny stock traders use to ascertain if an investment is worth making include volume, price movement, fundamental analysis, new developments and upcoming catalysts, and technical analysis including chart patterns and indicators to determine a security’s future price movements.

Penny stocks are often attractive for investors who are looking to make a quick buck and seek high returns, since these equities are often priced low, and even small price movements can result in large percentage gains for investors. Penny stocks also allow portfolio diversification, as many of these stocks are not closely correlated with the broader market. Some of the penny stocks that defied market odds and made it big include Advanced Micro Devices, Inc. (NASDAQ:AMD), Amazon.com, Inc. (NASDAQ:AMZN), and Tesla, Inc. (NASDAQ:TSLA).

Investors looking to pick up penny stocks that are cash-rich and have upcoming catalysts can also check out 13 Cash Rich Penny Stocks That Hedge Funds Are Buying, 10 Penny Stocks That Will Make You A Millionaire, and 12 Penny Stocks with Biggest Upside. 

Our Methodology 

We used a stock screener and shortlisted stocks priced under $1 as of January 19. Then, we sorted the stocks based on market capitalization in the descending order, and selected the top firms which either had Buy/Overweight ratings from Wall Street analysts, announced new projects/collaborations which led shares to rise recently, or reported successful upcoming catalysts in terms of pipeline developments. We also scanned Insider Monkey’s database of holdings of 920 elite hedge funds tracked as of the end of the third quarter of 2022 to assess the hedge fund sentiment around these securities. The list is arranged in ascending order of the share prices.

Photo by Mohamed Hadji on Unsplash

Hot Penny Stocks On the Rise

12. Cazoo Group Ltd (NYSE:CZOO)

Number of Hedge Fund Holders: 27

Share Price as of January 19: $0.2471

Cazoo Group Ltd (NYSE:CZOO) operates as an online car retailer in the United Kingdom and the rest of Europe. It allows customers to purchase, finance, and subscribe to a car online for delivery or pick up. Cazoo Group Ltd (NYSE:CZOO) is one of the best penny stocks to invest in. 

On January 18, the stock climbed nearly 7% pre-market after the company updated its Q4 revenue and announced goals to swiftly improve the unit economics as part of its new 2023 plan. This year, Cazoo Group Ltd (NYSE:CZOO) is focusing on further improving its unit economics, reducing its fixed cost base, and maximizing its cash runway. The 2023 top line ambitions have been reset to 40,000-50,000 U.K. retail units. The company’s Q4 U.K. revenue came in at £315 million and FY22 revenue totaled £1.25 million.

Berenberg analyst Saim Saeed on August 10 double upgraded Cazoo Group Ltd (NYSE:CZOO) to Buy from Sell with a price target of $2.33, up from 49c. When reporting first half results for 2022, management demonstrated a “significant pivot in strategy” by announcing potential exit from its European operations, the analyst told investors in a research note. Such a move would eliminate Cazoo Group Ltd (NYSE:CZOO)’s funding gap, allow it to better drive the U.K. business, and ultimately generate much greater value for shareholders, added the analyst. He believes the shares “do not reflect the value of this move” and said this “key positive catalyst” is playing out quicker than anticipated.

According to Insider Monkey’s data, Cazoo Group Ltd (NYSE:CZOO) was part of 27 hedge fund portfolios at the end of Q3 2022, compared to 29 funds in the prior quarter. Bruce Emery’s Greenvale Capital is the largest stakeholder of the company, with 46.8 million shares worth $21.5 million. 

Like Advanced Micro Devices, Inc. (NASDAQ:AMD), Amazon.com, Inc. (NASDAQ:AMZN), and Tesla, Inc. (NASDAQ:TSLA), Cazoo Group Ltd (NYSE:CZOO) is one of the stocks on the radar of elite investors. 

