In this article we will take a look at eight best penny stocks to buy now.
Stocks are sliding, tariffs are rising, and fear is creeping back into Wall Street. But amid all the market noise, one segment is quietly attracting serious attention, penny stocks. As global markets wrestle with inflation, political uncertainty, and trade wars, bargain hunting investors are finding opportunity in low priced, high potential stocks trading under $5. If you’re searching for the best penny stocks to buy now, you are not alone, and you may be looking in the right direction.
Why Penny Stocks Make Sense in a Volatile Market
On July 11, Bloomberg reported that the S&P 500 pulled back after hitting its fifth record in just nine trading days, following renewed trade threats from former U.S. President Donald Trump. His proposed 50% tariff on Brazilian goods and fresh warnings to Canada and Europe are shaking confidence. While large cap stocks faltered, cryptocurrency linked names jumped as Bitcoin hit an all time high above $118,000, highlighting how speculative assets are back in favor.
At the same time, CNBC highlighted rising tensions between the European Union and China, with tit for tat tariffs disrupting trade in medical devices and alcohol. Chinese brandy tariffs and EU restrictions on public procurement are adding fuel to an already strained relationship, with experts warning of long term economic fallout.
According to Reuters, the conflicting signals from bond and equity markets suggest investors are bracing for something big. Treasuries are pricing in slower growth, while stocks are still being buoyed by hopes of rate cuts and AI driven gains. Yet beneath the surface, smart money is flowing into overlooked corners, like penny stocks, where risk tolerant investors can still find upside potential at a discount.
These low priced shares often belong to companies operating in emerging sectors or undergoing transformational change. With smaller market caps, even moderate success, a new product launch, a promising clinical trial, or a strategic partnership, can lead to explosive gains. But they also come with volatility, which is why choosing the right ones matters.
This market backdrop is creating a unique setup for investors willing to look beyond the headlines. With geopolitical risk, macro uncertainty, and tech fatigue all dominating the narrative, penny stocks may be one of the few places where growth and value intersect in 2025.
In this article, we’ve identified eight of the best penny stocks to buy now based on key fundamentals, upcoming catalysts, and analyst sentiment. Each company on the list is trading under $5, with strong potential to outperform the broader market, especially if rate cuts materialize and investor sentiment shifts back toward risk on assets.
Ready to find the next breakout stock? Let’s dive into the list and explore where the smart money is moving in today’s unpredictable market.
Our Approach to Identifying the Best Penny Stocks to Buy Now
To identify the eight best penny stocks to buy now, we focused on fundamentally strong companies trading under $5 with solid growth prospects. Each stock in our list meets strict criteria: a market capitalization over $300 million to avoid highly speculative micro caps, and an average daily trading volume above 500,000 shares to ensure liquidity. We only included stocks with a Buy or better rating from analysts, signaling institutional confidence. Additionally, we looked for companies with expected EPS growth of over 25% over the next five years and positive year over year sales growth, both strong indicators of long term potential.
8 Best Penny Stocks to Buy Now
08. RLX Technology Inc. (NYSE:RLX)
Upside Potential as of July 10: 24%
RLX Technology Inc. (NYSE:RLX) is one of the best penny stocks to buy now if you are looking for a high upside play in the vaping industry. The stock trades at just $2.26, and analysts see a 24% upside from here with a target price of $2.81. Despite missing earnings expectations in Q1 2025, the company reported a 47% year over year jump in revenue and a sixth straight quarter of operating profit.
RLX Technology Inc. (NYSE:RLX) is China’s leading e-vapor company, producing vape devices and e-liquids. It has expanded aggressively into international markets, especially as regulatory pressure in China intensifies. The company’s new “Big Puff” products, which offer higher e liquid volumes at lower cost per use, are gaining traction worldwide.
From a financial standpoint, RLX generated revenue of RMB808 million in Q1, with a gross margin of 28.6%, up from 25.9% a year ago. Operating cash flow rose sharply to RMB207 million, and the company holds over RMB16 billion in financial assets. This strong balance sheet gives RLX Technology Inc. (NYSE:RLX) room to weather regulatory headwinds and invest in innovation.
The biggest risk lies in shifting global regulations. Several countries, including the UK and New Zealand, are banning disposable vapes, which could impact sales. However, RLX Technology Inc. (NYSE:RLX) is already adapting by developing market specific products and reducing dependence on any single country.
