In this article, we will look at the Goldman Sachs Penny Stocks: Top 12 Stock Picks.
In a June 24, 2025, podcast, Goldman Sachs’ Christian Mueller-Glissmann and Alexandra Wilson-Elizondo examined the dynamics driving markets. They also discussed the investment strategies that could work in the second half of 2025. There were many insightful takeaways, but one stood out: they noted that diversification paid off in the first half of 2025, especially away from mega-cap stocks.
A few days later, Goldman Sachs released a report that highlighted a surge in penny stock activity. A particular day stands out in the report’s analysis. It says that on June 12, penny stocks priced under $1 accounted for 47% of total U.S. equity trading volume. Overall, daily volume in this category of equities has increased threefold since 2021.
However, some market analysts caution that this heightened activity is a warning sign. Cetera Investment Management’s Gene Goldman, for instance, warns that elevated penny stock activity is a “sign of a market top when investors are buying first and asking questions later.”
Others insist that penny stocks have been vilified over the years, but this time is different. For example, a Bespoke Investment Group analysis found that penny stocks are outperforming well-established companies. Their data shows that of the 14 stocks in the Russell 3000 that surged more than 200% since the S&P 500’s April 8 low, 10 were penny stocks. In other words, big names may rule the headlines, but many of the market’s future stars begin as under-the-radar underdogs.
A close-up of a financial analyst looking intently at a pie chart, illustrating the fund’s net assets.
Our Methodology
To identify Goldman Sachs’ top 12 penny stock picks, we analyzed the investment bank’s equity holdings as of the first quarter of 2025. We focused on companies trading under $5 per share and also examined the popularity of these stocks among hedge funds. The list is presented in ascending order of Goldman’s stake in the companies.
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).
Goldman Sachs Penny Stocks: Top Stock Picks
12. VinFast Auto Ltd. (NASDAQ:VFS)
Goldman Sachs’s Q1 2025 Stake: $428,158
Share Price as of July 3: $3.64
Number of Hedge Fund Investors In Q1 2025: 8
VinFast Auto Ltd. (NASDAQ:VFS) is one of Goldman Sachs’ top penny stock picks. On June 29, VinFast began production at its second factory in Ha Tinh, Vietnam, aiming to boost the output of its mini EVs. The new plant has an annual capacity of 200,000 units and complements its main Haiphong factory, which aims to reach 950,000 units by 2026.
Despite ambitious plans to expand globally with new factories in the U.S., India, and Indonesia, VinFast has faced challenges such as lower demand and intense competition. Its U.S. plant has been delayed until 2028, while the India facility is set to begin operations next month.
VinFast aims to deliver 200,000 vehicles in 2025 and sold 56,000 units in the first five months of this year. In Q1, it reported a net loss of $712.4 million—an improvement from the prior quarter—but still 20% higher than last year. Revenue surged 150% year-over-year to $656.5 million.
VinFast Auto Ltd. (NASDAQ:VFS), a subsidiary of Vingroup, designs and manufactures electric vehicles, e-scooters, and e-buses across Vietnam, Canada, and the U.S. It operates through three main segments: Cars, E-scooters, and E-buses, offering a wide range of EVs including SUVs, compact EVs, pickup trucks, MPVs, e-bikes, and related battery services. The company is headquartered in Hai Phong City, Vietnam.
11. Altimmune, Inc. (NASDAQ:ALT)
Goldman Sachs’s Q1 2025 Stake: $1,952,000
Share Price as of July 3: $4.90
Number of Hedge Fund Investors In Q1 2025: 13
Altimmune, Inc. (NASDAQ:ALT) is one of Goldman Sachs’ top penny stock picks. On June 26, the company reported positive topline results from its Phase 2b IMPACT trial evaluating Pemvidutide, a treatment candidate for metabolic dysfunction-associated steatohepatitis (MASH). The results mark a key milestone in advancing potential therapies for this chronic liver condition.
According to the company, the trial’s findings indicate that Pemvidutide is the first product candidate to demonstrate significant MASH effects and weight loss within 24 weeks. The trial achieved its primary endpoint, showing “statistically significant MASH resolution without worsening of fibrosis.” This was observed in up to 59.1% of participants in an intent-to-treat (ITT) analysis. In the ITT analysis, MASH resolution without worsening of fibrosis was achieved in 59.1% of participants treated with 1.2 mg of Pemvidutide and in 52.1% with 1.8 mg, compared to 19.1% in the placebo group (p < 0.0001 for both doses).
