8 Overlooked Penny Stocks to Invest in

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1. Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX)

Upside Potential as of January 21, 2026: 51.84%

Number of Hedge Fund Holders: 19

On January 12, Alec Stranahan, an analyst at Bank of America Securities, maintained a Hold rating on Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX), while setting a price target of $7. In line with the consensus 1-year median price target, the stock boasts an upside potential of 51.84%.

On the same day, Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX) disclosed a revised investor presentation ahead of its use at the JP Morgan Healthcare Conference. The presentation highlighted developments in its three core areas: AI-powered drug discovery platform, clinical pipeline, and financial environment. The company outlined its pioneer AI-driven clinical proof-of-concept in familial adenomatous polyposis (REC-4881), offering nearly 15 discovery-stage assets, and milestones with collaborators, including Sanofi, Roche and Genentech.

Additionally, Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX) recorded $755 million in unaudited year-end 2025 cash position, anticipating cash runway through the end of 2027. This is backed by risk-adjusted partnership inflows and suggests a 35% decline in pro forma operating expenses from 2024 to 2026, and tighter cost discipline. Overall, management remains committed to positioning the company as a leading AI-native enterprise in the changing drug discovery and development space.

Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX) is a Utah-based clinical-stage biotechnology company specializing in the decoding of biology and chemistry. Founded in 2013, the company develops REC-994, REC-2282, and REC-4881, among others.

While we acknowledge the potential of RXRX 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 RXRX and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.

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