What penny stocks to buy in 2026

Screening Filters & Rationale

1. Market Capitalization: $200M–$2B

   • Purpose: Focus on smaller, still “penny-like” companies that are large enough to have meaningful operations and institutional interest.
   • Rationale: This range avoids the riskiest micro-caps while still targeting companies with higher growth potential typical of smaller firms.

2. Share Price: $0.25–$5

   • Purpose: Identify low-priced stocks that fit a common definition of penny stocks for 2026 opportunities.
   • Rationale: This keeps the universe in the “penny” range while avoiding ultra-low prices often associated with severe distress or manipulation.

3. Weekly Average Turnover: ≥ $2,000,000

   • Purpose: Ensure sufficient trading liquidity so positions can be entered and exited more easily.
   • Rationale: Higher turnover reduces transaction slippage and the risk of being stuck in illiquid names common in penny stocks.

4. Moving Average Relationship: PriceAboveMA20

   • Purpose: Filter for stocks currently in short-term uptrends rather than those declining or stagnating.
   • Rationale: Price trading above the 20-day moving average suggests positive recent momentum, which can be useful for timing entries in 2026.

5. Annual Revenue YoY Growth: ≥ 10%

   • Purpose: Focus on penny stocks with tangible, growing businesses rather than purely speculative stories.
   • Rationale: Requiring at least 10% year-over-year revenue growth aligns with seeking companies that are expanding and potentially improving fundamentals.