Is Tilray Brands Inc. (NASDAQ:TLRY) the Best Penny Stock to Invest in Under $1?

We recently published a list of the 11 Best Penny Stocks to Invest in Under $1. In this article, we are going to take a look at where Tilray Brands Inc. (NASDAQ:TLRY) stands against other penny stocks to invest in under $1.

Earlier on February 12 this year, Chief Investment Officer at Cetera Financial Group, Gene Goldman, discussed how he thinks small-caps are a good investment. Goldman thinks that the Fed is now a friend to the market instead of a foe, even if not the best of friends. This stance came from the anticipation that although the Fed might not lower rates this year, they’re not expected to raise them either. The Fed had projected four rate cuts in September last year, but this was later lowered to two in December. Goldman now thinks that market expectations now suggest just a zero to one rate cut in 2025, and the end-of-year interest rates are likely to be around 4%. According to him, higher inflation and the uncertainty because of tariffs are what’s causing the Fed’s cautious approach.

In this conversation, Goldman highlighted the healthcare sector with its advancements in biotech, personalized medicine, and health solutions. He also addressed concerns about AI investments and acknowledged that while AI has faced challenges this year, especially within the MAG7, AI’s long-term potential remains intact. This is especially fueled by the ongoing data revolution. Goldman recently started using an acronym for his new investment strategy, called SHAQ, to support 4 sectors — Small Caps, Healthcare, AI, and Quality investments. Goldman is enthusiastic about small caps due to their cheap valuations and improved business sentiment. Goldman thinks that small caps remain attractive even without rate reductions because of their valuation, although, of course, they could benefit from rate cuts as well. Goldman thinks that quality investments are crucial in this investment strategy as well.

Our Methodology

We used the Finviz stock screener to compile a list of the top penny stocks that were trading below $1 as of April 10. We then selected the 11 stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q4 2024. The hedge fund data was sourced from Insider Monkey’s database which tracks the moves of over 900 elite money managers.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

Tilray Brands Inc. (NASDAQ:TLRY)

Share Price as of April 10: $0.53

Number of Hedge Fund Holders: 19

Tilray Brands Inc. (NASDAQ:TLRY) researches, cultivates, processes, and distributes medical cannabis products internationally. It has four segments: Beverage Alcohol, Cannabis, Distribution, and Wellness. It’s essentially a lifestyle consumer products company that offers medical and adult-use cannabis, pharmaceutical & wellness products, beverage alcohol, hemp-based food, and other wellness products.

In FQ3 2025, the company’s cannabis segment generated $57 million in net revenue which was accompanied by an increase in gross margin. It reached 41%, which is the highest it’s been in nearly two years. This was fueled by growth in international markets and a focus on higher-margin products in the Canadian adult-use market.

The international and Canadian medical operations in the global medical cannabis business account for about 80% of the company’s total cannabis profits, even though it represents only ~35% of total cannabis sales. In Canada, Tilray Brands Inc. (NASDAQ:TLRY) is the largest legal cannabis business by revenue. The company holds the number one market share in several categories, such as beverages, chocolate edibles, oils, capsules, and straight-edge pre-rolls.

Overall, TLRY ranks 3rd on our list of the best penny stocks to invest in under $1. While we acknowledge the growth potential of TLRY, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than TLRY but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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