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.
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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.
7. Gerdau S.A. (NYSE:GGB)
Price Per Share: $3.15
TTM Net Income: $611.25 Million
Number of Hedge Fund Holders: 12
Gerdau S.A. (NYSE:GGB) is one of the most profitable penny stocks to buy right now. Gerdau S.A. (NYSE:GGB) is scheduled to release its third-quarter 2025 earnings on October 30, 2025. Wall Street projects the company to post $0.57 in adjusted earnings per share and approximately $3.37 billion in revenue.
Gerdau S.A. (NYSE:GGB) achieved $3.13 billion in revenue during Q2 2025, missing the estimates by $60.68 million. The adjusted earnings came in at $0.08 per share, short of the estimates of $0.10. The company suffered as the Brazilian market faced challenges due to excessive steel imports, with an import penetration rate of 23.4%, which impacted domestic operations.
Despite facing issues in the South, the company’s North American operations achieved the highest all-time share in results, contributing 61% to EBITDA. Gerdau’s Q2 net income was around $161.22 million, up 14% from Q1 2025. The company’s major concern remains the reduction in its production pace in Brazilian operations due to ongoing CapEx projects. Gerdau expects a reduction in global CapEx disbursement from 2026, which could affect future investments in Brazil.
Out of the 12 analyst rating Gerdau S.A. (NYSE:GGB), the majority of analysts rate the stock a Buy. As of September 16, Gerdau S.A.’s (NYSE:GGB) average price target of $4, based on analysts’ estimates, implies an upside of nearly 27.33% from current levels.
Gerdau S.A. (NYSE:GGB) is a steel producer and operates along with its subsidiaries. The company has operations across South America and North America and operates through Brazil Business, North America Business, South America Business, and Special Steel Business segments.
6. Companhia Energética de Minas Gerais – CEMIG (NYSE:CIG)
Price Per Share: $2.11
TTM Net Income: $1.31 Billion
Number of Hedge Fund Holders: 12
Companhia Energética de Minas Gerais – CEMIG (NYSE:CIG) is one of the most profitable penny stocks to buy right now. On September 10, Reuters reported that Companhia Energética de Minas Gerais – CEMIG (NYSE:CIG) plans to invest in clean energy projects.
Cemig’s CEO, Reynaldo Passanezi Filho, told Reuters that the company plans to use its experience in hydropower to invest in clean energy technologies. Cemig is working on approximately a $7.4 billion (40 billion BRL) investment plan from 2025 through 2029. The goal is to focus on power distribution while gradually moving from network expansion to digitalization to enhance the consumer experience.
Cemig’s distribution business planning is already in progress, and the company is now focusing on sector innovations, especially energy storage technologies. The company will use its enormous accumulated knowledge in hydroelectric power to expand projects such as pumped storage plants and take part in power capacity auctions. The company is testing batteries connected to its distributed solar generation plants and is also pursuing a stake in non-strategic assets, including Taesa, gas distributor Gasmig, and the Belo Monte hydroelectric plant.
Since the announcement of the investment plan, CIG shares have soared by almost 2.68% as of September 16.
Companhia Energética de Minas Gerais – CEMIG (NYSE:CIG) is a Brazil-state-controlled electric utility firm that operates through its subsidiaries. The company is engaged in the generation, transmission, distribution, and sale of energy in Brazil.
5. Wipro Limited (NYSE:WIT)
Price Per Share: $2.87
TTM Net Income: $1.53 Billion
Number of Hedge Fund Holders: 19
Wipro Limited (NYSE:WIT) is one of the most profitable penny stocks to buy right now. On September 15, Wipro Limited (NYSE:WIT) announced that it is set to launch Wipro CyberShieldSM MDR in collaboration with CrowdStrike.
Wipro has expanded its partnership with CrowdStrike to launch Wipro CyberShieldSM MDR, which is an AI-powered unified managed security service (MSS). Wipro’s MSS will help in simplifying and strengthening enterprise security operations. CyberShieldSM MDR has a modern SOC that offers enhanced visibility, greater efficiency, and AI-driven automation.
