In this article, we will look at the 10 Most Volatile Penny Stocks to Buy Now.
Volatile penny stocks are getting more attention as traders look for smaller names that can move quickly on company updates, earnings surprises, sector news, or shifts in risk appetite. These stocks can swing hard because they often have less liquidity, lighter analyst coverage, and smaller investor bases than more established companies.
Saxo says penny stocks are “characterized by their low liquidity and higher volatility,” making them “both an opportunity for significant gains and a potential source of steep losses.” It also notes that active traders may try to profit from “frequent price swings,” but that finding real opportunities “requires thorough research.” Royce Investment Partners makes the small-cap volatility point more carefully, saying it seeks to use “periods of volatility opportunistically” to build positions in “high-quality small-cap businesses.” Fidelity adds that the small-cap backdrop has improved because of expectations for better earnings, while relative valuations are in their “cheapest quintile since 1990.” In summary, volatility alone is not the thesis. The better setup is when sharp price movement is paired with improving fundamentals or a clear catalyst.
The more interesting names are those where volatility is backed by liquidity, news flow, analyst support, or improving business trends. With that in mind, let’s take a look at the 10 Most Volatile Penny Stocks to Buy Now.
Our Methodology
We used the Finviz screener to identify stocks that are trading below $5 per share and have a share price volatility of over 10% in a month. We then limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. These stocks are also popular among analysts and elite hedge funds. All the data mentioned is from May 28.
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. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
10. Plug Power Inc. (NASDAQ:PLUG)
On May 20, 2026, Plug Power Inc. (NASDAQ:PLUG) announced that the 30-megawatt Barrow Green Hydrogen project in Barrow-in-Furness, Cumbria, where Plug is supplying electrolyzers, reached final investment decision. The project is being delivered by Green Hydrogen Energy Company, a joint venture established in 2023 by Schroders Greencoat and Carlton Power. The Barrow project will supply 100 GWh of green hydrogen per year to Kimberly-Clark’s manufacturing plant in the town, where the company makes consumer products including Andrex and Kleenex. Plug said the Kimberly-Clark Barrow site will reduce natural gas consumption by up to 50%, with a reduction of 18,300 tons of CO2 emissions. Under the finalized agreement, Plug will supply 30 MW of its GenEco Proton Exchange Membrane electrolyzers.
On May 12, 2026, B. Riley raised the firm’s price target on Plug Power Inc. (NASDAQ:PLUG) to $5 from $3 and maintained a Buy rating on the shares. B. Riley said Plug reported Q1 revenue well above expectations and improving gross margins, supported by cost actions from its “Project Quantum Leap” initiative. The firm also cited management’s guidance for 13%-15% full-year revenue growth, sequential margin improvement through 2026, and a path toward positive EBITDAS in Q4.
On May 11, 2026, Plug Power Inc. (NASDAQ:PLUG) reported Q1 adjusted EPS of (8c), compared to the consensus estimate of (9c). Revenue totaled $163.51M, above the consensus estimate of $141.17M. CEO Jose Luis Crespo said the quarter reflected “strong commercial execution” and progress in improving the underlying economics of the business, while positioning Plug to reach its EBITDAS positive target in Q4 2026.
Plug Power Inc. (NASDAQ:PLUG) designs, develops, and sells hydrogen products and solutions in Europe, Australia, North America, and internationally.
9. Getty Images Holdings, Inc. (NYSE:GETY)
On May 15, 2026, the United Kingdom CMA’s independent inquiry group concluded that the proposed merger between Getty Images Holdings, Inc. (NYSE:GETY) and Shutterstock “would lead to competition concerns” for editorial content supplied to UK media outlets, but not for stock content supplied globally. The CMA said the sale of Shutterstock’s global editorial business, which operates under the Shutterstock Editorial, Backgrid, and Splash brands, could resolve the identified concerns. The CMA added that once the sale is completed to an approved purchaser, the Getty and Shutterstock merger can proceed.
