12 Hot Penny Stocks to Invest in Right Now

Core Insights - The article discusses the current investment landscape for penny stocks, emphasizing that their performance is influenced more by market psychology than macroeconomic conditions [1] - Small-cap stocks are gaining momentum, particularly after strong third-quarter earnings, making them more attractive compared to large-cap stocks [2] - Several catalysts are driving interest in small-cap stocks, including M&A activity, biotech developments, and opportunities in sectors linked to AI [3] Small-Cap Stock Performance - The Russell 2000 index has increased by 21.60% over the past six months, although it has experienced four consecutive weeks of decline recently [4] Methodology for Stock Selection - The list of 12 hot penny stocks was compiled based on stocks priced under $5, with over 50% returns in the last three months and an upside potential exceeding 20% as of November 24, 2025 [6] - Hedge fund sentiment was also considered, utilizing data from Insider Monkey's hedge fund database tracking 983 hedge funds as of Q2 2025 [7] Individual Stock Highlights - Shattuck Labs, Inc. (NASDAQ:STTK): - 3-month performance of 102.21% with an average upside potential of 45.63% [9] - The company has a cash balance of $86.10 million and reported a net loss of $10.1 million for Q3 2025 [10][11] - Erasca, Inc. (NASDAQ:ERAS): - 3-month performance of 93.08% with an average upside potential of 73.01% [13] - The company reported a net loss of $30.6 million for Q3 2025 but has a solid cash position of $362.4 million [15][17] - CytomX Therapeutics, Inc. (NASDAQ:CTMX): - 3-month performance of 107.50% with an average upside potential of 78.09% [18] - The company reported a revenue decline to $6 million for Q3 2025 but maintains a cash balance of $143.6 million [20][21]