The top 13 NASDAQ penny stocks for investing are covered in this article. To bypass our stock market debate, go straight to the list of the top five NASDAQ penny stocks to invest in.
It usually takes over a year of selling for regular investors to grasp that they should be buying instead of selling when a bear market hits its lowest point, like the US stock market experienced in October 2022. For example, according to the most recent report from Morgan Stanley, long-term flows into mutual funds and exchange-traded funds turned positive in November 2023.
This year’s market optimism stems from Wall Street’s expectation that the US economy will experience a “soft landing” in 2024—that is, slower growth without a recession—which could result in interest rate decreases. S&P 500 company earnings growth is expected to pick up, according to analysts. Performance estimates for the index in 2024 range from 8% to 9%, which is just below the historical average.
This year, artificial intelligence will continue to be a major issue in investment. After suffering large losses in 2022, the stock market finished 2023 with good performances, especially in the NASDAQ penny stocks composite. With a strong 24.2% gain in 2023, the S&P 500 more than doubled its historical norm. Even if the market saw losses during the first week of January this year, historical data points to confidence for the stock market in 2024 after a year with yearly gains of more than 20%. Variable Treasury yields, economic data, the effect of generative AI, and the November election are some of the major factors affecting stock performance.
According to Forbes, the S&P 500 firms have started the fourth quarter results season with a 1.4% year-over-year fall in earnings per share. This might be the fourth consecutive annual earnings decline in the previous five quarters. The industry with the most earnings growth, the communication services sector, stood out at 40.4%, while the energy sector saw a 31.4% year-over-year decline that hindered overall growth. For the first half of 2024, analysts predict higher earnings.
They predict a 4.6% increase in the first quarter and a 9.4% growth in the second. Investors are hopeful about robust profit growth in 2024 despite lackluster fourth-quarter figures; but, worries about the already priced-in growth, especially in the technology sector, have been voiced. With the S&P 500’s forward price-to-earnings ratio at 20, higher than its 10-year average, concerns have been raised regarding the viability of the current market conditions. For the next year, analysts expect more gains; a consensus price prediction for the S&P 500 indicates an 8% increase from present levels.
Penny stocks are a good way for investors to try their hand at the stock market without having to spend a lot of money. Sirius XM Holdings Inc., Peloton Interactive, Inc., and Plug Power Inc. are a few of the top penny stocks.
Top 13 NASDAQ penny stocks for investing in 2024
13. MannKind Corporation
17 people own hedge funds.
The share price was $3.51 on February 11.
Based in the US, MannKind Corporation is a biopharmaceutical business that specializes in the creation and marketing of inhaled medicinal solutions for endocrine and orphan lung disorders. In a royalty purchase agreement with Sagard Healthcare, MannKind Corporation sold a one percent royalty interest in net sales of Tyvaso DPI (treprostinil) inhalation powder on January 2. MannKind might get as much as $200 million in return. With certain reductions, MannKind is entitled to a 10% royalty on Tyvaso DPI net sales under the terms of the original license agreement with United Therapeutics from 2018.
MannKind Corporation was included in 17 hedge fund portfolios as of the third quarter, down from 19 funds in the previous quarter, per Insider Monkey’s database. The company’s largest shareholder, Nitorum Capital, owned 10.4 million shares for $43.2 million, and is led by Seth Rosen.
One of the greatest penny stocks to buy is MannKind Corporation, which is similar to Sirius XM Holdings Inc., Peloton Interactive, Inc., and Plug Power Inc..
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12. Tilray Brands, Inc.
17 people own hedge funds.
The share price was $1.88 on February 11.
Research, development, production, processing, and international distribution of medical cannabis products are all undertaken by Tilray Brands, Inc.. The company is divided into four business segments: Distribution Business, Beverage Alcohol Business, Wellness Business, and Cannabis Business. Among the greatest penny stocks to buy is this one.
Tilray Brands, Inc. announced on February 7 that it has entered into several debt-for-equity transactions. Specifically, between January 10 and January 31, the company exchanged over 6.9 million units of common stock for convertible debt in private transactions. As part of its capital strategy, Tilray Brands, Inc. issued shares valued at $12.5 million in exchange for 5.25% convertible senior notes that are due on June 1, 2024. Tilray made its first capital transaction of the year with this one, having announced its Q2 results in early January.
Insider Monkey’s database for the third quarter indicates that 17 hedge funds, as opposed to 15 funds in the previous quarter, were positive on Tilray Brands, Inc. With 16.18 million shares valued at $38.6 million, Sander Gerber’s Hudson Bay Capital Management is a significant shareholder in the company.
11. iQIYI, Inc.
There are eighteen hedge fund holders.
The share price was $3.39 on February 11.
The Chinese business iQIYI, Inc. (NASDAQ:IQ), which specializes in offering online entertainment video services, comes in at number eleven on our list of the top penny stocks. Online video, games, books, animations, and other relevant products are available on iQIYI. iQIYI, Inc. (NASDAQ:IQ) announced on November 27, 2023, that it has partnered with GSC Movies in Malaysia and Clover Films in Singapore to expand its selection of premium Chinese films for a worldwide consumer base. This partnership guarantees timely access to the newest releases while also enabling iQIYI to satisfy local viewers’ demand for Chinese-language movies.
