11 Best Russell 2000 Stocks to Buy According to Wall Street Analysts

3. Catalyst Pharmaceuticals, Inc. (NASDAQ:CPRX)

Upside potential: 51.31%

No of hedge funds: 35

A commercial-stage biopharmaceutical company, Catalyst Pharmaceuticals, Inc. (NASDAQ:CPRX) is focused on developing and distributing pharmaceutical products for rare neuromuscular and neurological diseases. Their flagship product, Firdapse, treats Lambert-Eaton Myasthenic Syndrome (LEMS). Continuing research on the product further targets orphan indications. Against heavy competitors like Sarepta in the market, Catalyst Pharmaceuticals, Inc. (NASDAQ:CPRX) succeeds through orphan drug exclusivity and targeted R&D investments. Regulatory incentives and strategic acquisitions give the company a competitive edge in underserved therapeutic categories.

Catalyst Pharmaceuticals, Inc. (NASDAQ:CPRX) has recorded 34.27% EPS growth over five years, heavily contributed by the demand for its flagship product, Firdapse, in the market. The strong commercial performance has led to a 23.5% growth in total revenue, reaching $491.7 million in 2024. The revenue includes a $2.1 million milestone payment earned by DyDo Pharma, the sublicensee of Catalyst for Firdapse in Japan. Having gained approval to commercialize the product, the company expects sales to grow in Japan soon. Additionally, AGAMREE, the new product launched in March 2024 for treating Duchenne muscular dystrophy, is projected to deliver double the revenue, contributing close to 20% of the expected overall turnover in 2025.

Catalyst Pharmaceuticals, Inc. (NASDAQ:CPRX) manages to acquire the support of 35 hedge funds at the end of Q4 2024, raising its institutional interest. Having assigned a Buy rating, analysts have forecasted a 51.31% upside, ensuring its entry into our list of best Russell 2000 stocks.