12 Best Long-Term Penny Stocks to Buy According to Hedge Funds

1. Geron Corporation (NASDAQ:GERN)

Stock Price: $3.54

5-Year Sales Growth: 113.54%

Number of Hedge Fund Holders: 29

Geron Corporation (NASDAQ:GERN) is a commercial-stage biopharmaceutical company focused on developing innovative treatments for blood cancers. Its flagship product, RYTELO, is a first-in-class telomerase inhibitor that has received FDA approval for treating certain adult patients suffering from lower-risk myelodysplastic syndromes (LR-MDS) with transfusion-dependent anemia. This approval marks it as the only company with an oligonucleotide telomerase inhibitor available in the United States.

During the fiscal third quarter of 2024, Geron Corporation (NASDAQ:GERN) reported a net product revenue of $28.2 million from RYTELO, marking a successful first full quarter since its launch. As another important highlight for the quarter, management completed financing transactions to bolster its cash position. This included a synthetic royalty agreement with Royalty Pharma, providing $125 million in exchange for tiered royalty payments, and a 5-year senior term loan agreement with Pharmakon for up to $250 million.

After its successful launch in the US, management is waiting for the review of RYTELO’s MAA in lower-risk MDS by the Committee for Medicinal Products for Human Use (CHMP). If the regulatory approval is granted it plans to launch RYTELO in select EU markets starting in 2026. It ranks first on our list of best long-term penny stocks to buy according to hedge funds.

While we acknowledge the potential of GERN to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than GERN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.

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