In this article, we will look at the 13 Best Long-Term Penny Stocks to Buy According to Analysts.
What are the Fed’s Plans for 2025?
On June 18, Société Générale’s Subadra Rajappa appeared on CNBC to talk about her expectations from the Fed. She said that the Fed is likely to give the market two rate cuts this year: one in September and another in December. She also stated that she doesn’t expect a change in the median dot for the year, but some other changes may emerge.
These may include inflation rising slightly higher, employment rates also slightly higher, and growth a tad lower for this year. Overall, she expects it to be in line with what the market is pricing for this year, retaining the call for two rate cuts in 2025 and perhaps 100 basis points for cuts.
READ ALSO: 11 Cheap Gold Stocks to Buy According to Hedge Funds and 13 Crypto Stocks with the Highest Upside Potential.
Wells Fargo’s Paul Christopher also commented on the situation, stating that when circumstances are cloudy, it is best to stay near one’s umbrella and landmarks, which in this case are the tariffs that are coming, and some of that pricing is already being reflected in goods. He projects only one rate cut this year, as inflation in the second half of the year is likely to give the Fed some pause.
With these trends in view, let’s look at the 13 best long-term penny stocks to buy according to analysts.
A broker in a trading room surrounded by screens, representing the stock market.
Our Methodology
We used the Finviz stock screener to compile a list of penny stocks (stocks with a price below $5) that analysts were bullish on and that had at least five analysts covering them. We then chose the top 13 with the highest upside potential and also added the number of hedge fund holders for each stock as of Q1 2025. We sourced the hedge fund data from Insider Monkey’s database. The list is arranged in ascending order of analyst upside.
Note: All data was sourced on June 20.
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).
13 Best Long-Term Penny Stocks to Buy According to Analysts
13. Opko Health Inc. (NASDAQ:OPK)
Stock Price: $1.29
Analyst Upside: 132.56%
Number of Hedge Fund Holders: 26
Opko Health Inc. (NASDAQ:OPK) is one of the 13 Best Long-Term Penny Stocks to Buy According to Analysts. In a report released on May 2, Edward Tenthoff from Piper Sandler reiterated a Buy rating on Opko Health Inc. (NASDAQ:OPK) with a price target of $3.00. The rating update followed the company’s announcement of its fiscal Q1 2025 results, which included significant developments.
These included the sale of its BioReference laboratory testing businesses, which focused on oncology and oncology-related clinical testing services, for up to $225 million. The transaction includes a $192.5 million payout at closing and up to $32.5 million in a performance-based earnout.
Opko Health Inc. (NASDAQ:OPK) also announced a collaboration agreement with Entera Bio to advance oral GLP-1/glucagon tablet candidates into the clinic for the treatment of metabolic disorders and obesity. ModeX is also continuing advancements in its immuno-oncology and immunology portfolio, with a pipeline showing the progress of four potential clinical candidates.
Opko Health Inc. (NASDAQ:OPK) is a biopharmaceutical and diagnostics company that provides healthcare services. Its operations are divided into the Diagnostics and Pharmaceuticals segments.
12. MannKind Corporation (NASDAQ:MNKD)
Stock Price: $3.81
Analyst Upside: 136.22%
Number of Hedge Fund Holders: 29
MannKind Corporation (NASDAQ:MNKD) is one of the 13 Best Long-Term Penny Stocks to Buy According to Analysts. On June 19, analyst Faisal Khurshid of Leerink Partners reiterated a Buy rating on MannKind Corporation (NASDAQ:MNKD), reducing the price target to $7 from $9. Despite some near-term uncertainties, the analyst based the rating on the company’s long-term growth, stating that the stock is currently undervalued.
Calling the company a unique player in the SMID-cap biotech sector, the analyst stated that MannKind Corporation (NASDAQ:MNKD) holds an optimistic position because of its modest Afrezza sales and cash flow positive status from Tyvaso DPI royalties. The company is also focusing on inhaled therapies for orphan respiratory indications, which further presents several opportunities for success, according to the analyst.
While Khurshid acknowledged the risks associated with the Tyvaso DPI royalty stream, especially with Yutrepia’s recent approval and position as a competitor, he also expressed near-term optimism about the commercial trajectory of Tyvaso DPI and its potential effect on the company’s financials. The analyst considers the upcoming results from the Phase 3 TETON-2 trial of Tyvaso in IPF to be a notable catalyst for the MannKind Corporation (NASDAQ:MNKD).
