In this article, we will look at the 10 Best Penny Stocks to Buy for Long Term.
The opportunity is not in buying every low-priced penny stock but rather in finding smaller companies where earnings, balance sheets, and business quality are improving faster than the market is giving them credit for. Franklin Templeton’s Royce Investment Partners says “2026 could be the year that small-caps reassert themselves,” adding that “both small-cap quality and value are poised for meaningful rebounds in 2026.” That matters for penny stocks because the better candidates are often those that can move from speculative stories into more credible and tangible growth.
The broader small-cap backdrop is also becoming more supportive. AllianceBernstein says “Earnings growth, for example, is expected to outstrip those for large companies in 2026,” while “small-cap earnings could be widely underestimated by the market.” T. Rowe Price makes a similar point, arguing that “the small-cap rebound has not been driven by sentiment alone” because “fundamentals also have turned.” In summary, the setup is not just about cheap share prices. It is about whether smaller companies are entering a better earnings cycle after years of being ignored.
Against this backdrop, the more interesting names are those with improving fundamentals, analyst support, manageable balance sheets, and a path toward sustained growth rather than one-off trading spikes. With that in mind, let’s take a look at the 10 Best Penny Stocks to Buy for Long Term.
Our Methodology
We used the Finviz screener to identify stocks that are trading below $5 per share and offer at least 50% upside from analysts’ median price targets. We then 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. Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX)
On May 14, 2026, Morgan Stanley raised the firm’s price target on Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX) to $5.50 from $5 and kept an Equal Weight rating on the shares.
On May 6, 2026, Recursion Pharmaceuticals, Inc. reported Q1 EPS of (22c), versus the consensus estimate of (26c). Revenue totaled $6.47M, versus the consensus estimate of $15.78M. Cash, cash equivalents, and restricted cash stood at $665.2M, compared to $753.9M as of December 31, 2025. The company continues to expect its cash runway to extend into early 2028. CEO and President Najat Khan said the company is seeing strong momentum and execution across its portfolio, with increasing evidence that its integrated platform can translate biological and chemical insights into differentiated clinical programs. Khan added that recent developments, including initial safety and pharmacokinetic data from REC-1245 and the dosing of the first patient in REC-4539, represent additional proof points supporting the company’s end-to-end AI-driven drug discovery platform.
Last month, JPMorgan lowered the firm’s price target on Recursion Pharmaceuticals, Inc. to $10 from $11 previously and kept an Overweight rating on the shares.
Recursion Pharmaceuticals, Inc. is a clinical-stage biotechnology company focused on using AI, automation, and data science to industrialize drug discovery.
9. Nuvation Bio Inc. (NYSE:NUVB)
On May 13, 2026, Nuvation Bio Inc. (NYSE:NUVB) announced the completion of the process technology transfer and product introduction to Thermo Fisher Scientific for IBTROZI-taletrectinib, for the treatment of advanced or metastatic ROS1-positive non-small cell lung cancer. The transition was submitted as a supplement to the IBTROZI New Drug Application held by Nuvation Bio and has now been completed.
Earlier in May, Nuvation Bio Inc. reported Q1 EPS of 1c, versus the consensus estimate of 5c. Revenue totaled $83.23M, versus the consensus estimate of $62.34M. Founder, President, and CEO David Hung said the company was encouraged by ongoing launch trends for IBTROZI during the first quarter as adoption continued to expand across treatment lines for advanced ROS1-positive NSCLC. Hung also highlighted updated long-term follow-up data presented at the AACR meeting, which showed durability exceeding four years in TKI-naive patients, supporting physician confidence in selecting IBTROZI. In addition, management said the company recently secured exclusive global development and commercialization rights to safusidenib and plans to advance the pivotal Phase 3 SIGMA study in high-risk IDH1-mutant glioma. Nuvation Bio also expects to provide updates on its drug-drug conjugate platform later this year.
Nuvation Bio Inc. is a clinical-stage biopharmaceutical company focused on developing therapies for cancer treatment.
8. AtaiBeckley Inc. (NASDAQ:ATAI)
On May 12, 2026, AtaiBeckley Inc. (NASDAQ:ATAI) reported Q1 EPS of (8c), versus the consensus estimate of (11c). Revenue totaled $954,000, versus the consensus estimate of $90,910. Co-Founder and CEO Srinivas Rao said the company’s $209.9M cash position is expected to fund operations through anticipated Phase 3 topline readouts for BPL-003 as the program advances into late-stage development. Rao added that the company’s near-term priorities include initiating the Phase 3 ReConnection program for BPL-003 during the current quarter, while VLS-01 continues progressing toward anticipated Phase 2 topline results later this year. Management also highlighted positive Phase 2a data for EMP-01 in Social Anxiety Disorder and said the company’s capital position, pipeline breadth, and upcoming clinical catalysts position it to pursue longer-term clinical and shareholder value creation.
Last month, Guggenheim raised the firm’s price target on AtaiBeckley Inc. to $16 from $11 and kept a Buy rating on the shares. The firm said recent meetings with management reinforced its conviction in the BPL-003 program ahead of Phase 3 initiation this quarter.
