10 Best Penny Stocks to Buy for 2026

5. Absci Corporation (NASDAQ:ABSI)

Stock Upside Potential: 122.67%

Share price: $3.40

Number of hedge fund holders: 18

Absci Corporation (NASDAQ:ABSI) is one of the best penny stocks to buy in 2026. On January 8, Morgan Stanley downgraded Absci Corporation (NASDAQ:ABSI) to Equalweight from Overweight and cut its price target to $4.32 from $5.80, citing higher risk and limited near-term visibility following the company’s third-quarter update. Interim Phase 1 data for ABS-101, Absci’s TL1A program, came in below expectations, particularly on half-life performance, which trailed next-generation competitors. In response, the company decided not to advance ABS-101 internally and is now exploring alternative indications and potential partnerships.

Morgan Stanley removed ABS-101 from its financial model, where it had been tied to inflammatory bowel disease, and replaced it with ABS-201, a program targeting androgenetic alopecia. The firm assigns a 25% probability of success and estimates peak risk-adjusted sales of roughly $400 million. Analysts cautioned, however, that execution risk is elevated given the program’s early stage and Absci’s plan to pursue development independently. They also noted uncertainty around the company’s shift toward dermatology and cosmetology-adjacent indications, areas where its competitive position is less established.

On December 11, Absci presented preclinical data for ABS-201 showing activity in human scalp tissue, suggesting potential benefits for hair growth. Interim data from the Phase 1/2a HEADLINE study are expected in the second half of 2026.

Absci Corporation (NASDAQ:ABSI) is a clinical‑stage biotech firm leveraging its proprietary AI platform to design and develop innovative protein‑based therapeutics.