MannKind Corporation (NASDAQ:MNKD) is a biopharmaceutical company that develops and commercializes innovative therapeutic devices and products that address serious unmet medical needs for endocrine and orphan lung diseases. The company’s pipeline and products include Afrezza, Pediatric Afrezza, V-Go, Tyvaso DPI, MNKD-101, MNKD-201, MNKD-301, and MNKD-501.
11. Rezolve AI PLC (NASDAQ:RZLV)
Stock Price: $2.01
Analyst Upside: 148.76%
Number of Hedge Fund Holders: 8
Rezolve AI PLC (NASDAQ:RZLV) is one of the 13 Best Long-Term Penny Stocks to Buy According to Analysts. On June 10, H.C. Wainwright analyst Scott Buck reiterated a bullish stance on Rezolve AI PLC (NASDAQ:RZLV), giving it a Buy rating and a $4 price target. The analyst based the rating on the company’s notable growth in annual recurring revenue (ARR), exceeding the $70 million mark. It is on track to surpass its target of $100 million.
Buck attributed this growth to new market rollouts, strategic acquisitions, and notable contracts, including the one with El Puerto de Liverpool. He also stated that Rezolve AI PLC’s (NASDAQ:RZLV) potential to attain adjusted EBITDA breakeven at around $90 million of ARR shows potential profitability as early as 2026, which is a significant milestone that supports the optimistic rating.
Rezolve AI PLC (NASDAQ:RZLV) operates in the mobile commerce industry and develops AI-based mobile commerce and engagement solutions. The company has an innovative engagement platform powered by machine learning and AI. It allows brands, retailers, and manufacturers to develop connections with consumers across desktop and mobile devices.
10. Bit Digital, Inc. (NASDAQ:BTBT)
Stock Price: $2.41
Analyst Upside: 148.96%
Number of Hedge Fund Holders: 6
Bit Digital, Inc. (NASDAQ:BTBT) is one of the 13 Best Long-Term Penny Stocks to Buy According to Analysts. On June 2, Craig-Hallum analyst George Sutton maintained a Buy rating on Bit Digital, Inc. (NASDAQ:BTBT) without a price target.
The same day, the company announced that its wholly-owned HPC subsidiary, WhiteFiber Inc., completed the acquisition of a 96-acre, ~1 million square foot industrial property in Madison, North Carolina.
Bit Digital, Inc. (NASDAQ:BTBT) plans to retrofit the facility into a flagship AI data center facility. The announcement detailed that the facility has immediately available power, and Bit Digital, Inc. (NASDAQ:BTBT) has signed an agreement with the utility, Duke Energy, for 99 MW. Of this, 24 MW are anticipated to be delivered on or about September 1.
Headquartered in New York City, Bit Digital (NASDAQ:BTBT) is a holding company that provides a platform for digital assets and AI infrastructure. Its Bitcoin mining operations are spread through the US, Canada, and Iceland.
9. Ardelyx Inc. (NASDAQ:ARDX)
Stock Price: $3.61
Analyst Upside: 177.01%
Number of Hedge Fund Holders: 28
Ardelyx Inc. (NASDAQ:ARDX) is one of the 13 Best Long-Term Penny Stocks to Buy According to Analysts. On May 2, Leerink Partners analyst Roanna Ruiz reiterated a Buy rating on Ardelyx Inc. (NASDAQ:ARDX) and set a price target of $10.00. The optimistic rating was based on the company’s solid commercial execution in spite of the challenges it faced in Q1. These included the loss of Medicare Part D coverage for Xphozah and the seasonal contraction in the IBS-C market.
The analyst reasoned that Ardelyx Inc. (NASDAQ:ARDX) maintained its guidance for Ibsrela, reflecting solid momentum with anticipated revenues for 2025 between the $240 to 250 million range. Another factor supporting the rating is the management’s effective navigation of the Medicare Part D transition for Xphozah.
Management also reaffirmed the long-term peak sales targets for Ardelyx Inc. (NASDAQ:ARDX), supporting them with growth drivers such as an expanded sales force and increased clinical conviction among prescribers.
