16 Best Penny Stocks To Buy Now

In this article, we will look at the 16 best penny stocks to buy now. If you want to explore similar stocks, you can also take a look at 5 Best Penny Stocks To Buy Now.

Penny stocks offer investors a high degree of risk and potential for reward. For the investor willing to take on a higher degree of risk, penny stocks may offer the opportunity to generate significant returns. Penny stocks are typically defined as stocks that trade for less than $5 per share. While there are a number of risks associated with investing in penny stocks, there are also a number of potential benefits.

Penny stocks tend to be much less liquid than larger, more established stocks. This can make it difficult to sell your shares when you want to exit your position. Penny stocks also tend to be much more volatile than larger stocks. This means that they can experience much larger swings in price, both up and down. Despite the risks, such as having less liquidity, there are a number of reasons why investors may choose to invest in penny stocks. Penny stocks offer investors the opportunity to gain exposure to a company at a very early stage. This can provide the potential for significant returns if the company turns out to be a success.

Penny stocks also tend to be much cheaper than larger stocks, and if value can be found in the universe of penny stocks, investors can potentially make several times their initial investment. Investing in penny stocks comes with high risk, so investors should always evaluate their risk tolerance and practice due diligence before jumping into this volatile asset class.

The true power of retail investing and trading penny stocks came to the spotlight back when a group of retail investors racked up shares of brick-and-mortar companies such as AMC Entertainment Holdings, Inc. (NYSE:AMC), GameStop Corp. (NYSE:GME), and Bed Bath & Beyond Inc. (NASDAQ:BBBY) and pocketed huge profits while inflicting major losses on elite hedge funds. However, in this article, we will not talk about meme stocks but rather discuss some of the best penny stocks to buy now which have the potential for upside based on business fundamentals and growth catalysts.

Our Methodology

To determine the best penny stocks to buy now, we screened for profitable companies that were trading below or around $5, as of October 21. We narrowed down our selection to companies with strong product pipelines, growth catalysts, and positive market sentiment. Along with each stock, we have included the hedge fund sentiment, analyst ratings, and salient features that make it a viable investment option. These stocks are ranked according to their popularity among top hedge funds.

Best Penny Stocks To Buy Now

16. Fusion Fuel Green PLC (NASDAQ:HTOO)

Share Price as of October 21: $3.80

Number of Hedge Fund Holders: 4

Fusion Fuel Green PLC (NASDAQ:HTOO) is a leading provider of innovative green fuel solutions. The company's products are based on cutting-edge fuel cell technology that converts renewable energy sources into clean and sustainable energy. The company's products are already being used by major corporations and government agencies, and its products have the potential to revolutionize the way we power our world. The stock is one of the penny stocks to buy now and is trading cheaply relative to earnings, at a PE multiple of 2x, as of October 21.

This September, RBC Capital analyst Erwan Kerouredan started coverage of Fusion Fuel Green PLC (NASDAQ:HTOO) with a Sector Perform rating and a $7 price target. The analyst likes the stock because it is a pure-play green hydrogen developer and sees it benefiting from surging global demand for green hydrogen.

At the end of Q2 2022, 4 hedge funds were bullish on Fusion Fuel Green PLC (NASDAQ:HTOO) and held stakes worth $15.45 million in the company. Of those, MAK Capital One was the top shareholder with a stake of $13.5 million in the company.

15. Taseko Mines Limited (NYSE:TGB)

Share Price as of October 21: $1.12

Number of Hedge Fund Holders: 4

Taseko Mines Limited (NYSE:TGB) is a base metals mining company with a focus on copper, gold, and silver. The company's flagship asset is the Gibraltar Mine, which is one of Canada's largest copper mines. Taseko also owns the Aley and Harmony Mines in British Columbia. Taseko Mines Limited (NYSE:TGB) is a strong company with a diversified portfolio of assets. The company is well-managed and has a strong balance sheet and is one of the best penny stocks to buy now. Taseko Mines Limited (NYSE:TGB) has pulled back in 2022 and is trading at bargain levels. The stock has a trailing twelve-month PE ratio of 12.67 and is trading at $1.12 a share.