11. Zomedica Corp. (NYSE:ZOM)

Number of Hedge Fund Holders: 3

Share Price as of January 19: $0.2675

Zomedica Corp. (NYSE:ZOM) is a Michigan-based veterinary health company, specializing in the unmet needs of clinical veterinarians by developing products for companion animals. On January 18, Zomedica Corp. (NYSE:ZOM) announced that it is rearranging its existing development and commercialization agreements with Qorvo Biotechnologies for the company’s Truforma line of products. Zomedica Corp. (NYSE:ZOM) will now take control of aspects of the Truforma product line which were priorly provided by Qorvo, including development of new assays and manufacturing both instruments and assay cartridges. Zomedica Corp. (NYSE:ZOM) is one of the hottest penny stocks on the rise. 

On January 6, Dawson James analyst Jason Kolbert initiated coverage of Zomedica Corp. (NYSE:ZOM) with a Buy rating and a $6 price target. In a research note to investors, the analyst wrote that Zomedica Corp. (NYSE:ZOM) is positioning itself as a leading supplier of a wide range of products and services to the multi-billion dollar global veterinary marketplace. The analyst also mentioned that recent acquisitions and cash on the balance sheet make the company a leader in the veterinary space.

According to Insider Monkey’s data, Zomedica Corp. (NYSE:ZOM) was part of 3 hedge fund portfolios at the end of Q3 2022, compared to 5 in the prior quarter. 

10. Mullen Automotive, Inc. (NASDAQ:MULN)

Number of Hedge Fund Holders: 4

Share Price as of January 19: $0.2805

Mullen Automotive, Inc. (NASDAQ:MULN) is a California-based electric vehicle company that manufactures and distributes passenger electric vehicles, commercial vehicles, and solid-state polymer batteries. It is one of the hottest penny stocks to consider. 

On December 15, Mullen Automotive, Inc. (NASDAQ:MULN) announced that it landed a purchase order for 6,000 Class 1 EV cargo vans from Randy Marion Isuzu. The order agreement is valued at approximately $200 million. On December 22, Mullen Automotive, Inc. (NASDAQ:MULN) reported that the I-GO Commercial Urban Delivery EV has arrived in Europe, and sample vehicles are en route to Newgate Motor Group in Ireland with expected delivery in early January 2023.

According to Insider Monkey’s third quarter database, 4 hedge funds were bullish on Mullen Automotive, Inc. (NASDAQ:MULN), with collective stakes worth $922,000, compared to 2 funds in the prior quarter worth $121,000. 

9. Matinas BioPharma Holdings, Inc. (NYSE:MTNB)

Number of Hedge Fund Holders: 4

Share Price as of January 19: $0.5724

Matinas BioPharma Holdings, Inc. (NYSE:MTNB) is a New Jersey-based clinical-stage biopharmaceutical company, focused on the discovery and development of various product candidates using its lipid nanocrystal (LNC) platform technology. Its primary drug candidates focus on treatments for cardiovascular, bacterial, and metabolic conditions. 

On January 12, Matinas BioPharma Holdings, Inc. (NYSE:MTNB) announced that it is collaborating with National Resilience to evaluate its lipid nanocrystal (LNC) platform delivery technology for various nucleic acids. The two companies have signed a material transfer and evaluation agreement to explore the potential for oral delivery of identified nucleic acids. This could be a positive catalyst for Matinas BioPharma Holdings, Inc. (NYSE:MTNB), making it one of the best penny stocks to invest in. 

According to Insider Monkey’s Q3 data, 4 hedge funds were bullish on Matinas BioPharma Holdings, Inc. (NYSE:MTNB), compared to 1 fund in the prior quarter. Richard C. Patton’s Courage Capital is the largest stakeholder of the company, with 331,846 shares worth $211,000. 

8. The Beachbody Company, Inc. (NYSE:BODY)

Number of Hedge Fund Holders: 10

Share Price as of January 19: $0.6385

The Beachbody Company, Inc. (NYSE:BODY) is a California-based company that operates as a health and wellness platform that provides fitness, nutrition, and stress-reducing programs. The company operates two digital platforms – Beachbody on Demand and Openfit. Beachbody on Demand is a digital subscription platform that provides access to a library of live and on-demand fitness and nutrition content. On the other hand, Openfit is a digital streaming platform that provides digital fitness and wellness resources. The Beachbody Company, Inc. (NYSE:BODY) is one of the hottest penny stocks to monitor. 

