My Top Stock for 2025 Is Acting Like a Top Stock
This small biotechnology name is already up 28% and has much more potential upside.
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On January 2, 2025, I named Xeris BioPharma XERS my top small-cap stock pick for 2025. It was trading at around $3.50 at the time. On Thursday morning the stock is trading up to around $4.50, which is a gain of 28%, after its very strong earnings report.
Xeris is a rarity in biotechnology. It is cash flow positive, doesn’t need to raise capital, and is trading at less than 3x sales with revenue growth of around 30% per year. The stock is a good value just based on the three drugs it currently sells but it has another drug in the pipeline that it is discussing with the FDA. That drug has a potential market of more than one billion dollars.
Xeris has been under the radar for a long time, primarily because it is in the very poor biotechnology sector and because it trades under $5. This is not a stock that attracts institutional interest even with its exceptional fundamentals.
I expect to see some strong analyst comments in the next few days, and after the strong earnings report, there should be very strong technical support. It is still my top play for 2025.
The overall market is struggling again but has managed to bounce a little after the poor open. Breadth is poor again at more than 2 to 1 negative, but the indexes are at their highs of the day, and they are trying to find support.
I’ve been strategically trading and jumped on some SpringWorks Therapeutics SWTX after nervousness about a potential takeover deal. I’m also adding to BridgeBio Pharma BBIO, which has reported great sales lately but is under pressure after it refinanced some debt. I believe the market is overlooking the strong demand for their key drug.
AST SpaceMobile ASTS is still acting very well, and I’m starting a new position in Uber UBER.
The overall market is a mess but there are some good opportunities in individual stocks.
At the time of publication, Rev Shark was long XERS, SWTX, ASTS and UBER.
