10 Best Russell 2000 Stocks to Invest in According to Analysts

2. Summit Therapeutics Inc. (NASDAQ:SMMT)

Upside Potential: 80.39%

Stock Price as of January 16: $17.85

Number of Hedge Fund Investors: 21

Summit Therapeutics Inc. (NASDAQ:SMMT) is a biotechnology company headquartered in Miami, Florida, that has emerged as a formidable player in the oncology space, particularly in the treatment of lung cancer. The company is challenging the dominance of pharmaceutical giants such as Merck (NYSE:MRK) with its lead asset, ivonescimab, a bispecific antibody developed in collaboration with Chinese biotech company Akeso.

Summit Therapeutics Inc. (NASDAQ:SMMT) is aggressively advancing its lead candidate, ivonescimab, a PD(L)1xVEGF bispecific, which has shown promising results in clinical trials, positioning Summit Therapeutics Inc. (NASDAQ:SMMT) to potentially disrupt the current treatment landscape and capture a significant share of the global oncology market. The company has already reported encouraging data from a Phase 3 trial conducted in China, where ivonescimab outperformed Merck’s Keytruda, a leading immunotherapy in the Non-small cell lung cancer (NSCLC) market. This landmark achievement marks ivonescimab as the first drug to outperform Keytruda in a Phase 3 randomized trial for NSCLC, setting the stage for further clinical and commercial success.

Two pivotal trials, HARMONi and HARMONi-2, are currently underway, with data expected to be released in the coming year. These trials are crucial for the company, as positive results could pave the way for ivonescimab to gain regulatory approval and market access in the United States and Europe, starting in 2026. The company is optimistic that the data will support the drug’s potential to become a treatment for NSCLC, thereby significantly expanding its addressable market.

Truist Securities, a leading investment firm, has recently issued a buy recommendation for Summit Therapeutics Inc. (NASDAQ:SMMT), citing the company’s strong clinical data and promising deal-forming prospects. Truist analyst Asthika Goonewardene has set a $35 target on Summit Therapeutics Inc. (NASDAQ:SMMT), reflecting the significant upside potential of the stock. Goonewardene believes that ivonescimab has a “substantial opportunity” in the lung cancer market, but the total addressable market for the investigational immunotherapy could be even more extensive.