This October, Scotiabank analyst Orest Wowodaw raised his price target on Taseko Mines Limited (NYSE:TGB) to C$2 from C$1.75 and reiterated a Sector Perform rating on the shares. On October 13, National Bank analyst Shane Nagle raised his price target on Taseko Mines to C$2 from C$1.75 and maintained a Sector Perform rating on the shares.

At the close of Q2 2022, Taseko Mines Limited (NYSE:TGB)  was spotted on 4 hedge fund portfolios that held stakes worth $8.9 million in the company. As of June 30, Renaissance Technologies is the leading investor in Taseko Mines Limited (NYSE:TGB)  and has stakes worth $7.75 million in the company.

Here is what Diamond Hill Capital Management had to say about Taseko Mines Limited (NYSE:TGB) in its second-quarter 2022 investor letter:

14. Aegon N.V. (NYSE:AEG)

Share Price as of October 21: $4.15

Number of Hedge Fund Holders: 7

Aegon N.V. (NYSE:AEG) is a global provider of life insurance, pensions, and asset management services. The company has a strong presence in Europe, the United States, and Asia. Aegon has a diversified product portfolio and is well-positioned to benefit from the global growth in the life insurance market. The company's shares are attractively valued and offer good upside potential. As of October 21, the stock is trading at a PE multiple of 17x, a $4.15 a share, and is offering a forward dividend yield of roughly 5%. Aegon N.V. (NYSE:AEG) is one of the best penny stocks to invest in now.

This September, Societe Generale analyst Nick Holmes upgraded Aegon N.V. (NYSE:AEG) to Buy from Hold and reiterated his price target of EUR 5.25 on the shares. On October 20, Credit Suisse analyst Iain Pearce revised his price target on Aegon N.V. (NYSE:AEG) to EUR 5.70 from EUR 5.90 and maintained an Outperform rating on the shares.

At the end of Q2 2022, 7 hedge funds were bullish on Aegon N.V. (NYSE:AEG) and held stakes worth $16.9 million in the company. Of those, Arrowstreet Capital was the largest shareholder in the company and held stakes worth $8.88 million.

13. Xos, Inc. (NASDAQ:XOS)

Share Price as of October 21: $0.90

Number of Hedge Fund Holders: 9

Xos, Inc. (NASDAQ:XOS) sells battery-electric commercial vehicles. The company also facilities the transition of fleets to electric vehicles, including charging infrastructure, vehicle maintenance and financing.

Xos, Inc. (NASDAQ:XOS) is trading at a PE multiple of 11x and has a 3-month average trading volume of 377,0000. The company has been creating a lot of activity on Wall Street and is one of the best penny stocks to invest in. This October, Northland analyst Donovan Schafer maintained an Outperform rating and his $3 price target on Xos, Inc. (NASDAQ:XOS).

At the close of Q2 2022, 9 hedge funds disclosed ownership of stakes in Xos, Inc. (NASDAQ:XOS). These funds held collective stakes of $1.4 million in the company. As of June 30, Alyeska Investment Group is the largest investor in Xos, Inc. (NASDAQ:XOS) and has stakes worth $0.53 million in the company.

12. Lloyds Banking Group PLC (NYSE:LYG)

Share Price as of October 21: $1.88

Number of Hedge Fund Holders: 9

Lloyds Banking Group PLC (NYSE:LYG) is a leading financial institution in the United Kingdom that has a long history of profitability and stability. The bank has a strong balance sheet and is well-positioned to weather any economic storms. The company's share price has been on a tear lately and is presenting investors an opportunity to buy into weakness. As of October 21, the stock is trading at a PE multiple of 7x and is awarding shareholders with a forward dividend yield of 5.58%. Lloyds Banking Group PLC (NYSE:LYG) is ranked high among the best penny stocks to buy now.

On October 20, Barclays analyst Aman Rakkar revised his price target on Lloyds Banking Group PLC (NYSE:LYG) to 50 GPB from 55 GBP and maintained an Equal Weight rating on the shares.

