In this article, we will look at the 9 Must-Buy Penny Stocks to Invest In Now.
A potential breakthrough in the US/Israel-Iran conflict lit fire under Wall Street on April 17. President Trump posted about ceasefire progress, which was confirmed by Iranian authorities, clinching a third straight week of gains for major US indexes. The Dow Jones Industrial Average surged 1.8%, or 869 points, while the S&P 500 and NASDAQ composite each rose more than 1% to notch their third consecutive record high. A Wall Street Journal analysis found that over the three-week stretch to April 17, the S&P 500 and the tech-heavy NASDAQ posted their biggest gains since 2020. The reason is that investors have begun looking past the disruptions of the nearly seven-week-old conflict, WSJ noted.
However, that optimism comes with a giant asterisk. Right after the Iranians confirmed the ceasefire progress, President Trump announced that the US naval blockade on Iranian ports, which was initiated in response to Iran shutting the Strait of Hormuz to hostile ships, would remain in force. For that reason, Charlie Ripley, senior investment strategist at Allianz Investment Management, argued that “significant risks remain on the table.” Though he noted that the shift toward a diplomatic approach has caused fears of a prolonged escalation to subside considerably.
As markets reacted to the pause in hostilities in the Middle East, small cap stocks, which include those trading below $5 and are better known as penny stocks, had the most ground to recover. When the conflict erupted in late February, the Russell 2000 shed 3.18% from its January 22 peak. It entered official correction territory by March 20, which was a reversal for a segment that strategists at Bank of America, JPMorgan, and State Street had tipped to lead markets in 2026. During the strong start to the year, the Russell 2000 had surged more than 8% through late January. The S&P 500 returned a paltry 1.4% over the same stretch.
So, has the geopolitical turbulence permanently clouded the bullish case that experts had built for smaller companies entering 2026? Columbia Threadneedle Investments’ Andrew Smith doesn’t think so. “Despite the significant policy and geopolitical uncertainty, the investment case for US small caps remains intact,” Smith wrote in a March 17 analysis.
Smith noted that bottom-up consensus data compiled by Bloomberg projected that the Russell 2000 would deliver 43% year-over-year earnings growth over the coming 12 months. This is nearly four times the 11% forecast for the large-cap S&P 500. In other words, the conflict in the Middle East merely deferred the bull case for small caps, and once it is resolved, these companies could notch massive gains.
That said, this article discusses several penny stocks investors can buy now.
Our Methodology
To determine the 9 must-buy penny stocks to invest in now, we used the Finviz stock screener to filter for stocks trading under $5. From there, we identified stocks with strong analyst sentiment and then selected those with at least 30% upside potential as of April 17. Moreover, we focused on stocks that have recently had significant news events. We also factored in hedge fund ownership as of Q4 2025 using the Inside Monkey database. Finally, we ranked the stocks based on their price upside potential, according to analysts.
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).
Must-Buy Penny Stocks to Invest In Now
9. VinFast Auto Ltd (NASDAQ:VFS)
Number of Hedge Fund Holders: 5
Upside Potential: 38.48%
Stock Price: $5.83
VinFast Auto Ltd (NASDAQ:VFS) is among the must-buy penny stocks to invest in now. The stock has gained more than 47% over the past month.
On April 13, VinFast announced that it delivered 27,609 electric vehicles in March 2026 in its domestic Vietnam market, representing an increase of 127% YoY. The company estimates its Q1 2026 deliveries in Vietnam reached 53,684 vehicles. The best-selling models for the month of March and Q1 were Limo Green and VF 3. The management said the deliveries underscored VinFast’s leadership in the domestic vehicle market.
On March 23, Cantor Fitzgerald reaffirmed its Overweight stock rating on VinFast Auto Ltd stock, citing strong delivery guidance numbers. The firm pointed to VinFast’s targets to deliver 300,000 vehicles in 2026, above the consensus projection of 212,767 vehicles. The 2026 delivery target also indicates a sharp increase from the 2025 deliveries of 197,000 vehicles.
The firm also noted VinFast’s expansion plans. In 2026, the Vietnamese electric vehicle maker aims to double its Indian dealer footprint and expand its dealer partnerships in the Philippines and Indonesia. VinFast also plans US launches, including an electric bus.
In its domestic Vietnam market, VinFast controlled around 36% market share in the passenger vehicle segment in 2025, making it the market leader. In the category of all-battery electric vehicle brands, Vietnam ranked second in the Philippines, third in Indonesia, and fourth in India.
The company is also working on expanding its presence in the two-wheeler segment in Asian markets. It also has its eyes set on the robotaxis and humanoids, with plans to expand into these markets over the next few years.
VinFast Auto Ltd is an automaker based in Vietnam. It produces a variety of electric vehicles, including electric cars, electric buses, and electric scooters. VinFast Auto has multinational operations and continues to expand into more global markets.
