In this article, we will discuss 8 Best Up and Coming Penny Stocks to Buy Now.
Penny stocks occupy one of the most debated and polarizing segments of the financial markets. Often defined by extreme volatility, limited liquidity, and uncertain fundamentals, they have the capacity to generate both outsized gains and severe losses. This dual nature has kept them at the center of ongoing disagreement among billionaire investors, hedge fund managers, and academic researchers alike.
A key reason for their enduring appeal is the possibility of asymmetric returns. Inspired by the investing philosophy of Peter Lynch, many retail and professional investors continue to search for small, underfollowed companies before they are fully recognized by Wall Street. Lynch, who famously managed the Magellan Fund and achieved an annualized return of approximately 29% over 13 years, argued that individual investors often have an informational advantage in identifying promising small-cap opportunities earlier than large institutions.
Academic research also helps explain both the attraction and the risk profile of penny stocks. Research published in the Journal of Banking & Finance shows that even heavily shorted stocks often attract significant hedge fund ownership, with roughly 30% overlap, highlighting the extent of disagreement and speculative positioning in high-risk equities.
Ultimately, the appeal of penny stocks lies in their potential for exponential upside. They are particularly attractive in emerging and rapidly evolving sectors such as biotechnology, artificial intelligence, mining, clean energy, and fintech, where early-stage companies can grow into major industry players. Yet this potential comes with substantial risks, including weak financial stability, low liquidity, high volatility, and frequent market inefficiencies—making penny stocks a battleground between opportunity and speculation.
With this context in mind, here are some of the best up and coming penny stocks to buy now.
Stock market data. Photo by Photo by Alesia Kozik
Our Methodology
We used stock screeners to identify a list of penny stocks that have launched their IPOs in the past five years. We 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. To make the list easier to navigate, we ranked the stocks in descending order of their stock prices.
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 Up and Coming Penny Stocks to Buy Now
8. NeOnc Technologies Holdings, Inc. (NASDAQ:NTHI)
Stock Price: $4.64
On May 19, Alliance Global initiated coverage of NeOnc Technologies Holdings, Inc. (NASDAQ:NTHI) with a Buy rating and a $13 price target. The firm highlighted the company’s focus on developing intranasally delivered small-molecule therapies for aggressive brain cancers, including glioma and glioblastoma. According to the analyst, both of NeOnc’s lead candidates feature differentiated safety profiles and novel delivery mechanisms that may help overcome some of the limitations associated with traditional brain cancer treatments, positioning the company to benefit from anticipated growth in the market as new therapies emerge.
A day earlier, Maxim initiated coverage of NeOnc Technologies Holdings, Inc. with a Buy rating and a $20 price target. The second bullish initiation from a major research firm further underscores growing confidence in the company’s pipeline and proprietary drug-delivery platform, while suggesting significant potential upside from current levels as development programs advance.
NeOnc Technologies Holdings, Inc. is a clinical-stage biopharmaceutical company focused on developing targeted therapies and innovative delivery methods for central nervous system diseases, particularly brain cancer. Its proprietary NEO platform is designed to transport therapeutics across the blood-brain barrier, one of the most significant challenges in neurological drug development. The company, headquartered in Calabasas, California, was founded in 2008 and became publicly traded in 2025.
7. AirJoule Technologies Corporation (NASDAQ:AIRJ)
Stock Price: $4.49
On May 15, AirJoule Technologies Corporation (NASDAQ:AIRJ) provided an update on its first-quarter progress, highlighting several key operational milestones. Through its 50/50 joint venture with GE Vernova, the company completed the first full-scale build of its flagship AirJoule Prime system at its Newark, Delaware, facility and advanced the AirJoule Core platform to a locked design stage. Management also introduced a product roadmap featuring variants targeting both atmospheric water generation and energy-efficient dehumidification while expanding customer engagements across data centers, residential developments, military applications, and industrial markets.
Earlier, on May 8, Seaport Research analyst Jeff Campbell initiated coverage of AirJoule Technologies Corporation with a Buy rating and a $7 price target. The analyst noted that the company is commercializing a unique technology that utilizes metal-organic frameworks to extract water from the atmosphere while simultaneously providing efficient dehumidification, describing it as a scalable solution that could appeal to sustainability-focused investors as global freshwater constraints intensify.