On January 9, The Beachbody Company, Inc. (NYSE:BODY) stock rose 9.1% pre-market after the company reiterated guidance for the fourth quarter of fiscal 2022. The company expects total revenue to be between $140 million and $150 million, versus a consensus of $146.30 million. Adjusted EBITDA loss to be between $9 million and $14 million.

According to Insider Monkey’s data, 10 hedge funds were bullish on The Beachbody Company, Inc. (NYSE:BODY) at the end of Q3 2022, compared to 9 funds in the prior quarter. Joseph Ravitch and Jeffrey Sine’s Raine Capital is the largest stakeholder of the company, 37.5 million shares worth $37.8 million. 

7. Genius Brands International, Inc. (NASDAQ:GNUS)

Number of Hedge Fund Holders: 5

Share Price as of January 19: $0.6739

Genius Brands International, Inc. (NASDAQ:GNUS) is a California-based content and brand management company that creates and licenses multimedia content for toddlers to tweens worldwide. The company offers Rainbow Rangers, Llama Llama, SpacePop, Thomas Edison’s Secret Lab, Warren Buffet’s Secret Millionaire’s Club, Superhero Kindergarten, and Baby Genius. Genius Brands International, Inc. (NASDAQ:GNUS) is one of the hottest penny stocks in the market. 

On January 18, Genius Brands International, Inc. (NASDAQ:GNUS) launched a new division devoted to monetizing its music library. The new unit, Genius Music, will seek multiple revenue streams through producing and distributing music soundtracks across its intellectual property portfolio, including its Kartoon Channel properties, WOW Unlimited Media, and Germany’s Your Family Entertainment.

Genius Brands International, Inc. (NASDAQ:GNUS) on January 4 announced that it has concluded a deal with TOHO International, whereby TOHO International is making a multi-million dollar investment to acquire a 50% stake in two of the Company’s original productions, Bee and PuppyCat and Bravest Warriors, as well as the upcoming series Catbug.

According to Insider Monkey’s third quarter database, 5 hedge funds were long Genius Brands International, Inc. (NASDAQ:GNUS), compared to 7 funds in the prior quarter. Israel Englander’s Millennium Management is the largest stakeholder of the company, with 3.10 million shares worth $1.8 million. 

6. Alaunos Therapeutics Inc (NASDAQ:TCRT)

Number of Hedge Fund Holders: 12

Share Price as of January 19: $0.7584

Alaunos Therapeutics Inc (NASDAQ:TCRT) is a Texas-based clinical stage oncology-focused cell therapy company that develops adoptive TCR engineered T-cell therapies. Alaunos Therapeutics Inc (NASDAQ:TCRT) concluded the fourth quarter of 2022 with unaudited cash and cash equivalents of approximately $39.1 million and restricted cash of approximately $13.9 million. Based on present operating plans, the company anticipates its operating cash flow for 2023 to be between approximately $35 million and $40 million. Alaunos Therapeutics Inc (NASDAQ:TCRT) expects to have sufficient cash resources to finance research and development programs and operations into the fourth quarter of 2023. It is one of the hot penny stocks on the rise. 

On October 4, Wells Fargo analyst James Shin initiated coverage of Alaunos Therapeutics Inc (NASDAQ:TCRT) with an Overweight rating and a $3 price target. From a clinical perspective, the analyst sees Alaunos Therapeutics Inc (NASDAQ:TCRT)’s patient data from CRI-ENCIAACR in a single NSCLC patient showing response as an encouraging step forward for TCR-T cell therapy and Sleeping Beauty gene engineering. Safety was also relatively clear for an adoptive T-cell therapy with Gr2 CRS but no neurotox, the analyst added. 

According to Insider Monkey’s data, 12 hedge funds were long Alaunos Therapeutics Inc (NASDAQ:TCRT) at the end of September 2022, compared to 16 funds in the last quarter. Marc Lisker, Glenn Fuhrman, and John Phelan’s MSDC Management held the leading stake in the company, comprising 15.15 million shares worth $26 million. 

