In this article, we will discuss 10 Low Risk High Reward Stocks Set to Triple by 2030.
The market is getting tough these days with increasing interest rates, tense world politics, and inconsistent economic conditions, and investors are constantly looking for opportunities. As we hit the middle of the decade, people are focusing more on diversifying investments and managing risks. Morgan Stanley’s Investment Committee believes investors should avoid passive strategies and big tech stocks. The Committee suggests looking at undervalued opportunities that might give better returns with less risk.
The broader market is trading way too high now—over 22 times forward earnings, putting it in the 95th percentile of historical values. In addition to this, the top 10 stocks make up almost 40% of the index, creating a problem where investors just focus on a few companies called the “Magnificent 7”. Wall Street’s predictions for earnings growth in 2025-2026 seem unrealistic, especially with signs of the economy slowing down and profit margins getting squeezed. These dangers, plus the fact that stocks and bonds are both volatile and moving together, show why investors need alternatives other than passive U.S. stocks.
President Trump’s renewed tariff regime—some as high as 145%—has hurt economic forecasts worldwide and messed up supply chains, as reported by Reuters. Companies like Electrolux, Diageo, and Logitech have already lowered sales forecasts or stopped giving guidance altogether because of tariff impacts. Although countries including India might benefit from changing trade patterns, most global businesses are facing new economic uncertainty.
With all these headwinds, many investors are moving to safer assets like high-dividend stocks, preferred securities, and undervalued healthcare and consumer defensive companies. These lower-risk stocks help reduce portfolio swings and can benefit when money flows to safer investments during market downturns.
Furthermore, investors are also reflecting this shift, as seen in a recent Barclays survey of 325 hedge fund managers. The survey shows managers handling nearly $9 trillion and growing demand for strategies with minimal exposure to equity markets, some seeking as low as 5% exposure or even zero. Multi-manager hedge funds, algorithmic strategies, and defensive plays are now more popular than traditional approaches.
In this complicated environment, finding overlooked, low-risk stocks with strong fundamentals and long-term potential is crucial. These companies operate in resilient sectors and offer both protection against losses and the chance for substantial returns by 2030.
With that context in mind, let’s explore 10 Low Risk High Reward Stocks Set to Triple by 2030.
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Methodology
To identify the 10 Low Risk High Reward Stocks Set to Triple by 2030, we began by screening publicly traded companies using Finviz, focusing on those with an equity beta below 1.0 to ensure relatively low market risk. We then filtered this subset to include only those stocks with a projected upside potential of over 300%, indicating high return prospects. To further validate investor confidence, we analyzed hedge fund sentiment using Insider Monkey’s database, which tracks the holdings of over 1,000 elite hedge funds as of the end of the fourth quarter of 2024. The final list is ranked in ascending order based on the number of hedge funds holding each stock.
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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10. Anavex Life Sciences Corp. (NASDAQ:AVXL)
Number of Hedge Fund Holders: 13
Potential upside: 370.59%
Anavex Life Sciences Corp. (NASDAQ:AVXL) is shaping up to be one of the most promising biopharmaceutical investments for those seeking steady, long-term growth. The company just wrapped up enrollment for its Phase 2 clinical trial of ANAVEX 3-71, a potential schizophrenia treatment and a considerable step in its CNS-focused pipeline. If this drug works, it could be highly beneficial for patients and could transform the company’s future.
Financially, Anavex Life Sciences Corp. (NASDAQ:AVXL) has a great outlook. The company had $120.8 million in cash and cash equivalents as of December 31, 2024, down slightly from $132.2 million the previous quarter. With this cash, it should be able to fund operations for about four years without the need to generate more capital.
Although the company’s expenses went up last quarter, with R&D spending jumping to $10.4 million from $8.7 million a year earlier. It shows Anavex Life Sciences Corp. (NASDAQ:AVXL) is actively pushing its clinical programs forward. G&A costs also increased slightly to $3.1 million, and the company reported a $12.1 million net loss, which is reasonable for a company still in drug-developing stages.
With its innovative approach, great cash reserves, and multiple potential winners in development, Anavex Life Sciences Corp. (NASDAQ:AVXL) makes it to the list of best low risk stocks that could produce strong returns by 2030.
9. Allogene Therapeutics, Inc. (NASDAQ:ALLO)
Number of Hedge Fund Holders: 15
Potential upside: 461.63%
Allogene Therapeutics, Inc. (NASDAQ:ALLO) is a company progressing with allogenic CAR T cell therapies that could alter treatment for cancer and autoimmune diseases. It is working to build a strong clinical pipeline while keeping costs in check, aiming to lead the field in scalable cell therapies.
