Top penny stocks to watch in 2025
Penny stocks are highly volatile shares that can make or break an investment portfolio – if too much is invested in these low-value stocks. They’re easily accessible because they don’t cost a lot, but buyer beware: they bring great risk in addition to their potential for generous profits.
Important to know
This article is for informational purposes only and does not constitute investment advice. Please ensure you understand the risks and consider your individual circumstances before trading.
Key takeaways
- Penny stocks trade at $5 or less, making them accessible to stock traders who want to buy a lot of one company’s shares
- Their potential for high returns is great, but stock traders can just as easily lose their initial investment
- Penny stocks to watch right now include Viomi Technology, Check-Cap and Educational Dev Corp
What are penny stocks?
Penny stocks refer to companies with a stock price lower than US$5 per share. They can be a steal in the market – if you know which ones to watch out for. But that also means they’re inherently risky: volatile, often with lower liquidity. Because they’re thought of as high-risk, the returns or losses can be substantial.
Why trade penny stocks from the UAE?
Stock trading penny stocks from the UAE can be a profitable investment, especially if you do your research well and pick shares of companies that have a favourable outlook. However, as we mentioned, no matter how much research you conduct, there will always be an element of risk involved in stock trading.
In terms of CFD trading, the opposite of stock trading tends to be true – volatility, while risky, is where opportunities lie. In addition to this, there are a few other benefits:
- Trade in either direction. Because you can go long or short, it doesn’t matter which way a penny stock’s value turns – as long as you get the timing and direction right
- Don’t wait for the stock price to improve from pennies to see a return – you can open and close trades within minutes if you wish to
- Whether you’re interested in local or international stocks, you can take a position on over 12,000 shares with us
Advantages of penny stocks
The advantages of trading penny stocks are:
- Diversification: Because they’re high-risk, stock traders can allocate a small portion of their investment portfolio to penny stocks with the hopes of receiving high returns
- High potential for profit: Because they’re often undervalued, penny stocks have the ability to return extraordinary gains. However, they can just as easily lead to great losses. This is true of stock trading and CFD trading
- Small capital: Due to the low share price, you don’t need a massive outlay to start trading penny stocks
- Potential for growth: Penny stocks can grow into mid-sized stocks, effectively increasing their value
Risks of penny stocks
Just as there are pros to trading penny stocks, so are there disadvantages, too. Let’s look at them:
- Illiquid: Penny stocks are easily bought, but not so easily sold. This makes them risky if you want to sell before you lose money
- Potential for bankruptcy: Companies that own penny stocks are more likely to declare bankruptcy. If you trade stocks close to the time of a company going under, you’re more likely to lose your investment
- Prone to pump-and-dump schemes: Pump-and-dump schemes happen when a low-value stock is hyped up artificially, luring traders to buy shares. The shares are then sold when they’re overpriced and the traders being scammed lose their investments
Top 5 penny stocks to watch in 2025
The penny stocks we’ve selected were chosen for their positive current and future outlooks. All figures are accurate as of 16 September 2025.
All are worth US$5 or less.
Overview of the penny stocks in this article
These stocks are all available to trade via CFDs and to buy outright by stock trading through us.
Company |
Industry |
Market cap |
Share price (16 September 2025) |
Stock price gains over six months |
Available for CFD trading with us |
Available for stock trading with us |
Real estate |
US$250.16 million |
US$2.82 |
48.42% |
✓ |
✓ |
|
Technology |
US$229.91 million |
US$3.37 |
64.39% |
✓ |
✓ |
|
Non-energy minerals |
C$1.58 billion |
US$3.59 |
49.58% |
✓ |
✓ |
|
Health technology |
US$14.74 million |
US$2.52 |
183.21% |
✓ |
✓ |
|
Consumer services |
US$12.79 million |
US$1.51 |
17.90% |
✓ |
✓ |
1. Douglas Elliman Inc (NYSE: DOUG)
Industry: Real estate
Market cap: US$250.16 million1
Stock price: US$2.82
Douglas Elliman is a real estate consulting, brokerage services and property management company located in the US.
Its business model relies on commission-based revenue from completed real estate transactions, and it has established itself as a premium brand in the luxury real estate segment. The company’s services extend beyond traditional brokerage to include marketing, market analysis and client advisory services, resulting in full-service real estate solutions.
In May 2025, the company launched Elliman International, extending its services to key global markets.
Douglas Elliman is focusing on reinforcing its leadership in the luxury real estate market while implementing cost-reduction measures to improve profitability. Management has indicated plans to invest in technology and agent support systems to enhance service delivery and operational efficiency.
Highlights:
- Its stock price grew 48.42% over the past six months, topping out at US$3.04 on 29 July 2025
- The company reported an 8% increase in revenue growth year-over-year (YoY) for the six months ended 30 June 20252
- It holds a strong balance sheet, with cash and cash equivalents of US$136.3 million for the same period3
2. Viomi Technology Co Limited (NASDAQ: VIOT)
Industry: Technology (Internet of Things)
Market cap: US$229.91 million4
Stock price: US$3.37
Based in Guangzhou, China, Viomi Technology trades on the Nasdaq. It’s a smart home tech company focusing on the Internet of Things (IoT).