On May 11, 2026, Getty Images Holdings, Inc. (NYSE:GETY) reported Q1 adjusted EPS of (2c), compared to the consensus estimate of 0c. Revenue totaled $226.57M, below the consensus estimate of $238.81M. CEO Craig Peters said the quarter reflected a “dynamic market environment,” with pressure in Agency and microstock, while most of the business continued to see growth and opportunity supported by customer renewals, content, coverage, and brand strength.
Getty Images Holdings, Inc. (NYSE:GETY) expects FY26 revenue of $948M-$988M, compared to the consensus estimate of $965.54M, and adjusted EBITDA of $279M-$295M. The company said the guidance remains unchanged from earlier in the year and includes a normalized revenue outlook excluding the $40 million of accelerated revenue recognized in Q4 2025 from two multi-year licensing agreements.
Getty Images Holdings, Inc. (NYSE:GETY) provides creative and editorial visual content solutions across the Americas, Europe, the Middle East, Africa, and Asia-Pacific.
8. KinderCare Learning Companies, Inc. (NYSE:KLC)
On May 18, 2026, BMO Capital raised the firm’s price target on KinderCare Learning Companies, Inc. (NYSE:KLC) to $6 from $4 and maintained an Outperform rating on the shares. BMO said the company’s Q1 results beat expectations, driven by margin strength from operating leverage and cost efficiencies. The firm also noted that enrollment pressure continued, with occupancy down 310 bps year-over-year, though there was modest sequential improvement.
Meanwhile, Baird analyst Jeffrey Meuler raised the firm’s price target on KinderCare Learning Companies, Inc. (NYSE:KLC) to $4 from $1.50 and maintained a Neutral rating on the shares. Meuler updated the model as Baird sees a few green shoots, with more to follow.
On May 14, 2026, KinderCare Learning Companies, Inc. (NYSE:KLC) reported Q1 adjusted EPS of 4c, ahead of the consensus estimate of (1c). Revenue totaled $672.52M, above the consensus estimate of $669.23M. CEO Tom Wyatt said the company delivered a “solid start” to the year, driven by strength in its Champions and B2B businesses, team execution, and early traction from recent actions. Wyatt also cited increased family engagement and improved inquiries as the company refines marketing and strengthens center-level execution.
KinderCare Learning Companies, Inc. (NYSE:KLC) provides early childhood education and care services in the United States.
7. Xerox Holdings Corporation (NASDAQ:XRX)
On May 15, 2026, STARTEEPO Invest announced that it acquired a significant ownership position in Xerox Holdings Corporation (NASDAQ:XRX). STARTEEPO and its affiliates beneficially own 6.6 million shares of Xerox, representing approximately 5.05% of the company’s outstanding common stock. STARTEEPO said Xerox presents an investment opportunity supported by balance sheet initiatives, operational improvements, and its position in a changing and consolidating industry. The firm also said it intends to act as a constructive, long-term shareholder and may engage with Xerox’s management and Board of Directors on strategy, capital structure, and shareholder value opportunities.
On April 30, 2026, Xerox Holdings Corporation (NASDAQ:XRX) reported Q1 adjusted EPS of (43c), compared to the consensus estimate of (27c). Revenue totaled $1.85B, above the consensus estimate of $1.75B. CEO Louie Pastor said the quarter showed “tangible progress” as revenue and profit trajectory improved and liquidity strengthened. Pastor said Xerox remains focused on stabilizing revenue, increasing profitability, and reducing leverage.
Xerox Holdings Corporation (NASDAQ:XRX) still expects 2026 revenue above $7.5B, compared to the consensus estimate of $7.58B. The company also expects 2026 adjusted operating income of $450M-$500M and free cash flow of approximately $250M.
Xerox Holdings Corporation (NASDAQ:XRX) operates as a workplace technology company providing hardware, services, and software for enterprises internationally.
6. 8×8, Inc. (NASDAQ:EGHT)
On May 20, 2026, Rosenblatt raised the firm’s price target on 8×8, Inc. (NASDAQ:EGHT) to $3 from $2.75 and maintained a Buy rating on the shares. Rosenblatt cited a “strong” Q4 report that beat guidance across key metrics and capped “a year of steady execution.”