Ruiz further reasoned that the company’s robust cash position justifies the buy rating, as it offers flexibility for continued business development opportunities and commercial investment.
Ardelyx Inc. (NASDAQ:ARDX) develops and commercializes biopharmaceutical products. It is also involved in the development of an innovative platform that discovers new biological mechanisms and pathways to develop efficacious therapies, reducing the drug-drug interactions and side effects of traditional medicines.
8. ImmunityBio Inc. (NASDAQ:IBRX)
Stock Price: $2.84
Analyst Upside: 181.69%
Number of Hedge Fund Holders: 10
ImmunityBio Inc. (NASDAQ:IBRX) is one of the 13 Best Long-Term Penny Stocks to Buy According to Analysts. On June 2, ImmunityBio Inc. (NASDAQ:IBRX) announced that it attained Expanded Access authorization from the U.S. Food and Drug Administration, FDA, for its Cancer BioShield platform, anchored by ANKTIVA, to treat lymphopenia, a life-threatening immune deficiency induced by radiotherapy, chemotherapy, and immunotherapy.
The Expanded Access covers all patients with solid tumors who failed first-line treatment on radiotherapy, immunotherapy, or chemotherapy, and exhibit low Absolute Lymphocyte Counts (ALC <1,000/μL).
On June 4, H.C. Wainwright analyst Andres Y. Maldonado maintained a Buy rating on ImmunityBio Inc. (NASDAQ:IBRX) and set a price target of $8.00, highlighting the company’s innovative approach to the treatment of lymphopenia.
He supported the optimistic outlook with ImmunityBio Inc.’s (NASDAQ:IBRX) Cancer BioShield platform, including ANKTIVA and PD-L1 t-haNK CAR-NK cells, citing that it attained notable regulatory milestones, such as an Expanded Access authorization from the FDA and RMAT designation. These milestones reflect the potential of the company’s therapies in complicated cancer cases.
ImmunityBio, Inc. (NASDAQ:IBRX) is a clinical-stage immunotherapy company that develops next-generation therapies to treat cancer and infectious diseases. Its immunotherapy platform activates the adaptive and innate immune systems to create long-term immunological memory.
7. Taysha Gene Therapies, Inc. (NASDAQ:TSHA)
Stock Price: $2.57
Analyst Upside: 211.28%
Number of Hedge Fund Holders: 20
Taysha Gene Therapies, Inc. (NASDAQ:TSHA) is one of the 13 Best Long-Term Penny Stocks to Buy According to Analysts. In a report released on June 11, Maury Raycroft from Jefferies maintained a Buy rating on Taysha Gene Therapies, Inc. (NASDAQ:TSHA) with a price target of $8.00.
The analyst based the rating on the company’s promising potential, stating that its Rett gene therapy program is exhibiting notable progress. Updated clinical data suggests continuous patient benefits over time, especially in the case of high-dose treatments.
Raycroft stated that although they are conservatively evaluated, the analysis of milestone gains points towards significant improvements in patient outcomes. Another factor supporting the Buy rating for Taysha Gene Therapies, Inc. (NASDAQ:TSHA) is the deep reduction in the R-MBA rating scale, which the analyst considers a positive surprise reflecting the effect of the therapy on a granular and well-developed scale.
Caregivers are also showing considerable interest in taking part in gene therapy trials, which, according to Raycroft, supports the potential for quick enrollment in pivotal studies.
Taysha Gene Therapies, Inc. (NASDAQ:TSHA) is a clinical-stage biotechnology company that develops and commercializes adeno-associated viruses (AAV) based gene therapies to treat monogenic diseases of the central nervous system. The company is also involved in the development of multiple gene therapy platforms, including AAV9 Discovery, Novel Capsid, and AAV Redosing.
6. Sana Biotechnology, Inc. (NASDAQ:SANA)
Stock Price: $2.76
Analyst Upside: 226.09%
Number of Hedge Fund Holders: 13
Sana Biotechnology, Inc. (NASDAQ:SANA) is one of the 13 Best Long-Term Penny Stocks to Buy According to Analysts. On May 14, Bank of America Securities analyst Alec Stranahan maintained a Buy rating on Sana Biotechnology, Inc. (NASDAQ:SANA) and set a price target of $6.00.