Allogene Therapeutics, Inc. (NASDAQ:ALLO) had $373.1 million in cash, cash equivalents, and investments at the year-end, and management expects it should keep the company running into late 2026. R&D costs for Allogene Therapeutics, Inc. (NASDAQ:ALLO) for the year were $192.3 million, with about $20.4 million of that being non-cash stock compensation. Meanwhile, G&A expenses were at $65.2 million, including $31.3 million in stock compensation, and overall, Allogene lost $257.6 million for the year, or $1.32 per share. For 2025, the company is planning on a cash burn of about $170 million, with total GAAP expenses around $250 million, of which $50 million will be stock-based pay.
Clinically, Allogene Therapeutics, Inc. (NASDAQ:ALLO) continues to push forward on multiple fronts. It received FDA clearance in early 2025 for its Phase 1 Resolution Basket trial evaluating ALLO-329 in autoimmune diseases, with proof-of-concept data expected by year-end. Meanwhile, ALLO-501A is being studied in the pivotal ALPHA3 trial for first-line large B-cell lymphoma, and ALLO-316 is progressing in renal cell carcinoma with an update expected in mid-2025.
On the clinical side, the company is moving ahead quickly as the FDA just cleared its Phase 1 Resolution Basket trial for ALLO-329 in autoimmune diseases. It expects early results by year-end and is also testing ALLO-501A in a pivotal ALPHA3 trial for large B-cell lymphoma, and ALLO-316 for kidney cancer, with updates coming mid-2025.
With its healthy cash position, advancing pipeline, and smart spending, Allogene Therapeutics, Inc. (NASDAQ:ALLO) stands out as one of the best low risk stocks that could see substantial gains by 2030.
8. ImmunityBio, Inc. (NASDAQ:IBRX)
Number of Hedge Fund Holders: 15
Potential upside: 339.92%
ImmunityBio, Inc. (NASDAQ:IBRX) is a biotech company focused on changing cancer treatment with its new product, ANKTIVA. It is working on hard-to-treat cancers, especially bladder cancer, with good results so far. Since ANKTIVA got FDA approval and hit the U.S. market in May 2024, over 200 million people now have insurance coverage for it, with both public and private insurers on board.
ImmunityBio is doing well on the financial side, as in Q3 2024, it made $6.0 million in product revenue, six times more than last quarter and outperforming analysts’ predictions. Starting January 2025, ANKTIVA has a permanent J-code, making it easier for Medicare and VA patients to get covered. ImmunityBio, Inc. (NASDAQ:IBRX) is also expanding globally, having applied for approval in the UK’s MHRA last November and planning for an EMA in the EU soon.
Still, ImmunityBio isn’t profitable yet as it lost $85.7 million in Q3, with rising R&D and SG&A costs driven by the company’s growth. However, investors are still hopeful, as in April 2025, ImmunityBio, Inc. (NASDAQ:IBRX) secured a $75 million equity financing deal from an institutional investor. This would not only back the ongoing pipeline but could potentially reach $165 million if all warrants are exercised.
With a strong scientific front and strategic funding behind it, ImmunityBio (NASDAQ:IBRX) has set itself up as one of the best low risk stock options for investors.
7. Prothena Corporation plc (NASDAQ:PRTA)
Number of Hedge Fund Holders: 17
Potential upside: 545.80%
Prothena Corporation plc (NASDAQ:PRTA) is developing treatments for diseases caused by protein problems, including AL amyloidosis, Parkinson’s, and Alzheimer’s. The company’s main pipeline drug, birtamimab, is in Phase 3 trials (AFFIRM-AL) for severe AL amyloidosis, with earlier studies showing it cut death risk by 59%. The company expects to see final results from the AFFIRM-AL trial in Q2 2025, with possible U.S. release in 2026, helping about 5,000 American patients who currently have few options.
For Alzheimer’s, Prothena is testing PRX012, an anti-amyloid beta antibody, in the Phase 1 ASCENT trial, with results expected to come mid-2025. The company is also moving forward with PRX123, a dual Aβ-Tau vaccine, as it cleared an IND and is set to enter clinical stages.