On May 19, 2026, 8×8, Inc. (NASDAQ:EGHT) reported fiscal Q4 EPS of 11c, ahead of the consensus estimate of 8c. Revenue totaled $185.2M, above the consensus estimate of $181.1M. CEO Samuel Wilson said fiscal 2026 marked a turning point for 8×8, citing four consecutive quarters of revenue growth, the company’s first GAAP-profitable full fiscal year since 2015, balance sheet improvement, and continued platform expansion for AI-driven customer engagement.
8×8, Inc. (NASDAQ:EGHT) expects FY27 EPS of 33c-38c, compared to the consensus estimate of 35c, and revenue of $727M-$747M, compared to the consensus estimate of $737.3M. The company also expects non-GAAP gross margin of 62.5%-63.5%, non-GAAP operating margin of 9.0%-10.0%, and cash flow from operations of $45 million-$52 million.
8×8, Inc. (NASDAQ:EGHT) provides contact center, voice, video, chat, and enterprise-class API solutions worldwide.
5. Virgin Galactic Holdings, Inc. (NYSE:SPCE)
On May 27, 2026, Virgin Galactic Holdings, Inc. (NYSE:SPCE) said VSS Unity, its prototype Spaceship, returned to the skies above Spaceport America in New Mexico for the first of several expected glide flights. The company said the flights are intended to prepare pilots and operations teams ahead of new Spaceship operations and the first flight test of its next-generation Spaceship.
On May 17, 2026, Jefferies said Virgin Galactic Holdings, Inc. (NYSE:SPCE) showed progress in Q1 as its first Delta spaceship moves toward commercial service in Q4, with ground testing scheduled for Q2 and flight tests beginning in Q3. Jefferies also noted that Virgin reopened ticket sales for a limited number of spaceflight expeditions priced at $750,000 per ticket, with an expected Q3 close. The firm said the company’s cash position “provides a window of safety” and maintained a Buy rating with a $5 price target.
On May 14, 2026, Virgin Galactic Holdings, Inc. (NYSE:SPCE) reported Q1 EPS of (81c), compared to estimates of (94c). Revenue totaled $227K, below the consensus estimate of $240K. CEO Michael Colglazier said the company delivered the first of its new SpaceShips from its Assembly hangar to its Test-and-Launch hangar, with ground testing underway. Colglazier added that Virgin Galactic remains on track to begin flight testing in Q3 and spaceflight in Q4.
Virgin Galactic Holdings, Inc. (NYSE:SPCE) focuses on the development, manufacture, and operation of spaceships and related technologies.
4. Enhanced Group Inc. (NYSE:ENHA)
On May 18, 2026, Enhanced Group Inc. (NYSE:ENHA) announced a strategic partnership with Rezolve AI to build out Live Enhanced, its direct-to-consumer digital telehealth platform. The collaboration covers AI technologies, digital consumer engagement, and event sponsorship. Enhanced said it is building the platform with AI-enabled infrastructure from the start, including AI medical concierge capabilities and AI-driven insights. Rezolve will also build the Enhanced Games mobile-first website.
On May 11, 2026, Lucid Capital analyst Alex Fuhrman initiated coverage of Enhanced Group Inc. (NYSE:ENHA) with a Buy rating and a $15 price target on the shares. Fuhrman said demand for longevity treatments has been rising and that Enhanced has a plan to bring “exclusive concierge-level care into the mainstream.” Lucid Capital said the company is well-positioned to benefit from longevity demand through its scalable direct-to-consumer platform.
Enhanced Group Inc. (NYSE:ENHA) designs and produces multisport live events under the Enhanced Games brand in the United States.
3. Prelude Therapeutics Incorporated (NASDAQ:PRLD)
On May 15, 2026, Goldman Sachs analyst Corinne Johnson initiated coverage of Prelude Therapeutics Incorporated (NASDAQ:PRLD) with an Early-Stage Biotech rating. Johnson said the company’s “differentiated approach” in metastatic breast cancer could unlock a $10B opportunity.
