10 Low Risk High Reward Stocks Set to Triple by 2030

Page 9 of 9

1. Terns Pharmaceuticals, Inc. (NASDAQ:TERN)

Number of Hedge Fund Holders: 37

Potential upside: 419.94%

Terns Pharmaceuticals, Inc. (NASDAQ:TERN) is a clinical-stage biotech company developing small-molecule treatments for serious diseases. Based in Foster City, it focuses on oncology and obesity, with key drugs in its pipeline including TERN-701, TERN-601, and TERN-501. These drugs are used for chronic myeloid leukemia (CML), obesity, and liver disease, respectively.

The year 2025 looks crucial for Terns Pharmaceuticals, Inc. (NASDAQ:TERN), with two of its major programs moving forward. The company’s Phase 1 CARDINAL trial for TERN-701 enters dose expansion in Q2. This expansion came after promising early results showing good responses and safety in leukemia patients, with more data expected to arrive by year-end.

At the same time, the company is signing up patients for the Phase 2 FALCON trial testing TERN-601 for weight loss. Results are expected in late 2025 and will show how effective different doses are over 12 weeks. Early tests were impressive, with patients losing up to 5.5% of their weight in just 28 days with few side effects. This could make Terns Pharmaceuticals’ oral GLP-1 drug a standout in the oral GLP-1 receptor agonists.

Financially, Terns Pharmaceuticals, Inc. (NASDAQ:TERN) is strongly positioned with $358 million in cash and equivalents, enough to fund operations into 2028. This gives the company room to advance multiple clinical programs without scrambling for funding. Although R&D costs rose slightly to $70.1 million last year as trials progressed, it managed to trim its net loss compared to the previous year.

With several clinical milestones approaching and plenty of cash, Terns Pharmaceuticals, Inc. (NASDAQ:TERN) stands out as a smart biotech bet. Its diverse pipeline, upcoming results, and strategic leadership hires make it worth considering for investors who are looking for some of the best low risk stocks.

Overall, Terns Pharmaceuticals, Inc. (NASDAQ:TERN) ranks first on our list of the Low Risk High Reward Stocks Set to Triple by 2030. While we acknowledge the potential of TERN, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than TERN but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.

Page 9 of 9