In this article, we will look at the 8 Most Oversold Penny Stocks to Buy Right Now.
After a long stretch when leadership was concentrated in a narrow set of winners, investors have begun paying more attention to battered smaller names where sentiment may have fallen faster than the underlying fundamentals.
That broader backdrop comes through in the institutional commentary. A Franklin Templeton article entitled ‘What’s next for US small-caps in 2026?’ says “small-cap quality and value are poised for meaningful rebounds in 2026” after gains were driven by “lower quality, speculative stocks,” adding that stronger businesses at “attractive valuations” could regain investor attention. Invesco makes a similar point, saying improving activity could “unlock value across a wider range of areas,” including “smaller-cap stocks,” which it sees as “attractively priced.” J.P. Morgan Asset Management also argues that the “value factor remains attractive globally.” Put simply, the message is that investors may no longer need to stay confined to the most crowded parts of the market to find upside.
When leadership broadens and cheapness begins to matter, oversold penny stocks can start to look more interesting. With that in mind, we will now look at the 8 Most Oversold Penny Stocks to Buy Right Now.
Our Methodology
We used the Finviz screener to identify stocks that are trading below $5 per share and have an RSI reading of less than 30. We then 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. Gossamer Bio, Inc. (NASDAQ:GOSS)
On March 23, 2026, Cantor Fitzgerald downgraded Gossamer Bio, Inc. (NASDAQ:GOSS) to Neutral from Overweight without a price target. Cantor Fitzgerald cited the negative Phase 3 PROSERA readout and an unclear regulatory path for seralutinib in pulmonary arterial hypertension, noting it is difficult to have conviction on a path to commercialization.
On March 17, 2026, Gossamer Bio reported Q4 EPS of (21c), compared to the (20c) consensus estimate, with revenue of $13.799M versus $7.52M consensus. CEO Faheem Hasnain said the company is focused on reviewing the PROSERA dataset, engaging with the FDA, and evaluating strategic options, noting the trial “narrowly missed” its primary endpoint but that the data support seralutinib as an active drug in PAH, particularly in more advanced patients.
Earlier in March, H.C. Wainwright lowered its price target on Gossamer Bio to $5 from $10 and maintained a Buy rating, reducing its probability of success for seralutinib in pulmonary arterial hypertension to 50% from 70%.
Gossamer Bio, Inc. (NASDAQ:GOSS) develops seralutinib for the treatment of pulmonary hypertension and pulmonary arterial hypertension.
7. New Fortress Energy Inc. (NASDAQ:NFE)
On April 2, 2026, New Fortress Energy Inc. (NASDAQ:NFE) said it has received support from stakeholders representing over 95% of its approximately $5.8B aggregate indebtedness for its previously announced Restructuring Support Agreement tied to a UK Restructuring Plan. The company said support includes approximately 93% of 2026 Legacy Notes holders, 87% of 2029 Legacy Notes holders, 98% of 2029 New Notes holders, 100% of Term Loan A lenders, 88% of Term Loan B lenders, and 100% of Revolving Credit Facility lenders. New Fortress Energy also extended the deadline for creditors to accede to the RSA and qualify for an early consent fee to April 8, 2026, and said it expects to launch the UK restructuring process in April with completion targeted by the third quarter of 2026.
On March 31, 2026, New Fortress Energy Inc. (NASDAQ:NFE) announced its Brazil platform entered into a long-term lease and capacity agreement for its Terminal de Gas Sul LNG import terminal in Santa Catarina, with the agreement expected to begin in August 2026. The company said the commercialization of the terminal is expected to generate $50M in annual EBITDA by 2027.
New Fortress Energy Inc. (NASDAQ:NFE) provides gas-to-power energy infrastructure and development services globally.
6. Service Properties Trust (NASDAQ:SVC)
On April 2, 2026, B. Riley has upgraded Service Properties Trust (NASDAQ:SVC) to Buy from Neutral with a price target of $2, down from $2.50 previously. B. Riley said that the company’s operational outlook and valuation appear more attractive, noting $471.5M in net proceeds from a follow-on offering should help address near-term unsecured recourse debt maturities. The firm has added that Service Properties Trust (NASDAQ:SVC) is positioned to begin deleveraging through retained earnings and sees an attractive entry point at the current share price level of Service Properties Trust (NASDAQ:SVC).
On March 30, 2026, Service Properties Trust (NASDAQ:SVC) announced that it had commenced a $500M underwritten public offering of its common shares and said proceeds will be used to redeem portions of its 4.95% senior notes due 2027 and/or its 5.50% senior notes due 2027. Yorkville Securities is acting as lead bookrunner, and Jones as bookrunning manager.
Service Properties Trust (NASDAQ:SVC) is a real estate investment trust focused on hotels and service-oriented retail net lease properties.
While we acknowledge the potential of SVC 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 SVC and that has 100x upside potential, check out our report about the cheapest AI stock.
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