11 Most Promising Penny Stocks According to Analysts

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1. Relay Therapeutics Inc. (NASDAQ:RLAY)

Share Price as of April 15: $2.57

Number of Hedge Fund Holders: 37

Average Upside Potential as of April 15: 561.48%

Relay Therapeutics Inc. (NASDAQ:RLAY) is a clinical-stage precision medicines company that transforms the drug discovery process by enhancing small molecule therapeutic discovery in targeted oncology and genetic disease indications. Its lead product candidates include RLY-2608, PI3Ka, and aGal chaperone. RLY-2608 is a candidate for metastatic breast cancer.

On March 27, Barclays reiterated its Overweight rating on the stock and maintained a 12-month stock price target of $17 per share. Interim Phase 1b data for RLY-2608 combined with fulvestrant showed an 11.4-month median progression-free survival (PFS) in second-line patients and a 39% confirmed overall response rate (ORR) in patients with measurable disease. Relay plans to initiate the Phase 3 ReDiscover-2 trial in mid-2025.

Relay ended Q4 with $781.3 million in cash and investments, which is enough to continue the ongoing clinical trials. The company is prioritizing these funds to support the execution of the ReDiscover-2 Phase 3 trial. In 2024, Relay Therapeutics Inc. (NASDAQ:RLAY) made $10 million in revenue, which was down from $25.5 million year-over-year. This decline was fueled by milestone payments from the Relay’s license agreements. However, the R&D costs were lower than the previous year and reached $319.1 million in 2024.

While we acknowledge the growth potential of Relay Therapeutics Inc. (NASDAQ:RLAY), our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter timeframe. 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 RLAY but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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

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