On January 14, Lale Akoner, global market analyst at eToro, appeared on CNBC to state that 2026 is driven by rotation into small caps and advised diversification. Recent data from BofA showed that customers had been selling equities over the six weeks leading up to that point, alongside observed outflows from ETFs that had previously seen consistent inflows. Akoner interpreted this not as a broad move away from risk assets, but rather as a significant rotation within the risk asset class. The shift is driven by a 2026 outlook shaped by a rate-cutting cycle, the conclusion of quantitative tightening, and the anticipation of financial deregulation. Consequently, Akoner suggested moving away from growth technology stocks in favor of more consumer-sensitive stocks and banks and noted that a steepening yield curve makes banks a particularly strong pick.
Addressing the challenge of outperforming the index while reducing exposure to the MAG7 and other big tech names (which remain powerful earnings generators), Akoner acknowledged the importance of maintaining exposure to these growth names but argued that 2026 will be the year of small caps and the average US stock. She explained that the current policy environment is rare, as rate cuts are occurring simultaneously with the end of quantitative tightening and increasing bank reserves. This combination is expected to ease financial conditions and support risk assets generally. The recommended strategy is to bring down exposure to growth names without going underweight, while capitalizing on the favorable macro backdrop.
That being said, we’re here with a list of the 7 best fast growing penny stocks to buy according to analysts.
Our Methodology
We sifted through the Finviz stock screener to compile a list of penny stocks that had a share price between $1 and $5, and also had high revenue growth (at least 100%). We then selected 7 stocks that had an upside potential of over 40%. The stocks are ranked in ascending order of their upside potential. We have also added the hedge fund sentiment for each stock, as of Q3 2025.
Note: All data was sourced on January 29.
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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
7 Best Fast Growing Penny Stocks to Buy According to Analysts
7. Lexicon Pharmaceuticals Inc. (NASDAQ:LXRX)
Number of Hedge Fund Holders: 13
Average Upside Potential: 43.84%
Lexicon Pharmaceuticals Inc. (NASDAQ:LXRX) is one of the best fast growing penny stocks to buy according to analysts. On January 14, Citi analyst Yigal Nochomovitz increased the price target for Lexicon to $2.10 from $1.90 while maintaining a Buy rating. This upward revision resulted from an updated financial model that accounted for upcoming milestones under the LX9851 partnership with Novo Nordisk.
In Q3 2025, Lexicon Pharmaceuticals Inc. (NASDAQ:LXRX) reported revenue of $14.2 million, which was driven by $13.2 million in licensing revenue from its partnership with Novo Nordisk. The company’s net loss narrowed to $12.8 million, or $0.04 per share, compared to $64.8 million in the previous year.
The company achieved several key R&D milestones, including the completion of all IND-enabling studies for its obesity candidate, LX9851, which were submitted to Novo Nordisk for clinical development. Lexicon is also advancing its heart failure medication, INPEFA, into international markets via licensee Viatris and submitted additional data to the FDA to support the benefit-risk profile for Zynquista in type 1 diabetes
Lexicon Pharmaceuticals Inc. (NASDAQ:LXRX) is a biopharmaceutical company that discovers, develops, and commercializes pharmaceutical products for the treatment of human disease.
6. Strive Inc. (NASDAQ:ASST)
Number of Hedge Fund Holders: 13
Average Upside Potential: 90.02%
Strive Inc. (NASDAQ:ASST) is one of the best fast growing penny stocks to buy according to analysts. On January 21, Maxim Group reiterated a Buy rating for Strive. The firm also maintained a price target of $1.50 on the company’s shares.
In other news, on January 16, Strive announced the acquisition of Semler Scientific, which is a move that establishes Strive as the 11th largest public corporate holder of Bitcoin globally with a treasury of approximately 12,797.9 BTC. Alongside the acquisition, Strive expanded its leadership team by appointing former board member Avik Roy as Chief Strategy Officer, where he will oversee the monetization and expansion of Semler’s early disease detection business. This consolidation aligns Semler’s medical technology assets and Bitcoin-heavy treasury with Strive’s mission as a premier Bitcoin treasury asset management firm.