The rating update came after the company announced on May 12 plans to present at the BofA Securities 2025 Healthcare Conference.
In addition, Sana Biotechnology, Inc. (NASDAQ:SANA) presented positive 4- and 12-week clinical results for its ongoing type 1 diabetes study. The company plans to file Investigational New Drug applications (INDs) for SG299 in B-cell-related diseases and for SC451 in type 1 diabetes as early as 2026.
As of fiscal Q1 2025, Sana Biotechnology, Inc. (NASDAQ:SANA) has a cash position of $104.7 million, with an expected cash runway into 2026.
Sana Biotechnology (NASDAQ:SANA) is a biotechnology company that specializes in using engineering cells as medicines. It develops cell engineering programs that transform treatment across several therapeutic areas with treatment gaps, including diabetes, oncology, the central nervous system, and B-cell-mediated autoimmune disorders.
5. Nuvation Bio Inc. (NYSE:NUVB)
Stock Price: $1.79
Analyst Upside: 235.20%
Number of Hedge Fund Holders: 34
Nuvation Bio Inc. (NYSE:NUVB) is one of the 13 Best Long-Term Penny Stocks to Buy According to Analysts. RBC Capital analyst Leonid Timashev maintained a Buy rating on Nuvation Bio Inc. (NYSE:NUVB) on June 17, lowering the price target to $6.00 from $10.00. The analyst told investors in a research note that the firm updated its model after the company’s transformation into a commercial stage biotech and the recent approval of Ibtrozi to treat cancer.
Timashev acknowledged that the firm sees some potential challenges for the launch of Ibtrozi, including near-term competitive headwinds and patient finding. However, RBC is optimistic that these headwinds will be outweighed by the drug’s long treatment duration, favorable profile, and improving dx rates, supporting the positive rating for Nuvation Bio Inc. (NYSE:NUVB).
The analyst also reasoned that the stock is steeply discounting the recently realized commercial opportunity.
Nuvation Bio (NYSE:NUVB) is a biopharmaceutical company that develops therapeutic and differentiated candidates to tackle the gaps in oncology. It is advancing several clinical-stage candidates, including a bromodomain and extra-terminal (BET) inhibitor, a ROS1 inhibitor, a mutant isocitrate dehydrogenase 1 (mIDH1) inhibitor, and a drug-drug conjugate (DDC).
4. Inventiva S.A. (NASDAQ:IVA)
Stock Price: $3.36
Analyst Upside: 242.36%
Number of Hedge Fund Holders: 2
Inventiva S.A. (NASDAQ:IVA) is one of the 13 Best Long-Term Penny Stocks to Buy According to Analysts. Analyst Edward Nash from Canaccord Genuity maintained a Buy rating on Inventiva S.A. (NASDAQ:IVA) on June 5, keeping the price target at $20.00.
The rating was based on several factors, including the potential of lanifibranor, the company’s lead asset in the MASH space. Lanifibranor’s oral administration and direct anti-fibrotic effects distinguish it from other treatments in development, with a primary focus on liver fat reduction.
The analyst also reasoned that Lanifibranor can be used in conjunction with other treatments, including GLP-1s and SGLT2 inhibitors. This factor is a significant boost to its appeal, especially when considering the high prevalence of type 2 diabetes in MASH patients.
Nash stated that the drug is progressing well, which can be corroborated by the completion of full enrollment in the Phase III NATiV3 trial and the anticipated top-line data in H2 2026. Major pharmaceutical companies are also showing increasing interest in the MASH space, further supporting the optimistic outlook for Inventiva S.A. (NASDAQ:IVA).
Inventiva S.A. (NASDAQ:IVA) is a clinical-stage biopharmaceutical company that develops oral small-molecule therapies to treat non-alcoholic steatohepatitis or NASH. It also develops therapies for other diseases with considerable unmet medical needs.
3. Relay Therapeutics, Inc. (NASDAQ:RLAY)
Stock Price: $3.36
Analyst Upside: 257.14%
Number of Hedge Fund Holders: 35
Relay Therapeutics, Inc. (NASDAQ:RLAY) is one of the 13 Best Long-Term Penny Stocks to Buy According to Analysts. Bank of America Securities analyst Jason Gerberry maintained a Buy rating on Relay Therapeutics, Inc. (NASDAQ:RLAY) on June 3 and set a price target of $17.00. The rating update came after the company announced updated interim clinical data for RLY-2608 on June 2.
