In this article, we will look at the 9 Best Rising Penny Stocks to Buy According to Wall Street Analysts.
On June 27, Jefferies’ DeSanctis appeared on a CNBC Television interview to discuss what’s next for small-cap stocks. DeSanctis recently raised the Russell 2000 price target to 3,190 and noted that he is pleasantly surprised by the strength of the small-caps this year. He expects the small-caps to continue to outperform their larger counterparts.
However, DeSanctis highlighted that the rally might lose its momentum as high beta stocks lose momentum. He noted that this is good for the sector, as if the index stays higher for longer due to higher inflation and high-beta momentum stocks, it is going to erode the index’s reputation. He noted that due to this loss in momentum, the Russell 2000 is expected to have higher-quality and cheaper stocks. DeSanctis also expects the index to get a cheaper benchmark valuation, which he indicates is a good sign. Lastly, he also sees the earnings growth accelerating among the small-cap stocks.
With that, let’s take a look at the 9 Best Rising Penny Stocks to Buy According to Wall Street Analysts.
Stocks
Our Methodology
To curate the list of 9 Best Rising Penny Stocks to Buy According to Wall Street Analysts, we used the Finviz Stock Screener, CNN, and Insider Monkey’s hedge fund database. Using the Screener, we aggregated a list of penny stocks (trading below $5) that have gained close to 10% over the past month and that the Street expects to have more than 20% upside. Next, we cross-checked the performance and the upside potential from CNN and ranked the stocks in ascending order of the upside. Please note that the data was recorded on Friday, June 26.
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. Insider Monkey’s quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).
9 Best Rising Penny Stocks to Buy According to Wall Street Analysts
9. Lexicon Pharmaceuticals, Inc. (NASDAQ:LXRX)
One Month Performance: 15.38%
Number of Hedge Fund Holders: 28
Analyst Upside Potential: 21.57%
Lexicon Pharmaceuticals, Inc. (NASDAQ:LXRX) has gained more than 15% over the past month, mainly driven by the stock’s inclusion in the Russell 3000 index and strong Q1 2026 earnings. Wall Street expects more than 21% upside over the next 12-months making Lexicon Pharmaceuticals, Inc. (NASDAQ:LXRX) one of the Best Rising Penny Stocks to Buy According to Wall Street Analysts.
During the fiscal Q1 2026 earnings, the company posted $21.1 million in revenue, surpassing the expectations of $9.78 million by a huge margin. Revenue for the quarter grew 1,523% year-over-year, driven by $20 million in development milestones from the Novo Nordisk licensing agreement for the LX9851 obesity program.
Moreover, liquidity also strengthened with a new $100 million loan facility from Hercules Capital, with an initial $55 million funded to support operations for at least the next 12 months. Management also highlighted that the progress for the SONATA-HCM Phase 3 trial remains strong and that the company plans to resubmit the ZYNQUISTA New Drug Application for type 1 diabetes by mid-2026.
Last month, on May 11, Citi raised the price target on Lexicon Pharmaceuticals, Inc. (NASDAQ:LXRX) to $3.10 from $2.30 and maintained a Buy rating on the shares.
Lexicon Pharmaceuticals, Inc. (NASDAQ:LXRX) is a biopharmaceutical company focused on developing and commercializing therapies for human disease.
8. Portillo’s Inc. (NASDAQ:PTLO)
One Month Performance: 11.27%
Number of Hedge Fund Holders: 19
Analyst Upside Potential: 26.58%
Portillo’s Inc. (NASDAQ:PTLO) has gained roughly 10% over the past month, and the Street expects more than 26% upside from the current level. The gains come despite a slight revenue miss during fiscal Q1 2026, where the company posted $182.62 million in revenue, which fell below the expectation of $183.19 million. Portillo’s Inc. (NASDAQ:PTLO) ranks among our Best Rising Penny Stocks to Buy According to Wall Street Analysts.