For investors looking for penny stocks with international growth, solid cash flow, and product innovation, RLX Technology Inc. (NYSE:RLX) stands out as a compelling opportunity.
07. B2Gold Corp. (NYSE:BTG)
Upside Potential as of July 10: 34%
If you are searching for the best penny stocks to buy now with real assets and cash flow, B2Gold Corp. (NYSE:BTG) deserves a close look. Trading at just $3.47 with a target price of $4.65, this gold stock offers an attractive 34% upside. It posted solid Q1 2025 financials and is ramping up several key projects that could drive significant production growth.
B2Gold Corp. (NYSE:BTG) is a Canadian gold producer with mining operations in Mali, the Philippines, and Namibia. It also owns the Goose Project in Canada, set to begin production in Q3 2025, and the Gramalote project in Colombia, which could soon move into development.
What makes B2Gold Corp. (NYSE:BTG) appealing to penny stock investors is its strong fundamentals. In Q1 2025, the company generated $244 million in operating cash flow and maintained $330 million in cash, with no outstanding debt on its revolving credit facility. The company also reported adjusted earnings of $0.09 per share. With rising gold prices and multiple projects nearing completion, B2Gold has a compelling growth outlook.
The biggest catalyst is the Goose mine, which is fully funded and nearly complete. Combined with potential production from its Fekola regional expansion and Gramalote, B2Gold Corp. (NYSE:BTG) could add over 700,000 ounces of annual output in the next few years.
Risks include geopolitical uncertainty in regions like Mali and regulatory delays. However, B2Gold Corp. (NYSE:BTG) has a history of navigating such challenges effectively.
For retail investors seeking a low priced gold stock with cash flow, upcoming catalysts, and strong asset backing, B2Gold is a smart bet in the penny stock space.
06. Denison Mines Corp. (NYSE:DNN)
Upside Potential as of July 10: 59%
At number six on our list of best penny stocks to buy now stands Denison Mines Corp. (NYSE:DNN). Trading around $3.47, analysts see nearly 60% upside, driven by growing demand for uranium and the company’s high potential projects in Canada’s uranium rich Athabasca Basin.
Denison Mines is a Canadian uranium exploration and development company. It owns a 95% stake in the Wheeler River Project, one of the most advanced undeveloped uranium sites in North America. The company also holds a 22.5% interest in the McClean Lake Mill, one of the world’s largest uranium processing facilities.
In Q1 2025, Denison recorded $1.37 million in toll milling revenue from McClean Lake, a 65% increase from last year. This came alongside an active investment in new mining technologies, including the SABRE mining system, which is expected to begin operation in mid 2025. Denison also capitalized nearly $1.8 million in development costs this quarter to prepare for future production. Despite some weather related delays, the company is pressing ahead with a robust $174 million capital and exploration budget for 2025.
On April 4, Desjardins initiated coverage on Denison Mines (NYSE: DNN) with a Buy rating and a C$4 price target. The firm is optimistic about the uranium sector, citing growing demand driven by global decarbonization. It also noted that limited supply and delays in bringing new mines online could support higher uranium prices, benefiting Denison.
The main risk for investors is execution. Delays or cost overruns could impact timelines, especially with complex mining technologies and environmental factors. However, Denison’s strong asset base, uranium market tailwinds, and potential for future production make it a compelling play for penny stock investors looking for exposure to nuclear energy.
With a clear growth plan and undervalued price, Denison Mines is a smart uranium pick for investors seeking low priced stocks with high upside.
05. Talkspace, Inc. (NASDAQ:TALK)
Upside Potential as of July 10: 82%
Talkspace, Inc. (NASDAQ:TALK) is turning heads with an 82% upside potential and a growing role in the mental health space. With Q1 revenue up 15% and EBITDA soaring 153% year over year, this virtual therapy provider is rapidly scaling, and that’s why it earns a place among the best penny stocks to buy now. Its strong fundamentals, expanding payer network, and focus on insured care make it a compelling bet for growth oriented investors.
Talkspace, Inc. (NASDAQ:TALK) offers online therapy and psychiatry services to millions across the U.S., providing flexible access to licensed professionals through messaging, video, and audio sessions. The company serves individual users, employers, and insurance plans, now covering nearly 200 million lives, including Medicare and TRICARE members.
