In this article, we will look at the 10 Best Long-Term Penny Stocks to Buy According to Wall Street Analysts.
On March 10, Co-CIO of Royce Investment, Francis Gannon, released a research note discussing how the small-caps maintain leadership amid increasing volatility. The US market is facing a series of challenges, including a growth shock, rising unemployment and inflation, increased energy prices due to conflicts with Iran, and an AI-driven sell-off.
Despite these challenges, small-caps have continued to perform well in 2026. Gannon noted that he has been surprised by the resilience of the small and micro caps as the sector has not only held its market share but is gaining a strong footing. From April 8, 2025, to March 3, 2026, the Russell Microcap index has returned 68.7% compared to the 45.1% return of the Russell 2000 and 36.8% returns of the Russell 1000.
Gannon highlighted that past performances are no guarantee of future results. Therefore, he suggests investors remain focused on high-quality small-cap stocks and use this period of volatility to build a portfolio in the sector with companies that have a long runway for growth.
With that, let’s take a look at the 10 Best Long-Term Penny Stocks to Buy According to Wall Street Analysts.
Our Methodology
We sifted through reputable financial media and stock screeners to identify stocks that are trading below $5 per share with analysts expecting more than 30% upside, and limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. These stocks are also popular among analysts and elite hedge funds.
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 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
10 Best Long-Term Penny Stocks to Buy According to Wall Street Analysts
10. Denison Mines Corp. (NYSEAMERICAN:DNN)
Number of Hedge Fund Holders: 39
Analyst Upside Potential: 31.33%
Denison Mines Corp. (NYSEAMERICAN:DNN) is one of the Best Long-Term Penny Stocks to Buy According to Wall Street Analysts. On March 10, the company released its fiscal Q4 2025 earnings, topping revenue estimates. During the quarter, the company grew its revenue by 10.43% year-over-year to $899,530 and topped the consensus by $96,510. The EPS of negative $0.02 fell short of the consensus by $0.01.
David Cates, President and CEO of Denison, highlighted several operational highlights for the year. He noted that the flagship Phoenix ISR Uranium Mine has received all regulatory approvals, and site preparation and construction are expected to start later in March. Moreover, the company has also raised $345 million through convertible notes. Cates highlighted that the mine targets production by mid 2028 and expects the site to become one of the few new large-scale uranium sources pre-2030.
Moreover, the CEO also highlighted McClean North Deposit, which generated approximately 650,000 lbs. U₃O₈ using patented SABRE mining. The site is among North America’s top-producing uranium mines post-startup, and the company holds 22.5% interest in McClean Lake as a Joint Venture.
Denison Mines Corp. (NYSE:DNN) is a uranium mining, development, and exploration company with interests focused mainly in Canada’s Athabasca Basin, including the Wheeler River project.
9. Cosan S.A. (NYSE:CSAN)
Number of Hedge Fund Holders: 9
Analyst Upside Potential: 33.28%
Cosan S.A. (NYSE:CSAN) is one of the Best Long-Term Penny Stocks to Buy According to Wall Street Analysts. On March 12, Goldman Sachs analyst Bruno Amorim maintained a Hold rating on the stock with a price target of BRL6.00.
The rating comes after Cosan S.A. (NYSE:CSAN) reported fiscal Q4 and full-year 2025 results on March 9. The company reported a net loss of R$5.8 billion for fiscal Q4 2025, reflecting 38% year-over-year improvement from R$9.3 billion net loss a year ago. For the full-year the net loss increased from R$9.4 billion in 2024 to a loss of R$9.7 billion in 2025.
Management noted that the quarterly performance was impacted by non-recurring and non-cash impairment charges related to certain assets at Raízen, a Joint Venture that has been facing challenges due to increased debt of 55.3 billion reais by the end of December 2025. You can read about the challenges faced by Raízen here. Excluding the effects of Raízen, the company’s net loss for the quarter was R$713 million and R$4.0 billion for the year.
Notably, the company’s net debt reduced 58% year-over-year to R$9.8 billion, mainly driven by capital injections from public offerings, the sale of Rumo shares, and favorable foreign exchange.
Cosan S.A. (NYSE:CSAN) is engaged in the fuel distribution business and in the production of bioethanol, sugar, and energy. The company operates through five segments: Raízen, Compass, Moove, Rumo, and Radar.
