In this article, we will list the 5 Most Shorted Penny Stocks to Buy. Please visit 10 Most Shorted Penny Stocks to Buy if you’d like to see an extended list and the methodology behind it.
5. ThredUp Inc. (NASDAQ:TDUP)
ThredUp Inc. (NASDAQ:TDUP) is one of the 10 most shorted penny stocks to buy.
On April 6, Oliver Chen from TD Cowen assigned a Buy rating to ThredUp Inc. (NASDAQ:TDUP) and set a price target of $5. Chen highlighted that the platform is now the top managed mass-market resale network in the United States. Currently, it can efficiently handle 100,000 distinct items daily.
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The deeply customer-focused sales approach effectively influences overall supply and demand, ultimately resulting in mid-teens revenue growth. The analyst anticipates a significant increase in profitability during fiscal 2027. This projected financial growth is mainly driven by operating expenses growing more slowly than topline revenue, which is directly bolstered by continuous advancements in AI.
On April 2, ThredUp Inc. (NASDAQ:TDUP) released its 14th annual ThredUp Resale Report, in partnership with GlobalData. The report highlights the fact that the global second-hand market has evolved into a market of $393 billion, amounting to about 10% of all apparel purchases. It is anticipated that the size of the U.S. second-hand market will touch $78.8 billion by the year 2030.
It is also predicted that the market will expand at four times the rate of general retail in the same period. In the coming five years, the global second-hand market is expected to expand at twice the rate of the fashion industry, with Gen Z and Millennials contributing 71% towards the growth of the market up to 2030. CEO James Reinhart has stated that resale is now taking away market share directly, with the help of AI scaling operations for easier search and price discovery.
ThredUp Inc. (NASDAQ:TDUP) works as an online thrift store. It provides a platform that is mainly used to sell second-hand clothing, shoes, and accessories. It offers apparel for women and kids, which includes jeans, skirts, swimwear, coats, sweaters, to name a few. Its accessories portfolio includes belts, makeup bags, watches, cardholders, and more.
4. EVgo Inc. (NASDAQ:EVGO)
EVgo Inc. (NASDAQ:EVGO) is one of the 10 most shorted penny stocks to buy.
On March 13, Morgan Stanley reduced the price target on EVgo Inc. (NASDAQ:EVGO) from $4.50 to $3.50, which still results in an upside potential of more than 60%. The firm maintained an Equal Weight rating on the stock following its fourth-quarter results.
Based on the firm’s analysis, the guidance for fiscal 2026 was softer than expected. Nevertheless, the long-term outlook for EVgo Inc. (NASDAQ:EVGO) remains favorable, making it one of the most heavily shorted and attractive penny stocks right now.
Back in mid-March, Cantor Fitzgerald reaffirmed its Overweight rating on EVgo Inc. (NASDAQ:EVGO), noting the company’s high usage rate and increased network capacity. The firm noted that EVgo has added over 500 DC Fast charging stalls to its network during the fourth quarter, resulting in a total network of 5,100 stalls. The average utilization rate of chargers during the quarter was at 24%, one of the highest utilization rates in North America.
The price target on EVgo by Cantor Fitzgerald was revised to $6.00 from $7.00, which still yields a highly impressive upside potential of more than 175%.
EVgo, Inc. (NASDAQ:EVGO) is the owner and operator of a direct current fast charging network for electric vehicles. Its product offerings include original equipment manufacturer charging and related services, commercial charging, charging data integration, and microtargeted advertising. Additionally, it provides hardware, design, and construction services for charging sites, maintenance, networking, software integration, equipment procurement, and more.
3. Richtech Robotics Inc. (NASDAQ:RR)
Richtech Robotics Inc. (NASDAQ:RR) is one of the 10 most shorted penny stocks to buy.
On April 8, Richtech Robotics Inc. (NASDAQ:RR) entered into a distribution agreement with the Netherlands-based consultancy firm NewConsultancy B.V. that would allow distributing its AI-powered service robots in the Netherlands and other parts of the European Union/Schengen territory. This agreement will allow localized deployment, servicing, and customer support services.
Wayne Haung, CEO of the company, declared that the partnership was very critical for the future growth of the company internationally and that the clients in Europe would receive localized services and technical expertise of the region. This deal will support the aim of the company to expand its scalable technologies and Robotics as a Service concept on an international scale.