8. Coty Inc (NYSE:COTY)
Number of Hedge Fund Holders: 35
Upside Potential: 44.49%
Stock Price: $2.36
Coty Inc (NYSE:COTY) is among the must-buy penny stocks to invest in now. Coty Inc is undertaking a strategic review of its consumer beauty business. However, the company told Reuters on April 16 that it was not in talks to sell its prestige brands. This was in response to a media story that Coty was looking to sell its Hugo Boss and Burberry brands to a Paris-based company called Interparfums. Interparfums also came out to deny that it was involved in discussions to purchase the Coty brands, according to the Reuters report.
Under the interim CEO Markus Strobel, Coty is working on turning around its performance. This effort includes focusing on core brands like Hugo Boss and Burberry, which account for 69% of its sales. These brands are not part of the consumer beauty business under strategic review.
Coty announced the strategic review of its consumer beauty division on September 30, 2025. It said the review could lead to divestitures, spinoffs, or partnerships. Meanwhile, the company said it was committed to growing its prestige division through blockbuster launches as well as brand enhancements. The company also said that it was focused on strengthening its revenue and profit engine.
Amid the turnaround efforts, Coty recently refreshed its board. The company announced on March 18 that it had appointed five new independent directors. It said the new directors bring decades of industry expertise and leadership experience. Coty’s revenue rose 1% YoY to $1.68 billion in the December 2025 quarter.
Coty Inc, headquartered in Amsterdam, Netherlands, is a multinational beauty company. It manufactures and sells skin care, hair care, nail care, fragrances, and cosmetic products. Coty was founded in 1904.
7. UWM Holdings Corp (NYSE:UWMC)
Number of Hedge Fund Holders: 46
Upside Potential: 51.98%
Stock Price: $3.92
UWM Holdings Corp (NYSE:UWMC) is among the must-buy penny stocks to invest in now. UWM Holdings Corp may be looking to go to court over the Two Harbors acquisition issue, according to regulatory filings. In an SEC filing on April 10, Two Harbors revealed that UWM Holdings issued it with a document preservation notice. In that notice, UWM Holdings required Two Harbors to preserve all records related to their acquisition talks.
This document preservation request comes after UWM Holdings registered its disappointment over Two Harbors’ decision to reject its buyout offer in favor of a deal with CrossCountry Mortgage.
In a March 27 press release, UWM Holdings said that Two Harbors’ actions do not reflect the best interests of its shareholders. It went on to state that it was only interested in acquiring Two Harbors’ servicing book, noting that Two Harbors’ operations were not enticing. According to UWM Holdings, its operations are best-in-class, so there were no operational efficiencies to be gained from Two Harbors. UWM Holdings added that its business is growing and it will continue to be the market leader.
Also on March 27, a UWM Holdings spokesperson was quoted in a Wall Street Journal report as saying that their offer for Two Harbors was better than the rival CrossCountry offer that Two Harbors ultimately accepted. The spokesperson went on to state that “the full context will be made public in due course, allowing both shareholders and the courts to evaluate the facts accordingly.”
On March 9, UWM Holdings issued updated financial forecasts for Q1 and full-year 2026. It’s anticipating revenue in the range of $800 million to $900 million in Q1. It reported revenue of $613.4 million in Q1 2025. For the full-year 2026, it projected revenue in the range of $3.5 billion to $4.5 billion. Revenue was $3.16 billion in 2025.
Michigan-based UWM Holdings Corp is engaged in the mortgage lending business. It operates as a wholesale mortgage lender across the US, helping with things like loan origination, sale, and servicing residential mortgage lending. The company was founded in 1986 and has grown to be the largest US mortgage lender.
6. Playtika Holding Corp (NASDAQ:PLTK)
Number of Hedge Fund Holders: 22
Upside Potential: 52.92%
Stock Price: $3.62
Playtika Holding Corp (NASDAQ:PLTK) is among the must-buy penny stocks to invest in now. The stock has gained nearly 30% over the past month.
Playtika Holding Corp has formed a special committee to review its strategic alternatives as part of the efforts to maximize shareholder value. In its April 6 press release, the company said the committee would conduct an in-depth review and evaluation of strategic alternatives across its entire portfolio.
Playtika Holding said the special committee is composed exclusively of independent directors, and that Morgan Stanley is helping as a financial advisor. The committee will look into ways to unlock and boost shareholder value. Playtika says that there is no guarantee that the review will result in a strategic transaction.
Notably, the launch of Playtika’s strategic review comes at a time when the company has been developing the direct-to-consumer platform as it reduces reliance on third-party platforms. In its Q4 and 2025 report released on February 26, the company disclosed that its direct-to-consumer platform revenue rose 43.2% YoY to reach a record-breaking quarterly revenue of $250.1 million.