“Wipro’s CyberShield platform, powered by CrowdStrike’s AI-native product suites and strengthened by our security ecosystem, will help enterprises contain threats swiftly and ensure continuity of digital operations. This integrated platform approach enables AI automated workflows, prevents lateral threat movement, and eliminates potential security gaps that fragmented solutions often miss,” said Tony Buffomante, Senior Vice President & Global Head – Cybersecurity & Risk Services, Wipro Limited.
CyberShieldSM MDR, backed by CrowdStrike’s Falcon Next-Gen SIEM, addresses major security issues such as fragmented security operations across endpoints, cloud workloads, identity, and data drive complexity that increase costs and create operational blind spots.
Wipro Limited (NYSE:WIT) is an IT consulting and business process services company. The company operates through the IT Services and IT Products segments.
4. Lloyds Banking Group plc (NYSE:LYG)
Price Per Share: $4.56
TTM Net Income: $5.49 Billion
Number of Hedge Fund Holders: 19
Lloyds Banking Group plc (NYSE:LYG) is one of the most profitable penny stocks to buy right now. On August 27, Lloyds Banking Group plc (NYSE:LYG) and Sovereign Network Group (SNG) partnered on a £100 million loan agreement to fund the retrofit of thousands of social homes across England.
Lloyds Banking Group has partnered with SNG to fund the sustainable retrofit of social homes across the South, West, and East of England, including London. This is Llyod’s largest lending commitment to date and follows a £60 million loan to Peabody announced earlier in July 2025. These two loans bring the total committed funding to £160 million, which represents 30% of its £500 million social housing funding commitment.
“Our partnership with the National Wealth Fund is an example of how we can use innovative finance models to enable housing associations to tackle the retrofit challenge. We’re proud to be working alongside SNG to provide energy-efficient and cost-effective homes for social housing residents,” said Jess Tomlinson, Global Head of Real Estate & Housing, Lloyds Banking Group.
Lloyds’ £500 million funding is partially backed by the National Wealth Fund (NWF). The NWF scheme supports the public and private sectors to provide warmer, greener homes for social housing residents as part of the U.K.’s broader net-zero goals. On the other side, SNG is actively focusing on a major development programme, aiming to build around 25,000 new homes over the decade to 2034.
As Lloyds Banking Group continues to provide loans, the company is set to dismiss 3,000 of its staff, as reported by Reuters on September 4. The figure represents 5% of the force at Lloyds Banking Group. Reuters mentioned that according to a familiar source to the matter, Lloyds expects about half of that number to lose their jobs unless their work improves. Along with other major banks, Lloyds has reduced its street presence. In January 2025, the bank stated that it would shut down 136 branches as more customers started to prefer digital banking.
Since the announcement of the loan agreement, LYG shares have soared by almost 4.73% as of September 16.
Lloyds Banking Group plc (NYSE:LYG), together with its subsidiaries, offers various banking and financial products and services in the U.K. and globally.
3. Banco Bradesco S.A. (NYSE:BBD)
Price Per Share: $3.30
TTM Net Income: $1.84 Billion
Number of Hedge Fund Holders: 23
Banco Bradesco S.A. (NYSE:BBD) is one of the most profitable penny stocks to buy right now. On September 1, Banco Bradesco S.A.’s (NYSE:BBD) indirectly controlled investment firm, Atlântica Hospitais e Participações S.A., signed an Investment Agreement with Rede D’Or São Luiz S.A. Group.
Atlântica’s agreement with Rede D’Or involves the inclusion of Hospital Glória D’Or into the Atlântica D’Or network. This inclusion will maintain a partnership structure with 50.01% stake held by Rede D’Or and 49.99% by Atlântica.
