10 Penny Stocks to Buy Now with Strong Growth Potential

In 2025, the penny stock landscape is teeming with opportunities for investors seeking high-growth potential. While these low-priced stocks, typically trading under $5, come with inherent risks, thorough research and strategic selection can uncover companies poised for significant expansion.

For investors seeking to capitalise on such opportunities, here are ten penny stocks to buy now with strong growth potential based on recent analyses and market trends

Ranking the 10 Best Penny Stocks to Buy Now

1) BAB Inc. (BABB)

Trading at $0.81, BAB Inc. operates a franchise model encompassing bagel and muffin retail units under brands like Big Apple Bagels and My Favorite Muffin.

In an economic environment where affordability drives consumer behaviour, budget-friendly food chains like BAB can see stable customer demand.

With a fair value upside of 11.2% and a 'Great' health label, the company demonstrates solid fundamentals for investors seeking a consistent cash-generating small-cap in the food retail sector.

2) iHuman Inc. (IH)

iHuman Inc. offers an educational technology platform focused on early childhood development in China, one of the world's largest and most competitive edtech markets

Priced at $2.12 and with a fair value upside of 50.1%, the company's focus on early childhood education and digital learning platforms aligns with current market trends.

The firm's content-rich and interactive learning platforms position it well for long-term adoption as parents seek high-quality digital learning tools. Its valuation, with rising interest in AI-powered learning solutions, adds to its growth narrative.

3) Table Trac (TBTC)

At $4.00 per share, Table Trac provides casino management systems. The company's technology solutions cater to the gaming industry's operational needs, offering a fair value upside of 43.5%.

As global tourism rebounds and casinos upgrade infrastructure to attract more digital-native customers, demand for tech-driven management solutions is growing. Table Trac's scalable software and support services can be implemented in casinos of various sizes, giving it wide market applicability.

Moreover, its profitability at a relatively low market cap offers compelling value, especially for investors looking to tap into the digital transformation of entertainment venues.

4) Waterdrop Inc. (WDH)

Trading at $1.49, Waterdrop Inc. operates in the insurance and healthcare sectors, leveraging technology to offer affordable services.

With China experiencing a healthcare shift driven by ageing demographics and a more affluent population, Waterdrop's peer-to-peer insurance platform and medical crowdfunding services offer modern alternatives to traditional coverage.

As more users in Asia-Pacific embrace online insurance and health services, Waterdrop is well-positioned to scale. With a fair value upside of 20.2%, the company's innovative approach addresses a significant market demand.

5) Community Health Systems (CYH)

Community Health Systems is one of the largest publicly traded hospital operators in the U.S., with facilities primarily in rural and semi-urban markets. The company benefits from rising healthcare demand, especially in underserved regions, where healthcare infrastructure remains critical.

As healthcare policy continues to support accessible services, CYH's expansive network and cost-cutting initiatives could drive margin improvements and long-term growth.

Priced at $2.70, the company's fair value upside of 42.0% reflects its potential for growth in the healthcare industry.

6) Desktop Metal Inc. (DM)

At $3.85 per share, Desktop Metal Inc. focuses on 3D printing solutions for metal manufacturing. The company's innovative technology has garnered attention, contributing to a market capitalisation of $394.21 million.

For instance, the company addresses multiple industries, such as automotive, aerospace, and healthcare, each increasingly reliant on custom, lightweight components.

Additionally, the move toward reshoring manufacturing post-COVID-19 has renewed investor interest in additive technologies, further elevating DM's relevance.

7) Tuya Inc. (TUYA)

Trading at $1.95, Tuya Inc. offers IoT cloud platforms, enabling smart device manufacturers to develop intelligent products. As the Internet of Things (IoT) continues expanding into homes and industrial applications, Tuya's platform-as-a-service (PaaS) model ensures recurring revenue and scalability.

With a market capitalisation of $1.23 billion, the company's global reach and technological advancements position it for continued growth.

8) CI&T Inc. (CINT)

CI&T Inc. is a global provider of digital transformation services, particularly for companies needing agile development, automation, and data modernisation.

Priced at $4.93, CI&T's appeal is its foothold in Latin America, where digital transformation adoption is rising, yet competition remains less saturated than in North America.

In 2025, enterprise spending on digital transformation is expected to top trillions globally, giving CI&T a sizable addressable market and making it attractive for long-term technology-focused investors.

9) EMX Royalty Corporation (EMX)

At $2.15 per share, EMX Royalty Corporation operates a unique royalty model in the mining sector, acquiring interests in mineral properties rather than directly engaging in extraction. This business model allows EMX to benefit from upside in commodity prices while mitigating the operational risks associated with mining.

With geopolitical instability and inflation driving up gold and copper prices in 2025, EMX's portfolio of royalty streams in strategically important regions provides built-in leverage to rising metal demand.

10) Oncology Institute Inc. (TOI)

Trading at $2.70, Oncology Institute Inc. focuses on value-based cancer care, a growing need as healthcare systems worldwide grapple with rising cancer incidences and the demand for personalised treatments.

Its strong clinical model and strategic partnerships with insurers and health systems offer scalability in regional markets. As precision medicine and data-driven diagnostics continue to reshape oncology, TOI has the infrastructure to lead innovation in this vertical.

Conclusion

In conclusion, these ten penny stocks serve a specific niche and show potential for above-average returns under the right market conditions. Their compelling narratives — from technology and healthcare to energy and consumer services — offer growth avenues that can appeal to diversified investment strategies.

However, investors should pair this potential with careful due diligence, as penny stocks inherently carry higher risks due to their volatility, limited liquidity, and reliance on early-stage execution.

Disclaimer: This material is for general information purposes only and is not intended as (and should not be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by EBC or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.