Top Stocks to Watch in February 2025

My top stocks to watch in February 2025 have the kind of volatility that smart traders target. Every day, week, and month I survey the entire market, looking for stocks that are trending in one direction or another. Our job is to identify the stocks that have the potential to make moves and be ready to trade them if those opportunities come about.

7 Top Stocks To Watch

My top stock watchlist picks for February 2025 — based on pattern, price action, and catalyst — include the following:

Stock Ticker	Company	Performance (YTD)
NASDAQ: ACB	Aurora Cannabis Inc	+ 46.67%
NASDAQ: CGC	Canopy Growth Corp	– 31.36%
NYSE: BBAI	BigBear.ai Holdings Inc	+ 114.84%
NASDAQ: RGTI	Rigetti Computing Inc	– 36.75%
NASDAQ: PLTR	Palantir Technologies Inc	+ 53.20%
NASDAQ: RCAT	Red Cat Holdings Inc	– 9.14%
NYSE: HIMS	Hims & Hers Health Inc	+ 75.75%

The penny stocks on this list are some of the craziest movers on the market …

Only trade these stocks if you have a solid plan and an understanding of the risks involved. I don’t trade until I see a setup I like.

Jump ahead to get to my trading plans for these top penny stocks!

Top Stocks to Watch Today

My top 7 stock picks are:

• NASDAQ: ACB — Aurora Cannabis Inc — The Cannabis Penny Stock That Nailed Earnings
• NASDAQ: CGC — Canopy Growth Corp — The Aurora Sympathy Play
• NYSE: BBAI — BigBear.ai Holdings Inc — The AI Penny Stock That Signed a Government Contract
• NASDAQ: RGTI — Rigetti Computing Inc — The New Quantum Computing Sector Leader
• NASDAQ: PLTR — Palantir Technologies Inc — The Hottest Stock in the World
• NASDAQ: RCAT — Red Cat Holdings Inc — The Palantir Sympathy Play Drone Stock
• NYSE: HIMS — Hims & Hers Health Inc — The Men’s Health Stock That Even Jim Cramer Knows Is a Squeeze

I try to focus on the momentum that I can see with my eyes. I’m not going to speculate on future moves.

The key is to approach every day the same. Be prepared to capitalize on volatility.

I let the trades come to me.

That’s why I’m not holding any long-term positions in these tickers.

I’m just watching these stocks. And this is one of many watchlists I maintain…

Sign up here to get my weekly watchlist each Sunday!

There’s no guarantee that any of my watchlist picks will be tradeable. But if something happens, smart traders should be ready.

We only want to trade the best setups. Here they are … 

Aurora Cannabis Inc (NASDAQ: ACB) — The Cannabis Penny Stock That Nailed Earnings

My first stock pick is Aurora Cannabis Inc (NASDAQ: ACB).

This weed stock has a history of running.

That’s key when we’re looking at possible trades from volatile stock spikes. Past spikers can spike again.

In September 2023 the price spiked 140%*.

And between March and April of 2024, the price spiked 220%*.

This year, on February 5, the company announced Q3 financial numbers that showed 37% revenue growth, year over year.

You can see on the chart below when the news came out. Every candle represents one trading minute:

The chart is still holding onto its gains. That’s a sign that it could push higher.

Make sure to identify key areas of support and resistance to ensure smart entry on this runner!

It’s not enough to just find the right stock. We also have to trade it.

Use StocksToTrade’s Oracle tool to pinpoint the biggest areas of supporting price action. That’s where we want to buy shares and wait for a price surge.

Canopy Growth Corp (NASDAQ: CGC) — The Aurora Sympathy Play

My second stock pick is Canopy Growth Corp (NASDAQ: CGC).

This stock is a really good example of obvious sector momentum in the market … 

• ACB announced bullish earnings on February 5.
• CGC started to spike on February 5 but didn’t announce earnings until February 7.

We see sector momentum a lot in the market.

And it can offer great opportunities to profit. But I have to add a word of caution … 

CGC started to spike in anticipation of its own earnings data alongside ACB. The price ran 40% before the data was actually announced.

