Why KULR Technology Group, Inc. (KULR) Could Be Your Top Pick for a Multibagger Penny Stock Right Now!

We’ve put together a list of the 12 Best Multibagger Penny Stocks to Buy Now. In this article, we will explore how KULR Technology Group, Inc. (NYSE:KULR) compares to the other stocks on this list.

Investors are bracing for a rocky week. A trade conflict is brewing as President Trump recently imposed tariffs on imports from major trading partners, including Mexico, China, and Canada. Tariffs of 25% on goods from Mexico and Canada and 10% on Chinese imports are now in effect. This move is meant to address trade concerns but could lead to market instability.

The stock market didn’t take the news well. After the announcement, major indexes dropped sharply. The S&P 500 fell 0.5%, and the Dow saw a decline of 0.75%. The Nasdaq also took a hit, down 0.28%.

Analyst Jeremy Siegel noted that tariffs add uncertainty, creating challenges for the market. He pointed out that they could push prices up for consumers and disrupt supply chains, further stirring market volatility.

Experts like Christopher DiPrimio from BlackRock highlight that small-cap stocks typically underperform during uncertain times. The Russell 2000 index struggled more than larger indexes following the tariff news, reflecting this trend.

Generally, small-cap companies rely more on domestic revenue, which can put them in a better position during external shocks. Their potential for growth makes them appealing to investors, especially now when their valuations look promising. Small-cap stocks are trading with price/earnings (P/E) ratios a bit above 16.7, yet still over 30% lower than large-cap stocks.

According to Geoff Dailey of BNP Paribas, the outlook for U.S. small-cap stocks is brighter than it has been in years. Factors contributing to this include a favorable interest rate environment, attractive valuations, an increase in reshoring, and expected merger activity.

Moreover, corporate earnings within the Russell 2000 have been surprisingly strong, with 58.6% of companies reporting better-than-expected results for the last quarter. As we look ahead to 2025, the expected uptick in mergers and acquisitions in the small-cap sector could create compelling investment opportunities.

Our Approach

To curate our list, we used a stock screener to find penny stocks under $5 that have increased in value by at least 100% over the past year. We ranked the selected stocks based on their performance.

At Insider Monkey, we focus on the stocks that hedge funds are investing in. Research shows that tracking the top picks of successful hedge funds can lead to better market performance. Our investment strategy has seen significant returns since its inception.

A machinist examining a precision component for aerospace and defense applications.

Stock Performance Over Last Year: 1,165.63%

Number of Hedge Fund Holders: 1

Share Price as of February 5: $2.02

KULR Technology Group, Inc. (NYSE:KULR) specializes in advanced energy management for various sectors like aerospace and consumer electronics. Their focus includes energy storage and thermal management systems.

Recently, KULR partnered with EDOM Technology to enhance its presence in Taiwan’s AI supply chain. This move will expand their innovative product offerings. The company has also secured key partnerships for cooling solutions in data centers.

KULR’s strong push into AI infrastructure cooling, alongside its solid cash management, has drawn investor interest. As demand for cooling solutions rises in the data center space, KULR is well-positioned to benefit.

KULR ranks 1st among our top multibagger penny stocks to consider now. While KULR shows promise, stocks in the AI sector might offer even greater potential for quick returns. If you’re interested in a strong AI stock trading at an appealing valuation, check out our findings on the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.

Disclosure: None. This article was originally published at Insider Monkey.