18 hedge funds, as opposed to 20 funds in the previous quarter, had interests in iQIYI, Inc. (NASDAQ:IQ), according to Insider Monkey’s third-quarter database. The company’s largest shareholder, Maple Rock Capital, owns 4.10 million shares, valued at $19.4 million.
10. Lucid Group, Inc.
There are eighteen hedge fund holders.
The share price was $3.52 on February 11.
Electric vehicle technologies are the primary focus of technology and automotive business Lucid Group, Inc. The firm designs, engineers, and manufactures battery systems, EV powertrains, and electric automobiles. Among the greatest penny stocks to buy is this one. Ma’aden Rolling Co., a division of Saudi Arabia Mining Co., has signed a three-year agreement to supply premium aluminum panels to Lucid Group, Inc.for use in Lucid’s US production facilities. The announcement was made on January 29. The Public Investment Fund of Saudi Arabia owns the majority of Lucid.
As of the previous quarter, 18 hedge funds were positive on Lucid Group, Inc., according to Insider Monkey’s third-quarter database.
9. Aurora Innovation, Inc.
19 people own hedge funds.
The share price was $3.32 on February 11.
Pittsburgh, Pennsylvania-based Aurora Innovation, Inc.s a self-driving technology firm. The company’s focus is on developing the Aurora Driver platform, which combines various data services, software, and hardware for self-driving vehicles. This platform is made to be versatile and compatible with a range of automobiles, including trucks, light-duty commercial vehicles, and passenger cars. One of the best penny stocks to buy is this one.
As part of the Aurora Driver platform, Aurora Innovation, Inc. and Continental announced on January 5 that they had completed the design of the first scalable autonomous trucking system in history. Continental intends to start manufacturing the hardware in 2027. After less than a year of their exclusive collaboration, they were able to realize their goal of producing autonomous trucking systems in large quantities.
The four-year partnership will involve the development and test phases of the Aurora Driver, an SAE Level 4 autonomous driving system, in 2024–2025, with production and integration following in 2026–2027. Beginning in 2027, thousands of trucks outfitted with the Aurora Driver are anticipated to move cargo around the United States on their own.
19 hedge funds, as opposed to 17 firms in the previous quarter, were optimistic on Aurora Innovation, Inc., according to Insider Monkey’s third-quarter database.
8. Opendoor Technologies, Inc.
20 people own hedge funds.
The share price was $3.51 on February 11.
The e-commerce company Opendoor Technologies Inc. focuses on residential real estate transactions. In addition, Opendoor provides construction services, property and casualty insurance, settlement, escrow, title insurance, and real estate brokerage. Among the top penny stocks to follow is this one.
Investment firm KBW upgraded the stock of Opendoor Technologies Inc. to Market Perform on December 13. The rationale behind the upgrading was the conviction that the stock’s values are not entirely supported by its fundamentals. Even if there aren’t any obvious negative catalysts, KBW’s stock expectations are presently higher than the consensus.
Twenty hedge funds were bullish on Opendoor Technologies Inc., down from 25 funds in the previous quarter, according to Insider Monkey’s third-quarter database. Sylebra Capital Management, under the direction of Daniel Patrick Gibson, is the company’s largest shareholder with 26 million shares valued at $68.8 million.
7. Taboola.com Ltd
21 people own hedge funds.
The share price was $4.82 on February 11.
Taboola.com Ltd. is a global operator of an AI-based algorithmic engine platform that collaborates with mobile apps, devices, and websites to offer suggestions for open-web ads and editorial content. Among the top penny stocks to follow is this one. In a new contract signed on January 16, Taboola.com Ltd. and Postmedia agreed that Postmedia would employ Taboola’s product suite to grow its audience, improve user engagement, and increase income. Several Postmedia websites, including the National Post, Financial Post, Vancouver Sun, and Toronto Sun, will use Taboola.
Insider Monkey’s database for the third quarter shows that 21 hedge funds, as opposed to 24 firms in the previous quarter, were long Taboola.com Ltd. Josh Goldberg and G2 Investment Partners Management control the majority of the company’s 4.7 million shares, which are worth $17.7 million.
6. Advantage Solutions, Inc.
24 people own hedge funds.
The share price was $3.95 on February 11.
Advantage Solutions Inc. is a global supplier of outsourced solutions to retailers and consumer products firms. The company’s sales sector offers brand-centric services such as headquarter relationship management, analytics, insights, intelligence, administration, and brand-centric merchandising. In addition to retailer-centric services like retail experiential, private label, digital marketing, and digital media and advertising, the marketing segment offers brand-centric services like shopper and consumer marketing and brand experience services.