For the full year 2025, direct-to-consumer revenue increased 17.3%. The direct-to-consumer business now represents a substantial share of the company’s total revenue, reducing its dependence on third-party channels.
Playtika CEO Robert Antokol said the strategic shift to direct-to-consumer channels was yielding positive results. The executive also said the management remained committed to enhancing the company’s portfolio and operational efficiency.
Playtika Holding Corp is a digital entertainment company focused on the development and publication of mobile and online games. The company has built a large portfolio of game titles. Playtika is based in Israel.
5. Grab Holdings Ltd (NASDAQ:GRAB)
Number of Hedge Fund Holders: 61
Upside Potential: 57.48%
Stock Price: $4.21
Grab Holdings Ltd (NASDAQ:GRAB) is among the must-buy penny stocks to invest in now. Despite high fuel prices presenting headwinds for Grab Holdings Ltd, BofA Securities sees a favorable risk-reward in the stock. On April 17, BofA reaffirmed its Buy rating and $6.20 price target on Grab stock.
Grab, a superapp operator, plans to hold a conference call on May 4 to discuss its Q1 2026 results. BofA expects the call to focus heavily on the impact on consumer demand and costs due to higher fuel prices.
Source:Pixabay
The firm notes that Grab has increased fuel supercharge temporarily in Singapore for the period between April 7 and May 31. It says that Grab may introduce surcharges in its other markets if the higher fuel prices persist for a longer period. So far, however, BofA has noted that retail checks show that the increased supercharge in domestic has not had a notable hit on demand.
Beyond managing the spike in fuel prices, Grab is working to bolster its business and return more cash to shareholders. On March 24, the company said it plans to repurchase $400 million shares of its own stock over the next four months. It said that this accelerated repurchase plan was part of the $500 million buyback program that its board approved in February.
According to the management, the repurchase plan demonstrates confidence in Grab’s financial strength and long-term outlook. Meanwhile, Grab is in the process of expanding its business in Taiwan with the acquisition of Delivery Hero’s food delivery operation in the country. It announced on March 23 that it would acquire the business for $600 million in cash, and the transaction is expected to close in Q2 2026.
Grab Holdings Ltd operates a superapp that connects providers to consumers for a broad array of services. The platform is used for things like ride-hailing, food delivery, and digital financial services. Grab Holdings does business in multiple countries but is headquartered in Singapore.
4. Recursion Pharmaceuticals Inc (NASDAQ:RXRX)
Number of Hedge Fund Holders: 29
Upside Potential: 85.19%
Stock Price: $3.78
Recursion Pharmaceuticals Inc (NASDAQ:RXRX) is among the must-buy penny stocks to invest in now. Recursion Pharmaceuticals Inc is accelerating its drug development programs and unlocking cost-savings opportunities thanks to its AI-driven strategy. This is the message the company’s executives shared with investors during a Morgan Stanley webcast on April 15.
The executive team, led by CEO Najat Khan and CFO Ben Taylor, provided insights about the company’s AI-powered drug discovery approach. Investors heard that Recursion used a combination of experimental biology and machine learning in a mapping effort that led to the identification of 25 new targets simultaneously. According to the company, this kind of work would normally take years of research to complete using traditional means.
Recursion is also using AI to speed up molecule design. The executive offered an example at the Morgan Stanley webcast on how this has worked for them. They said that they were able to design around 330 molecules in just over 17 months to advance a compound to clinical trials recently. In normal industry practice, developing 2,500 to 5,000 compounds would take four to five years.
The investors also heard that Recursion’s AI-driven strategy is speeding up patient enrollment for clinical trials by up to 50%. This is being achieved in part due to improved site selection and recruitment.
By leveraging the power of artificial intelligence, Recursion expects to save millions in costs in its drug development programs. The management sees cost-savings opportunities in areas like animal testing, manufacturing, and controls. These areas can account for about 50% of the cost of drug discovery and development.
Recursion Pharmaceuticals Inc is an American biotech company based in Utah. The company is known for its use of automation and AI capabilities in drug discovery efforts. Recursion has a broad pipeline of potential drug products.
3. Iovance Biotherapeutics Inc (NASDAQ:IOVA)
Number of Hedge Fund Holders: 33
Upside Potential: 107.25%
Stock Price: $3.86
Iovance Biotherapeutics Inc (NASDAQ:IOVA) is among the must-buy penny stocks to invest in now. The stock has climbed more than 66% over the past six months and currently trades at around $3.86. On April 10, Jefferies reaffirmed a Buy rating and $12 price target on Iovance Biotherapeutics stock, indicating significant upside potential.
Jefferies cited the strength and potential of Iovance’s Amtagvi drug as factors for its renewed bullish stance on the stock. First, the firm pointed out that potential risk of competition for Amtagvi was already baked in Street’s estimates for Iovance.