RLY-2608 is the first known investigational allosteric, pan-mutant, and isoform-selective inhibitor of PI3Kα. The updated interim data remained consistent with the data previously shared in December 2024, showing a “10.3-month median PFS overall and 11.0-month median PFS in 2L patients with PI3Kα-mutated, HR+/HER2- metastatic breast cancer.” The data continues to support the planned pivotal study initiation in mid-2025.
Relay Therapeutics, Inc. (NASDAQ:RLAY) is a clinical-stage precision medicine company that uses advanced computational and experimental technologies to innovate drug discovery. Its primary focus is on genetic disease indications and targeted oncology. The company’s Dynamo platform integrates a range of cutting-edge experimental and computational approaches to understand protein structure and motion in drug discovery.
2. Atai Life Sciences (NASDAQ:ATAI)
Stock Price: $2.33
Analyst Upside: 329.18%
Number of Hedge Fund Holders: 14
Atai Life Sciences (NASDAQ:ATAI) is one of the 13 Best Long-Term Penny Stocks to Buy According to Analysts. On June 6, analyst Michael Okunewitch of Maxim Group maintained a Buy rating on Atai Life Sciences (NASDAQ:ATAI), retaining the price target of $6.00. The analyst gave the optimistic rating due to various factors, including the strategic merger between Beckley Psytech and Atai Life Sciences (NASDAQ:ATAI).
Expected to close in H2 2025, the merger is expected to strengthen Atai Life Sciences’ (NASDAQ:ATAI) pipeline through Beckley’s advanced short-acting psychedelic programs, including BPL-003. The merger is, however, contingent upon the success of the Phase 2b trial for BPL-003 in treatment-resistant depression, with results expected to be released by mid-2025.
The analyst further reasoned that Atai Life Sciences’ (NASDAQ:ATAI) financial position is further bolstered by the concurrent $30 million private placement, which is independent of the merger. The company also has a robust pipeline, such as its internal VLS-01 DMT program, which, according to Okunewitch, can provide potential benefits in the psychedelic therapy market.
Headquartered in Germany, Atai Life Sciences (NASDAQ: ATAI) is a clinical-stage biopharmaceutical company focused on treating mental health disorders.
1. Autolus Therapeutics plc (NASDAQ:AUTL)
Stock Price: $2.06
Analyst Upside: 385.44%
Number of Hedge Fund Holders: 17
Autolus Therapeutics plc (NASDAQ:AUTL) is one of the 13 Best Long-Term Penny Stocks to Buy According to Analysts. Analyst Gil Blum from Needham reiterated a Buy rating on Autolus Therapeutics plc (NASDAQ:AUTL) on June 12, keeping the price target at $10.00.
The analyst cited the promising results of the FELIX study for obe-cel in patients with relapsed/refractory acute lymphoblastic leukemia (ALL) as one of the factors supporting the optimistic rating, stating that the updated analysis highlights a notable number of patients in remission with no need for further therapy. This is a positive indicator, according to the analyst, especially in comparison to other treatments such as Tecartus.
While the analyst acknowledged that 38% of responders were still in remission with a median follow-up of 33 months, a slight drop from the 40% reported at 21.5 months, he stated that the results are still impressive. He also cited other promising factors, including the overall survival and event-free survival rates, as well as the absence of new safety concerns.
According to Blum, these factors suggest a positive reception from physicians and the potential for higher commercial adoption of obe-cel, supporting the optimistic outlook for Autolus Therapeutics plc (NASDAQ:AUTL).
Autolus Therapeutics (NASDAQ:AUTL) is a clinical-stage biopharmaceutical company based in the United Kingdom. It develops programmed T cell therapies for treating autoimmune diseases and cancer, with a focus on chimeric antigen receptor (CAR) T cell therapy.
The company engineers controlled, targeted, and highly active T cell therapy product candidates designed to recognize target cells, break their defense mechanisms down, and eliminate them. It is doing so using a portfolio of proprietary and modular T-cell programming technologies.
While we acknowledge the potential of AUTL 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 AUTL and that has 100x upside potential, check out our report about this cheapest AI stock.
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Disclosure: None.
