S&P 500   5,137.08
DOW   39,087.38
QQQ   445.61
Latest freight railroad layoffs and Wall Street pressure renew concerns about safety and service
Critical asset just had biggest fall on record (Ad)
How major US stock indexes fared Friday, 3/1/2024
Brazil's economy grows 2.9% in Lula's 1st year, beating expectations
Critical asset just had biggest fall on record (Ad)
Question of whether Nebraska public money can go to private schools still set for November ballot
A US appeals court ruling could allow mine development on Oak Flat, land sacred to Apaches
This is the #1 Stock to Buy for the AI Tidal Wave (Ad)
Peace, music and memories: As the 1960s fade, historians scramble to capture Woodstock's voices
Georgia's largest county is still repairing damage from January cyberattack
S&P 500   5,137.08
DOW   39,087.38
QQQ   445.61
Latest freight railroad layoffs and Wall Street pressure renew concerns about safety and service
Critical asset just had biggest fall on record (Ad)
How major US stock indexes fared Friday, 3/1/2024
Brazil's economy grows 2.9% in Lula's 1st year, beating expectations
Critical asset just had biggest fall on record (Ad)
Question of whether Nebraska public money can go to private schools still set for November ballot
A US appeals court ruling could allow mine development on Oak Flat, land sacred to Apaches
This is the #1 Stock to Buy for the AI Tidal Wave (Ad)
Peace, music and memories: As the 1960s fade, historians scramble to capture Woodstock's voices
Georgia's largest county is still repairing damage from January cyberattack
S&P 500   5,137.08
DOW   39,087.38
QQQ   445.61
Latest freight railroad layoffs and Wall Street pressure renew concerns about safety and service
Critical asset just had biggest fall on record (Ad)
How major US stock indexes fared Friday, 3/1/2024
Brazil's economy grows 2.9% in Lula's 1st year, beating expectations
Critical asset just had biggest fall on record (Ad)
Question of whether Nebraska public money can go to private schools still set for November ballot
A US appeals court ruling could allow mine development on Oak Flat, land sacred to Apaches
This is the #1 Stock to Buy for the AI Tidal Wave (Ad)
Peace, music and memories: As the 1960s fade, historians scramble to capture Woodstock's voices
Georgia's largest county is still repairing damage from January cyberattack
S&P 500   5,137.08
DOW   39,087.38
QQQ   445.61
Latest freight railroad layoffs and Wall Street pressure renew concerns about safety and service
Critical asset just had biggest fall on record (Ad)
How major US stock indexes fared Friday, 3/1/2024
Brazil's economy grows 2.9% in Lula's 1st year, beating expectations
Critical asset just had biggest fall on record (Ad)
Question of whether Nebraska public money can go to private schools still set for November ballot
A US appeals court ruling could allow mine development on Oak Flat, land sacred to Apaches
This is the #1 Stock to Buy for the AI Tidal Wave (Ad)
Peace, music and memories: As the 1960s fade, historians scramble to capture Woodstock's voices
Georgia's largest county is still repairing damage from January cyberattack

3 Small-Cap Biopharma Stocks that Could See Big Growth in 2023

 3 Small-Cap Biopharma Stocks that Could See Big Growth in 2023

Key Points

  • The health care industry has struggled a little through the pandemic.
  • Some companies are bouncing back, while these have mostly weathered the storm.
  • These three small-cap biopharmaceutical companies have excellent growth potential in the year to come.
  • 5 stocks we like better than Arvinas

While 2022 was not too kind across the stock market, biotech stocks seem to have—for the most part—held their ground. These small-cap clinical-stage biopharmaceutical stocks are doing better than the average marker across the healthcare sector.

These three stocks, in particular, have the potential for big things in the year ahead, even as some may have felt the pandemic pinch. So don't let some of their less-attractive traits deceive you: analysts believe these stocks are among those that could see significant growth in 2023.

NOTE: All figures reported in this article are up-to-date as of January 12, 2023.

