In this article, we will take a look at the best fundamentally strong penny stocks to invest in now.
Penny stocks are often associated with high risk and speculative trading, but not all penny stocks are the same. Beneath the volatility lie solid fundamentals and clear growth catalysts for some companies. In today’s market, where uncertainty clouds the outlook, fundamentally strong penny stocks are drawing investors’ attention.
The war with Iran has increased market volatility. On May 1, CNBC reported that a robust Q1 earnings season, along with rising optimism about easing concerns over Middle East tensions, has led stocks to surge. Now, all three indexes are trading well above their levels at the start of 2026.
The publication reports that David Krakauer, vice president of portfolio management at Mercer Advisor, is optimistic about the long-term growth momentum in equities. Although he remains hopeful that the war is coming to an end, Krakauer believes that even if the conflict persists, strong earnings growth prospects in both the U.S. and global markets will continue to support equities.
“There could be always new news or some sentiment declining, where we could see a little bit of a pullback here after a strong pop up, but we’re still just overall strategically bullish on equities,” Krakauer said.
Keeping this global outlook in mind, we have compiled a list of the best fundamentally strong penny stocks to invest in now. These stocks span a range of sectors, including healthcare, communications services, and technology.
Our Methodology
For this article, we filtered for stocks trading under $5. From this pool, we shortlisted stocks with market capitalizations over $500 million and 5-year revenue growth of at least 10%. We limited our final selection to companies with the highest upside potential that have recently reported noteworthy developments likely to impact investor sentiment. These stocks are ranked in ascending order by upside potential, as of May 1.
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).
8. Clarivate Plc (NYSE:CLVT)
Upside Potential as of May 1, 2026: 2.33%
On April 29, Clarivate Plc (NYSE:CLVT) announced Q1 results that outperformed consensus estimates, as both earnings and revenue surpassed forecasts. This strong performance was driven by the company’s Value Creation Plan, which demonstrated early progress.
With an EPS of $0.18 and a revenue of $585.5 million, Clarivate Plc exceeded the projected $0.14 and $568.78 million, making it one of the best penny stocks to buy now. Although revenue declined 1.4% YoY due to inorganic disposals, it rose 0.6% on an organic basis, driven by 1.7% organic subscription growth.
“We are off to a solid start to 2026, with first-quarter results demonstrating tangible progress against the Value Creation Plan we launched in early 2025,” stated CEO Matti Shem Tov. “Execution of the VCP is strengthening the quality and durability of our performance.”
Management maintained the full-year 2026 outlook, expecting adjusted EPS between $0.70 and $0.80, compared with the prior forecast of $0.72. Additionally, Clarivate Plc reaffirmed its revenue guidance in the range of $2.30 billion and $2.42 billion.
Clarivate Plc is a London-based provider of information services. Founded in 1864, the company operates through Academia & Government, Intellectual Property, and Life Sciences & Healthcare segments.
7. Ur-Energy Inc. (NYSAMERICAN:URG)
Upside Potential as of May 1, 2026: 15.20%
On April 27, H.C. Wainwright maintained a Buy rating and a price target of $2.30 on Ur-Energy Inc. (NYSAMERICAN:URG). The firm highlighted that uranium-bearing solution from the site is currently being captured at Mine Unit 1, with concentrations anticipated to increase as the wellfield undergoes further conditioning and additional production circuits are acquired online.
According to H.C. Wainwright, Ur-Energy Inc. (NYSAMERICAN:URG) is in a good position to supply an increasingly tight uranium market. Management aims to transport uranium-loaded resin to Lost Creek for processing over the summer.
Earlier on April 23, Ur-Energy Inc. (NYSAMERICAN:URG) announced that mining operations had started at its Shirley Basin Project in Wyoming. The project aims to enhance the company’s operational synergy, capacity, resource base, and mine life. As stated by the CEO and President, Matt Gili,
“Launching initial operations marks a pivotal achievement in Ur-Energy’s growth strategy and plan to expand U.S. uranium production capacity. Two years ago, we committed to building out this project. Today, we have successfully brought a historically significant uranium district back to life, demonstrating disciplined execution of our strategy.”
If we consider the comparative one-year return, Ur-Energy Inc. (NYSAMERICAN:URG) has significantly outperformed the S&P/TSX Composite index (^GSPTSE)’s return by approximately 97%. This, along with strong fundamentals, positions the company as one of the best penny stocks to invest in.
