In this article, we will list the 5 Must-Buy Penny Stocks to Invest In Now. Please visit 9 Must-Buy Penny Stocks to Invest In Now if you would like to see the extended list and the methodology behind it.
5. Grab Holdings Ltd (NASDAQ:GRAB)
Number of Hedge Fund Holders: 61
Upside Potential: 57.48%
Stock Price: $4.21
Grab Holdings Ltd (NASDAQ:GRAB) is among the must-buy penny stocks to invest in now. Despite high fuel prices presenting headwinds for Grab Holdings Ltd (NASDAQ:GRAB), BofA Securities sees a favorable risk-reward in the stock. On April 17, BofA reaffirmed its Buy rating and $6.20 price target on Grab stock.
Grab, a superapp operator, plans to hold a conference call on May 4 to discuss its Q1 2026 results. BofA expects the call to focus heavily on the impact on consumer demand and costs due to higher fuel prices.
Source:Pixabay
The firm notes that Grab has increased fuel supercharge temporarily in Singapore for the period between April 7 and May 31. It says that Grab may introduce surcharges in its other markets if the higher fuel prices persist for a longer period. So far, however, BofA has noted that retail checks show that the increased supercharge in domestic has not had a notable hit on demand.
Beyond managing the spike in fuel prices, Grab is working to bolster its business and return more cash to shareholders. On March 24, the company said it plans to repurchase $400 million shares of its own stock over the next four months. It said that this accelerated repurchase plan was part of the $500 million buyback program that its board approved in February.
According to the management, the repurchase plan demonstrates confidence in Grab’s financial strength and long-term outlook. Meanwhile, Grab is in the process of expanding its business in Taiwan with the acquisition of Delivery Hero’s food delivery operation in the country. It announced on March 23 that it would acquire the business for $600 million in cash, and the transaction is expected to close in Q2 2026.
Grab Holdings Ltd (NASDAQ:GRAB) operates a superapp that connects providers to consumers for a broad array of services. The platform is used for things like ride-hailing, food delivery, and digital financial services. Grab Holdings does business in multiple countries but is headquartered in Singapore.
4. Recursion Pharmaceuticals Inc (NASDAQ:RXRX)
Number of Hedge Fund Holders: 29
Upside Potential: 85.19%
Stock Price: $3.78
Recursion Pharmaceuticals Inc (NASDAQ:RXRX) is among the must-buy penny stocks to invest in now. Recursion Pharmaceuticals Inc (NASDAQ:RXRX) is accelerating its drug development programs and unlocking cost-savings opportunities thanks to its AI-driven strategy. This is the message the company’s executives shared with investors during a Morgan Stanley webcast on April 15.
The executive team, led by CEO Najat Khan and CFO Ben Taylor, provided insights about the company’s AI-powered drug discovery approach. Investors heard that Recursion used a combination of experimental biology and machine learning in a mapping effort that led to the identification of 25 new targets simultaneously. According to the company, this kind of work would normally take years of research to complete using traditional means.
Recursion is also using AI to speed up molecule design. The executive offered an example at the Morgan Stanley webcast on how this has worked for them. They said that they were able to design around 330 molecules in just over 17 months to advance a compound to clinical trials recently. In normal industry practice, developing 2,500 to 5,000 compounds would take four to five years.
The investors also heard that Recursion’s AI-driven strategy is speeding up patient enrollment for clinical trials by up to 50%. This is being achieved in part due to improved site selection and recruitment.
By leveraging the power of artificial intelligence, Recursion expects to save millions in costs in its drug development programs. The management sees cost-savings opportunities in areas like animal testing, manufacturing, and controls. These areas can account for about 50% of the cost of drug discovery and development.
Recursion Pharmaceuticals Inc (NASDAQ:RXRX) is an American biotech company based in Utah. The company is known for its use of automation and AI capabilities in drug discovery efforts. Recursion has a broad pipeline of potential drug products.
3. Iovance Biotherapeutics Inc (NASDAQ:IOVA)
Number of Hedge Fund Holders: 33
Upside Potential: 107.25%
Stock Price: $3.86
Iovance Biotherapeutics Inc (NASDAQ:IOVA) is among the must-buy penny stocks to invest in now. The stock has climbed more than 66% over the past six months and currently trades at around $3.86. On April 10, Jefferies reaffirmed a Buy rating and $12 price target on Iovance Biotherapeutics stock, indicating significant upside potential.
Jefferies cited the strength and potential of Iovance’s Amtagvi drug as factors for its renewed bullish stance on the stock. First, the firm pointed out that potential risk of competition for Amtagvi was already baked in Street’s estimates for Iovance.
With that, Jefferies says that the focus is more on Amtagvi commercial execution rather than competition. According to the firm, the upside for Iovance stock is based on continued Amtagvi sales growth and margin expansion. Jefferies also pointed out Amtagvi’s first-mover advantage.
