We recently published a list of 10 Best Multibagger Stocks To Buy Heading into 2025. In this article, we are going to take a look at where Capricor Therapeutics, Inc. (NASDAQ:CAPR) stands against other best multibagger stocks.
November has been an eventful month so far for the market as the Fed cut rates by a quarter percentage and president-elect, Donald Trump won the election for the second time. The market reacted positively to these events as the major indices touched all-time highs and even Bitcoin finally broke off its shell after many months, reaching an all-time high of $93,000.
More recently, Federal Reserve Chair Jerome Powell stated that solid economic growth, low unemployment, and inflation above 2% mean there’s no urgency to cut interest rates. Speaking in Dallas, Powell said inflation is on a path toward the Fed’s 2% target, allowing for cautious policy adjustments.
He highlighted the economy’s strong fundamentals but acknowledged persistent inflation pressures. While a rate cut is expected by the market in December, it anticipates fewer cuts next year due to steady inflation and policy uncertainties. According to the CME FedWatch, 62.4% of the interest rate traders expect a 25 bps rate cut in December. However, in January, 55.5% of the market anticipates the rates to remain the same after the December cut.
Powell emphasized that the Fed will monitor inflation closely, especially housing costs, as it aims to reach its target sustainably.
READ ALSO: 12 High Growth Large Cap Stocks to Buy Now and 10 Best Low Volatility Stocks to Invest in Now.
Election Boosts Market Optimism but Risks Remain
Stuart Kaiser, Citi’s head of equity trading strategy recently joined CNBC’s Closing Bell. In the post-election discussion, Kaiser expressed a generally optimistic outlook, with confidence that the markets have cleared the immediate uncertainties related to the election. Kaiser noted a temporary boost from this event but emphasized that moving forward, market focus will return to U.S. economic growth, the Fed’s actions, and corporate earnings.
While he believes valuations are currently more justifiable with expected growth from deregulation and new policy changes, he remains cautious about risks tied to bond market movements and rising yields. He suggested that rising yields linked to economic growth are manageable for equities, but warned against yields climbing due to fiscal or tariff issues, which could unsettle the market.
Regarding equity strategy, Kaiser advocated a cautious approach to small-cap investments, preferring high-quality, profitable small caps due to their domestic focus, which could shield them from trade policy risks impacting larger companies. Additionally, although Kaiser doesn’t handle non-traditional assets directly, he acknowledged that assets like Bitcoin might gain traction in a strong economic or supportive policy environment.
Test tubes filled with exosomes, representing exosome-based therapeutics.
Our Methodology
For this article, we used the Finviz stock screener to identify over 350 stocks with share price gains of over 100% in the last 12 months, as of November 13. Next, we narrowed our list to 28 stocks with share price gains of 200% either in the last 12 or 24 months and Buy or better ratings from analysts. From that list, we removed the stocks that had negative share price returns compared to 24 months ago and finally narrowed the list to 10 stocks with an average analyst price target upside of over 100%. The 10 best multi-bagger stocks are listed in ascending order of their average price target upside.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
Capricor Therapeutics, Inc. (NASDAQ:CAPR)
1-Year Share Price Performance: ~515%
2-Year Share Price Performance: ~285%
Average Price Target Upside: 110.59%
Capricor Therapeutics, Inc. (NASDAQ:CAPR) is a biotechnology company focused on developing cell and exosome-based therapies for muscular diseases. Its leading candidate, deramiocel, is an allogeneic cell therapy currently in Phase 3 trials for Duchenne muscular dystrophy (DMD).
Deramiocel uses cells from healthy human heart tissue to repair damaged muscle and improve heart function, with potential benefits in both cardiac and skeletal muscles. Early studies suggest it can slow muscle degeneration and improve cardiovascular health.
The company is also advancing its StealthX exosome platform in preclinical stages, which aims to deliver oligonucleotides, proteins, and small molecules for several diseases, with a focus on vaccinology and targeted treatments.
In Q3, Capricor (NASDAQ:CAPR) reported a cash position of $85.0 million as of September 30, 2024, up from $39.5 million at the end of 2023. The company raised $52.2 million in net proceeds through an at-the-market offering and an additional $80.8 million from a public offering in October 2024.
However, the company experienced a decline in revenues, which were $2.3 million for Q3 2024, down from $6.2 million in Q3 2023. Operating expenses for Q3 2024 totaled $15.3 million, resulting in a net loss of $12.6 million. The company projects its current financial resources will sustain operations through 2027, excluding additional milestone payments or strategic capital use.
Capricor (NASDAQ:CAPR) is also preparing for the expansion of its manufacturing capacity and has secured a binding term sheet with Nippon Shinyaku for the European commercialization of deramiocel. This agreement includes a $20 million upfront payment, potential milestone payments of up to $715 million, and a double-digit percentage of product revenue.
On November 14, The Fly reported that Cantor Fitzgerald raised its price target for Capricor (NASDAQ:CAPR) to $30 from $25, maintaining an Overweight rating on the stock. The firm noted that the company’s third-quarter earnings report did not reveal any major surprises, but it provided additional insights into its regulatory and commercial plans.
Moreover, the company has attracted significant interest from new investors, many of whom were impressed by the high royalty expectations from its partnership. Cantor Fitzgerald believes the company could achieve annual peak revenues of approximately $1 billion in the U.S. alone.
Overall, CAPR ranks 8th on our list of best multibagger stocks to buy heading into 2025. While we acknowledge the potential of CAPR as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CAPR but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.