The trial met several secondary endpoints, including reductions in liver fat content and liver enzyme levels. As such, the company concluded that Pemvidutide has additional therapeutic benefits for MASH patients.
These positive results are expected to pave the way for Altimmune to engage with the FDA in an End-of-Phase 2 meeting. The objective will be to define the path forward, including the design and scope of a Phase 3 trial. A final readout from the 48-week treatment period is anticipated in the fourth quarter of 2025.
Altimmune, Inc. (NASDAQ:ALT) is a clinical-stage biopharmaceutical company. It develops peptide-based treatments for obesity, liver diseases, and metabolic disorders. Its lead product is Pemvidutide, a dual GLP-1/glucagon receptor agonist being tested for obesity, metabolic-associated steatohepatitis (MASH), and alcohol use disorder.
10. Medical Properties Trust, Inc. (NYSE:MPW)
Goldman Sachs’s Q1 2025 Stake: $3,821,000
Share Price as of July 3: $4.46
Number of Hedge Fund Investors In Q1 2025: 19
Medical Properties Trust, Inc. (NYSE:MPW) is one of Goldman Sachs’ top penny stock picks. On June 30, RBC Capital reiterated its “Sector Perform” rating on the company’s stock. RBC lowered its price target for the stock from $5.00 to $4.50 and appended a “Speculative Risk” qualifier to the rating.
According to RBC, the adjustment is explained by two factors: the recent joint venture debt refinancing and higher operating expense leakage due to vacant assets. That said, RBC analysts anticipate that Medical Properties Trust’s stock will likely remain volatile in the coming period due to several ongoing uncertainties. These include several tenant situations (referring to challenges related to tenants like Steward Health Care); the company’s ability to monetize non-revenue-generating assets; and elevated leverage metrics.
Despite the lowered price target, RBC emphasized that its stance on Medical Properties Trust’s stock performance relative to the overall sector remains neutral. This explains the “Sector Perform” rating.
Medical Properties Trust, Inc. (NYSE:MPW) is a real estate investment trust (REIT). It owns and leases hospital facilities, including acute care, rehabilitation, and behavioral health hospitals. The company operates across nine countries, including the U.S., U.K., Germany, and Spain.
9. Gerdau S.A. (NYSE:GGB)
Goldman Sachs’s Q1 2025 Stake: $5,704,785
Share Price as of July 3: $3.05
Number of Hedge Fund Investors In Q1 2025: 17
Gerdau S.A. (NYSE:GGB) is one of Goldman Sachs’ top penny stock picks. On June 9, UBS analysts upgraded Gerdau’s stock rating from “Neutral” to “Buy.” The decision included increasing the price target from R$17.00 to R$22.00 for shares traded on the Brazilian stock exchange and from $2.90 to $3.80 for the NYSE-listed American Depositary Receipts (ADRs).
UBS cited the U.S. decision to increase import tariffs on steel to 50% as a primary reason for the upgrade, describing it as a “significant development” for Gerdau. The analysts noted that “the U.S. raising import tariffs for steel to 50% [is] a game changer for the thesis,” emphasizing that the tariffs create tighter supply and demand dynamics in the U.S. steel market.
UBS highlighted Gerdau’s operations in North America, which contribute over 49% of the company’s core earnings as measured by adjusted EBITDA, based on Q1 2025 results. According to UBS, this significant U.S. exposure positions Gerdau to benefit from Trump’s protectionist tariff policies, as the company is less affected by import restrictions compared to its foreign competitors.
Gerdau S.A. (NYSE:GGB) is a Brazilian steel producer. It manufactures semi-finished and long-rolled steel products, including rebars, wire rods, merchant bars, and special steels used in the automotive, construction, agriculture, and energy sectors.
8. NIO Inc. (NYSE:NIO)
Goldman Sachs’s Q1 2025 Stake: $6,842,000
Share Price as of July 3: $3.48
Number of Hedge Fund Investors In Q1 2025: 21
NIO Inc. (NYSE:NIO) is one of Goldman Sachs’ top penny stock picks. On July 1, 2025, NIO Inc. shared its latest car delivery numbers. In June, it sold 24,925 vehicles—17.5% more than the same time last year. These included cars from its main NIO brand, the family-friendly ONVO brand, and its smaller high-end brand FIREFLY.
