10 Penny Stocks With Huge Upside Potential According To Analysts

4. Gossamer Bio, Inc. (NASDAQ:GOSS)

Average Upside Potential as of March 20: 529.50%

Number of Hedge Fund Holders: 35

Gossamer Bio, Inc. (NASDAQ:GOSS) is a California-based biopharmaceutical company focused on developing seralutinib, a potential treatment for pulmonary arterial hypertension. The company’s lead drug, GB002, is an inhaled therapy currently in Phase 3 clinical trials. It is one of the stocks with the biggest upside, ranking 4th on our list.

On March 18, H.C. Wainwright reaffirmed its Buy rating on Gossamer Bio, Inc. (NASDAQ:GOSS) with a $10 target, despite the stock trading at $1.39 after a 52.56% gain in six months. Analysts are optimistic about Gossamer’s drug seralutinib, an inhaled treatment being developed for lung diseases that cause high blood pressure (PAH and PH-ILD). Unlike other treatments that simply relax blood vessels, seralutinib works to repair them, which could make it a top-choice therapy and boost the company’s future success.

By the end of 2024, Gossamer Bio, Inc. (NASDAQ:GOSS) had $294.5 million in cash, enough to fund operations through mid-2027. R&D expenses rose to $36.1 million in Q4, up from $30 million in 2023, with annual costs reaching $138.5 million. G&A expenses saw a slight Q4 increase to $9.4 million but dropped annually to $36.1 million. Net loss improved significantly, falling to $33 million in Q4 from $48.1 million the previous year, with full-year losses dropping to $56.5 million from $179.8 million in 2023.

According to Insider Monkey’s fourth quarter database, 35 hedge funds reported owning stakes in Gossamer Bio, Inc. (NASDAQ:GOSS), compared to 28 funds in the last quarter. Octagon Capital Advisors was the largest stakeholder of the company, with 18.35 million shares valued at $16.6 million.