But after the market learned the data, the stock crashed and gave back all of its gains.

We have to follow popular trading rules to keep your account safe.

The rule that traders should have employed in this situation goes, “buy the rumor, sell the news”.

It means that we can trade the volatility before and after a publicized event (like an earnings announcement) but we don’t want to hold shares through the event.

No one knows what will happen after the event comes to pass.

There are a lot of things that new traders need to know before they can trade with any degree of safety. “Buy the rumor, sell the news” is just one example.

This isn’t your grandfather’s stock market. We’re seeing low-priced stocks make +100% price swings intraday!

Join the next LIVE training session to prepare.

Trading without a full grasp of the market ensures that you fall into the same market traps over and over again. Make smart decisions for your account!

BigBear.ai Holdings Inc (NYSE: BBAI) — The AI Penny Stock That Signed a Government Contract

My third stock pick is BigBear.ai Holdings Inc (NYSE: BBAI).

This penny stock is on a HUGE breakout past its 52-week highs.

The price was already hovering near the highs on February 4, when it announced that it won a Department of Defense contract to prototype an adversary geopolitical risk analysis for the Chief Digital and Artificial Intelligence Office (CDAO).

On the chart below I circled the day that BBAI announced the news and pushed to new 52-week highs. Every candle represents one trading day:

Government contracts are big catalysts for penny stocks.

Plus, it’s an AI contract.

Check out my full AI Penny Stock Watchlist here!

Double plus, the price is trading above 52-week highs now.

The 52-week highs are important because we theorize that anyone who bought shares above the current price level is a bag holder, unless they bought shares before the 52-week highs.

A lot of people go through their portfolios at least once a year and get rid of any significant losing positions, hence the 52-week cut off.

BBAI is spiking higher with an AI government contract and there’s a much lower chance of selling pressure because most bag holders are gone by now.

Rigetti Computing Inc (NASDAQ: RGTI) — The New Quantum Computing Sector Leader

My fourth stock pick is Rigetti Computing Inc (NASDAQ: RGTI).

This is a quantum stock that plunged in early January.

The selloff on quantum computing stocks came in response to Jensen Huang’s comments about the sector from January 8.

The NVDA CEO mentioned that the market is still years away from true quantum computers. And the sector took it as a massive gut punch.

But among all the quantum computing stocks, RGTI managed to bounce the most. Which means it’s my favorite from the sector right now.

Check out my full Quantum Computing Penny Stock Watchlist here!

Take a look at the chart below. Every candle represents one trading day:

There’s resistance around $20 from early January. This stock could easily retest those highs.

It could also fall lower. Nothing is a guarantee in the market.

But either way, there are trading opportunities thanks to the volatility. I’m waiting for another big day of price swings from this stock.

Palantir Technologies Inc (NASDAQ: PLTR) — The Hottest Stock in the World

My fifth stock pick is Palantir Technologies Inc (NASDAQ: PLTR).

PLTR joined the S&P 500 ETF Trust (NYSE: SPY) on September 23, 2024.

That’s a big deal … The SPY is composed of 500 publicly-traded companies that lead the market.

Before the AI boom began, PLTR was trading below $10 per share. And it was significantly beat down due to the overall tech-sector weakness in 2022.

But in February 2025 … this is a sector leader in the software industry that just launched past $100 per share. And it’s included in one of the market’s most popular indices!

Now … a lot of people get nervous when they see this stock, because they don’t want to buy an overextended runner. 

We even saw reports from Wall Street that PLTR could drop 40% in 2025 … 

But that was before the Q4 earnings report that was announced after hours on February 3. The company posted a Q4 2024 revenue growth of 36%, year over year.

PLTR shot to new all-time highs after the revenue announcement despite the Chinese AI, DeepSeek, that rocked markets, and despite Trump’s tariffs.

Take a look at the chart below, every candle represents one trading minute:

after DeepSeek hit the market and Trump imposed new tech tariffs, PLTR replaced it as the strongest stock in the market.