Arvinas, Inc.
Market Capitalization: $1.64 billion

Arvinas, Inc. NASDAQ: ARVN is a clinical-stage biopharmaceutical company focusing on treatments that combat the degrading proteins that cause disease. While the stock is down more than 55% over the last 52 weeks, analysts believe the bottom is nigh, and a rebound is on the horizon. The current share value may be only $30.79, but analysts have given the stock a price target of $73.19.

That represents an encouraging upside of $141.0%. And although earnings are not yet in the green, the latest numbers suggest that this could change quickly, especially on the back of early results from the recent VERITAC trial(s). Reports suggest the drug could offer a nearly 40% benefit rate for breast cancer patients, signaling a potential future sales—and revenue—boost. This also encourages outlooks for other “PROTAC” products already in the company's pipeline.

Analysts have been wavering up and down over the severity of the stock's rating, but the majority have voted for a Buy of some kind. Arinas' next earnings report will come on February 27, 2023, and this should provide more context as to just how accurate the rating is and how much growth can be anticipated.


Rocket Pharmaceuticals Inc.
Market Capitalization: $1.63 billion

Rocket Pharmaceuticals, Inc. NASDAQ: RCKT is an emerging, clinical-stage biotechnology company. They focus on developing first-in-class gene therapy options for rare—and particularly undertreated—diseases. The current share price is $21.49, which is in the top 15% of its 52-week range. Much like ARVN, however, RCKT has an exceptionally high upside—157.2%—with a price target of $53.55.

It is also similar in that neither is currently paying out dividends, probably because earnings are both still in the red. In addition, the stocks for both RCKT and ARVN missed their most recent earnings targets by -$0.10 and -$0.26, respectively. In terms of future earnings, though, RCKT is slightly different, as analysts expect earnings to continue increasing. But, again, we should learn more about this when they release their next report towards the end of February.

Despite its current negativity, its earnings growth trend perfectly aligns with this stock's overall trend this past year. While the stock experienced some dips in 2022, its current value is up more than 13% year-over-year.

And since all other metrics are on a similar upward trend, there is a good chance RCKT could break through this threshold any day. After all, the stocks' value is up more than 24% in the quarter. So if—and when—this breakthrough happens, it should easily justify the Buy rating analysts have given.

Xencor, Inc.
Market Capitalization: $1.68 billion

Based in California, Xencor, Inc Nasdaq: XNCR is a clinical-stage biopharmaceutical company. They focus on the discovery and development of lab-engineered monoclonal antibodies and cytokine therapeutics to treat cancer and autoimmune disease, patients. The stock's current $27.96 value sits comfortably near the 52-week median and shows much promise.

Q3 2022 revenue was up 38.7% YoY, outperforming estimates by $6.25 million. As we approach their full fiscal year earnings, Xencor expects liquidity between $575 million and $600 million. In addition, it is possible that Xencor could generate as much as $3 billion in revenue over the next ten years by increasing milestone and royalty payments.

That said, the stock has a P/E ratio of 58.25, which is abnormally high for this sector, especially with -$0.55 EPS. Even though last quarter's earnings beat the estimate by $0.22, this could imply it is heavily overweight. And with earnings expected to decrease—and remain in the red—the stock may not appear as attractive as its BUY rating, at least for now. However, the $48.99 represents a 74.9% upside that will undoubtedly [attempt to] make up for whatever challenges they could face moving forward.

→ Critical asset just had biggest fall on record (From Stansberry Research) (Ad)

Should you invest $1,000 in Arvinas right now?

Before you consider Arvinas, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Arvinas wasn't on the list.

While Arvinas currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

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Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
Arvinas (ARVN)
3.149 of 5 stars
$47.30+2.9%N/A-7.28Moderate Buy$59.93
Rocket Pharmaceuticals (RCKT)
4.6377 of 5 stars
$30.53+4.2%N/A-10.38Buy$54.00
Xencor (XNCR)
3.7832 of 5 stars
$23.82+3.8%N/A-11.34Moderate Buy$35.71
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