In this article, we will look at the 8 Best Rising Penny Stocks to Buy Now.
On April 1, Francis Gannon, Co-Chief Investment Officer and Managing Director of Royce Investment, released his Q1 2026 small-cap recap report. The report noted that most of the world’s major indices started 2026 on a positive note. However, the positive sentiment was short-lived as the recent geopolitical conflict resulted in increased energy prices internationally. This, on top of sticky inflation, growing unemployment, and the fears of the AI bubble, resulted in all major indexes entering a correction phase.
Gannon noted that despite all the challenges, the Russell 2000 and Russell Microcap Indexes survived Q1 2026 with positive returns. During the quarter, the Russell 2000 gained 0.9%, and the Russell Microcap gained 1.5%, marking the fourth consecutive quarter in which the micro-cap index beat the major domestic large-cap indexes. In comparison, the Russell 1000 Index declined 4.2% while the mega-cap Russell Top 50 Index fell 7.9%. Royce Investment remains confident that the sector can maintain its nascent market leadership.
With that, let’s take a look at the 8 Best Rising Penny Stocks to Buy Now.
Our Methodology
We used screeners to identify stocks trading below the stock price of $5, with one-month returns of over 10%, and 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.
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 Best Rising Penny Stocks to Buy Now
8. VinFast Auto Ltd. (NASDAQ:VFS)
Price: $4.06
Number of Hedge Fund Holders: 5
VinFast Auto Ltd. (NASDAQ:VFS) is one of the Best Rising Penny Stocks to Buy Now. VinFast Auto Ltd. (NASDAQ:VFS) has gained more than 33.87% over the past month, and Wall Street maintains a bullish sentiment on the stock. As of April 11, 3 out of 4 analysts covering the stock had a Buy rating, while 1 maintained a Neutral stance. The analyst’s 12-month average price target reflects more than 43.2% upside from the current level.
Recently, on April 6, the company announced strong delivery figures for Vietnam during March. VinFast Auto Ltd. (NASDAQ:VFS) received more than 135,000 dealer orders for electric scooters from Vietnam and shipped more than 93,000 electric scooters during the month. Among this category, the Evo and Feliz models were found to be the best-selling for the month, with around 52,000 Evo units and over 24,000 Feliz units sold by dealers in March.
Management noted that this represents record growth in its e-scooter business in Vietnam. However, the company also highlighted that the vehicle deliveries might not translate to completed sales or future financial performance, as quarterly results depend on a number of other factors, such as the average selling price and the cost.
VinFast Auto Ltd. (NASDAQ:VFS) is a Vietnamese automotive manufacturer specializing in the design and production of electric vehicles (EVs), including SUVs, e-scooters, and e-bikes. It transitioned to an all-electric lineup in 2022, focusing on global expansion, smart manufacturing, and the development of EV charging infrastructure in markets such as the US and India.
7. Olaplex Holdings, Inc. (NASDAQ:OLPX)
Price: $2.03
Number of Hedge Fund Holders: 14
Olaplex Holdings, Inc. (NASDAQ:OLPX) is one of the Best Rising Penny Stocks to Buy Now.
On March 30, Analyst Dara Mohsenian of Morgan Stanley maintained a Hold rating on Olaplex Holdings, Inc. (NASDAQ:OLPX) and raised the price target from $1.4 to $2. The rating follows the company’s March 26 announcement that it is being acquired by Henkel AG & Co. for $2.06 per share in cash. This values the company at about $1.4 billion in equity, a hefty 55% premium over OLPX’s closing price on March 25 and 45% above its 30-day average price leading up to that date.
Analyst Dara Mohsenian noted that the deal has captured most upside in the current stock price rather than fundamental improvements. The analyst added that the deal offers a substantial premium over the company’s prior trading levels, board approval, and strong backing from majority stakeholder Advent International, making closure highly likely. Mohsenian noted that this reduces chances for competing bids or significant share re-rating beyond the terms.
The transaction is expected to be closed in the second half of 2026 and is subject to regulatory approvals.
Olaplex Holdings Inc. (NASDAQ:OLPX), through its subsidiaries, develops, manufactures, and sells haircare products in the US and internationally.
6. Precigen, Inc. (NASDAQ:PGEN)
Price: $4.27
Number of Hedge Fund Holders: 19
Precigen, Inc. (NASDAQ:PGEN) is one of the Best Rising Penny Stocks to Buy Now.
Wall Street is bullish on Precigen, Inc. (NASDAQ:PGEN) after the company posted encouraging fiscal Q4 2025 earnings on March 25. Following the release on April 2, H.C. Wainwright reiterated a Buy rating on the stock with a $10 price target. Earlier on March 26, Citizen JMP had raised the price target on the stock from $8 to $9, while reiterating a Buy rating on the shares.
Precigen, Inc. (NASDAQ:PGEN) transitioned from a clinical to commercial stage company in August 2025 with the FDA approval for PAPZIMEOS to treat adults with recurrent respiratory papillomatosis (RRP). During the fiscal fourth quarter of 2025, PAPZIMEOS generated $3.4 million in net sales and marked the first partial quarter of US commercial sales.
Management noted that the Centers for Medicare & Medicaid Services has assigned a J-code J3404 to the therapy effective April 1, 2026. As a result, the company expects fiscal Q1 2026 revenue for the drug to exceed $18 million.
Precigen, Inc. (NASDAQ:PGEN) is a biopharmaceutical company focused on developing next-generation gene and cell therapies, specifically in immuno-oncology, autoimmune disorders, and infectious diseases.
While we acknowledge the potential of PGEN 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 PGEN and that has 100x upside potential, check out our report about the cheapest AI stock.
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