Wall Street’s 3 Surprising Growth Stocks That Could Soar in 2024

Small-cap growth stocks are likely to outperform the overall market over the next three to five years. One key reason is that the Federal Reserve is widely expected to begin cutting interest rates this year, which has historically been a significant tailwind for small-cap performance.

Additionally, small-cap stocks are trading at a significant discount to mid- and large-cap stocks due to the Federal Reserve’s aggressive interest rate hikes over the past two years. Low interest rates also tend to increase investors’ appetite for risk, a trend that often benefits smaller growth companies.

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Which small-cap stocks have the brightest prospects for 2024? Wall Street is expecting big things. beam therapy (beam -1.84%), Edgewise Therapeutics (EWTX 8.11%)and Monte Rosa Therapeutics (glue -2.68%) After 2024. Read on to learn more about these three high-risk, high-reward healthcare stocks.

1. Beam therapy

Beam Therapeutics is developing a new form of genomic medicine based on a technology called base editing. Base editing is a more precise and versatile version of CRISPR gene editing that does not cause double-strand breaks in DNA molecules.

Beam decided to first test its innovative gene therapy platform for sickle cell disease (a rare blood disorder), alpha-1 antitrypsin deficiency (a liver protein disease), and glycogen storage disease type 1a (a genetic disorder that causes the production of complex sugars) I did. in the liver and kidneys).

Analysts who follow this biotech believe that the company’s stock price could increase by 82.5% over the next 12 months. The technology is still unproven, but Beam is expected to announce several clinical updates this year that could push the stock higher.

2. Edgewise Therapeutics

Edgewise Therapeutics is focused on developing new treatments for serious muscle diseases. The company’s most advanced drug candidate is EDG-5506, an oral small molecule drug indicated for Becker and Duchenne muscular dystrophy. These inherited muscle wasting disorders have a high unmet medical need and a multibillion-dollar market potential.

In addition to EDG-5506, Edgewise is also developing EDG-7500, an oral drug that modulates the function of the cardiac sarcomere, the basic unit of heart muscle contraction. EDG-7500 is intended to treat hypertrophic cardiomyopathy (HCM), a condition that can lead to sudden cardiac death. HCM is expected to become a multi-billion dollar market over the next decade.

Edgewise has a high-value pipeline of innovative drugs for serious muscle diseases, but has a market capitalization of less than $700 million as of this writing. So this mini biotechnology could be a hidden gem. That is, if more than one pipeline candidate emerges. Following this theme, Wall Street analysts believe biotech stocks could soar as much as 164% over the next 12 months.

3. Monte Rosa Therapeutics

Monte Rosa Therapeutics is at the cutting edge of human medicine. The company is developing a new class of therapeutics known as molecular adhesive degraders (MGDs).

This emerging field has attracted significant interest from large pharmaceutical companies over the past year. Roche, Bristol Myers Squibband Merck All signatories have agreements with collaborators to explore the utility of MGD for autoimmune diseases, cancer, and neurological disorders. Monte Rosa will form a strategic collaboration with Roche in late 2023 to develop MGD-based medicines for cancer and neurological diseases.

Monte Rosa’s platform is still in proof-of-concept mode, and it will likely be several years before it produces an approved product. Nonetheless, Wall Street analysts believe the biotech’s stock could rise 152% higher over the next 12 months in response to further clinical updates on MRT-2359, its lead candidate for MYC-driven solid tumors.

Now this development biotech stock is the epitome of high risk. However, the potential for MGD-based medicines is enormous. So Monte Rosa can be a great way to get into the first steps of a truly new form.