10 Hottest Smid-Cap Stocks So Far In 2025

3. Compass Therapeutics (NASDAQ:CMPX)

YTD Performance: 86.8%

Compass Therapeutics (NASDAQ:CMPX) is a clinical-stage biotech outfit that focuses on cancer treatments and antibody-based therapeutics. Its main programs include tovecimig, which used to go by CTX-009, and a few other antibodies in the pipeline. These drugs are still under development, so the company does not rake in major revenue from product sales. It runs on external financing and public offerings instead. Tovecimig is probably the most significant candidate right now, and management expects Phase 2/3 data in biliary tract cancer by the first quarter of 2025. That program has drawn a lot of interest from investors because it might deliver solid results that could push the stock higher.

Recent news suggests the company has moved forward with clinical trials for its lead candidates. Tovecimig will head into a Phase 2 trial for DLL4-positive colorectal cancer in mid-2025. Plus, there’s a new drug candidate called CTX-10726 that targets PD-1 and VEGF-A. In my opinion, these updates look promising, although it can always be a rollercoaster with small-cap biotech.

Compass Therapeutics reported a net loss of about $10.5 million for Q3 2024, and it had $135 million in cash and marketable securities. The recent updates about its pipeline have lifted its share price. The stock is up 87% this year. I think investors expect meaningful trial results in the near term. The hope is that positive top-line data will justify the big research and development spending and push the stock higher.