For the second quarter of 2025, NIO delivered 72,056 cars in total, up 25.6% year-over-year. By the end of June, the company had delivered 785,714 vehicles overall.
NIO also received top rankings in the 2025 J.D. Power studies. Its ET5 and ET5T models were rated highest among mid-size electric cars, and the EC6 led the premium category. NIO has now maintained top-quality rankings in its class for seven consecutive years.
NIO Inc. (NYSE:NIO) is a Chinese electric vehicle (EV) manufacturer. It designs, manufactures, and sells premium smart EVs. NIO also offers battery-swapping services, as well as home and mobile charging solutions and autonomous driving technologies. Its brands include NIO, ONVO, and Firefly, targeting different market segments.
7. BlackBerry Limited (NYSE:BB)
Goldman Sachs’s Q1 2025 Stake: $7,372,746
Share Price as of July 3: $4.23
Number of Hedge Fund Investors In Q1 2025: 20
BlackBerry Limited (NYSE:BB) is one of Goldman Sachs’ top penny stock picks. On June 15, Raymond James kept a “Market Perform” rating on BlackBerry after better-than-expected quarterly results.
The company posted revenue of $121.7 million—down 1% from last year but higher than the $112.3 million estimate. Adjusted EBITDA came in strong at $16.4 million (vs. $4.8 million expected), helped by $4.5 million in government grants. BlackBerry remains financially stable, with a current ratio of 1.72 and a debt-to-equity ratio of 0.33.
Despite first-quarter outperformance, the company raised its full-year revenue outlook by just $4 million and Adjusted EBITDA guidance by only $3 million, signaling a cautious tone. Its QNX auto software division added about $5 million above expectations but kept full-year guidance unchanged due to uncertainty, as all four major automakers paused their projections.
BlackBerry’s Annual Recurring Revenue (ARR) stayed flat at $209 million, down 1% year-over-year, and its IP licensing brings in $24 million per year. Raymond James noted that only 50% of Adjusted EBITDA is expected to convert into operating cash flow this year, mainly due to restructuring costs and taxes in Europe.
BlackBerry Limited (NYSE:BB) is a Canadian enterprise software company. It provides cybersecurity, secure communications, and embedded systems software to governments, automakers, and industrial clients. Its key products include BlackBerry QNX (used in over 255 million vehicles), BlackBerry UEM for endpoint management, BlackBerry AtHoc for crisis communications, and BlackBerry IVY, a vehicle data platform developed with AWS.
6. FuboTV Inc. (NYSE:FUBO)
Goldman Sachs’s Q1 2025 Stake: $7,504,000
Share Price as of July 3: $3.65
Number of Hedge Fund Investors In Q1 2025: 17
Fubotv Inc. (NYSE:FUBO) is one of Goldman Sachs’ top penny stock picks. On June 26, the company announced a multi-year agreement to distribute seven Weigel networks on its platform. The networks added include seven national entertainment networks: MeTV Toons, MeTV, MeTV+, H&I (Heroes & Icons), Story Television, MOVIES!, and Catchy Comedy. The agreement also includes WCIU, The U, which is Chicago’s local independent entertainment station.
The company said that subscribers to its Pro and Elite channel plans can access the seven national Weigel networks. At the same time, Chicago DMA subscribers also receive WCIU, The U. The company’s base Pro plan includes over 100 channels covering sports, news, and entertainment, accessible on streaming devices, Smart TVs, mobile phones, tablets, and computers.
Commenting on the developments, Todd Mathers, executive vice president of content strategy and acquisition at Fubotv, stated, “In partnership with Weigel Broadcasting, we are thrilled to bring Fubotv subscribers even more entertainment programming, including some of the most-loved TV shows and movies of all time.”
On his part, Jim Hall, vice president of business development at Weigel Broadcasting Co., said, “Weigel is excited to add our entertainment networks and Chicago’s WCIU, The U, to the Fubotv platform. Giving viewers access to our programming, alongside the popular sports and general entertainment content that Fubotv is well known for, is a win-win for their subscribers, our viewers, and both our companies.”
