Small-Cap Stocks Outlook for 2025
On December 24, Global Advisors’ managing partner, Tom Lee, shared his thoughts on the potential of small and mid-cap stocks in 2025. Lee pointed out that 2025 is going to be a good year for small and mid-cap stocks. Backed by interest rate cuts and the incoming administration, companies are going to be expansionary and feel confident about mergers, added Lee. Moreover, Lee has reiterated that small-cap stocks are trading at a discount with a medium P/E multiple of 10. In an interview with CNBC, Lee said:’I think small caps could in the next couple of years outperform by more than 100%.’
New Street Advisors CEO Delano Saporu has similar thoughts and believes that small-cap stocks are well-positioned to outperform in 2025. He emphasized the potential for growth across various industries, including healthcare, technology, and renewable energy. Lee also highlighted the importance of diversification among small-cap stocks, which he believes will provide steady returns over the long term.
Elevation Oncology: A Penny Stock to Watch
Background
Elevation Oncology (ELEV) is one of the 12 best penny stocks to invest in according to recent media reports. The company specializes in selective cancer therapies and has several pipeline products, including its lead product, EO-3021, which is an antibody-drug conjugate targeting specific types of cancer such as gastric and gastroesophageal junction cancers.
Product Development
In addition to EO-3021, Elevation Oncology is working on poziotinib, a potential treatment for bladder cancer. If poziotinib progresses to the FDA’s final approval process, it could revolutionize the treatment options available for this specific type of cancer. This makes ELEV an exciting investment opportunity for investors looking for growth in the biotech or healthcare sectors.
Hedge Fund Sentiment
Elevation Oncology has gained attention from hedge funds and investors due to its strong pipeline and potential for significant revenue growth. While the stock may not yet be at its fair value, its fundamentals suggest it could outperform other penny stocks like ELEV among the list of best penny stocks in 2025.
Why Elevation Oncology Stands Out
One of the reasons why ELEV has been shortlisted among the best penny stocks is its focus on innovative treatments and its pipeline. Unlike some of its peers, Elevation Oncology is not just relying on existing products but is actively developing new ones that could have a transformative impact on the industry.
AI Stocks: A Closer Look
In addition to Elevation Oncology, the article explores some of the best AI stocks according to BlackRock. While ELEV has a strong pipeline and potential for growth, there are other penny stocks in the list that offer even higher returns with shorter timelines. If you’re looking for an AI stock that is more promising than ELEV but still affordable, check out our report on the cheapest AI stock.
##Disclosure
None of the information provided should be taken as financial advice. The article was originally published at Insider Monkey and provides a comprehensive analysis of various penny stocks in 2025.
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