AtaiBeckley Inc. is a clinical-stage biopharmaceutical company focused on developing mental health treatments in the United States, Germany, and Canada.
7. AbCellera Biologics Inc. (NASDAQ:ABCL)
On May 12, 2026, Stifel raised the firm’s price target on AbCellera Biologics Inc. (NASDAQ:ABCL) to $8 from $7 and kept a Buy rating on the shares. The firm said preliminary safety, pharmacokinetic, and pharmacodynamic data from the single-ascending dose portion of the Phase 1 dose-escalation trial evaluating ABCL635 represent an important early step in de-risking the program longer term.
On May 11, 2026, AbCellera Biologics Inc. reported Q1 EPS of (14c), versus the consensus estimate of (20c). Revenue totaled $8.3M, versus the consensus estimate of $5.8M. Founder and CEO Carl Hansen said interim Phase 1 data showed ABCL635 achieved strong NK3R target engagement at well-tolerated dose levels in healthy volunteers, alongside a pharmacokinetic profile that may support once-monthly dosing. Hansen added that the company expects a Phase 2 efficacy readout in Q3, which management believes could further de-risk the program.
Management also said that throughout 2026, the company plans to deliver additional clinical data readouts, advance ABCL688 and ABCL386 into IND-enabling studies, and select at least one additional development candidate. AbCellera ended the quarter with approximately $655M in available liquidity.
AbCellera Biologics Inc. develops antibody-based medicines targeting diseases with unmet medical needs.
6. Kopin Corporation (NASDAQ:KOPN)
On May 14, 2026, Canaccord analyst Austin Mueller raised the firm’s price target on Kopin Corporation (NASDAQ:KOPN) to $6.25 from $5.50 and maintained a Buy rating on the shares. The firm pointed to management’s bullish outlook on the FPV drone market following the launch of the Sentinel FPV headset solution, while also noting that Kopin reiterated its FY26 revenue guidance midpoint of $56M after reporting Q1 results.
Lake Street also raised the firm’s price target on Kopin Corporation to $7 from $5 and keeps a Buy rating on the shares following what it described as solid quarterly results. The firm said it remains encouraged by Kopin’s expanding opportunity pipeline, which it believes could support durable long-term growth.
On May 12, 2026, Lucid Capital initiated coverage of Kopin Corporation with a Buy rating and a $10 price target. The firm said the company is well-positioned at a favorable point in the market cycle, citing its portfolio of microdisplay technologies and exposure to major defense programs, including advanced rifle scopes and helmet systems used in the F-35 fighter jet program.
Kopin Corporation develops and manufactures microdisplays and related components for defense, industrial, enterprise, and consumer applications.
5. Savara Inc. (NASDAQ:SVRA)
On May 12, 2026, Savara Inc. (NASDAQ:SVRA) reported Q1 EPS of (15c), versus the consensus estimate of (14c). Chair and CEO Matt Pauls said the company ended the quarter with approximately $203M in cash and expects to have access to as much as $150M in additional non-dilutive funding through debt and royalty financing structures if MOLBREEVI receives approval. Management said this positions the company to support global commercial launch activities. Pauls added that preparations ahead of the November 22 PDUFA date are accelerating, with the company’s Rare Disease Specialist team already focused on increasing awareness of autoimmune PAP and advancing launch readiness for MOLBREEVI, which could become the first approved treatment for the disease.
Last month, Oppenheimer analyst Mazahir Alimohamed assumed coverage of Savara Inc. with an Outperform rating and raised the firm’s price target to $11 from $9. The firm said the company’s investment story is increasingly centered on regulatory execution and commercialization following the FDA’s Priority Review for the BLA submission of molgramostim, an inhaled GM-CSF therapy. Oppenheimer added that data from the Phase 3 IMPALA-2 study in autoimmune PAP support a high-probability approval outlook, noting that prior FDA feedback was primarily related to chemistry, manufacturing, and controls.
Savara Inc. is a clinical-stage biopharmaceutical company focused on therapies for rare respiratory diseases.
4. Lexicon Pharmaceuticals, Inc. (NASDAQ:LXRX)
On May 11, 2026, Citi raised the firm’s price target on Lexicon Pharmaceuticals, Inc. (NASDAQ:LXRX) to $3.10 from $2.30 and maintained a Buy rating following the company’s Q1 2026 earnings report.
On May 7, 2026, Lexicon Pharmaceuticals, Inc. reported Q1 EPS of 0c, versus the consensus estimate of (4c). Revenue came in at $21.1M, well above the consensus estimate of $9.78M, driven primarily by a $20M development milestone payment from Novo Nordisk and $1.1M in net sales from Inpefa. CEO Mike Exton said the company has remained focused on advancing both its late-stage and early-stage cardiometabolic pipeline and believes it is now positioned to deliver several important regulatory and development milestones.