The company is a key AI provider for systems utilized by the U.S. military, among other major customers.

And it’s one of the few tech stocks that’s still thriving among the current economic constraints.

Small-account traders can trade higher-priced stocks with options—click here to learn how from Jeff Zananiri, one of the best in the business!

Red Cat Holdings Inc (NASDAQ: RCAT) — The Palantir Sympathy Play Drone Stock

My sixth stock pick is Red Cat Holdings Inc (NASDAQ: RCAT).

PLTR might be a little high-priced per share for some people.

That’s no problem. There are opportunities in this market for traders of ALL account sizes.

PLTR is part of the AI sector but it’s also part of the drone sector.

And the drone sector has been hot ever since Russia invaded Ukraine in 2022.

Now, a lot has happened since then. But the presence of drones has only grown in the media, in the market, and on the battlefield.

RCAT is a lower-priced stock in the drone sector that traders should pay attention to right now. 

Here’s the latest news on RCAT!

The price spiked 380%* to end 2024. And it currently shows signs of a base around $8. With a breakout level of $15.

A breakout past $15 could offer a huge opportunity to profit.

Hims & Hers Health Inc (NYSE: HIMS) — The Men’s Health Stock That Even Jim Cramer Knows Is a Squeeze

My seventh Robinhood penny stock pick is Hims & Hers Health Inc (NYSE: HIMS).

Did you watch the Super Bowl?

If you didn’t, it’s possible you still heard about the weight loss commercial from Hims & Hers Health Inc. (NYSE: HIMS).

The company advertised at home delivery for GLP-1 injections. It’s a similar treatment as the Ozempic and Wegovy weight loss drugs.

This sector exploded in recent months, as witnessed by the 200%* stock spike for Eli Lilly and Company (NYSE: LLY) from 2023 to 2024.

And now HIMS wants a piece of the pie. And the share price is much more attractive for small account traders compared to LLY.

Plus, unlike LLY, HIMS just spiked to new all-time highs.

Now, Jim Cramer seems to think that this is a short squeeze.

I’m not convinced of that … But it wouldn’t be the first time Jim Cramer screwed something up in the market.

HIMS continued to post solid quarterly revenue throughout 2024. And the stock shows a similar P/E ratio to LLY. Both around 96.

That means their stock is valued similarly based on their individual earnings and share prices. And since LLY is a competitor in the field, it makes sense that they’d have similar valuations in a hot weight loss market that’s already a few years old.

But in this 2025 market, it’s certainly possible that short sellers are adding to the recent spike on HIMS … 

We see a new short squeeze every week among lower priced stocks.

Here’s the key: There are opportunities to make gains whether it’s a short squeeze or not.

As small account traders, we’re here to capitalize on volatile price action.

• HIMS stock already spiked 90% in 2025.
• It’s gaining a lot of attention from its Super Bowl ad.
• And it’s at all-time highs.

What else could you ask for?

Use our AI trading tool IRIS to build smart positions on HIMS!

*Past performance does not indicate future results

Top Stocks Under $5

Hot sector penny stocks — whether we’re talking AI penny stocks, biotech penny stocks, or another sector attracting a lot of news — are something traders should always be looking at. The allure lies in the potential for substantial returns on investment, as even minor developments or positive news within these sectors can lead to significant price jumps.

It’s important to proceed with caution and a well-thought-out strategy. The inherent volatility of penny stocks, combined with the speculative nature of emerging sectors like renewable energy and tech innovations, underscores the importance of a meticulous approach. Before diving in, ensure you’ve done your due diligence, looking past the initial excitement to assess the true potential and risks of these ventures. It’s wise to trade these stocks rather than invest long-term, given their unpredictable nature.

Success in trading hot sector stocks priced under $5 hinges on a selective and strategic approach. The goal is to tap into their explosive growth potential while implementing robust risk management practices. By zeroing in on companies making news in their specific niches, traders can seize opportunities for disproportionate gains. This strategy, coupled with a disciplined approach to maintaining a tight investment strategy and promptly cutting losses, can pave the way for trading success in these dynamic market segments.