According to U.S. News,5 experts believe that Chinese homes are converting to smart households faster than those in the US. The theory goes that China, among developing nations, is building new houses already equipped with smart home tech, whereas the US is still in a transition phase.
In the UAE, smart homes are growing at a phenomenal pace, with the technology becoming a regular standard of living rather than a luxury. Some estimates state that up to 40% of new Dubai villas have smart technology in them.6
Highlights:
- The stock price has soared 64.39% over the past six months, with its highest value being US$3.79 on 13 and 15 August 2025
- Its price-to-earnings (P/E) ratio is 26.47.7 This can signal a couple things – that the company is overvalued, or that it’s going to experience significant growth
3. Taseko Mines Limited (TSX: TKO)
Industry: Non-energy minerals
Market cap: C$1.58 billion8
Stock price: US$3.59
Based in Vancouver, Canada, Taseko Mines is a mid-tier copper producer. It's most well-known for its Gibraltar Mine in British Columbia – the country’s second-biggest open-pit copper mine.
Good to know: Copper is a critical metal for electrical infrastructure, renewable energy systems and EV manufacturing.
The company also has interests in other mineral projects and has historically been involved in molybdenum production as a byproduct of copper mining.
The company's business model is tied to copper prices, which have seen increased demand due to global electrification trends and renewable energy infrastructure development.
Highlights:
- Its stock price is up 49.58% over the past six months
- Net income was C$21.9 million in its latest earnings report9
4. Check-Cap Limited (NASDAQ: CHEK)
Industry: Health technology
Market cap: US$14.74 million10
Stock price: US$2.52
Primarily operating in the colorectal cancer field, Check-Cap produces ingestible imaging capsules for screening purposes. It’s headquartered in Israel but trades on the Nasdaq, among other exchanges.
It has a patented technology, known as C-Scan, which aims to find polyps before they turn cancerous.
The system consists of an ingestible capsule that patients swallow, which then travels through the digestive system while capturing images and data.
Check-Cap's business model involves developing its technology through clinical trials, obtaining regulatory approvals and commercialising the system through partnerships with healthcare providers and payers.
Highlights:
- Over the past six months, its stock price has rocketed 183.21%
5. Educational Development Corporation (NASDAQ: EDUC)
Industry: Consumer services – children’s books
Market cap: US$12.79 million11
Stock price: US$1.51
Educational Dev Corp operates as a publishing company specialising in children's educational books and materials. The company publishes and distributes the Usborne Books series in the US, which includes a wide range of educational content for children from infancy through young adult years.
Its business model combines traditional retail distribution through bookstores and educational institutions with direct-to-consumer sales via independent consultants and online channels.
The company's product portfolio includes fiction and non-fiction books, activity books, reference materials and educational games designed to support childhood development and learning.
Highlights:
- The smallest gainer on our list, the company has still seen an impressive 17.90% increase in its share price over the past six months
- We chose this stock particularly for its recent volatility, which creates ample opportunities for CFD traders in particular to find entry and exit points
How to trade penny stocks with IG UAE
CFDs
- Open a CFD trading account with IG UAE
- Search for penny stocks on the IG platform
- Decide whether to go long (buy) or short (sell)
- Choose your position size
- Set stop-loss and limit orders
- Place your trade and monitor it
Stock trading
- Open a stock trading account with IG UAE
- Search for penny stocks
- Choose the stock you want to buy
- Determine how many stocks you want to purchase
- Place your order
- Monitor your investment
FAQs about penny stocks
What are undervalued stocks?
Undervalued stocks are those that trade below their perceived or calculated intrinsic value. In other words, the stock is worth more than what stock traders pay for it.
Penny stocks are sometimes, but not always, undervalued.
What are the most volatile stocks in the UAE?
Penny stocks are frequently the most volatile shares in the UAE – including some of the ones we listed in this article, such as Phoenix Group.
What are multibagger stocks?
Multibagger stocks are those that provide significant returns on a stock trader’s investment. For example, an 8-bagger stock provides eight times the return.
They’re often associated with penny stocks, which have the ability to soar in value.
How do I stock trade penny stocks online?
To trade penny stocks online, find a reputable broker who offers penny stocks on their platform.
Footnotes
- TradingView, September 2025
- Douglas Elliman, July 2025
- Douglas Elliman, July 2025
- TradingView, September 2025
- U.S. News, August 2025
- Betterhomes, July 2025
- TradingView, September 2025
- TradingView, September 2025
- Taseko Mining, August 2025
- TradingView, September 2025
- TradingView, September 2025
Important to know
This information has been prepared by IG Limited (DFSA reference No. F001780). It is intended for general information purposes only and does not take into account your personal objectives, financial situation or needs. It should not be regarded as investment advice or a recommendation. Trading CFDs carries a high level of risk and professional clients can lose more then they deposit. Please ensure you fully understand the risks involved and seek independent advice if necessary. All information is accurate at the time of publication and may be subject to change.
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