Banco Bradesco’s investment firm’s expansion aligns with its strategy to invest in the healthcare value chain. The goal is to collaborate with reputed and established hospital operators. The transaction between Atlântica Hospitais and Rede D’Or is subject to regulatory approvals and other conditions of the agreement.
Since the announcement of the agreement, BBD shares have soared by almost 9.06% as of September 16.
Banco Bradesco S.A. (NYSE:BBD), along with its subsidiaries, offers various banking products and services to individuals, corporates, and businesses in Brazil and globally.
2. Ambev S.A. (NYSE:ABEV)
Price Per Share: $2.38
TTM Net Income: $2.74 Billion
Number of Hedge Fund Holders: 23
Ambev S.A. (NYSE:ABEV) is one of the most profitable penny stocks to buy right now. Ambev S.A. (NYSE:ABEV) is set to report its third quarter 2025 earnings on October 30, 2025. Wall Street expects the company to post $0.04 in adjusted earnings per share and around $4.24 billion in revenue.
Ambev S.A. posted $3.59 billion in revenue during Q2 FY2025, below the consensus by $250.95 million and up 2.65% year-over-year. The adjusted earnings per share of $0.03 were in line with the estimates. The company pointed out that its total organic volumes plunged by 4.5% from a year ago due to industry softness. However, Ambev showed resilience with a 15% increase in net income, while EBITDA grew by high single digits with margin expansion of 110 basis points.
Wall Street expressed mixed opinion on Ambev after its Q2 results. On August 20, UBS reaffirmed a Hold rating on the stock, while lowering the price target from $2.5 to $2.2. Evercore ISI has given Ambev S.A. (NYSE:ABEV) a Buy rating, with a price target of $4. As of September 16, Ambev S.A.’s (NYSE:ABEV) average price target of $2.81, based on analysts’ estimates, implies an upside of almost 19.03% from current levels.
Ambev S.A. (NYSE:ABEV) is a Brazil-based brewer that is engaged in the production, distribution, and sale of beer, draft beer, carbonated soft drinks, and other alcoholic and non-alcoholic beverages.
1. Nokia Oyj (NYSE:NOK)
Price Per Share: $4.71
TTM Net Income: $1.12 Billion
Number of Hedge Fund Holders: 29
Nokia Oyj (NYSE:NOK) is one of the most profitable penny stocks to buy right now. On September 15, Nokia Oyj (NYSE:NOK), along with German national railway firm Deutsche Bahn, deployed the world’s first commercial 1900 MHz 5G radio network solution with a 5G Standalone (SA) core.
Nokia and Deutsche Bahn are running the 5G radio network solution with a 5G SA core on live outdoor test tracks. This commercial installation is the first of its kind and positions Deutsche Bahn to leverage a modern mobile network on a frequency band dedicated to 5G railway communications in Europe. This development will revolutionize the industry and present the basis for the Future Railway Mobile Communication System (FRMCS).
“Deutsche Bahn wants to benefit from modern 5G-based telecommunications to upgrade the railway communication infrastructure. Collaborating with technology experts like Nokia is key for DB to bring the latest innovations into our real-world operations. This deployment on test tracks builds on a successful pre-FRMCS 5G trial conducted with Nokia and aims to standardize our private mobile network as a foundation for further pilots and future rollout,” said Rainer Fachinger, Head of Telecom Platforms at DB InfraGO.
The 5G radio network installation will make the rail operations more resilient, efficient, and sustainable through greater digitalization, capacity, and service reliability. This also transitions the railway industry from the legacy Global System for Mobile Communications for Railway (GSM-R) to the 5G-based FRMCS standard network. FRMCS comes with advanced technologies such as AI and offers a competitive, capable, and future-ready industry.
Nokia Oyj (NYSE:NOK) offers mobile, fixed, and cloud network solutions. The company operates through four segments: Network Infrastructure, Mobile Networks, Cloud Network Services, and Nokia Technologies.
While we acknowledge the potential of NOK 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 NOK and that has 100x upside potential, check out our report about this cheapest AI stock.
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