Top 11 Small Cap Stocks to Buy with Biggest Upside Potential

7. Edgewise Therapeutics, Inc. (NASDAQ:EWTX)

Market Cap: $1.75 billion

Analyst Upside: 189.63%

Number of Hedge Fund Holders: 49

Edgewise Therapeutics, Inc. (NASDAQ:EWTX) is a clinical-stage biopharmaceutical company that develops, discovers, and commercializes innovative treatments for serious, rare muscle disorders with considerable unmet medical needs and severe cardiac conditions. Its lead product candidate is sevasemten (EDG-5506), an orally administered skeletal myosin inhibitor in late-stage clinical trials in Becker and Duchenne muscular dystrophies. The company ranks seventh on our list of the top small-cap stocks to invest in with the biggest upside potential.

Guggenheim analyst Debjit Chattopadhyay initiated coverage of Edgewise Therapeutics, Inc. (NASDAQ:EWTX) with a Buy rating on April 30, setting a $41 price target. The analyst told investors in a research note that the company has two small molecules in mid to late-stage clinical development: sevasemten for Duchenne muscular dystrophy and EGD-7500 for obstructive and non-obstructive hypertrophic cardiomyopathy. According to the analyst, the company’s current $1 billion enterprise value “offers a compelling entry point,” with multiple readouts over the coming 12 months and cash into 2028. Guggenheim also initiated coverage of Edgewise Therapeutics, Inc. (NASDAQ:EWTX) with a Buy rating on the same day, setting a $41 price target.