The stock gained in June mainly due to the company’s announcement regarding the opening of a new flagship restaurant on Michigan Avenue in downtown Chicago. This marks a significant milestone as this will be the company’s first in-line location within the city.
Management noted that the restaurant will be located at 304 North Michigan Avenue, near Millennium Park and Navy Pier. The restaurant building is around 5,500 square feet and has close to 100 seats. Management highlighted that this is a smaller, urban-friendly format designed for busy, high-foot-traffic areas and is different from Portillo’s typical larger suburban restaurants.
Moreover, a full signature menu will be available at the new site, including Italian beef sandwiches, Chicago-style hot dogs, burgers, salads, and the famous chocolate cake. The stock has gained more than 14% since the release.
Portillo’s Inc. (NASDAQ:PTLO) is a U.S. fast‑casual restaurant chain known for Chicago‑style hot dogs, Italian beef, burgers, and shakes, with locations across several states.
7. Ironwood Pharmaceuticals, Inc. (NASDAQ:IRWD)
One Month Performance: 14.72%
Number of Hedge Fund Holders: 26
Analyst Upside Potential: 38.01%
Ironwood Pharmaceuticals, Inc. (NASDAQ:IRWD) has gained more than 14.72% over the past month, and Wall Street expects more than 38% upside from the current level. The stock also ranks as one of the Best Rising Penny Stocks to Buy According to Wall Street Analysts.
Much of the gains are driven by healthy momentum from fiscal Q1 2026 earnings released last month on May 7. During the quarter, Ironwood Pharmaceuticals, Inc. (NASDAQ:IRWD) reported $106.51 million in revenue and topped the expectations of $92.1 million. The growth was driven by a 97% year-over-year increase in the US LINZESS net sales, which reached $272.5 million. Management noted that the drug sales improved due to a strategic 50% list price reduction that eliminated costly inflationary rebates and boosted net pricing.
Investors remain concerned regarding the company’s heavy reliance on LINZESS. On the bright side, the company remains on track to initiate the confirmatory Phase 3 STARS-2 clinical trial for Apraglutide in the second quarter of 2026. Moreover, management reiterated its 2026 outlook, projecting total revenue between $450 million and $475 million and adjusted EBITDA exceeding $300 million.
Ironwood Pharmaceuticals, Inc. (NASDAQ:IRWD) is a biopharmaceutical company focused on developing and commercializing transformative therapies for gastrointestinal (GI) and rare diseases.
6. Rimini Street, Inc. (NASDAQ:RMNI)
One Month Performance: 13.98%
Number of Hedge Fund Holders: 8
Analyst Upside Potential: 50.46%
Rimini Street, Inc. (NASDAQ:RMNI) is one of the Best Rising Penny Stocks to Buy According to Wall Street Analysts. Recently, on June 18, Rimini Street, Inc. (NASDAQ:RMNI) announced its partnership with One New Zealand to manage and stabilize its Oracle software systems. One New Zealand is a major telecommunications company that serves more than 2 million customers.
The partner, One New Zealand, noted choosing the company based on a previous positive experience and highlighted the need to keep core systems secure and reliable while freeing up the team to focus on AI-driven transformation and innovation projects.
In this partnership, Rimini Street will provide dedicated engineering support, guaranteed fast response times, and cost savings of up to 90% compared to standard vendor support. Management noted that a key win came when Microsoft ended support for Internet Explorer 11, which One NZ’s CRM depended on. Rimini Street’s interoperability solution allowed the CRM to run on modern browsers like Chrome and Edge seamlessly. Moreover, the company also helped One NZ migrate its billing engine to new hardware without disruption.
Rimini Street Inc. (NASDAQ:RMNI) is a software support provider, covering Oracle and SAP enterprise solutions. The company delivers managed services, enterprise software services, Agentic AI, and other solutions. It also offers an array of other solutions, including Rimini Agentic UX, Rimini Support, Rimini Manage, and Rimini Protect.
While we acknowledge the potential of RMNI 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 RMNI and that has 100x upside potential, check out our report about the cheapest AI stock.
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