8 Best Small-Cap Growth Stocks to Buy According to Analysts

2. Arvinas, Inc. (NASDAQ:ARVN)

Market Capitalization: $1.86 Billion

Number of Hedge Fund Holders: 33

Analyst Upside Potential: 126.35%

Arvinas, Inc. (NASDAQ:ARVN) is another clinical-stage biotechnology company that ranks 2nd on our list of 8 best small-cap growth stocks to buy according to analysts. The stock was held by 33 hedge funds in Q2 2024, with total positions worth $542.04 million, as per Insider Monkey’s database. Moreover, analysts’ 12-month median price target is pointing towards a 126.35% upside from the current levels indicating significant growth.

Arvinas, Inc. (NASDAQ:ARVN) is developing treatments for patients with life-threatening diseases including cancer and neurodegenerative disorders. It uses a specialized platform called, which is designed to utilize the body’s natural system for breaking down proteins. A few treatments currently under treatment include Vepdegestrant, aimed at curing certain types of breast cancer, ARV-766 for prostate cancer, and ARV-102 aimed at treating neurodegenerative disorders.

During the second quarter of fiscal 2024, the company revealed that Vepdegestrant has completed enrollment in the lead-in portion of the VERITAC-3 Phase 3 Trial. Moreover, global enrollment is ongoing in several trials including the VERITAC-2 Phase 3 for which top-line results are expected in Q4 of fiscal 2024.

The company also received $150 million from a licensing agreement with Novartis for ARV-766 and the sale of its preclinical AR-V7 program. Management believes this deal could yield up to an additional $1.01 billion based on future milestones and royalties.

CEO John Houston believes that the upcoming readout of the VERITAC-2 trial is a pivotal moment for the company as it can potentially support its first new drug application filing if results are positive. Management aims to transition towards its commercial stage in the years to come. Cash, cash equivalents, restricted cash, and marketable securities were $1.23 billion as of June 30, which should be enough to cover the operational requirements till 2027, management noted.