With that, Jefferies says that the focus is more on Amtagvi commercial execution rather than competition. According to the firm, the upside for Iovance stock is based on continued Amtagvi sales growth and margin expansion. Jefferies also pointed out Amtagvi’s first-mover advantage.
Amtagvi is approved by the FDA as a treatment for adult patients with a type of skin cancer. It’s also being investigated as a treatment for patients with lung cancer. According to Jefferies’ forecast, Iovance may be able to obtain approval and launch Amtagvi in the lung cancer market in the back half of 2027.
In Q4 2025, Iovance’s revenue rose 30% sequentially to $87 million, exceeding the anticipated $82.03 million. The company said the topline growth was supported by strong Amtagvi demand. Iovance recorded US Amtagvi revenue of $65 million that quarter.
Iovance is underway with global expansion of the Amtagvi market. The product is already approved in Canada, and its approval applications are under review in the UK, Australia, and Switzerland. Iovance hopes to secure UK and Australian approvals in the first half of 2026 and Switzerland approval in the first half of 2027.
Iovance Biotherapeutics Inc is an American biopharmaceutical company based in San Carlos, California. The company is focused on developing cancer treatments. It’s applying a transformative approach that harnesses the human immune system to identify and destrory. cancer cells.
2. Nuvation Bio Inc (NYSE:NUVB)
Number of Hedge Fund Holders: 40
Upside Potential: 159.25%
Stock Price: $4.90
Nuvation Bio Inc (NYSE:NUVB) is among the must-buy penny stocks to invest in now. RBC Capital analysts see bright prospects for Nuvation Bio Inc in the glioma treatment market, which they say is underserved. On April 6, RBC Capital boosted its price target on Nuvation Bio stock to $20 from $13 and reiterated its Overweight rating.
For this action, the firm cited the potential of Nuvation Bio’s glioma drug candidate, safusidenib. First, RBC Capital pointed out that there’s an unmet need in the glioma market, particularly in the high-grade glioma segment.
According to the firm, Nuvation Bio’s safusidenib could become a first-in-class treatment for high-grade glioma. The firm also sees potential for this drug candidate in the low-grade glioma market as well. In RBC Capital’s estimates, safusidenib could generate as much as $3.4 billion in US sales for Nuvation Bio.
Nuvation Bio’s safusidenib is in Phase 3 study. On February 9, Nuvation Bio provided protocol updates regarding the Phase 3 SIGMA trial of Nuvation Bio. The updates included expanding the trial following discussions with regulatory agencies, doctors, and advocacy groups, the company said.
Nuvation Bio added that the protocol updates reflected alignment with US regulators, mentioning potential for swift approval of safusidenib for patients who badly need a treatment option.
In Q4 2025, Nuvation Bio generated revenue of $$41.9 million, surpassing the consensus estimate of $38.55 million. It wrapped up the quarter with $529.2 million in cash, cash equivalents, and marketable securities.
Nuvation Bio Inc is an American biopharmaceutical company founded in 2018. The company is focused on developing cancer medicines. It’s focused on tackling the toughest treatment cancer challenges.
1. AtaiBeckley Inc (NASDAQ:ATAI)
Number of Hedge Fund Holders: 23
Upside Potential: 262.28%
Stock Price: $4.03
AtaiBeckley Inc (NASDAQ:ATAI) is among the must-buy penny stocks to invest in now. The stock has gained more than 180% over the past 12 months. On April 17, Guggenheim lifted its price target on AtaiBeckley Inc to $16 from $11 and reiterated a Buy rating on the stock. Guggenheim’s new price target suggests significant upside potential given ATAI stock currently trades at about $4.
Guggenheim cited AtaiBeckley’s solid financial position for its renewed bullish view on the stock. According to the firm, AtaiBeckley has enough funds to last it through pivotal readouts in early 2029.
In its Q4 2025 report released on March 6, AtaiBeckley said it closed the year with $220.7 million in cash, cash equivalents, and short-term securities. This increased from $72.3 million at the end of 2024. The company’s management went on to say that they expected the cash to be enough to fund operations into 2029.
AtaiBeckley is underway with several trial programs. These include BPL-003, which enters a Phase 3 trial in Q2 2026. AtaiBeckley is developing BPL-003 as a treatment for severe depression. According to Guggenheim, the AtaiBeckley management sees BPL-003 as presenting a paradigm shift in the treatment of severe depression. The compound’s short-acting profile is seen as a major differentiator with regard to patient preference, clinical site preference, and clinic economics.
AtaiBeckley Inc is a pharmaceutical company focused on developing therapies for mental health conditions. The company was founded in 2018 and is based in Berlin, Germany. AtaiBeckley is one of the companies developing psychedelic drugs.
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