Ur-Energy Inc. (NYSAMERICAN:URG) is a Colorado-based company specializing in uranium mineral properties. Incorporated in 2004, the company holds interests in 12 projects, particularly the Lost Creek project.
6. AMC Entertainment Holdings, Inc. (NYSE:AMC)
Upside Potential as of May 1, 2026: 27.99%
On April 23, Eric Handler from Roth Capital lifted the price target on AMC Entertainment Holdings, Inc. (NYSE:AMC) to $2 from $1.50 and reiterated a Neutral rating. According to the analyst, a multi-year positive content cycle could positively impact the company, but the challenges with its capital structure appear to be a key concern. The analyst further added that equity dilution could remain substantial, with high net leverage and negative free cash flow until 2027/2028.
Back on April 17, B. Riley elevated the price target on AMC Entertainment Holdings, Inc. to $2 from $1.50 and maintained a Neutral rating. As stated by the investor in a research note, industry box office revenue surged 22% YoY, surpassing estimates.
This win was driven by robust March releases, such as Project Hail Mary, and strong contributions from Scream 7 and Hoppers. For the second quarter, box office is projected to accelerate modestly, B. Riley said, adding that June gains will be offset by muted April and May comparisons.
AMC Entertainment Holdings, Inc. is a Kansas-based company specializing in the theatrical exhibition business. Founded in 1920, the company owns and manages theatres.
5. Keel Infrastructure Corp. (NASDAQ:KEEL)
Upside Potential as of May 1, 2026: 55.48%
On April 27, TheFly reported that Bill Papanastasiou from Chardan started coverage of Keel Infrastructure Corp. (NASDAQ:KEEL) with a Buy rating and a price target of $4.50. The firm noted that the company, along with Galaxy Digital and Riot Platforms, is shifting its power offerings to high-performance compute (HPC) workloads from bitcoin mining. This is being done to capitalize on a “significant valuation re-rate opportunity afforded by stable cash flows attached to long- duration lease agreements.”
With AI-driven applications and use cases, “we have only begun to scratch the surface,” Chardan stated. The firm believes that the compute demand will increase as complex tasks are directed to technology. The investors seeking potential upside exposure “need not look any further” beyond these three stocks, said the firm, thus making the stock one of the best penny stocks to buy now.
As stated by the analyst,
“We think the stock offers an attractive risk-reward profile given the existing portfolio of North American data center sites deemed feasible for high-performance computing workloads and a disconnected market valuation that does not fully capture the potential re-rating opportunity, unlike peers (who pivoted early on and secured anchor tenants).”
Keel Infrastructure Corp. is a New York-based digital and energy infrastructure company specializing in HPC and AI. Founded in 2017, the company operates data centers housing computers, sells computational power, and provides electrical services.
4. Grab Holdings Limited (NASDAQ:GRAB)
Upside Potential as of May 1, 2026: 72.39%
On April 20, Ranjan Sharma, an analyst at JPMorgan, trimmed the price target on Grab Holdings Limited (NASDAQ:GRAB) to $5.90 from $6.10 and reiterated an Overweight rating.
BofA Securities, too, remains positive on Grab Holdings Limited as it believes that the risk-reward is favorable. The firm expects the upcoming results conference call to center on the impact of increased fuel prices on demand, along with the influence of higher driver subsidies. The firm maintained a price target of $6.20 and a Buy rating on the company on April 17.
On March 23, Jefferies maintained a Buy rating on Grab Holdings Limited with a price target of $6.70 after the company announced Taiwan’s foodpanda acquisition. Thomas Chong, an analyst at the firm, says the deal came as a surprise to the market, enabling the company to mirror its Southeast Asian delivery success in Taiwan. This will be driven by affordability, reliability, and technology.
The deal includes a cash consideration of $600 million, reflecting a 30% discount to the price Uber suggested in 2024. Grab Holdings Limited views the acquisition as a factor behind the boost in 2026 revenue and adjusted EBITDA in 2028, after accounting for integration expenses.
Grab Holdings Limited is Southeast Asia’s leading superapp by GMV across food delivery, mobility, and financial services. From necessities to earning opportunities, the company claims to be an all-in-one platform.
3. Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX)
Upside Potential as of May 1, 2026: 75.70%
On April 30, TheFly reported that JPMorgan trimmed the price target on Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX) from $11 to $10 and reiterated an Overweight rating. With the highest 1-year price target among analysts, the firm’s estimate implies 192.83% upside potential. Overall, the stock has a Buy rating from 38% of the analysts, with the remaining 63% neutral.
During a Morgan Stanley webcast on April 15, Recursion Pharmaceuticals, Inc. highlighted its AI-powered drug discovery platform. The leadership outlined the way technology is being utilized for target identification, molecule design, and clinical development.
According to management, AI-driven initiatives have already resulted in a 30% to 50% improvement in patient enrollment. Recursion Pharmaceuticals, Inc. also adopts AI for protocol design and patient stratification. In contrast to industry norms of 2,500 to 5,000 compounds over a span of four to five years, the company accelerated a compound to clinical trials after designing nearly 330 molecules in a period of 17 months. With a focus on AI and an impressive quarterly revenue growth (YoY) of 681.70%, RXRX is among the best fundamentally strong penny stocks to invest in now.
Recursion Pharmaceuticals, Inc. is a Utah-based clinical-stage biotechnology company specializing in the decoding of biology and chemistry. Founded in 2013, the company develops its solutions by integrating technological advancements.
2. Genius Sports Limited (NYSE:GENI)
Upside Potential as of May 1, 2026: 150.28%
On April 21, Truist cut the price target on Genius Sports Limited (NYSE:GENI) to $10 from $13 and reiterated a Buy rating. This re-rating is part of a broader research note. According to the firm, the sector lags in preference, but regionals appear to be in a good position heading into Q1 results.
Several other analysts are backing their positive narratives, making the stock one of the best fundamentally strong penny stocks to buy. On April 8, Citizens reaffirmed a Market Outperform rating on Genius Sports Limited with a price target of $11. According to the firm’s observations, U.S.-listed online gaming companies typically begin Q2 near their all-time lows. The legalization catalysts in the near-term remain limited, the firm added.
Thanks to positive handle dynamics, monetization of prediction markets, and current cost-efficiency initiatives, Citizens views a favorable operating environment. The firm highlighted that states are avoiding gaming tax hikes amid ongoing legislative sessions, given the prediction market risk adoption if taxes become cost-inefficient. That said, the firm anticipates promotion and marketing expenses to decline into 2027, supporting robust EBITDA flow-through relative to current expectations.
Back on April 1, Benchmark reiterated a Buy rating and a price target of $10 on Genius Sports Limited. The firm sees the company exceeding estimates and raising guidance in Q1FY26. This is supported by the Betting segment execution and enhanced Media performance.
Genius Sports Limited is a London-based provider of technology-led products and services to serve certain industries, particularly sports, sports betting, and sports media. Founded in 2001, the company offers technology infrastructure, streaming solutions, and end-to-end integrity services.
1. MannKind Corporation (NASDAQ:MNKD)
Upside Potential as of May 1, 2026: 165.49%
On April 8, TheFly reported that Truist trimmed the price target on MannKind Corporation (NASDAQ:MNKD) to $6 from $7 and reiterated a Buy rating. This downward revision in price was a part of a broader research note previewing Q1 earnings in the biotechnology space. The firm is among the 88% of analysts bullish on the stock, having a consensus one-year price target of $7.50.
In a research note, the analyst says that the sector is becoming less sensitive to regulatory and policy changes, with a recent pickup in deal activity having the potential to drive momentum through the rest of the year into midterms. What builds the case for MannKind Corporation is a strong pipeline of catalysts that could power growth. These include the pediatric Afrezza label expansion PDUFA, scheduled for May 29; the Furoscix ReadyFlow autoinjector PDUFA, set for July 26; and the MNKD-201 in IPF updates, Truist noted.
Although MannKind Corporation has consistently underperformed the S&P 500, the company’s YoY quarterly revenue growth of 45.80% and upside potential of nearly 165% position it among the best fundamentally strong penny stocks to invest in now.
MannKind Corporation is a Connecticut-based biopharmaceutical company that specializes in chronic disease care. Incorporated in 1991, the company provides solutions for serious conditions, such as diabetes, pulmonary hypertension, and fluid overload.