In Q3 2025, Strive Inc. (NASDAQ:ASST) established itself as the first publicly traded Bitcoin treasury asset management firm through a successful reverse acquisition of Asset Entities Inc. During this period, the company raised $762.6 million via PIPE financing and warrant exercises, while also initiating an agreement to acquire Semler Scientific.
Strive Inc. (NASDAQ:ASST) is a bitcoin treasury company. The company also has a wholly owned subsidiary, Strive Asset Management LLC, which is a privately owned investment manager that primarily provides its services to investment companies.
5. Century Therapeutics Inc. (NASDAQ:IPSC)
Number of Hedge Fund Holders: 14
Average Upside Potential: 94.65%
Century Therapeutics Inc. (NASDAQ:IPSC) is one of the best fast growing penny stocks to buy according to analysts. On January 20, Piper Sandler increased its price target for Century Therapeutics to $4 from $2 with an Overweight rating, citing the company’s plan to submit an IND for CNTY-813 this year and deliver initial data by 2027. Additionally, the firm highlighted Century’s strong financial position, estimating a pro forma cash balance of approximately $267 million that is expected to fund operations through Q1 2029.
Earlier on January 8, Clear Street analyst Bill Maughan reduced the price target for Century Therapeutics Inc. (NASDAQ:IPSC) to $6.60 from $8 while keeping a Buy rating. Maughan noted that a recent private placement extends the company’s cash runway into Q1 2029, providing sufficient time to realize the full potential of its lead asset, CNTY-813, without requiring immediate additional capital.
While the price target was lowered by Clear Street to account for dilution from the capital raise, the firm also emphasized that this was partially offset by an increased likelihood of pipeline success and higher projected peak sales.
Century Therapeutics Inc. (NASDAQ:IPSC) is a clinical-stage biotechnology company that develops allogeneic cell therapies for the treatment of solid tumors, hematological malignancies, and autoimmune diseases.
4. Gogo Inc. (NASDAQ:GOGO)
Number of Hedge Fund Holders: 28
Average Upside Potential: 139.13%
Gogo Inc. (NASDAQ:GOGO) is one of the best fast growing penny stocks to buy according to analysts. On January 16, Morgan Stanley reduced its price target for Gogo to $8 from $15 with an Equal Weight rating, reflecting expectations of a low-growth 2026 due to various product transitions. The firm’s adjusted valuation incorporates updated model assumptions and highlights an ongoing industry debate regarding the development of Direct-to-Device technology within the Space Technology services sector.
In other news, on December 29, Gogo Inc. (NASDAQ:GOGO) successfully launched its next-generation 5G air-to-ground/ATG network following the completion of over 30 hours of flight testing across North America and Southern Canada. The validation process confirmed broadband speeds exceeding 80Mbps download and 20Mbps upload, enabling simultaneous streaming and high-speed browsing for business aviation.
As of late December 2025, Gogo secured its first paying customer and had 450 pre-provisioned aircraft ready for service in early 2026. To facilitate rapid adoption, the company already contracted 33 Supplemental Type Certificates/STCs covering all major aircraft types in the CONUS region, unlocking a total addressable market of over 7,500 aircraft.
Gogo Inc. (NASDAQ:GOGO), together with its subsidiaries, provides broadband connectivity services to the aviation industry in the US and internationally. Its product platform includes networks, antennas, and airborne equipment and software.
3. Ovid Therapeutics Inc. (NASDAQ:OVID)
Number of Hedge Fund Holders: 20
Average Upside Potential: 162.3%
Ovid Therapeutics Inc. (NASDAQ:OVID) is one of the best fast growing penny stocks to buy according to analysts. Earlier on December 22, LifeSci Capital initiated coverage of Ovid Therapeutics with an Outperform rating and set a price target of $4.