On April 3, Canaccord Genuity initiated coverage on Talkspace, Inc. (NASDAQ:TALK) with a Buy rating and a $5 price target. Analyst Richard Close highlighted Talkspace's strong position in digital behavioral healthcare and its large base of insured users. He noted the company’s consistent 20%+ revenue growth and growing operating leverage as key drivers of long term upside.
The company is benefiting from high demand for accessible behavioral healthcare, and it is using AI tools to streamline operations, improve care, and reduce drop off rates. Management is focused on expanding both enterprise and payer partnerships, including new deals with Bark Technologies and the U.S. military.
Talkspace, Inc. (NASDAQ:TALK) posted $52.2 million in Q1 revenue and returned to GAAP profitability with $300,000 in net income. It ended the quarter with a strong balance sheet, holding $108 million in cash.
Still, risks remain. Talkspace faces competition from larger health tech players and must continue engaging users amid a crowded digital health market. But with low share price, strong growth, and expanding coverage, it stands out as one of the best penny stocks to buy now for investors seeking exposure to digital health innovation.
04. Galiano Gold Inc. (NYSE:GAU)
Upside Potential as of July 10: 130%
At number four on our list of best penny stocks to buy now stands Galiano Gold Inc. (NYSE:GAU). The stock offers a staggering 130% upside potential as of July 10, making it one of the most compelling high reward plays in the gold mining space. With strong cash reserves, zero debt, and a 75% increase in gold production projected over the next 18 months, this gold miner is positioning itself for breakout performance.
Galiano Gold Inc. (NYSE:GAU) is a Canadian based mining and exploration company that owns a 90% interest in the Asanko Gold Mine in Ghana, West Africa. The mine sits on the highly prospective Asankrangwa gold belt and has proven to be a solid producer. The company is focused on expanding its resource base through exploration, with recent drilling at its Abore site uncovering high grade gold zones that could significantly boost future production.
For penny stock investors, Galiano Gold Inc. (NYSE:GAU) financial strength stands out. With over $100 million in cash and no debt, the company can fund its strategic projects without diluting shareholders. Its recent quarter saw $77 million in revenue and $26 million in cash flow from operations, despite a temporary mill shutdown that slightly lowered gold output. On April 14, Scotiabank raised its price target on Galiano Gold Inc. (NYSE:GAU) from C$2.25 to C$3, reflecting increased confidence in the company’s outlook.
Risks include operational setbacks like equipment downtime and rising costs from government royalties and levies. However, with gold prices above $3,000 per ounce, Galiano remains well positioned to benefit from strong margins.
In short, Galiano Gold Inc. (NYSE:GAU) combines value, upside, and stability, making it a standout among the best penny stocks to buy now.
03. Lexicon Pharmaceuticals, Inc. (NASDAQ:LXRX)
Upside Potential as of July 10: 158%
Lexicon Pharmaceuticals (NASDAQ:LXRX) stands out with a projected 158% upside as of July 10, making it one of the best penny stocks to buy now for investors looking for high growth biotech opportunities. With a strong pipeline, promising partnerships, and progress in late stage drug development, Lexicon is poised for significant gains in the coming quarters.
Based in Texas, Lexicon is a clinical stage biopharmaceutical company focused on treating serious medical conditions like heart failure, obesity, neuropathic pain, and hypertrophic cardiomyopathy. The company’s lead drug, sotagliflozin (brand name: INPEFA), is already approved for heart failure and is being tested in Phase 3 trials for additional heart conditions. Another key asset, LX9851, a novel obesity treatment, has been licensed to Novo Nordisk in a deal worth over $1 billion in milestones. Additionally, Lexicon is preparing pilavapadin, a non opioid pain reliever, for Phase 3 trials, addressing a huge unmet need in diabetic nerve pain.
For penny stock investors, Lexicon offers a rare mix: a strong pipeline, strategic partnerships with global pharma giants, and a debt reduced balance sheet. The company ended Q1 2025 with nearly $195 million in cash, giving it enough runway to advance key programs without relying on dilution.
However, as with any biotech penny stock, regulatory delays or clinical trial setbacks could impact timelines. Still, Lexicon’s multiple late stage assets, revenue potential from INPEFA, and strong execution make it a compelling high risk, high reward pick among the best penny stocks to buy now.
