We recently published a list of 11 Unstoppable Growth Stocks to Invest in Now. In this article, we are going to take a look at where Xeris Biopharma Holdings, Inc. (NASDAQ:XERS) stands against other unstoppable growth stocks to invest in now.
BlackRock highlighted that the trade conflict between the US and China continues to cause major economic disruptions. However, the expectations of a supply-driven contraction in the US are very different from a typical business cycle recession. The hard economic rules binding on policy are expected to limit the damage. Furthermore, the AI mega force has been keeping the firm overweight on the US stocks and positive on developed market stocks, despite the expectations of volatility.
Focus Areas Amidst Tariff Worries
BlackRock believes that some of the sectors are more exposed to tariffs as compared to others, with sectoral differences already at play in the earnings releases for Q1 2025. The companies that are at the forefront of the AI mega force continued to keep fueling the US equity strength, while policy uncertainty significantly impacts the broader market. The leading technology companies managed to exceed the Q1 earnings expectations, highlighted the increasing AI-driven demand, and announced plans to raise investments focused on AI.
Such trends strengthen the fact that how AI mega force continues to persist despite the supply-driven disruptions. As a result, BlackRock has remained positive on developed market (DM) stocks, primarily the US. On the other hand, automakers have been tagged by the firm as the ones most exposed to key supply inputs from China. Furthermore, some of the automakers have highlighted the impact of tariffs in their respective expectations for full-year earnings.
READ ALSO: 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In.
Franklin Templeton believes that it is of utmost importance to remember that tough economic and/or market phases are finite. Investors who tend to see most of the profits during the recovery are the ones staying the course during the stormy weather. The investment firm continues to see increased potential for a sustained period of small-cap leadership. Considering its metric of choice to gauge index valuations, EV/EBIT, the Russell 2000 is far more attractively valued as compared to the Russell 1000, says Franklin Templeton.
As per the investment manager, the valuation situation becomes even more attractive when consensus earnings growth is included. Notably, growth stocks are the ones capable of increasing their earnings faster as compared to an average business in the respective industry or broader market. At 2024 end, the Russell 2000 was expected to see stronger earnings growth in 2025 as compared to the Russell 1000, based on EPS, added the investment firm.
Our Methodology
To list the 11 Unstoppable Growth Stocks to Invest in Now, we used a screener to shortlist the companies catering to the growth sectors that have 3-year revenue growth of at least ~25%, and that have appreciated significantly on a YTD basis. We also mentioned hedge fund sentiments around each stock, as of Q4 2024. Finally, the stocks were arranged in ascending order of their hedge fund sentiment.
Note: The data was recorded on May 9.
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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A biotechnologist wearing lab coat, creating a unique formulation for a therapy.
Xeris Biopharma Holdings, Inc. (NASDAQ:XERS)
Number of Hedge Fund Holders: 21
3-Year Revenue Growth: ~51.9%
% Increase on a YTD Basis: ~44.8%
Xeris Biopharma Holdings, Inc. (NASDAQ:XERS) is a biopharmaceutical company that is engaged in developing and commercializing therapies in Illinois. Oppenheimer upped the company’s price target to $7 from $6, keeping an “Outperform” rating on its shares. The firm noted that Xeris Biopharma Holdings, Inc. (NASDAQ:XERS) reported Q1 2025 total revenue of $60.1 million, topping the firm’s/consensus estimates. For Recorlev®, Q1 2025 net revenues came in at $25.5 million, reflecting a rise of ~141% YoY. This growth was backed by the fact that the average number of patients on Recorlev® increased 124% YoY. For Gvoke®, Q1 2025 net revenue sat at $20.8 million, up by ~26% YoY. Oppenheimer also believes that the company has no apparent tariff threat since the manufacturing is wholly domestic.
Xeris Biopharma Holdings, Inc. (NASDAQ:XERS)’s performance demonstrates sustained momentum throughout its portfolio, led by healthy demand for Recorlev®. Recorlev® has been distinguishing itself as the company’s fastest-growing and now its largest product, gaining traction as a uniquely differentiated therapy for patients with hypercortisolism and endogenous Cushing’s syndrome. Thanks to its strong Q1 2025 performance and healthy momentum in the business, it has tightened FY 2025 total revenue guidance to $260 million – $275 million. This revision is from its previous range of $255 million – $275 million.
Overall, XERS ranks 11th on our list of unstoppable growth stocks to invest in now. While we acknowledge the potential of XERS as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for a deeply undervalued AI stock that is more promising than XERS but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