The partnership comes at a time when FuboTV is working on a content diversification strategy. The strategy entails diversifying its content beyond sports, complementing features like 4K streaming, MultiView, and personalized game alerts.
FuboTV Inc. (NYSE:FUBO) is an American streaming service provider. It operates a sports-first live TV platform that delivers live sports, news, and entertainment through Smart TVs, mobile devices, and computers. Its revenue comes mainly from subscriptions (over 90%) and advertising, with services available in North America and select international markets.
5. Clover Health Investments, Corp. (NASDAQ:CLOV)
Goldman Sachs’s Q1 2025 Stake: $7,951,660
Share Price as of July 3: $2.59
Number of Hedge Fund Investors In Q1 2025: 33
Clover Health Investments, Corp. (NASDAQ:CLOV) is one of Goldman Sachs’ top penny stock picks. On June 30, Clover Health announced its inclusion in the Russell 3000 Index. The move was effected after the U.S. market opened on the same day. The company’s inclusion was part of the 2025 Russell Indexes annual reconstitution.
Membership in the Russell 3000 Index automatically grants Clover Health inclusion in either the large-cap Russell 1000 Index or the small-cap Russell 2000 Index. The direction this goes depends on the company’s specific market capitalization ranking. It will also be included in the relevant growth and value style indexes.
CEO Andrew Toy stated the milestone demonstrates the company’s continued commitment to building relationships with investors. Being added to the indexes, he said, enhances their visibility as they work toward their goals and long-term plans.
Clover Health Investments, Corp. (NASDAQ:CLOV) is a U.S.-based healthcare technology company. It offers Medicare Advantage insurance plans and operates Clover Assistant, a software platform that helps physicians manage chronic diseases and improve patient outcomes.
4. Eos Energy Enterprises, Inc. (NASDAQ:EOSE)
Goldman Sachs’s Q1 2025 Stake: $14,743,939
Share Price as of July 3: $4.90
Number of Hedge Fund Investors In Q1 2025: 21
Eos Energy Enterprises, Inc. (NASDAQ:EOSE) is one of Goldman Sachs’ top penny stock picks. The company revealed on July 1 that it received a second loan advance of $22.7 million from the U.S. Department of Energy’s (DOE) Loan Programs Office (LPO). This advance completes the first tranche of $90.9 million, following an initial $68.3 million received in December 2024.
The total DOE loan guarantee, finalized in November 2024, amounts to $303.5 million ($277.5 million principal and $26 million capitalized interest) to support Project AMAZE (American Made Zinc Energy). The loan covers 80% of eligible costs for capital expenditures and project-related operating expenses for manufacturing expansion in Turtle Creek, Pennsylvania. The loan facility, maturing on June 15, 2034, allows up to four draws, each tied to production milestones.
Eos stated that the funds will be used to support the completion of its first state-of-the-art manufacturing line and to procure a second line. The expansion aims to scale production to meet the growing demand for long-duration energy storage, particularly for AI-driven load growth, data centers, and safety-conscious storage markets.
Eos Energy Enterprises, Inc. (NASDAQ:EOSE) is a U.S.-based energy storage company. It designs, manufactures, and sells zinc-based battery energy storage systems for utility-scale, microgrid, and commercial applications. Its flagship product is the Znyth™ battery.
3. JetBlue Airways Corporation (NASDAQ:JBLU)
Goldman Sachs’s Q1 2025 Stake: $23,085,139
Share Price as of July 3: $4.47
Number of Hedge Fund Investors In Q1 2025: 27
JetBlue Airways Corporation (NASDAQ:JBLU) is one of Goldman Sachs’ top penny stock picks. On June 30, the U.S. Supreme Court declined to hear American Airlines Group Inc.’s (NASDAQ:AAL) appeal of a lower court ruling that found its Northeast Alliance with JetBlue violated antitrust law. The decision effectively upheld the decision to block the partnership.
Announced in July 2020 and approved by the U.S. Department of Transportation in January 2021, the Northeast Alliance enabled American Airlines and JetBlue to coordinate flight schedules, share routes, and pool revenue. The partnership would also allow the two airlines to offer reciprocal loyalty program benefits for flights to and from New York City, Newark Liberty International Airport, and Boston’s Logan International Airport. The stated goal of the alliance was to enhance competition with major carriers, such as United Airlines Holdings Inc. (NASDAQ:UAL) and Delta Air Lines Inc. (NYSE:DAL).
