Top 5 U.S. Penny Stocks August 2025 – Explosive Winners This Month

Why August 2025 Was a Huge Month for Penny Stocks

Every month, some stocks make headlines in the stock market, and August 2025 was one of those months when penny stocks gave the biggest surprise to investors. Penny stocks, which usually trade at a price of $5, are known for high risk and high returns.

This month, some penny stocks gave gains ranging from 100% to 490%. If one had invested on time, the portfolio could have grown manifold in a short period of time.

In today’s blog, we will look at the top 5 US penny stocks of August 2025, the reasons behind them, risk factors, and their lessons for you.

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What Exactly Are Penny Stocks?

Penny stocks are simple – stocks that trade at less than $5 per share. These are usually small-cap or micro-cap companies that have weak financials but could become multi-baggers if the company grows.

But one thing is clear – penny stocks are highly volatile. For example, a 40-50% fluctuation in a single day is possible.

That’s why penny stocks are considered a speculative bet, not a long-term safe investment.

Top 5 U.S. Penny Stocks August 2025

1. Aureus Greenway Holdings Inc. (AGH):

• Monthly gain: ~382.6% (early August), peak of ~490% by mid-August
• Price range as of mid-August: $3.62–$3.83
• Key events: IPO lock-up expiration (August 12), NASDAQ compliance regained (August 7)

AGH surprised everyone in August. After the IPO lock-up expiration, insiders started selling shares and the stock saw a massive drop. Usually, insider selling is negative news, but here the price skyrocketed due to heavy retail demand and speculation.

The company reported a loss in the second quarter (net loss increased by 318.6% and revenue fell by 7.1%). Still, the stock gained nearly 490%, showing that in penny stocks, hype and liquidity sometimes play a more important role than fundamentals.

2. Connexa Sports Technologies Inc. (YYAI):

• Monthly Gain: ~309.2%
• Industry: Sports Tech

YYAI is a small company that operates in the sports technology sector. Its shares rose more than 300% in August. Speculation and retail purchases were the main reasons for this.

The sports industry is futuristic and AI-based sports solutions are very popular, which is why YYAI became the “favorite of the month”.

3. Health In Tech Inc. (HIT):

• Monthly Gain: ~191.6%
• Industry: Healthcare Technology

HIT is a healthcare tech company whose shares jumped nearly 192% in August. The healthcare sector always attracts investors because there is always a demand for it.

Investors felt that HIT solutions could be profitable in the long term, and this optimism fueled the short-term rally.

4. Durect Corp. (DRRX):

• Monthly Profit: ~176.7%
• Sector: Biopharma

Biopharma stocks are always volatile, as their results depend on trials and FDA approvals. DRRX rose nearly 177% in August, which proved to be a big hit for biotech penny stock investors.

Such rallies are common in the biotech sector, but they tend to not last long.

5. Safety Shot Inc. (SHOT):

• Monthly Gain: ~164.8%
• Sector: Wellness / Functional Beverages

Shot is a unique company that makes “Safety Shot” beverages. Its shares rose by nearly 165% in August 2025, mainly due to promotions and retail demand.

Functional beverages and health-based beverages are quite trendy in the US market, so Shot attracted the attention of investors.

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Why Did These Stocks Rally in August 2025?

1. Event-driven catalysts – AGH’s IPO lock-up expiration and Nasdaq compliance news.
2. Sector movement – Healthcare and biopharma stocks (HIT, DRRX) did well due to sector strength.
3. Speculative buying – YYAI and SHOT prices went up due to retail hype and online forums.
4. Retail excitement – FOMO (fear of missing out) is a big factor in stocks.

The Risks of Penny Stock Investing

Penny stocks have a high profit potential, but also a high risk. Some of the major risks:

• High volatility: Prices can move 40-60% in a single day.
• Low liquidity: Buyer-seller imbalances are possible.
• Weak fundamentals: Many stocks are in the red (AGH Q2 example).
• Pump and dump schemes: Retail hype creates false bullishness.

Therefore, risk management, stop-loss and diversification are always important in penny stocks.

Should You Buy Penny Stocks?

If you are a short-term trader and know how to time the market and handle volatility, penny stocks can provide opportunities for you.