AirJoule Technologies Corporation is an atmospheric renewable energy and water harvesting company that develops advanced sorption technologies capable of converting industrial waste heat into low-cost distilled water and highly efficient dehumidification solutions. Its technologies are designed to address growing global challenges related to water scarcity, energy efficiency, and sustainability. The company is headquartered in Ronan, Montana, was founded in 2024 and became publicly traded in 2021.
6. N-able, Inc. (NYSE:NABL)
Stock Price: $3.70
On May 8, Scotiabank raised its price target on N-able, Inc. (NYSE:NABL) to $5.75 from $5.25 while maintaining a Sector Perform rating. The firm noted that the company delivered a quarter characterized by solid annual recurring revenue growth and healthy profitability, although management’s 2026 guidance did not move materially higher, leading the analyst to maintain a balanced view on the stock.
The same day, Needham lowered its price target on N-able, Inc. to $6.50 from $8 but reiterated a Buy rating on the shares. Despite the reduced target, the continued Buy recommendation indicates confidence in the company’s long-term prospects, particularly given its recurring revenue model and strategic position within the managed services software ecosystem.
N-able, Inc. is a global software company that provides cloud-based IT management, remote monitoring and management, cybersecurity, and automation solutions designed primarily for Managed Service Providers. Its platform helps IT service providers manage, secure, and support customer technology environments more efficiently while benefiting from recurring subscription-based revenue streams. The company is headquartered in Burlington, Massachusetts, was founded in 2000, and became publicly traded in 2021.
5. Richtech Robotics Inc. (NASDAQ:RR)
Stock Price: $3.02
On May 7, Richtech Robotics Inc. (NASDAQ:RR) announced a prospective partnership with SoundHound AI (SOUN), entering into a non-binding letter of intent regarding a strategic collaboration. The proposed partnership would integrate SoundHound’s advanced agentic voice AI technology into Richtech’s robotic systems, enabling more natural and responsive human-robot interactions across hospitality and service environments. The initial phase includes a demonstration featuring Richtech’s Scorpion robot paired with SoundHound’s voice AI capabilities in an interactive beverage service application.
Earlier, on April 8, Richtech Robotics Inc. announced a distribution agreement with Netherlands-based NewConsultancy. Under the arrangement, NewConsultancy will distribute Richtech’s robotic solutions throughout the Netherlands and the broader European Union and Schengen region, providing local deployment, service, and customer support capabilities that expand the company’s international reach and commercialization opportunities.
Richtech Robotics Inc. develops, manufactures, and deploys AI-powered service and industrial robots designed to automate labor-intensive tasks across multiple industries. Its product portfolio includes robotic food runners, autonomous cleaning systems, robotic bartenders, and AI-enabled service robots aimed at improving efficiency and addressing labor shortages. The company is headquartered in Las Vegas, Nevada, was founded in 2016, and became publicly traded in 2023.
4. Caribou Biosciences, Inc. (NASDAQ:CRBU)
Stock Price: $2.36
Caribou Biosciences, Inc. (NASDAQ:CRBU) attracted renewed attention after H.C. Wainwright analyst Robert Burns increased his price target on the stock to $11 from $9 on May 11 while maintaining a Buy rating following the company’s first-quarter results. The revised target reflects growing confidence in Caribou’s development pipeline and clinical progress, highlighting the potential value investors could realize if the company continues to execute on its strategic and operational objectives.
Earlier, on March 31, Caribou Biosciences, Inc. announced that the U.S. Food and Drug Administration had granted Regenerative Medicine Advanced Therapy (RMAT) designation to CB-011 for the treatment of relapsed or refractory multiple myeloma. CB-011 is an allogeneic anti-BCMA CAR-T cell therapy currently being evaluated in the ongoing Phase 1 CaMMouflage clinical trial. The RMAT designation is intended to expedite the development and review of promising regenerative medicine therapies and represents an important regulatory milestone that could help accelerate the program’s path toward commercialization.
Caribou Biosciences, Inc. is a clinical-stage biopharmaceutical company headquartered in Berkeley, California, and was founded in 2011. The company focuses on developing next-generation, off-the-shelf CRISPR-edited cell therapies for patients with cancer and autoimmune diseases. The company completed its initial public offering in 2021.