What Do You Need to Trade Stocks?

The biggest thing you need to become a self-sufficient trader is something money can’t buy…

Patience.

Everything else is easy enough to come by.

Most brokers don’t charge commissions when you buy listed stocks — which is every stock on this list.

You can see the brokers I recommend here.

What else do you need?

You’ll need a trading computer and decent internet. You’ll also need a powerful trading platform like StocksToTrade…

StocksToTrade puts top-of-the-line charts and stock screening at your fingertips. It’s got a built-in news scanner that puts earnings reports and news that move stocks in one place.

We think you’ll see the difference immediately. Get your first 14 days here for only $7.

Then comes the hard part…

You need to learn patterns. You need to find out which strategies work for you. You need to put in screen time…

Paper trading is a good way to get your feet wet. StocksToTrade can do that too.

You need to make trading plans and track your trades. I know, it’s a lot. That’s why I’ve designed the best mentorship program out there — Daily Income Trader.

Our trading community will bring you live webinars, strategy sessions, and the chance to ask questions of me and other top traders.

My goal is to teach you how to think for yourself and trade through any kind of market.

Here’s one of the biggest things I teach you to do… 

How to Find Your Top Stocks to Watch: 5 Tips for Every Day

The best traders don’t believe in ‘hot stocks.’ They watch what the market is doing every single day.

There’s no trick to it. Building a daily watchlist comes down to five easy steps.

#1: Run Your Scans

You know what’s moving by setting your stock screener to pick up the right stocks.

I run scans all through premarket, looking for stocks up at least 10%, on decent volume and a catalyst that isn’t complete garbage.

The market is a game of supply and demand. A stock screener is the best way of measuring that demand.

#2: Know Your Catalysts

Crappy penny stocks will always have press releases and celebrity tweets when they’re running. It’s your job to know what’s fluff and what isn’t.

Luckily, it isn’t hard. Is the market reacting well to it? Then it’s probably decent news.

We have an add-on service specifically dedicated to the news that moves stocks. It’s called Breaking News Chat — and it can be your secret weapon. 

#3: Study the Charts

Studying charts can be the difference between randomly trading a stock and seeing a good entry.

How do I know that most days TSLA starts the day red it often finishes green? It’s because I’ve studied its charts.

#4: Look for Volume

Volume is the biggest indicator of price action.

You can trade a stock move with no news. But you probably don’t want to make a trade with no volume.

This is another thing to study when you’re looking at a chart.

Take a look at a stock’s biggest moves. How much volume does it get when it’s making a move? 

#5: Learn From Other Traders

Never copy another trader’s trades. If you’re last in on a trade, you’ll only make money by luck. And you sure won’t learn to trade for yourself.

The training we offer at StocksToTrade is designed to help you become a self-sufficient trader. We show you how we come up with our trade ideas, we don’t give them to you.

Profit and loss isn’t the mark of a good trader. It’s the planning and execution you put in.

We can help you get there in a few different ways:

• My Weekly Watchlist: On Sundays, my weekly watchlist is free on StocksToTrade’s YouTube channel.
• StocksToTrade Advisory: This is an intro to my trading approach — with premarket sessions, a weekly watchlist, and an in-depth monthly report.
• StocksToTrade Daily Accelerator: This is my no-cost daily newsletter, filled with mindset tips, the best plays of the week, and whatever else I think needs sharing.

Conclusion

I’ve shown you the work that goes into building a watchlist…

And I hope I’ve scared you enough that you don’t take these picks as recommendations!

Trading is something you do at the same time as millions of other people. Having stock picks is as silly as taking cue cards on a date…

And it works about as well.

Your trading success doesn’t depend on any ‘secrets’ I can tell you. The only thing it depends on is you learning about your own trading style.

Treat this watchlist as a starting point. Keep on working on your own watchlists until they fit the way you trade.

What do you think about the stocks I’m watching this month? Have you traded any of them? Let me know in the comments!

*Past performance does not indicate future results