Furthermore, the company has established smart partnerships as it is working with Roche on a Parkinson’s treatment and with Bristol Myers Squibb on other therapies. Financially, the company is in good shape with $472.2 million in cash and no debt at the end of 2024. Prothena Corporation plc (NASDAQ:PRTA) also expects to have about $301 million in cash left by late 2025.
With several big trials in process, a strong financial sheet, and diverse projects, Prothena Corporation plc (NASDAQ:PRTA) is set for growth. Its upcoming results and potential drug launch make the company one of the best low risk stocks, with good potential rewards for investors.
6. Astria Therapeutics, Inc. (NASDAQ:ATXS)
Number of Hedge Fund Holders: 20
Potential upside: 460.22%
Astria Therapeutics, Inc. (NASDAQ:ATXS) is making waves in allergic and immunologic diseases, specifically in hereditary angioedema (HAE) and atopic dermatitis. This biotech company is pushing forward with two main drugs – navenibart for hereditary angioedema (HAE) and STAR-0310 for atopic dermatitis. Where Navenibart is in a critical Phase 3 trial, and STAR-0310 is still in the early clinical development stage.
The company had a turning point in its global ALPHA-ORBIT Phase 3 trial for Navenibart in February. Early results look promising as patients saw their monthly attacks drop by 90-95%, which could make Navenibart a top contender in HAE treatment. Astria Therapeutics, Inc. (NASDAQ:ATXS) expects to see more data from its long-term ALPHA-SOLAR trial around mid-year.
Furthermore, the company’s other pipeline drug, STAR-0310, started Phase 1a trials in January 2025, targeting atopic dermatitis and showing good results in early testing.
On the financial end, the company is well-positioned with $328.1 million in cash as of the end of December 2024, which should keep it running until mid-2027. Astria Therapeutics, Inc. (NASDAQ:ATXS) spent $77.1 million on R&D last year and posted a $94.3 million net loss. Still, the company is set for future growth, with strong cash reserves and a solid pipeline.
With these advances and planned financial steps, Astria Therapeutics, Inc. (NASDAQ:ATXS) remains among the best low risk stocks.
5. OmniAb, Inc. (NASDAQ:OABI)
Number of Hedge Fund Holders: 21
Potential upside: 300%
OmniAb, Inc. (NASDAQ:OABI) is a biotech company that creates tech for antibody discovery targeting next-gen medicines. Its platforms include OmniRat, OmniMouse, OmniChicken, OmniTaur, and OmniDeep. These platforms blend biological intelligence with artificial intelligence to develop human therapeutic antibodies through various pharma, biotech, and academia partnerships.
On the financial side, OmniAb, Inc. (NASDAQ:OABI) ended 2024 with $59.4 million in cash. Additionally, Q4 revenue jumped to $10.8 million, up from $4.8 million the previous year, thanks to new deals and milestone payments. However, the company lost $62 million for the year, more than 2023’s $50.6 million loss. This was partly due to a $3.8 million hit from moving away from small-molecule ion channels. OmniAb expects fewer expenses in 2025, with revenue between $20 million and $25 million.
Furthermore, OmniAb, Inc. (NASDAQ:OABI) also saw an increase in partner count, which grew 18% to 91 by the end of 2024. Whereas active programs rose 12% to 362, with 32 programs either in clinical trials or approved. In addition, recent wins include new platform licenses with Incyte and Photinia, clinical trial starts with J&J and Innolake, and progress with Genmab, Teva, and Immunovant. The company also just announced a big partnership with VERAXA Biotech in March to develop a new bispecific antibody-drug conjugate for solid tumors.
With diverse partners, advancing clinical programs, and efficient cash management, OmniAb, Inc. (NASDAQ:OABI) is one of the best low risk stocks with long-term potential.
4. Corvus Pharmaceuticals, Inc. (NASDAQ:CRVS)
Number of Hedge Fund Holders: 21
Potential upside: 330.50%
Corvus Pharmaceuticals, Inc. (NASDAQ:CRVS) develops innovative immunotherapy treatments targeting key immune cell proteins. Based in South San Francisco, the company is pushing forward several drug candidates through smart, cost-effective strategies. Its main drug, soquelitinib (CPI-818), shows promising results for both cancer and autoimmune conditions.
As of December 31, 2024, Corvus doubled its cash reserves to $52 million, up from $27.1 million the previous year. Meanwhile, early warrant exercises brought in $18.6 million, with another potential $41 million available, and these finances should keep the company running into Q1 2026. Corvus Pharmaceuticals, Inc. (NASDAQ:CRVS) spent more on R&D last year ($19.4 million compared to $16.5 million in 2023), mostly on soquelitinib development. The company posted a $63.3 million net loss, which includes a $33.4 million non-cash hit from warrant liability and $3.2 million from its Angel Pharmaceuticals partnership. Furthermore, stock compensation was at $3 million for the year.