At the close of Q2 2022, Lloyds Banking Group PLC (NYSE:LYG) was a part of 9 hedge fund portfolios. These funds held collective stakes of $31.6 million in the company, up from $28 million in the previous quarter with 8 positions. The hedge fund sentiment for the stock is positive. As of June 30, Arrowstreet Capital is the top investor in Lloyds Banking Group PLC (NYSE:LYG) and has stakes worth $19.8 million in the company.

11. Sandstorm Gold Ltd. (NYSE:SAND)

Share Price as of October 21: $4.97

Number of Hedge Fund Holders: 12

Sandstorm Gold Ltd. (NYSE:SAND) is a gold streaming and royalty company with an impressive portfolio of over 250 assets. The company is well-run and has a proven track record for efficiently making profits for shareholders. The company has an ROE of 10% and a trailing twelve-month operating margin of 38.19%. The stock has a trailing twelve-month PE ratio of 14.78 and is trading at $4.97 a share, as of October 21. Sandstorm Gold Ltd. (NYSE:SAND) is ranked high among the best penny stocks to buy now.

On October 19, Stifel analyst Ingrid Rico revised her price target on Sandstorm Gold Ltd. (NYSE:SAND) to C$13.25 from C$13.50 and reiterated a Buy rating on the shares.

At the end of Q2 2022, 12 hedge funds were eager on Sandstorm Gold Ltd. (NYSE:SAND) and held stakes worth $111.35 million in the company. Of those, Horizon Asset Management was the largest investor in the company with a stake of $38.2 million.

10. Companhia Energetica Minas Gerais (NYSE:CIG)

Share Price as of October 21: $2.20

Number of Hedge Fund Holders: 13

Companhia Energetica Minas Gerais (NYSE:CIG) is a Brazilian electric utility company that serves the state of Minas Gerais. The company is one of the largest electric utility in Latin America. Companhia Energetica Minas Gerais (NYSE:CIG) has a diversified generation portfolio that includes hydro, thermal, nuclear, and wind power.

Companhia Energetica Minas Gerais (NYSE:CIG) is a well-established company with a strong history of profitability and dividend growth. As of October 21, the stock is offering a forward dividend yield of 10% and is trading at a PE multiple of 13x. Companhia Energetica Minas Gerais (NYSE:CIG) is one of the best penny stocks to buy now.

At the close of Q2 2022, Companhia Energetica Minas Gerais (NYSE:CIG)  was spotted on 13 investor portfolios. These hedge funds held stakes of $64 million in the company. As of June 30, Polunin Capital is the most prominent investor in the company and has a stake worth $28.95 million.

9. New Gold Inc. (NYSE:NGD)

Share Price as of October 21: $0.88

Number of Hedge Fund Holders: 13

New Gold Inc. (NYSE:NGD) is a Canadian gold mining company that has a strong history of producing quality gold. The company has a large portfolio of high-quality gold assets, a strong management team, and a strong balance sheet. New Gold Inc. (NYSE:NGD) has an ROE of 10% and a trailing twelve-month operating margin of 11.4%.

New Gold Inc. (NYSE:NGD) has pulled back in 2022 and is presenting an optimal buying opportunity for investors. As of October 21, the stock is trading at a PE multiple of 6x and is ranked high among the best penny stocks to buy now.

This October, RBC Capital analyst Michael Siperco upgraded New Gold Inc. (NYSE:NGD) to Outperform from Sector Perform and raised his price target on the stock to $1.25 from $1.00. On October 14, National Bank analyst Mike Parkin raised his price target on New Gold Inc. (NYSE:NGD) to C$1.60 from C$1.50 and reiterated a Sector Perform rating on the shares.

At the end of Q2 2022, 13 hedge funds were long New Gold Inc. (NYSE:NGD) and held stakes worth $50.7 million in the company. Of those, Renaissance Technologies was the top shareholder in the company and held a stake worth $18 million.

8. Banco Bradesco S.A. (NYSE:BBD)

Share Price as of October 21: $3.99

Number of Hedge Fund Holders: 14

Banco Bradesco S.A. (NYSE:BBD) is a Brazilian bank that offers a variety of financial products and services to individuals, businesses, and corporations. The company has a strong history of profitability and is well-positioned to continue growing in the future. Shares of Banco Bradesco S.A. (NYSE:BBD) are attractively priced and are offering a good buying opportunity for long-term investors. As of October 21, the stock has a trailing twelve-month PE ratio of 8.98 and is offering a forward dividend yield of roughly 3%. Banco Bradesco S.A. (NYSE:BBD) is one of the best penny stocks to invest in now.