Amtagvi is approved by the FDA as a treatment for adult patients with a type of skin cancer. It’s also being investigated as a treatment for patients with lung cancer. According to Jefferies’ forecast, Iovance may be able to obtain approval and launch Amtagvi in the lung cancer market in the back half of 2027.
In Q4 2025, Iovance’s revenue rose 30% sequentially to $87 million, exceeding the anticipated $82.03 million. The company said the topline growth was supported by strong Amtagvi demand. Iovance recorded US Amtagvi revenue of $65 million that quarter.
Iovance is underway with global expansion of the Amtagvi market. The product is already approved in Canada, and its approval applications are under review in the UK, Australia, and Switzerland. Iovance hopes to secure UK and Australian approvals in the first half of 2026 and Switzerland approval in the first half of 2027.
Iovance Biotherapeutics Inc (NASDAQ:IOVA) is an American biopharmaceutical company based in San Carlos, California. The company is focused on developing cancer treatments. It’s applying a transformative approach that harnesses the human immune system to identify and destrory. cancer cells.
2. Nuvation Bio Inc (NYSE:NUVB)
Number of Hedge Fund Holders: 40
Upside Potential: 159.25%
Stock Price: $4.90
Nuvation Bio Inc (NYSE:NUVB) is among the must-buy penny stocks to invest in now. RBC Capital analysts see bright prospects for Nuvation Bio Inc (NYSE:NUVB) in the glioma treatment market, which they say is underserved. On April 6, RBC Capital boosted its price target on Nuvation Bio stock to $20 from $13 and reiterated its Overweight rating.
For this action, the firm cited the potential of Nuvation Bio’s glioma drug candidate, safusidenib. First, RBC Capital pointed out that there’s an unmet need in the glioma market, particularly in the high-grade glioma segment.
According to the firm, Nuvation Bio’s safusidenib could become a first-in-class treatment for high-grade glioma. The firm also sees potential for this drug candidate in the low-grade glioma market as well. In RBC Capital’s estimates, safusidenib could generate as much as $3.4 billion in US sales for Nuvation Bio.
Nuvation Bio’s safusidenib is in Phase 3 study. On February 9, Nuvation Bio provided protocol updates regarding the Phase 3 SIGMA trial of Nuvation Bio. The updates included expanding the trial following discussions with regulatory agencies, doctors, and advocacy groups, the company said.
Nuvation Bio added that the protocol updates reflected alignment with US regulators, mentioning potential for swift approval of safusidenib for patients who badly need a treatment option.
In Q4 2025, Nuvation Bio generated revenue of $$41.9 million, surpassing the consensus estimate of $38.55 million. It wrapped up the quarter with $529.2 million in cash, cash equivalents, and marketable securities.
Nuvation Bio Inc (NYSE:NUVB) is an American biopharmaceutical company founded in 2018. The company is focused on developing cancer medicines. It’s focused on tackling the toughest treatment cancer challenges.
1. AtaiBeckley Inc (NASDAQ:ATAI)
Number of Hedge Fund Holders: 23
Upside Potential: 262.28%
Stock Price: $4.03
AtaiBeckley Inc (NASDAQ:ATAI) is among the must-buy penny stocks to invest in now. The stock has gained more than 180% over the past 12 months. On April 17, Guggenheim lifted its price target on AtaiBeckley Inc (NASDAQ:ATAI) to $16 from $11 and reiterated a Buy rating on the stock. Guggenheim’s new price target suggests significant upside potential given ATAI stock currently trades at about $4.
Guggenheim cited AtaiBeckley’s solid financial position for its renewed bullish view on the stock. According to the firm, AtaiBeckley has enough funds to last it through pivotal readouts in early 2029.
In its Q4 2025 report released on March 6, AtaiBeckley said it closed the year with $220.7 million in cash, cash equivalents, and short-term securities. This increased from $72.3 million at the end of 2024. The company’s management went on to say that they expected the cash to be enough to fund operations into 2029.
AtaiBeckley is underway with several trial programs. These include BPL-003, which enters a Phase 3 trial in Q2 2026. AtaiBeckley is developing BPL-003 as a treatment for severe depression. According to Guggenheim, the AtaiBeckley management sees BPL-003 as presenting a paradigm shift in the treatment of severe depression. The compound’s short-acting profile is seen as a major differentiator with regard to patient preference, clinical site preference, and clinic economics.
AtaiBeckley Inc (NASDAQ:ATAI) is a pharmaceutical company focused on developing therapies for mental health conditions. The company was founded in 2018 and is based in Berlin, Germany. AtaiBeckley is one of the companies developing psychedelic drugs.
While we acknowledge the potential of ATAI 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 ATAI and that has 100x upside potential, check out our report about the cheapest AI stock.
READ NEXT: 8 Must-Buy Small Cap Stocks to Buy and 10 Best Medical AI Stocks to Buy Now.
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