3 Penny Stocks Wall Street Sees With 243% Upside

Penny stocks captivate investors with their low prices. The allure of controlling large numbers of shares for relatively very little money, and potentially generating explosive gains if their stocks move just a little bit higher, is a temptation too great to pass up for many.

Often listed on over-the-counter markets or smaller exchanges, these stocks appeal to those seeking high-growth opportunities in emerging companies, especially in volatile sectors like biotech or tech. 

However, the risks penny stocks carry are substantial. Penny stocks are prone to extreme volatility, limited liquidity, and manipulation through pump-and-dump schemes, often leading to significant losses. Many lack transparent financials, increasing the chance of investing in failing firms. 

Yet, not every penny stock is a scam or doomed to bankruptcy. Some represent undervalued companies with strong fundamentals and growth potential. The following three penny stocks, trading under $5 — that’s the definition used by the SEC to classify a stock as a penny stock —  are ones Wall Street is particularly bullish on, projecting 75% or more upside potential based on their promising trajectories.

Terns Pharmaceuticals (TERN)

Terns Pharmaceuticals (NASDAQ:TERN), trading at $4.06 (up 19% yesterday), is a clinical-stage biotech targeting liver diseases and oncology, with Wall Street projecting a $19.14 average price target, implying 371% upside.

Analysts see TERN’s promising pipeline, particularly TERN-701, a potential best-in-class allosteric BCR-ABL inhibitor for leukemia, showing strong initial efficacy and safety data. TERN-601, an oral GLP-1 for obesity, leverages the booming weight-loss market, with differentiated dosing advantages. 

The company’s $334 million cash runway extends to 2028, supporting trials without dilution risk. Despite a 26% stock drop in 2025 due to obesity market competition, seven buy ratings in the past few months reflect analyst confidence. Risks include clinical trial setbacks and partnership delays, but TERN’s undervaluation and robust financials fuel optimism. TERN’s innovative drugs and cash position make it a high-reward biotech play, especially if a pharmaceutical giant buys it out.

HIVE Digital Technologies (HIVE)

HIVE Digital Technologies (NASDAQ:HIVE), at $2.02 per share, is a crypto mining and AI computing firm with a $6.94 per share average price target, offering 243% upside. Analysts like HIVE’s pivot to high-performance computing, leveraging its 100 megawatts of renewable energy-powered data centers for AI workloads. 

First-quarter revenue hit $37.1 million, up 29%, with Bitcoin mining efficiency boosted by achieving 8 Exahash per second (EH/s) capacity last month as it strives for 25 EH/s. B. Riley initiated coverage on HIVE with a Buy rating, citing its low-cost power and GPU expansion potential, while H.C. Wainwright’s $9 per share price target highlights the company’s potential for AI-driven growth.

The stock’s 60% surge from April’s low reflects crypto’s rally, but volatility risks persist due to Bitcoin’s price swings and regulatory uncertainty. The U.S. Senate, though, may vote on the GENIUS Act — a stablecoin bill with President Trump’s support — as early as today, while the CLARITY Act, another crypto-focused bill, cleared a similar House panel yesterday. 

HIVE’s $364 million market cap and zero long-term debt position it as a nimble player in the $1 trillion AI and blockchain markets, making it a speculative, but compelling penny stock bet.

Corvus Pharmaceuticals (CRVS)

The third penny stock analysts have rallied behind is Corvus Pharmaceuticals (NASDAQ:CRVS), a biotech developing immunotherapies and trading at $4.25 per share. With a $15.20 per share average price target, it signals 457% upside. Analysts are enthusiastic about soquelitinib, a selective ITK inhibitor for T-cell lymphomas, showing promising Phase 1 results with a 38% response rate. 

Oppenheimer raised its target to $17, citing potential FDA accelerated approval by 2027, while Ladenburg’s $21 target reflects blockbuster potential. CRVS’s $135 million cash runway supports trials through 2026 and minimize dilution. 

Seven Buy ratings this month underscore Wall Street’s confidence, even though the company missed earnings estimates by 14%. Risks include clinical delays and competition in oncology, but CRVS’s focused pipeline and strong financials are driving optimism. 

Trading below $5, CRVS offers high-risk, high-reward exposure to a niche immunotherapy market that appeals to aggressive biotech investors.