In this article, we will take a look at the 9 Most Profitable Penny Stocks to Buy Right Now.

The Fed is expected to cut rates for the first time in 2025. The central bank is facing challenges on multiple fronts, from struggling for independence to an uneasy economy, with experts divided on whether a cut is even feasible right now.

READ ALSO: 10 Most Promising Technology Stocks to Invest In and 11 Low Price High Volume Stocks to Buy According to Analysts.

The labor market seems to be slowing immensely, as August’s jobs report showed that only 22,000 jobs were added. This number is far below the expectations of economists. So far in 2025, the economy has added 598,000 jobs compared with 1.4 million for the first eight months of 2024. The unemployment rate of 4.3% in August 2025 was the highest level recorded since September 2017 outside of the COVID-19 pandemic.

“It’s pretty clear that the labor market has shifted into a lower gear. But what consumers are hearing is, ‘my job is at risk, and grocery store prices are still accelerating.’ And I don’t know that a headline that the Fed cuts interest rates by (a quarter-point) is really going to be the salve that makes the problem go away,” said Tyler Schipper, associate professor in economics and data analytics at St. Thomas University in St. Paul, Minnesota.

Moreover, inflation has been rising, and since President Trump announced so-called ‘reciprocal’ tariffs, inflation has soared from 2.3% to 2.9% in August. The Fed’s inflation target stays at 2%. Conventionally, a central bank would raise rates to push inflation down, but the data from the labor market suggest otherwise, which could force Fed officials toward cutting rates. The Fed’s primary rate is currently set at 4.25% to 4.50%.

“We believe Wednesday’s expected 25 basis point cut is the start of a cutting cycle for the simple reason that the Fed is pivoting from a more restrictive policy stance to a stimulative one in response to a cooling employment picture,” said Chris Brigati, chief investment officer at SWBC.

With these trends in view, let’s take a look at the 9 Most Profitable Penny Stocks to Buy Right Now.

Our Methodology

To compile the list of the 9 most profitable penny stocks to buy right now, we used Finviz stock screener to shortlist the penny stocks with the largest market capitalization and a TTM net income of more than $500 million. We then ranked these profitable penny stocks in ascending order of the number of hedge fund holders. The data for hedge funds is taken from Insider Monkey’s Hedge Fund database, updated as of Q2 2025.

Note: The data was recorded on September 16.

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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

9 Most Profitable Penny Stocks to Buy Right Now

9. Ultrapar Participações S.A. (NYSE:UGP)

Price Per Share: $3.95

TTM Net Income: $543.97 Million

Number of Hedge Fund Holders: 9

Ultrapar Participações S.A. (NYSE:UGP) is one of the most profitable penny stocks to buy right now. On September 4, BTG Pactual upgraded Ultrapar Participações S.A. (NYSE:UGP) from Neutral to Buy, with a price target of BRL 26 ($4.91).

BTG has upgraded UGP following strong Q2 2025 performance. The company posted $6.31 billion in revenue, exceeding estimates by $388.13 million. The earnings per share were around $0.06, also surpassing the estimated $0.05 per share. The analyst at BTG remains bullish on Ultrapar as the company achieved record results at Hidrovias, which have been consolidated into the company’s financials since May 2025. Moreover, the company also saw an 11% increase in recurring adjusted EBITDA, indicating a better sales mix and enhanced efficiency in the Bulk segment.

Wall Street expects Ultrapar Participações S.A. (NYSE:UGP) to post almost $6.74 billion in revenue during Q3 2025 and an earnings per share of around $0.10. On August 14, Banco Santander analyst Rodrigo Reis de Almeida upgraded UGP to Buy, with a price target of $4. As of September 16, Ultrapar Participações S.A.’s (NYSE:UGP) average price target of $4.18, based on analysts’ estimates, implies an upside of almost 4.95% from current levels.

8. BRF S.A. (NYSE:BRFS)

Price Per Share: $4.18

TTM Net Income: $669.10 Million

Number of Hedge Fund Holders: 11

BRF S.A. (NYSE:BRFS) is one of the most profitable penny stocks to buy right now. On September 8, BRF S.A. (NYSE:BRFS) and Marfrig Global Foods S.A. completed the approval of a merger of shares.

The merger agreement initially announced on May 15, 2025, has been finalized, with the closing date set for September 22. This merger will result in BRF shareholders receiving Marfrig shares. The last trading day for BRF shares on B3 will be September 22, 2025. The merger includes a reimbursement for dissident shareholders and a distribution of interest on capital and dividends. The payments are scheduled for late September 2025.

The merger will form MBRF Global Foods Company S.A. to consolidate operations and enhance market positioning. The goal is to become a global protein industry leader, while the merger is expected to deliver approximately $141 million (BRL 805 million) in annual synergies through operational integration and cost optimization.

Since the approval of the merger, BRF S.A. (NYSE:BRFS) shares have soared over 18% as of September 16.

BRF S.A. (NYSE:BRFS) is a multinational Brazilian company that owns a diverse portfolio of products and is a producer of food. The company’s segments include Brazil, Latin America, the Middle East, North America, and other segments.