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These 5 Penny Stocks Just Surged Double Digits

penny stocks surge graphic

Key Points

  • Penny stocks and meme stocks are back in the spotlight, with GME and AMC rising triple digits in days.
  • The stocks on this list qualify as meme stocks, surging double-digits in days, and some could keep rising.
  • High short interest plays a role in the stock price increases but is not the only to drive these markets. 
  • 5 stocks we like better than Faraday Future Intelligent Electric.

Meme stocks are back in focus, with Gamestop NYSE: GME and AMC Entertainment NYSE: AMC gaining triple digits in hours. The next great meme trade could be around the corner, and the stocks on this list could be the winners. They all surged by double digits, driven by catalysts with more meat than a picture posted on X. The caveat for investors is that these highly speculative stocks come with significant risks that could lead to losses for the unwary and gains for short-sellers. 

Faraday Future Intelligent Electric Inc. - Short Squeeze In-play

Faraday Future Intelligent Electric Today

Faraday Future Intelligent Electric Inc. stock logo
FFIEFFIE 90-day performance
Faraday Future Intelligent Electric
$1.15 -0.01 (-0.86%)
(As of 11:22 AM ET)
52-Week Range
$0.99
$156.00
Faraday Future Intelligent Electric NASDAQ: FFIE is up more than 100% on the day and quadruple digits since the rally began. The rally is driven by nothing more than short-covering due to a lack of other news. The company is involved with the EV market but has no product to speak of and a very high short interest in play. 

The short interest is likely down since the last report but incredibly high then, nearly 100%, and the short sellers may be using this rally to reposition. The rally will eventually run out of steam because no meat is on this bone. Surprisingly, institutional ownership is high and includes names like Palantir Technologies NYSE: PLTR, but investors should expect the group to lean toward sales with elevated share prices. No analysts rate this stock. 

AEye Rises 200% After Results and Outlook

AEye Today

AEye, Inc. stock logo
LIDRLIDR 90-day performance
AEye
$1.12 +0.02 (+1.82%)
(As of 11:14 AM ET)
52-Week Range
$0.78
$5.15
AEye NASDAQ: LIDR is a LIDR-focused robotics and autonomous vehicle company with rising shares. The company issued a favorable earnings report that validated its business, catalyzing the rally. The results were weak, but a new partnership opened the Chinese market, paving the way toward sustained revenue and profitability. Short interest is not a factor in the rally; short interest was less than 4% on April 30th. 

No analysts rate LIDR stock; few institutions own it, but the names on the list are telling. Among the top holders are Intel NASDAQ: INTC and General Motors NYSE: GM, which hold more than 10%. The price action post-release is favorable. The stock is up in a series of moves that align with a market reversal and sustained rally. The move is driven by high volume and may continue rising, although resistance is evident near $4. 

Petco Health and Wellness Company Rises to the Occasion

Petco Health and Wellness Today

Petco Health and Wellness Company, Inc. stock logo
WOOFWOOF 90-day performance
Petco Health and Wellness
$3.79 -0.17 (-4.29%)
(As of 11:22 AM ET)
52-Week Range
$1.41
$6.29
Price Target
$4.25
Petco Health and Wellness Company NASDAQ: WOOF rose to the occasion, gaining 50% in days, due primarily to short-covering. The short interest is not as high as FFIE but still high at 20%, sufficient to fuel a squeeze. The question is whether the market can get above critical resistance at the $2.60 level, which looks unlikely. The analysts' consensus is above that level but falling compared to last year, last quarter, and last month, led lower by revisions. The recent revisions put this stock trading below $2, and they may be optimistic. Petco operates in a healthy market but faces intense competition from larger players like Chewy NYSE: CHWY, which is diversifying and gaining market share in its sector

iPower is a Small but Powerful eCommerce Retailer

iPower Today

iPower Inc. stock logo
IPWIPW 90-day performance
iPower
$0.83 -0.02 (-2.69%)
(As of 11:16 AM ET)
52-Week Range
$0.40
$3.65
Price Target
$2.75
iPower NYSE: IPW is a small eCommerce retailer with quarterly revenue below $25 million, but it is a powerful operator in its space. It provides gardening and growing light equipment for homes and businesses. The latest results include 15% top-line growth and a return to profitability that is expected to persist. Short interest is not a factor in this rally, but an analyst is. Roth MKM is the only analyst rating the stock tracked by Marketbeat. It rates this stock as a Buy and sees it trading near fair value at current levels, a potential cap for the market. 

Canaan Sells Spare Parts to the Bitcoin Mining World

Canaan Today

Canaan Inc. stock logo
CANCAN 90-day performance
Canaan
$2.02 -0.30 (-12.93%)
(As of 11:22 AM ET)
52-Week Range
$0.72
$3.50
Price Target
$3.00
Canaan NASDAQ: CAN is surging on news its CEO and CFO would buy at least $2 million worth of their US-listed ADS. Each ADS is worth 15 class A shares and is a significant vote of confidence in the business. Rising Bitcoin prices support business and now, AI, which relies heavily on similar equipment. Short interest and short-covering are factors in this rally; results aren’t. The short interest rate was over 11% at the end of April; the company did not make money. However, analysts rate it as a Buy and see it increasing by 200% at the low end of the range so the rally could continue.

Should you invest $1,000 in Faraday Future Intelligent Electric right now?

Before you consider Faraday Future Intelligent Electric, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Faraday Future Intelligent Electric wasn't on the list.

While Faraday Future Intelligent Electric currently has a "Hold" rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

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Thomas Hughes
About The Author

Thomas Hughes

Contributing Author

Technical and Fundamental Analysis

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Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
General Motors (GM)
4.6438 of 5 stars
$51.88+0.1%0.93%5.53Hold$58.70
Chewy (CHWY)
3.7246 of 5 stars
$34.29+1.7%N/A37.68Moderate Buy$34.60
Intel (INTC)
4.7143 of 5 stars
$20.03+2.6%2.50%-5.38Reduce$30.04
Canaan (CAN)
2.3468 of 5 stars
$2.02-12.9%N/A-1.50Moderate Buy$3.00
iPower (IPW)
1.7218 of 5 stars
$0.83-2.7%85.52%-11.93Buy$2.75
Petco Health and Wellness (WOOF)
1.9472 of 5 stars
$3.79-4.3%N/A-9.48Hold$4.25
AEye (LIDR)
0.6228 of 5 stars
$1.12+1.8%N/A-0.14HoldN/A
Faraday Future Intelligent Electric (FFIE)
0.5207 of 5 stars
$1.15-0.9%N/AN/AN/AN/A
Compare These Stocks  Add These Stocks to My Watchlist 


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