12 Best Multibagger Stocks to Buy Heading into 2026

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1. Nektar Therapeutics (NASDAQ:NKTR)

Market Cap: $924.12 Million

Price Return over 1-Year: 196.93%

Upside Potential: 153.10%

Number of Hedge Fund Holders: 36

With strong 1-year returns and upside potential, Nektar Therapeutics (NASDAQ:NKTR) secures a spot on our list of the 12 best multibagger stocks to buy heading into 2026.

Nektar Therapeutics (NASDAQ:NKTR) experienced a boost in analyst sentiment on December 16, 2025, following strong topline results from the 36-week induction period of the Phase 2b REZOLVE-AA study.

The trial narrowly missed its primary endpoint; however, Oppenheimer highlighted that omitting four patients with eligibility violations yielded nominal statistical significance. Seeing compelling activity for rezpegaldesleukin, the firm raised the probability of success for the indication to 50%. Accordingly, the bank increased its price target on Nektar Therapeutics (NASDAQ:NKTR) from $98 to $115, while maintaining an “Outperform” rating, according to The Fly.

Meanwhile, H.C. Wainwright also expressed optimism the same day, raising its price target from $120 to $135 on Nektar Therapeutics (NASDAQ:NKTR) with a “Buy” rating. Citing the topline results as encouraging, the firm raised its probability of rezpegaldesleukin launch for alopecia areata to 25%. H.C. Wainwright projects risk-adjusted revenues of $59 million in 2030, expecting it to grow to $380 million by 2035.

With 92 patients enrolled, the REZOLVE-AA trial saw both dose arms more than double the hair regrowth treatment effect compared to placebo. Meanwhile, patients demonstrating growth but not yet reaching SALT > 20 could continue in a blinded 16-week extension. The study showed consistency in terms of safety, reporting mostly mild-to-moderate adverse events and low discontinuation rates. The results not only reinforce proof-of-concept for rezpegaldesleukin in alopecia areata but also expand the drug’s clinical and commercial potential.

Nektar Therapeutics (NASDAQ:NKTR), a clinical-stage biotechnology company, develops immunology-based therapies. These therapies, led by rezpegaldesleukin, aim at treating autoimmune and chronic inflammatory diseases through targeted regulatory T-cell modulation.

While we acknowledge the potential of NKTR to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than NKTR and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 12 Cheap Gold Stocks to Buy Now and 15 Best AI Stocks to Watch in December 2025.

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