By leveraging regional knowledge and practical experience in hospitality, logistics, and commercial markets, NewConsultancy seeks to offer customized robotic services on an international scale. The technology offered by the company solves issues of labor shortage, rising costs, and round-the-clock automation. After a successful display at ProWein 2025, Richtech is stepping up its plan to expand internationally, cementing its reputation as an emerging leader in deploying AI robotics worldwide.
Richtech Robotics Inc. (NASDAQ:RR) creates and sells robotic solutions for automation in the United States’ service industry. It offers a range of robots for various purposes, including AI-powered service robots for beverage preparation and customer interaction, delivery-focused robots, commercial cleaning robots, industrial humanoid robots, and a robotic restaurant brand.
2. Altimmune Inc. (NASDAQ:ALT)
Altimmune Inc. (NASDAQ:ALT) is one of the 10 most shorted penny stocks to buy.
On March 19, Truist began coverage of Altimmune Inc. (NASDAQ:ALT) with a $12 price target, leading to a whopping 315% upside potential at the prevailing level. The firm also assigned a Buy rating to the stock.
According to Truist, Altimmune’s primary product pemividutide may have a chance to succeed in the treatment of MASH, along with liver-related disorders, such as AUD. Based on its model, Truist estimates peak adjusted or unadjusted revenue at around $600 million-$1 billion with 20,000 patients receiving pemividutide treatment. This makes it one of the most attractive penny stock names with heavy short interest lately.
Back on March 16, H.C. Wainwright also reaffirmed its Buy rating for Altimmune Inc. (NASDAQ:ALT) while substantially increasing its price target from $12 to $25. The firm attributed this to the company’s focus on its upcoming MASH pivotal program, along with the significant short-term gains from focused efforts to combat alcohol-related illnesses.
The firm is currently including the possible commercial worth of pemvidutide for addressing alcohol use disorder and related liver diseases into its foundational financial models. This proactive structural change is strongly backed by a growing collection of positive preclinical and clinical evidence. A significant unmet medical need in the industry is directly addressed by the encouraging liver benefits seen in these ongoing trials.
Altimmune Inc. (NASDAQ:ALT) is focused on the development of innovative peptide-based therapeutics for people suffering from serious illnesses like liver diseases, chronic hepatitis B, NASH, and obesity. Its primary product candidate is pemvidutide, currently in phase 3 of the clinical trial. Additionally, it has completed the MOMENTUM Phase II obesity study and is currently being evaluated in the IMPACT Phase IIb MASH trial.
1. Anavex Life Sciences Corp. (NASDAQ:AVXL)
Anavex Life Sciences Corp. (NASDAQ:AVXL) is one of the 10 most shorted penny stocks to buy.
More than 500% upside potential as of the April 23 close supports a highly bullish stance on the stock. Recent developments on the ongoing clinical trials also back the argument. On March 23, Anavex Life Sciences Corp. (NASDAQ:AVXL) released new data on blarcamesine at the AD/PD 2026 conference that was obtained during the ANAVEX2-73-AD-004 phase IIb/III clinical trial, which includes the extended access program, ANAVEX2-73-AD-EP-004.
It has been found through clinical data that patients possessing the SIGMAR1 and COL24A1 wild-type gene, belonging to the category of ABCLEAR32, derive greater benefit from blarcamesine treatment.
Analysis of the MRI biomarkers showed an extremely strong correlation between decreased atrophy and benefits in both primary and secondary endpoints, such as cognitive performance, daily activities, and overall cognitive and functional improvements. When analyzing the genetic cohort ABCLEAR32 group of participants for precision medicine, the correlation was even stronger, with the R value increased by 78% for the ADAS-Cog13 test, thus showing results that fall into a very suggestive category for clinical relevance.
These findings strongly support the precision medicine strategy applied by Anavex, which involves using both genetic and biomarker markers to find patients who could be responsive to the treatment.
Anavex Life Sciences Corp. (NASDAQ:AVXL) is involved in the development of novel therapeutics for various diseases like Alzheimer’s disease, several types of cancer, schizophrenia, neurodevelopmental disorders, CNS disorders, and more. Its primary drug ANAVEX 2-73 (blarcamesine) has completed different phases of clinical trail for different diseases like phase 2a and a phase 2b/3 clinical trial for Alzheimer’s and phase 2/3 study in paediatric patients with Rett syndrome.
While we acknowledge the potential of AVXL 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 AVXL and that has 100x upside potential, check out our report about the cheapest AI stock.
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