02. Senseonics Holdings, Inc. (NYSE:SENS)
Upside Potential as of July 10: 240%
Senseonics Holdings, Inc. (NYSE:SENS) is emerging as one of the best penny stocks to buy now, thanks to its groundbreaking diabetes monitoring technology, solid Q1 financial results, and growing commercial momentum. The company recently reported a 24% year over year revenue increase, reaching $6.3 million in Q1 2025, up from $5 million in Q1 2024. With its Eversense 365 system, the world's first and only implantable continuous glucose monitor (CGM) lasting a full year, Senseonics is revolutionizing how people manage diabetes.
Headquartered in Germantown, Maryland, Senseonics Holdings, Inc. (NYSE:SENS) develops CGMs that use a tiny sensor implanted under the skin, paired with a rechargeable transmitter and a smartphone app. Its products, Eversense, Eversense XL, Eversense E3, and now Eversense 365, offer real time blood glucose data, minimizing the need for frequent fingersticks or sensor replacements. The company distributes through Ascensia Diabetes Care, and is gearing up for a European launch in the second half of 2025, pending CE Mark approval.
Several recent milestones make Senseonics Holdings, Inc. (NYSE:SENS) appealing to penny stock investors. First, it reported a gross profit of $1.5 million in Q1 2025, up from $0.3 million a year earlier, driven by better product margins and reduced R&D costs. Second, Medicare updated its 2025 physician fee schedule to reimburse for the full year Eversense 365, effective retroactively from January 1, removing a major access hurdle. The company also raised $27 million in Q1 through an at the market equity offering and has $64.6 million in cash, with debt reduced to $35 million.
Risks include continued net losses ($14.3 million in Q1) and uncertainty in regulatory timelines or European launch execution. However, with a doubling of its global patient base expected in 2025, margin improvements, and strategic tech partnerships like the one with Sequel’s twiist insulin delivery system, Senseonics Holdings, Inc. (NYSE:SENS) offers compelling upside for those seeking the best penny stocks to buy now.
01. Atai Life Sciences N.V. (NASDAQ:ATAI)
Upside Potential as of July 10: 274%
At number one on our list of best penny stocks to buy now is Atai Life Sciences N.V. (NASDAQ:ATAI). This company is drawing serious attention from penny stock investors with an incredible 274% upside potential as of July 10. With multiple late stage psychedelic therapies in development and a robust pipeline tackling treatment resistant mental health disorders, ATAI is fast becoming one of the best penny stocks to buy now for high risk, high reward portfolios.
Atai Life Sciences N.V. (NASDAQ:ATAI) is a clinical stage biopharma company focused on developing next generation treatments for depression, anxiety, schizophrenia, and addiction. Its pipeline includes BPL 003, a fast acting psychedelic nasal spray for treatment resistant depression and alcohol use disorder, and RL 007, which targets cognitive impairment in schizophrenia and is currently in Phase 2b trials. The company is also advancing VLS 01, an oral film version of DMT (a powerful psychedelic) and EMP 01, an oral MDMA based treatment for social anxiety disorder.
Despite not having approved products yet, ATAI is aggressively progressing its pipeline with eight clinical stage programs and over 750 novel compounds screened through its discovery platform. In Q1 2025, Atai Life Sciences N.V. (NASDAQ:ATAI) reported $30.8 million in net cash inflow, fueled by a $59.6 million equity raise, giving it ample liquidity to fund operations into 2026. The company burned $17.8 million in operating cash during the quarter and posted a net loss of $26.5 million, both of which are in line for an R&D focused biotech at this stage.
On July 2, Canaccord raised its price target on Atai Life Sciences N.V. (NASDAQ:ATAI) from $11 to $12 while maintaining a Buy rating. The upgrade follows strong Phase 2b results for BPL-003, its intranasal psychedelic therapy for treatment resistant depression. The drug met both its primary and all key secondary endpoints, boosting investor confidence. Canaccord also sees this data as a key driver supporting the upcoming ATAI-Beckley merger, expected to close in the second half of 2025.
The key risk for Atai Life Sciences N.V. (NASDAQ:ATAI) is regulatory uncertainty. ATAI’s future depends on successful clinical trials and eventual FDA approvals. However, with increasing global recognition of psychedelic medicine and ATAI’s strategic bets on non hallucinogenic 5 HT2A agonists and invisible drug delivery systems, the company offers significant long term upside.
For investors searching for the best penny stocks to buy now in the biotech space, Atai Life Sciences N.V. (NASDAQ:ATAI) stands out with its disruptive potential in the multibillion dollar mental health market.
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Disclaimer: None. The article is originally published on TheRichStocks.com.