In September 2021, the U.S. Department of Justice (DOJ) filed a civil antitrust lawsuit, alleging that the alliance had violated antitrust laws. The DOJ argued that the partnership eliminated incentives for American Airlines to lower prices to compete with JetBlue, a historically disruptive rival known for lower fares. The DOJ won the case in May 2023, and the appeal was dismissed in November 2024.
JetBlue exited the alliance in 2023, despite American Airlines’ appeals, as it was eyeing a $3.8 billion acquisition of Spirit Airlines, which was also blocked by the DOJ in 2024. JetBlue did not join American Airlines in the Supreme Court appeal.
JetBlue Airways Corporation (NASDAQ:JBLU) is an American low-cost airline. It provides non-stop passenger flights across the United States, the Caribbean, Latin America, and transatlantic routes. The carrier has major hubs in New York, Boston, Fort Lauderdale, Orlando, and Los Angeles.
2. New Gold Inc. (NYSE:NGD)
Goldman Sachs’s Q1 2025 Stake: $23,923,241
Share Price as of July 3: $4.90
Number of Hedge Fund Investors In Q1 2025: 28
New Gold Inc. (NYSE:NGD) is one of Goldman Sachs’ top penny stock picks. On June 11, the company announced the intention to redeem the remaining $111 million aggregate principal amount of its 7.50% 2027 Notes.
The intended redemption date is July 15, 2025, as stipulated in the terms of the indenture governing the notes. The redemption will be funded using the remaining proceeds from the company’s March 2025 senior notes offering of $400 million in 6.875% Senior Notes due 2032, combined with cash on hand.
On March 4, 2025, New Gold launched a cash tender offer to purchase all outstanding 7.50% Senior Notes due 2027. The offer would be funded by the $400 million senior notes offering. The tender offer, which expired on March 13, 2025, with settlement completed on March 18, 2025. The remaining notes, as previously noted, will be redeemed on July 15, 2025, at 100% of the principal amount, plus accrued and unpaid interest. In other words, the redemption of the remaining $111 million completes this debt management strategy.
New Gold Inc. (NYSE:NGD) is a Canadian intermediate gold mining company. It owns and operates two core assets: the Rainy River gold-silver mine in Ontario and the New Afton copper-gold mine in British Columbia. The company explores gold, silver, and copper, serving global commodity markets through direct sales and long-term contracts.
1. Lloyds Banking Group plc (NYSE:LYG)
Goldman Sachs’s Q1 2025 Stake: $92,269,000
Share Price as of July 3: $4.03
Number of Hedge Fund Investors In Q1 2025: 13
Lloyds Banking Group plc (NYSE:LYG) is one of Goldman Sachs’ top penny stock picks. On June 20, Deutsche Bank increased its target price for Lloyds from 88 GBp to 90 GBp. The firm also continues to recommend a “Buy” rating for Lloyds shares. This decision is based on an updated outlook for the U.K. banking sector, with a renewed focus on future growth potential.
Deutsche Bank said it is shifting its investment focus within the U.K. banking sector. The emphasis is moving from “rising returns to future growth potential.” In that regard, the investment bank highlighted Lloyds as a preferred stock, particularly among “domestically focused” U.K. banks. This preference is driven by expectations of “steady deposit inflows and a supportive economic backdrop.”
Deutsche Bank anticipates that the return on equity for the banking sector will expand into the “high teens” by 2027. Furthermore, capital generation is expected to double over the same period. While acknowledging that further gains in profitability may be limited beyond 2027, the firm suggests that banks should focus on growth, both organically and through acquisitions. The analysis notes that the U.K. market is moving past a deleveraging phase, with loan and deposit growth consistently surpassing expectations.
Lloyds Banking Group plc (NYSE:LYG) is a U.K.-based financial services company. It offers retail banking, commercial banking, insurance, pensions, and investment services through brands like Lloyds Bank, Halifax, Bank of Scotland, and Scottish Widows. Its retail segment provides current accounts, savings, mortgages, credit cards, and motor finance to individuals.
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