But if you are a long-term investor who prefers stability, penny stocks can be risky. You should keep them only a small part of your portfolio, that too for speculation.

August 2025 Highlights

• AGH gave the highest returns of up to 490%.
• YYAI and SHOT became the favorites of retail investors.
• Healthcare and Biotech (HIT, DRRX) made huge gains.
• Penny stocks are speculative in nature, so profit is not possible without risk.

Some other stocks are also performing very well

Bitfarms Ltd. (BITF) – Strong Breakout Player in Crypto Mining

Bitfarms is a bitcoin mining company that performs sustainable mining primarily using hydroelectric power. In July 2025, the stock showed a double-bottom bullish pattern breakout and closed above $1.19, which is a strong technical signal. If this momentum continues, BITF’s short-term target could reach $1.48 and the extended target could reach $2.02.

This stock is interesting for investors who want to invest in the crypto and blockchain sector. But the risk is also high as the crypto market is quite volatile, so it is important to understand your risk appetite before investing in BITF.

Douglas Elliman Inc. (DOUG) – Technical Setup of a Real Estate Penny Stock

Douglas Elliman is a real estate services company that operates in the residential brokerage and property management sectors. DOUG’s chart was in a head-and-shoulders bottom pattern in late July, and it also attempted a bullish breakout. According to analysts, if the stock sustains above the $3.20 level, it could be a solid bullish signal.

The US housing market is in a correction phase until 2025, and if mortgage rates remain somewhat stable, DOUG will benefit directly from it. This stock could be a good technical bet for short-term traders, but the real estate cycle risks need to be kept in mind.

Data Storage Corporation (DST) – Momentum After Falling Wedge Breakout

DTST is a cloud storage and disaster recovery solutions provider. In July 2025, this stock broke out of a falling wedge pattern and reclaimed its 20- and 50-week moving averages. Subsequently, the stock broke the long-term downtrend, which is a major bullish signal. Based on the chart, DTST’s short-term price target could be $5.27 and the extended target could be $8.00.

The cloud and data storage sector in the US is constantly growing and the demand is also increasing, which is a positive for DTST. The risk is that penny stocks may have liquidity issues, so investors should plan their entry-exit carefully.

Neuronetics, Inc. (STIM) – An Undervalued Player in the Healthcare Sector

Neuronetics is a medical technology company that primarily provides transcranial magnetic stimulation (TMS) therapy for the treatment of depression. STIM’s chart saw a bullish wedge breakout in the last week of July and the stock reclaimed its 20-week moving average. Its short-term target is forming around $5.92 after this breakout.

The healthcare sector has become a safe bet for investors in 2025, especially for innovative therapies like TMS. If STIM expands its clinical use, the long-term growth potential is strong. But risk factors such as FDA approval and adoption rate in healthcare cannot be ignored.

Lexicon Pharmaceuticals (LXRX) – Analysts’ favourite with 322% potential upside

Lexicon Pharmaceuticals is a biopharmaceutical company that develops innovative therapies. Recent analyst reports, most notably those from Citigroup, have given LXRX a ‘buy’ rating and a 322% upside potential to its target price. This optimism is mainly because the company’s diabetes and heart failure drug sotagliflozin has shown good trial results (based on the EMPERO-PREVENTED trial).

If the upcoming FDA submission is successful, LXRX stock has the potential to become a multi-bagger. Being a penny stock, volatility will be high, but the analyst community is still quite bullish. This is a stock that can fit into a high-risk, high-reward portfolio.

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Final Thoughts

August 2025 was a reminder that penny stocks can change portfolios at any time. Stocks like Aureus Greenway Holdings (AGH) and Conexa Sports Tech (YYAI) showed that 3x-5x returns are possible in a single month.

But at the same time, the volatility and weak fundamentals of these stocks serve as a warning – the potential for profits is high, but losses can also be high.

If you want to invest in penny stocks, you should always proceed with research, discipline, and risk management.

Disclaimer:

This post is for educational purposes only. Penny stocks are risky and investing in them can lead to losses. Before making an investment decision, do your own research (DYOR) and consult a financial advisor. The author/website is not responsible for any of your profits or losses.