On May 12, 2026, Prelude Therapeutics Incorporated (NASDAQ:PRLD) reported Q1 EPS of (13c), compared to the consensus estimate of (27c). CEO Kris Vaddi said the company continued to show “focused execution” against the strategic priorities it set late last year. Vaddi cited the advancement of PRT12396 into first-in-human studies, preclinical data from its KAT6A degrader development candidate, progress toward a development candidate from its mCALR program, and a cash runway extended into the second quarter of 2028.
On May 4, 2026, D. Boral Capital initiated coverage of Prelude Therapeutics Incorporated (NASDAQ:PRLD) with a Buy rating and a $9 price target. D. Boral described Prelude as a clinical-stage oncology company advancing a precision medicine approach through a pipeline targeting epigenetic and DNA damage response pathways. The firm cited the company’s “deep pipeline,” emerging clinical validation, and multiple near-term catalysts, while also saying Prelude has validated its JAK2 franchise through a program-specific agreement with Incyte.
Prelude Therapeutics Incorporated (NASDAQ:PRLD) is a clinical-stage precision oncology company focused on developing novel precision cancer medicines for underserved patients.
2. LiveWire Group, Inc. (NYSE:LVWR)
On May 19, 2026, LiveWire Group, Inc. (NYSE:LVWR) announced that it acquired the assets of Dust Moto. LiveWire Group, Inc. (NYSE:LVWR) said that the acquisition supports its strategy to expand beyond on-road electric motorcycles and enter the electric off-road market. The company also said it is advancing Dust’s electric dirt bike platform toward production, using LiveWire’s engineering capabilities, manufacturing scale, and global marketing, sales, and service network.
On May 5, 2026, LiveWire Group, Inc. (NYSE:LVWR) reported Q1 EPS of (9c), compared to (9c) last year. Revenue totaled $5.115M, up from $2.743M last year. Chief Executive Officer Karim Donnez said revenue increased 86% year-over-year, helping improve gross profit, operating loss, and free cash flow. Donnez also said LiveWire Group, Inc. (NYSE:LVWR) maintained its position as the number one retailer of U.S. electric on-road motorcycles and pointed to the upcoming launch of the S4 Honcho.
LiveWire Group, Inc. (NYSE:LVWR) manufactures and sells electric motorcycles in the United States, Austria, and internationally.
1. InflaRx N.V. (NASDAQ:IFRX)
On May 13, 2026, Raymond James upgraded InflaRx N.V. (NASDAQ:IFRX) to Strong Buy from Outperform with a price target of $9, up from $7. Raymond James said sentiment is increasingly supported by a constructive view of InflaRx’s izicopan program in AAV, backed by a recent $150M financing that extends runway into proof-of-concept development. The firm also cited preclinical and early clinical signals suggesting potentially improved potency, reduced hepatotoxicity risk, and simpler dosing versus avacopan.
On May 11, 2026, H.C. Wainwright analyst Matthew Keller raised the firm’s price target on InflaRx N.V. (NASDAQ:IFRX) to $8 from $6 and maintained a Buy rating on the shares. Keller cited the company’s adjusted clinical focus on ANCA-associated vasculitis, inflammatory renal diseases, and potential partnering of the hidradenitis suppurativa program following the recent corporate update.
On May 6, 2026, InflaRx N.V. (NASDAQ:IFRX) announced plans to develop izicopan, an oral C5a receptor inhibitor, in AAV, a life-threatening kidney disorder. The company is conducting Phase 2 planning for izicopan in AAV and evaluating multiple development approaches, including a potential expedited path to the commercial market. InflaRx also aims to establish rapid proof of concept for izicopan across a broader range of complement-mediated life-threatening kidney diseases through open-label studies expected to begin generating clinical data next year in certain indications.
InflaRx N.V. (NASDAQ:IFRX) discovers and develops inhibitors using C5a technology in Germany and the United States.
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