This September, Goldman Sachs analyst Tito Labarta raised his price target on Banco Bradesco S.A. (NYSE:BBD) to $5.40 from $4.40 and reiterated a Buy rating on the shares. On October 5, Scotiabank analyst Jason Mollin upgraded Banco Bradesco S.A. (NYSE:BBD) to Outperform from Sector Perform and raised his price target on the shares to R$24 from R$22.

At the end of Q2 2022, 14 hedge funds were bullish on Banco Bradesco S.A. (NYSE:BBD) and held stakes worth $155.5 million in the company. Of those, Fisher Asset Management was the largest shareholder and had stakes worth $81.25 million in the company.

7. B2Gold Corp. (NYSE:BTG)

Share Price as of October 21: $3.14

Number of Hedge Fund Holders: 15

B2Gold Corp. (NYSE:BTG) is a gold mining company with operations in Nicaragua, the Philippines, Namibia, Mali, and Burkina Faso. The company has a market cap of $3.32 billion, as of October 21. B2Gold Corp. (NYSE:BTG) is profitable, cash-rich, and efficient at making profits for shareholders. The company has an ROE of 14.63%, a  trailing twelve-month operating margin of 38.13%, and has free cash flows of $428.3 million. The stock is ranked high among the best undervalued penny stocks to buy now. As of October 21, B2Gold Corp. (NYSE:BTG) has a trailing twelve-month PE ratio of 8.72 and is trading at $3.14 a share.

This October, National Bank analyst Don DeMarco revised his price target on B2Gold Corp. (NYSE:BTG) to C$7 from C$7.50 and reiterated an Outperform rating on the shares. On October 19, Stifel analyst Ingrid Rico revised her price target on B2Gold Corp. (NYSE:BTG) to C$7.25 from C$7.50 and maintained a Buy rating on the shares.

At the close of Q2 2022, B2Gold Corp. (NYSE:BTG) was spotted on 15 hedge fund portfolios. These funds held collective stakes of $220 million in the company. As of June 30, Renaissance Technologies is the largest shareholder in B2Gold Corp. (NYSE:BTG) and has a stake of $123 million in the company.

While cheap stocks like AMC Entertainment Holdings, Inc. (NYSE:AMC), GameStop Corp. (NYSE:GME), and Bed Bath & Beyond Inc. (NASDAQ:BBBY) may have been optimal short-term trades, B2Gold Corp. (NYSE:BTG) has the potential to be a fruitful long-term investment due to the company's diverse portfolio of mining operations and solid business fundamentals.

6. The Lion Electric Company (NYSE:LEV)

Share Price as of October 21: $2.48

Number of Hedge Fund Holders: 15

The Lion Electric Company (NYSE:LEV) is a leading manufacturer of zero-emission electric vehicles. The company's products are used in a variety of applications, including school and public buses, medium and heavy-duty trucks, and urban delivery vehicles. Wall Street is bullish on The Lion Electric Company (NYSE:LEV). On September 27, B. Riley analyst Christopher Souther took coverage of The Lion Electric Company (NYSE:LEV) with a Buy rating and a $5 price target.

The Lion Electric Company (NYSE:LEV) has pulled back in 2022 and is offering investors an attractive buying opportunity. As of October 21, the stock has a trailing twelve-month PE ratio of 1.80 and is trading at $2.48 a share. The Lion Electric Company (NYSE:LEV) is ranked high among the best penny stocks to buy now.

At the end of Q2 2022, 15 hedge funds were bullish on The Lion Electric Company (NYSE:LEV) and held stakes worth $23.5 million in the company. This is compared to 10 positions in the previous quarter with stakes worth $26.8 million.

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Disclosure: None. 16 Best Penny Stocks To Buy Now is originally published on Insider Monkey.

The article was edited on October 24 at 15:46 PM ET to correct the company description of Xos, Inc.