5 Most Promising Small-Cap Stocks to Buy According to Hedge Funds

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1. Verastem, Inc. (NASDAQ:VSTM)

Number of Hedge Fund Holders: 38

Market Cap: $362.04 million

Verastem, Inc. (NASDAQ:VSTM) is one of the most promising stocks on our list.

TheFly reported on June 17 that VSTM Oncology announced updated safety and efficacy findings from the RAMP 205 Phase 1b/2a Recommended Phase 2 Dose cohort. The analysis included 29 patients with first-line metastatic pancreatic ductal adenocarcinoma receiving avutometinib and defactinib in combination with gemcitabine and nab-paclitaxel. The study evaluates whether targeting both KRAS-driven signaling and FAK-related resistance mechanisms alongside standard chemotherapy could improve outcomes for patients with metastatic pancreatic cancer. The findings provide further insight into the potential of this combination approach for addressing a disease where KRAS mutations play a major role in tumor progression.

Separately, on June 16, Verastem, Inc. (NASDAQ:VSTM) announced that the first patient had been dosed in the TARGET-D 201 Phase 2 registration-directed trial evaluating VS-7375, an investigational oral KRAS G12D inhibitor. The study is assessing VS-7375 in patients with KRAS G12D-mutated metastatic pancreatic ductal carcinoma, including use as a standalone therapy and in combination with cetuximab. The trial also explores a potential chemotherapy-free frontline approach in first-line metastatic pancreatic cancer. VS-7375 previously received FDA Fast Track Designation for advanced or metastatic pancreatic cancer in both first- and second-line treatment settings.

Verastem, Inc. (NASDAQ:VSTM) is a biopharmaceutical company developing targeted small molecule therapies for RAS/MAPK-driven cancers, with its lead products AVMAPKI and FAKZYNJA approved for recurrent low-grade serous ovarian cancer.

While we acknowledge the potential of VSTM 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 VSTM and that has 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: 10 Most Promising Penny Stocks According to Wall Street Analysts and 10 Best Growth Stocks Under $20 to Buy.

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