3. Olaplex Holdings, Inc. (NASDAQ:OLPX)
Stock Price: $2.04
Olaplex Holdings, Inc. (NASDAQ:OLPX) delivered a stronger-than-expected start to the year, reporting first-quarter revenue of $99.4 million on May 11, ahead of the $94.03 million consensus estimate. Chief Executive Officer Amanda Baldwin highlighted positive sell-through trends during the quarter, driven by the successful launch of No. 3 PLUS and supported by disciplined execution of the company’s ongoing transformation strategy. Management emphasized that improved sales performance translated into solid financial results, underscoring the effectiveness of initiatives aimed at strengthening the brand and improving operational efficiency.
Investor sentiment also received support on April 23 when TD Cowen increased its price target on Olaplex Holdings, Inc. to $2.06 from $1.40 while maintaining a Hold rating. The adjustment followed news of the company’s agreement to be acquired by Henkel, a development that has attracted significant market attention. The transaction reflects the strategic value of the Olaplex brand and its intellectual property portfolio, while also highlighting the company’s position within the premium hair-care market.
Olaplex Holdings, Inc. is a prestige hair-health company headquartered in New York City and was founded in 2014. The company pioneered bond-building technology designed to repair damaged hair by reconnecting broken molecular bonds affected by chemical treatments, heat styling, and mechanical stress. The company has been headquartered in Santa Barbara, California, since completing its initial public offering in 2021.
2. Blaize Holdings, Inc. (NASDAQ:BZAI)
Stock Price: $1.76
Blaize Holdings, Inc. (NASDAQ:BZAI) remained in focus after Roth Capital analyst Scott Searle lowered his price target on the stock to $4.50 from $8.50 on May 15 while maintaining a Buy rating. Although the analyst acknowledged near-term challenges related to memory availability that affected the company’s ability to capitalize on certain opportunities, he noted that first-quarter results were in line with previously announced expectations and expressed confidence in Blaize’s longer-term growth prospects.
A day earlier, Blaize Holdings, Inc. reported first-quarter revenue of $2.7 million, matching consensus estimates. Management outlined several developments that could support future growth, including an $11 million purchase order resulting from its NeoTensr engagement, expansion into AI cloud infrastructure through a collaboration with Nokia, and progress with Winmate that could lead to broader adoption of Blaize chips in rugged computing platforms. Chief Executive Officer Dinakar Munagala also highlighted the launch of Blaize AI Services, which introduces recurring API-based revenue opportunities and further diversifies the company’s business model.
Blaize Holdings, Inc. is a semiconductor and software company headquartered in El Dorado Hills, California. Founded in 2010, the company develops full-stack Hybrid AI computing solutions and low-code/no-code software platforms designed to accelerate AI inference workloads across data centers and edge computing environments. Blaize became a publicly traded company in 2025.
1. Zevia PBC (NYSE:ZVIA)
Stock Price: $1.55
Zevia PBC (NYSE:ZVIA) came under pressure after Telsey Advisory analyst Dana Telsey reduced her price target on the stock to $3 from $5 on May 7 while maintaining a Market Perform rating. The analyst described the company’s first-quarter results as mixed, noting that revenue declined roughly 10% year over year and adjusted EBITDA came in weaker than expected. Concerns were also raised about the company’s near-term execution, with the firm suggesting that improvements in go-to-market strategy and operational performance will be necessary to support stronger growth.
The day before, Zevia PBC provided updated financial guidance that fell below market expectations. Management forecast full-year net sales of between $158 million and $166 million and projected second-quarter revenue in the range of $38 million to $40 million, compared with analyst consensus estimates of $46.33 million. While the outlook reflects a cautious near-term operating environment, it also provides investors with greater visibility into management’s expectations as the company works through current business challenges.
Zevia PBC is a beverage company headquartered in Encino, California, and was founded in 2007. The company specializes in zero-calorie beverages sweetened with natural ingredients, offering a portfolio that includes sodas, energy drinks, teas, and other better-for-you drink options. The company expanded its public market presence through its initial public offering in 2021.
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