Hedge funds often do not invest in penny stocks. This is due to the dangers of investing in companies with shaky fundamentals. The 1-year trailing total return of the Invesco S&P SmallCap Info Tech ETF is over 67 percent. Over the last year, the S&P 500 has outpaced the Russell 1000 Index by more than 30 percentage points. Apple Inc., Tesla, Tesla, and NVIDIA Corporation are some of the top high-growth companies right now.
Here is Insider Monkey’s list of the 11 best penny stocks to buy according to hedge funds. eMagin Corporation is ranked eleventh. The US Department of Defense has awarded the company a $33 million contract for the signature microdisplays it manufactures and sells. During the three-year deal, the company aims to increase its employment by 10%. Ideanomics, Inc. is rated tenth. The company announced a 606 percent year-over-year rise in revenue in the second quarter, beating market estimates by almost $2 million. In the second quarter, Exela Technologies, Inc. outperformed the market in terms of earnings per share. Following its success in the North American and Indian markets, Dry Sign, an electronic signature system, was recently launched in the United Kingdom. The stock of Outlook Therapeutics, Inc. has returned almost 150 percent to investors in the last year. In June of this year, the company joined the Russell 2000 Index. On August 3, after promising results from a wet AMD bevacizumab study, shares jumped over 30%. The FDA recently granted Fast Track status to a medication developed by Eloxx Pharmaceuticals, Inc. to treat cystic fibrosis patients. The medication is currently through Phase 2 studies. Roche Holding, a Swiss pharmaceutical conglomerate, owns a 5% investment in the company. Trivago N.V.’s stock has increased by 79 percent in the last year. The hotel and accommodation search tool generated most of the company’s €95 million in sales in the second quarter of 2021. For more details, click 11 Best Penny Stocks To Buy According To Hedge Funds.
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