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Advantage Solutions Inc. stated on January 31 that it has sold its food service operations, including Waypoint, to Prospect Hill Growth Partners for an estimated $100 million in total proceeds. The corporation will pay off debt primarily with the proceeds. By streamlining its holdings, the company hopes to improve its financial standing and focus on its primary retail operations. The sale will yield cash and a continuing 7.5% ownership share in the merged company.
Insider Monkey’s database for the third quarter shows that 24 hedge funds, as opposed to 19 firms in the previous quarter, were long Advantage Solutions Inc.
Advantage Solutions Inc. comes in at number six on our list of the top penny stocks, behind Sirius XM Holdings Inc., Peloton Interactive, Inc., and Plug Power Inc..
5. Sirius XM Holdings Inc.
24 people own hedge funds.
On February 11th, the share price was $4.90.
The radio entertainment company Sirius XM Holdings Inc. is based in North America and operates two segments: Off-platform and Sirius XM along with Pandora. With a Q4 GAAP EPS of $0.09, Sirius XM Holdings Inc. exceeded market projections by $0.01 on February 1. The $2.29 billion in revenue met Wall Street’s estimates. In 2023, SiriusXM added about 131,000 new self-pay subscribers in the fourth quarter. Monitoring Sirius XM Holdings Inc. is a highly recommended option for penny stocks.
24 hedge funds, as opposed to 19 funds in the previous quarter, were optimistic on Sirius XM Holdings Inc., according to Insider Monkey’s third-quarter database. The company’s largest shareholder, Cliff Asness’ AQR Capital Management, has 14.6 million shares valued at more than $66 million.
4. Plug Power Inc.
26 people own hedge funds.
As of February 11, the share price is $4.33.
Delivering clean hydrogen and zero-emission fuel cell solutions for a variety of applications, such as supply chain, logistics, on-road electric vehicles, and stationary power sectors, is Plug Power Inc.’s area of expertise. We’ve ranked Plug Power Inc. as the fourth best penny stock to purchase.
The shares of Plug Power Inc.was raised from Neutral to Buy on February 3 by investment advice firm Roth MKM, which expressed confidence in the company’s green hydrogen plant ramp-up in Georgia proceeding smoothly.
26 hedge funds, as opposed to 20 firms in the previous quarter, were positive on Plug Power Inc., according to Insider Monkey’s third-quarter database. With a $25.7 million stake, Israel Englander’s Millennium Management is one of the company’s major investors.
3. Sabre Corporation
28 people own hedge funds.
As of February 11, the share price is $4.14.
Sabre Corporation provides software and technological solutions to the international travel industry. Travel Solutions and Hospitality Solutions are the two business segments. It’s among the top penny stocks to take into account. Hawaiian Airlines and Sabre Corporation established a multi-year distribution agreement in January 2024.
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With this partnership, agencies that are connected to Sabre will have continuous access to Hawaiian Airlines’ HA Connect NDC and conventional EDIFACT material via the Sabre travel marketplace. In addition, Sabre Corporation and International Airlines Group have extended their multi-year distribution agreement to strengthen their current collaboration and support contemporary travel retailing techniques.
As of the previous quarter, 28 hedge funds were positive on Sabre Corporation (NASDAQ:SABR), according to Insider Monkey’s third-quarter database. Fundsmith LLP, owned by Terry Smith, is the company’s largest shareholder, owning 22.5 million shares valued at $101.25 million.
2. Grab Holdings Limited
34 people own hedge funds.
The share price was $3.43 on February 11.
We’ve ranked Grab Holdings Limited as the #2 penny stock. In Southeast Asia, including Cambodia, Indonesia, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam, Grab Holdings Limitedprovides superapps. The Grab ecosystem of the company links drivers and merchant partners with consumers by acting as a unified platform with superapps. Grab Holdings Limited reported Q3 GAAP EPS of -$0.02, in line with the market consensus on November 9, 2023. The quarter’s revenue of $615 million, up 61% from the previous year, above Wall Street projections by $27.02 million.
Insider Monkey’s database for the third quarter shows that 34 hedge funds, as opposed to 25 funds in the previous quarter, were positive on Grab Holdings Limited. Tiger Global Management, led by Chase Coleman, owns the majority of the company’s 51.3 million shares, valued at $181.6 million.
1. Peloton Interactive, Inc.
35 people own hedge funds.
As of February 11, the share price is $4.55.
Offering linked exercise products like Peloton Bike, Peloton Bike+, Peloton Tread, Peloton Tread+, Peloton Guide, and Peloton Row, Peloton Interactive, Inc. runs an interactive fitness platform worldwide. PTON, also known as Peloton Interactive, Inc., is a great penny stock to purchase. The business released its financial results for the second quarter of its 2024 fiscal year on February 1. Peloton’s GAAP EPS of -$0.54 was $0.02 below Wall Street’s projections. The $743.6 million in revenue was $9.36 million more than the market estimate.
Insider Monkey’s database for the third quarter indicates that 35 hedge funds, as opposed to 46 funds in the previous quarter, were optimistic on Peloton Interactive, Inc. 7.26 million shares, worth $36.7 million, belong to Ricky Sandler’s Eminence Capital, which has a sizable stake in the company.
