10 Best Small-Cap Stocks to Buy Before They Explode

2. Travere Therapeutics, Inc. (NASDAQ:TVTX)

Market Capitalization: $1.815 Billion

Analyst Upside Potential: 57.35%

Number of Hedge Fund Holders: 39

Travere Therapeutics, Inc. (NASDAQ:TVTX) is another biopharmaceutical company focused on developing and delivering life-changing therapies for people with rare kidney and metabolic diseases. Its lead product is FILSPARI, which is an FDA-approved, non-immunosuppressive medication for slowing kidney function decline in adults with primary IgA nephropathy. In addition, the company is also developing sparsentan for focal segmental glomerulosclerosis and Pegtibatinase for classical homocystinuria.

On March 19, Leerink Partners analyst Joseph Schwartz maintained a Buy rating on the stock. Schwartz highlighted the submission of a supplemental New Drug Application for Filspari, which can open a significant market opportunity in focal segmental glomerulosclerosis, which is a condition with no approved therapies. This market is estimated to be worth $1 billion, supported by positive Phase 3 DUPLEX and Phase 2 DUET study data.

In addition, Travere Therapeutics, Inc. (NASDAQ:TVTX) reported strong sales figures for Filspari in 2024, surpassing expectations due to robust demand. Net product sales of FILSPARI totaled $50 million in 4Q 2024, reflecting growing adoption. The company ranks as one of the best small cap stocks to buy before they explode.