14 Best NYSE Penny Stocks to Buy Now

Industry Overview - Small-cap and penny stocks are experiencing a notable rally, with the Russell 2000 index up by over 5%, significantly outperforming the S&P 500, which is up by only 1.7% [1] - The rally is driven by expectations of market-beating results from these companies, which are trading at discounted valuations [1][2] - The Federal Reserve's anticipated monetary policy easing is further supporting the case for investing in penny and small-cap stocks [2] January Effect - The January effect is benefiting small-cap companies as investors are buying smaller stocks, particularly those that faced tax-loss selling in the previous quarter [3] - The Russell 2000 index has shown strong performance in January, suggesting potential continued strength into February [3] Fundamentals and Valuations - Fundamentals for small-cap companies are improving, with their 1-year price-to-earnings multiples being 30% lower than those of large-cap companies [4] - Small caps have shown earnings growth that slightly exceeded larger companies for the first time in thirteen quarters [4] Seasonal Trends - Historically, small caps perform better in midterm election years, averaging a 1.3% advance in February compared to the S&P 500's average of 0.3% [5] - Current seasonal patterns indicate a hawkish bias towards interest rates, favoring small-cap stocks [5] Investment Opportunities - The S&P SmallCap 600 index is already up by more than 5% for the year, indicating a favorable environment for investing in penny stocks trading under $5 [6] - A list of 14 NYSE penny stocks has been compiled based on popularity among hedge funds and potential upside of over 30% [8][9] Company Highlights - Nouveau Monde Graphite Inc. (NYSE:NMG): Current share price is $2.09 with an upside potential of 107.33%. The company has a net asset value of $919 million or $3.51 per share, factoring in a cash balance of $68.8 million and debt of $11.6 million [11][12]. It has signed a 7-year off-take agreement with the Canadian government for 30,000 tons per annum of graphite concentrate [13][14]. - Auna SA (NYSE:AUNA): Current share price is $4.76 with an upside potential of 53.36%. Analysts expect significant growth due to a $500 million expansion in Mexico and a strategic partnership with Sojitz [15][16][17]. The company operates a vertically integrated network of healthcare facilities in Latin America, focusing on high-complexity care [18].