Additionally, on December 18, Ovid Therapeutics Inc. (NASDAQ:OVID) announced successful Phase 1 results for OV350, the first-ever direct activator of the KCC2 transporter to be dosed in humans. The intravenous study met its primary objectives, showing a favorable safety and tolerability profile with no treatment-related serious adverse events or laboratory findings. Exploratory qEEG data further confirmed central activity and spectral power consistent with the expected physiological effects of KCC2 modulation in the brain.
While the company does not plan to advance the intravenous OV350 further, these results validate the mechanism and support the development of its oral KCC2 portfolio. Ovid is now prioritizing OV4071, an oral activator that is 20x more potent than OV350 in disease models. The company remains on track to submit a regulatory application for OV4071 in Q1 2026, with Phase 1/1b clinical trials expected to initiate in Q2 2026 for the treatment of psychoses associated with neurodegenerative conditions.
Ovid Therapeutics Inc. (NASDAQ:OVID) is a biopharmaceutical company that develops impactful medicines for patients and families with epilepsies and seizure-related neurological disorders in the US.
2. Geron Corporation (NASDAQ:GERN)
Number of Hedge Fund Holders: 37
Average Upside Potential: 193.36%
Geron Corporation (NASDAQ:GERN) is one of the best fast growing penny stocks to buy according to analysts. On January 29, TD Cowen analyst Tara Bancroft reduced the firm’s price target on Geron to $3 from $4 while keeping a Buy rating. This adjustment followed an update to the firm’s financial model in anticipation of the company’s Q4 2025 results.
In Q3 2025, Geron Corporation (NASDAQ:GERN) expanded its reach by adding 150 new ordering accounts, a 15% sequential increase, and successfully initiated its first shipment of RYTELO to Germany under an early access program. Additionally, Geron’s clinical pipeline remains on track, with its Phase 3 trial for relapsed/refractory myelofibrosis fully enrolled and an interim analysis expected in the second half of 2026.
Despite these gains, RYTELO demand saw a 3% decline compared to the previous quarter, as growth in new patient starts was offset by discontinuations in later-line therapies. To address these headwinds, Geron implemented a restructuring and provided 2026 financial guidance projecting $220 million to $240 million in RYTELO revenue, aiming for profitability and a strengthened commercial footprint.
Geron Corporation (NASDAQ:GERN) is a commercial-stage biopharmaceutical company that develops therapeutic products for oncology.
1. AtaiBeckley Inc. (NASDAQ:ATAI)
Number of Hedge Fund Holders: 21
Average Upside Potential: 208.48%
AtaiBeckley Inc. (NASDAQ:ATAI) is one of the best fast growing penny stocks to buy according to analysts. On January 20, Guggenheim initiated coverage of AtaiBeckley with a Buy rating and an $11 price target, identifying the firm as a differentiated leader in the field of next-generation psychiatry.
The firm noted that the recent merger with Beckley Psytech provides full ownership of the lead asset, BPL-003, which has shown compelling efficacy and durability in Phase IIIb trials for treatment-resistant depression. Consequently, the firm believes that BPL-003 is uniquely positioned for efficient clinical adoption and commercial scaling.
Earlier on December 23, JonesResearch analyst Justin Walsh initiated coverage of AtaiBeckley Inc. (NASDAQ:ATAI) with a Buy rating and a $16 price target. The firm highlighted the company’s pipeline of psychedelic and empathogenic drugs as a unique opportunity within large neuropsychiatric markets. The firm also noted that current development trends favor these drug classes and specifically points to lead assets BPL-003 and VLS-01, whose short half-lives are expected to facilitate their use in treating treatment-resistant depression.
AtaiBeckley Inc. (NASDAQ:ATAI) is a clinical-stage biopharmaceutical company that researches, develops, and commercializes mental health treatments in the US, Germany, and Canada.
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 this cheapest AI stock.
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