In addition to Advanced Micro Devices, Inc. (NASDAQ:AMD), Amazon.com, Inc. (NASDAQ:AMZN), and Tesla, Inc. (NASDAQ:TSLA), Alaunos Therapeutics Inc (NASDAQ:TCRT) is one of the stocks that smart investors are picking up.

5. PyroGenesis Canada Inc. (NASDAQ:PYR)

Number of Hedge Fund Holders: 2

Share Price as of January 19: $0.7800

PyroGenesis Canada Inc. (NASDAQ:PYR) is headquartered in Montreal, and it designs, develops, manufactures, and commercializes plasma processes and systems in Canada and internationally. The company also provides engineering and manufacturing expertise, contract research, and turnkey process equipment packages to the defense, metallurgical, mining, additive manufacturing, oil and gas, and environmental industries. PyroGenesis Canada Inc. (NASDAQ:PYR) is one of the hottest penny stocks to monitor. 

On January 11, PyroGenesis Canada Inc. (NASDAQ:PYR) announced that it had received the final contract of about $6 million to provide its SPARC refrigerant waste destruction system to a materials company. PyroGenesis has received the first payment of about $2.2 million. The SPARC system lowers an operator’s carbon footprint while also eliminating ozone-depleting substances. The project has an estimated production-to-delivery timeline of 18 months.

According to Insider Monkey’s data, Cathie Wood’s ARK Investment Management and Israel Englander’s Millennium Management held stakes worth $150,000 and $17,000 in PyroGenesis Canada Inc. (NASDAQ:PYR) at the end of the third quarter of 2022, respectively. 

4. Gran Tierra Energy Inc. (NYSE:GTE)

Number of Hedge Fund Holders: 15

Share Price as of January 19: $0.9177

Gran Tierra Energy Inc. (NYSE:GTE) is a Canadian firm that engages in the exploration and production of oil and gas properties in Colombia and Ecuador. Gran Tierra Energy Inc. (NYSE:GTE) is one of the hottest penny stocks to consider. On January 10, the company said it sees Q4 2022 total company average production of nearly 32,600 BOPD, an increase of 10% from Q4 2021. Gran Tierra Energy Inc. (NYSE:GTE)’s total average production for the full year 2022 was approximately 30,800 BOPD, which is within the company’s prescribed guidance. The company also bought back 23 million units of common stock during 2022. 

On November 2, Canaccord analyst Roman Rossi raised the firm’s price target on Gran Tierra Energy Inc. (NYSE:GTE) to C$3 from C$2.80 and maintained a Buy rating on the shares.

According to Insider Monkey’s Q3 data, Gran Tierra Energy Inc. (NYSE:GTE) was part of 15 hedge fund portfolios, compared to 11 in the prior quarter. Thomas E. Claugus’ GMT Capital is the largest position holder in the company, with more than 20 million shares worth $24.7 million. 

3. Organigram Holdings Inc. (NASDAQ:OGI)

Number of Hedge Fund Holders: 7

Share Price as of January 19: $0.9423

Organigram Holdings Inc. (NASDAQ:OGI) was incorporated in 2010 and is headquartered in Toronto, Canada. The company engages in the production and sale of cannabis and cannabis-derived products in Canada, including medical cannabis products, cannabis flowers, gummies, cannabis oils, vaporizers, cannabis edibles products, and concentrates. It is one of the top penny stocks to buy now. 

On January 12, Organigram Holdings Inc. (NASDAQ:OGI) reported FQ1 net income of $5.33 million and a revenue of $43.3 million, up 42.4% year-over-year, beating market estimates by $10.89 million. The company also expects FQ2 2023 revenue to be higher than the same period last year.

