10 Best Small-Cap Stocks to Buy Before They Explode

7. Harmony Biosciences Holdings, Inc. (NASDAQ:HRMY)

Market Capitalization: $1.914 Billion

Analyst Upside Potential: 51.87%

Number of Hedge Fund Holders: 26

Harmony Biosciences Holdings, Inc. (NASDAQ:HRMY) is a commercial-stage pharmaceutical company specializing in therapies for rare neurological diseases and other conditions with unmet medical needs. Its flagship products include WAKIX, which is a first-in-class molecule designed to enhance histamine signaling in the brain by binding to H3 receptors.

In fiscal 2024, Harmony Biosciences Holdings, Inc. (NASDAQ:HRMY) reported $714.7 million in net product revenues, reflecting a 23% year-over-year increase. The fiscal Q4 alone generated $201.3 million, driven by the durable growth of WAKIX. In addition, the company is advancing one of the industry’s most robust CNS pipelines, aiming for one or more product or indication launches annually over the next several years. Its pipeline includes Pitolisant HD, ZYN002, and EPX-100.

Looking ahead, Harmony Biosciences Holdings, Inc. (NASDAQ:HRMY) WAKIX to exceed $1 billion in annual revenue before its loss of exclusivity (LOE) in 2030. Moreover, on March 18, Mizuho raised the firm’s price target on the stock to $44 from $42 and kept an Outperform rating on the shares. It is one of the best small cap stocks to buy before they explode.