In this article, we will delve into the 12 Best Rising Penny Stocks To Buy. Stocks are experiencing a surge following Nvidia’s strong quarter, which has dispelled doubts about AI being overvalued. Analysts are now optimistic about a soft landing for the economy, with experts suggesting that the US can avoid recession and achieve the 2% inflation target without high unemployment. This positive outlook is particularly beneficial for smaller companies like penny, micro-cap, and nano-cap stocks, which tend to suffer during market downturns when investors flock to established companies.
The recommendation to buy more stocks during a soft landing scenario is supported by many analysts and experts. A report by the Wall Street Journal in November 2023 highlighted economists’ growing confidence in the economy’s ability to avoid recession. This sentiment was echoed by Alessio de Longis, senior portfolio manager at Invesco, who mentioned a “mini Goldilocks scenario” unfolding at the time.
Small-cap companies, which are more sensitive to higher borrowing rates, were lagging behind the S&P 500 in 2023 by the widest margin since 1998. However, experts predicted a reversal in this trend, with BMO Wealth Management’s chief investment officer Yung-Yu Ma anticipating a small-cap stock rally in 2024 due to lower rates and a stable economy.
Despite some experts still fearing recession and a hard landing, the best advice for investors comes from seasoned investing gurus like Seth Klarman. Klarman emphasized the importance of a value approach to investing, highlighting the significance of discipline and patience in achieving long-term investment success.
To identify the best rising penny stocks, a stock screener was used to pinpoint stocks that had gained over 8% in the past 30 days and had Buy or better ratings. From this list, 12 penny stocks with the highest number of hedge fund investors were selected. Hedge funds’ top 10 consensus stock picks have outperformed the S&P 500 Index by more than 140 percentage points over the last decade.
Some of the top rising penny stocks to consider include Grupo Televisa SAB ADR, Compass Therapeutics Inc., Angi Inc, Cipher Mining Inc, Heron Therapeutics Inc, Cerus Corp, and Porch Group Inc. These companies have shown significant gains in recent months and have garnered interest from hedge fund investors.
It is essential for investors to conduct thorough research and consider their risk tolerance before investing in penny stocks. By staying informed and following a disciplined investment approach, investors can navigate the market with confidence and potentially capitalize on opportunities presented by rising penny stocks.