Stifel analyst Andrew Partheniou on January 13 upgraded Organigram Holdings Inc. (NASDAQ:OGI) to Buy from Hold, with an unchanged price target of C$1.50. This upgrade comes after the company reported “strong” Q1 results. According to the analyst, the company’s profitability exceeded expectations and it generated significant cash. He also noted that Organigram Holdings Inc. (NASDAQ:OGI)’s production expansion and innovation initiatives are “bearing fruit.”

According to Insider Monkey’s Q3 database, Organigram Holdings Inc. (NASDAQ:OGI) was part of 7 hedge fund portfolios, and D E Shaw held the biggest position in the company, with 2.4 million shares worth $2.15 million.

2. Aurora Cannabis Inc. (NASDAQ:ACB)

Number of Hedge Fund Holders: 9

Share Price as of January 19: $0.9847

Aurora Cannabis Inc. (NASDAQ:ACB) is a Canadian company that produces, distributes, and commercializes cannabis and cannabis-derivative products in Canada and internationally, including medical and consumer cannabis products. On January 4, Aurora Cannabis Inc. (NASDAQ:ACB) reported that it had closed the sale of its Aurora Polaris facility for gross proceeds of about $15 million. Aurora Cannabis also reiterated its expectation of achieving adjusted EBITDA profitability for FQ2. The company’s balance sheet also remains in a net cash position, with approximately $320 million of cash and cash equivalents. It is one of the hottest penny stocks to invest in. 

On December 28, Piper Sandler analyst Michael Lavery maintained a Neutral rating on Aurora Cannabis Inc. (NASDAQ:ACB) and lowered the price target to $1 from $2. The reason for this downgrade is due to a reduction in sales estimates, which reflect the softer cannabis market momentum in Canada and internationally. Despite this, the analyst believes that Aurora Cannabis Inc. (NASDAQ:ACB) is still on track to reach an EBITDA-positive run rate by the end of Q2 2023. He also believes that Aurora Cannabis Inc. (NASDAQ:ACB)’s cost-cutting initiatives should drive significant sequential margin improvement, and estimates that the company will reach positive adjusted EBITDA in Q3 2023. The analyst also added that Aurora Cannabis Inc. (NASDAQ:ACB) has a strong balance sheet, which gives it an advantage in the capital-constrained cannabis industry. 

According to Insider Monkey’s data, 9 hedge funds were long Aurora Cannabis Inc. (NASDAQ:ACB) at the end of September 2022, compared to 10 funds in the prior quarter. Jim Simons’ Renaissance Technologies is a significant position holder in the company, with 4.25 million shares worth $5.18 million. 

1. Xos Inc (NASDAQ:XOS)

Number of Hedge Fund Holders: 8

Share Price as of January 19: $0.9975

Xos Inc (NASDAQ:XOS) was founded in 2020 and is headquartered in Los Angeles, California. It is a mobility solutions company that manufactures and commercializes battery-electric commercial vehicles. On January 12, Xos Inc (NASDAQ:XOS) launched its mobile fleet management application, Xosphere Go, for customers and authorized Xos dealers to manage their Xos vehicle and chargers on the go. It combines Xos’ proprietary hardware and software into a cohesive and intuitive platform. Xos Inc (NASDAQ:XOS) is one of the best penny stocks to buy. 

On November 14, Benchmark analyst Michael Ward reiterated a Buy recommendation on Xos Inc (NASDAQ:XOS) but lowered the firm’s price target on the shares to $6 from $10 after the company reported Q3 results and said deliveries are on track to reach 150-200 units in the second half. Hos Buy rating is supported by the company’s partnerships and growth prospects in the U.S. commercial market for all-electric vehicles.

According to Insider Monkey’s data, 8 hedge funds were bullish on Xos Inc (NASDAQ:XOS) at the end of September 2022, compared to 9 funds in the prior quarter. Ben Levine, Andrew Manuel, and Stefan Renold’s LMR Partners is a prominent stakeholder of the company, with 160,739 shares worth $193,000. 

Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily enewsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below. You can also check out 10 Best Vanguard ETFs for Diversification and 25 Biggest Colorado Companies. 

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Disclosure: None. 12 Hot Penny Stocks On the Rise is originally published on Insider Monkey.