Earlier in May, Lexicon Pharmaceuticals, Inc. also announced a new loan agreement with Hercules Capital that provides up to $100M in borrowing capacity. The financing is intended to improve the company’s financial flexibility and support upcoming regulatory and commercial milestones without shareholder dilution. Under the agreement, Lexicon received an initial $55M tranche at closing, which was used to repay its prior loan facility with Oxford Finance. Additional tranches totaling $45M may become available based on certain clinical, regulatory, and financial milestones, along with lender approval requirements.
Lexicon Pharmaceuticals, Inc. is a biopharmaceutical company focused on developing and commercializing therapies for human disease.
3. HIVE Digital Technologies Ltd. (NASDAQ:HIVE)
On May 19, 2026, Cantor Fitzgerald analyst Brett Knoblauch raised the firm’s price target on HIVE Digital Technologies Ltd. (NASDAQ:HIVE) to $4.60 from $3 and maintained an Overweight rating on the shares. The firm cited HIVE’s newly announced AI data center expansion in the Greater Toronto Area, which targets approximately 320 megawatts of utility capacity and represents a significant move deeper into AI infrastructure. Cantor estimates the project could require roughly $3.5B in total investment and potentially come online in the second half of 2027. The firm added that the development meaningfully improves HIVE’s long-term compute supply visibility and could strengthen its position in securing large-scale cloud tenancy agreements that may help support financing for the buildout.
A day earlier, HIVE Digital Technologies Ltd., through its wholly owned subsidiary BUZZ High Performance Computing, announced plans to advance a large-scale AI infrastructure project in Ontario. The planned facility in the Greater Toronto Area is expected to have approximately 320 MW of utility capacity and is being positioned as one of Canada’s largest AI gigafactories. Management said the site is intended to support vertically integrated AI supercomputing infrastructure and could host more than 100,000 GPUs once fully built out.
HIVE Digital Technologies Ltd. operates green-energy-powered data centers and digital infrastructure operations in Bermuda and Paraguay.
2. CytomX Therapeutics, Inc. (NASDAQ:CTMX)
On May 19, 2026, Wolfe Research initiated coverage of CytomX Therapeutics, Inc. (NASDAQ:CTMX) with an Outperform rating and a $6 price target. The firm said CytomX currently has the only de-risked epithelial cell adhesion molecule, or EpCAM, antibody-drug conjugate in clinical development. While toxicity remains a key area of focus, Wolfe believes the company can manage safety concerns and maintain acceptable Grade 3 adverse event rates. The firm also characterized the recent weakness in the stock as a potential buying opportunity.
Meanwhile, H.C. Wainwright lowered the firm’s price target on CytomX Therapeutics, Inc. to $11 from $17 and maintained a Buy rating on the shares. The revised target primarily reflected dilution tied to the company’s recent financing activities.
On May 7, 2026, CytomX Therapeutics, Inc. reported Q1 EPS of (10c), versus the consensus estimate of (11c). Revenue came in at $10.26M, versus the consensus estimate of $4.68M. Chairman and CEO Sean McCarthy said the company has continued to build momentum in 2026 and remains focused on advancing Varseta-M, its EpCAM ADC candidate, into a registrational study for late-line colorectal cancer. Management also said the company is continuing to invest in exploring broader applications for Varseta-M across earlier-line colorectal cancer settings and additional tumor types.
CytomX Therapeutics, Inc. is an oncology-focused biopharmaceutical company developing conditionally activated biologics designed to target the tumor microenvironment.
1. Precigen, Inc. (NASDAQ:PGEN)
On May 14, 2026, H.C. Wainwright raised the firm’s price target on Precigen, Inc. (NASDAQ:PGEN) to $11 from $10 and kept a Buy rating on the shares following the company’s Q1 report. The firm said PAPZIMEOS sales comfortably exceeded guidance.
Citizens also raised the firm’s price target on Precigen, Inc. to $11 from $9 and keeps an Outperform rating on the shares. The firm said it was impressed by the strength of the PAPZIMEOS launch, citing the product’s clinical profile, commercial preparation efforts, and launch execution.
On May 13, 2026, Precigen, Inc. reported Q1 EPS of (2c), compared to (18c) in the prior-year period. Revenue totaled $23.25M, versus the consensus estimate of $20.8M. CEO Helen Sabzevari said the company was encouraged by the pace of PAPZIMEOS revenue growth as it works to expand commercialization across the U.S. and pursue additional opportunities in international and pediatric markets. Sabzevari also highlighted continued development of PRGN-2009 in HPV-associated cancers as part of the company’s AdenoVerse platform pipeline. CFO Harry Thomasian Jr. said Precigen recognized $21.6M in net PAPZIMEOS revenue during the product’s first full commercial quarter and noted that Q2 has continued to show strong revenue momentum. As of March 31, 2026, the company had $56.7M in cash, cash equivalents, and investments, excluding approximately $25.7M in PAPZIMEOS-related accounts receivable that had not yet been collected. Management said it continues to expect current cash resources and anticipated PAPZIMEOS sales to fund operations through cash flow break-even by the end of 2026.
Precigen, Inc. is a clinical-stage biopharmaceutical company developing gene and cell therapies focused on immuno-oncology, autoimmune disorders, and infectious diseases.
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