Corvus Pharmaceuticals, Inc. (NASDAQ:CRVS) is now running a Phase 3 trial of socalitinib for relapsed peripheral T-cell lymphoma. Earlier Phase 1 results were promising, with 39% of patients responding and 26% showing a complete response. Moreover, its Phase 1 atopic dermatitis trial looks encouraging, with results beating placebo and safety data. The company is planning a Phase 2 solid tumor study and working with the NIH on a trial for ALPS, in addition to more atopic dermatitis programs expected to start later this year.
With its unique oral ITK inhibitor, advancing clinical work, and solid cash position, Corvus Pharmaceuticals, Inc. (NASDAQ:CRVS) stands out in the list of the best low risk stocks.
3. aTyr Pharma, Inc. (NASDAQ:ATYR)
Number of Hedge Fund Holders: 25
Potential upside: 415.95%
aTyr Pharma, Inc. (NASDAQ:ATYR) is a clinical-stage biotech company working on breakthrough medicines using its special tRNA synthetase platform. Its main drug, efzofitimod, is being tested for pulmonary sarcoidosis – a rare, long-lasting disease without many treatment options. The company is also developing other drugs for systemic sclerosis, lung disease, and similar fibrosis conditions.
The company ended 2024 with $75.1 million in cash and raised $18.8 million in early 2025 through ATM offerings, which should keep it funded until Q1 2026. This money supports aTyr’s ongoing clinical trials, including the major Phase 3 EFZO-FIT study and Phase 2 EFZO-CONNECT study. In 2024, aTyr Pharma, Inc. (NASDAQ:ATYR) spent $54.4 million on R&D, consisting mostly of these trials and manufacturing efzofitimod.
Moreover, the company just finished enrolling patients in its Phase 3 EFZO-FIT study – the biggest intervention trial ever done for pulmonary sarcoidosis. aTyr Pharma, Inc. (NASDAQ:ATYR) is also running a Phase 2 trial for systemic sclerosis lung disease and has published lab research showing how efzofitimod affects lung inflammation and scarring.
With solid funding, promising data, and several drug candidates, aTyr Pharma, Inc. (NASDAQ:ATYR) looks like one of the best low risk stocks out there.
2. Day One Biopharmaceuticals, Inc. (NASDAQ:DAWN)
Number of Hedge Fund Holders: 36
Potential upside: 301.12%
Day One Biopharmaceuticals, Inc. (NASDAQ:DAWN) focuses on creating targeted cancer treatments, especially for kids and young adults. This clinical-stage biopharma company develops therapies for patients with genetic cancer markers. Specializing in pediatric and young cancer treatments, Day One has a promising front in bringing these treatments to market.
The year 2024 was successful for Day One Biopharmaceuticals, Inc. (NASDAQ:DAWN). The FDA authorized OJEMDA for treating relapsed or resistant pediatric low-grade glioma (pLGG). The drug took off fast, bringing in $57 million in just eight months, with $29 million in the fourth quarter alone (up 44% from Q3). The company logged over 1,600 prescriptions, with 280 patients actively using the therapy by year-end.
Day One Biopharmaceuticals, Inc. (NASDAQ:DAWN) grew by expanding into priority medical centers and scoring a favorable CMS designation that boosted its profit margins. Furthermore, the prescriptions doubled in Q4 compared to the previous six months combined, showing the increasing demand.
Day One Biopharmaceuticals, Inc. (NASDAQ:DAWN) keeps building its pipeline further with its Phase III FIREFLY-2 trial for frontline pLGG treatment expanding worldwide, aiming to finish enrollment by mid-2026. In addition, it has also started testing DAY301, a new antibody-drug that targets PTK7. The drug is in Phase Ia/b dose escalation trials, meanwhile, the company struck a licensing deal with Ipsen to sell OJEMDA outside the U.S.
On the financial end, Day One is well-positioned with over $500 million in cash, giving it plenty of runway without a need to raise funds soon. Its solid finances, consistent execution, and promising drug candidates make Day One Biopharmaceuticals, Inc. (NASDAQ:DAWN) potentially one of the best low risk stocks for investors interested in cutting-edge cancer treatments.
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.
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