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. (NASDAQ:RXRX) 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. (NASDAQ:RXRX) to $10 from $11 previously and kept an Overweight rating on the shares.
Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX) 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. (NYSE:NUVB) 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. (NYSE:NUVB) 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. (NASDAQ:ATAI) 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. (NASDAQ:ATAI) 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. (NASDAQ:ABCL) 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. (NASDAQ:ABCL) 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 (NASDAQ:KOPN) 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 (NASDAQ:KOPN) 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 (NASDAQ:KOPN) develops and manufactures microdisplays and related components for defense, industrial, enterprise, and consumer applications.
While we acknowledge the potential of KOPN to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than KOPN and that has 100x upside potential, check out our report about the cheapest AI stock.
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