We recently created a list of the 10 best multi-bagger stocks to buy heading into 2025 along with the market conditions post-election. In this article we are going to take a look at where Delcath Systems Stock (NASDAQ:DCTH) stands.
November has been an eventful month so far for the market as the Fed cut rates by a quarter percentage and president-elect, Donald Trump won the election for the second time. The market reacted positively to these events as the major indices touched all-time highs and even Bitcoin finally broke off its shell after many months, reaching an all-time high of $93,000.
More recently, Federal Reserve Chair Jerome Powell stated that solid economic growth, low unemployment, and inflation above 2% mean there’s no urgency to cut interest rates. Speaking in Dallas, Powell said inflation is on a path toward the Fed’s 2% target, allowing for cautious policy adjustments.
He highlighted the economy’s strong fundamentals but acknowledged persistent inflation pressures. While a rate cut is expected by the market in December, it anticipates fewer cuts next year due to steady inflation and policy uncertainties. According to the CME FedWatch, 62.4% of the interest rate traders expect a 25 bps rate cut in December. However, in January, 55.5% of the market anticipates the rates to remain the same after the December cut.
Powell emphasized that the Fed will monitor inflation closely, especially housing costs, as it aims to reach its target sustainably.
Read Also: 12 High Growth Large Cap Stocks to Buy Now and 10 Best Low Volatility Stocks to Invest in Now.
Election Boosts Market Optimism but Risks Remain
Stuart Kaiser, Citi’s head of equity trading strategy recently joined CNBC’s Closing Bell. In the post-election discussion, Kaiser expressed a generally optimistic outlook, with confidence that the markets have cleared the immediate uncertainties related to the election. Kaiser noted a temporary boost from this event but emphasized that moving forward, market focus will return to U.S. economic growth, the Fed’s actions, and corporate earnings.
While he believes valuations are currently more justifiable with expected growth from deregulation and new policy changes, he remains cautious about risks tied to bond market movements and rising yields. He suggested that rising yields linked to economic growth are manageable for equities, but warned against yields climbing due to fiscal or tariff issues, which could unsettle the market.
Regarding equity strategy, Kaiser advocated a cautious approach to small-cap investments, preferring high-quality, profitable small caps due to their domestic focus, which could shield them from trade policy risks impacting larger companies. Additionally, although Kaiser doesn’t handle non-traditional assets directly, he acknowledged that assets like Bitcoin might gain traction in a strong economic or supportive policy environment.
With that, we look at the 10 Best Multibagger Stocks To Buy Heading into 2025.
10 Best Multibagger Stocks To Buy Heading into 2025
Our Methodology
For this article, we used the Finviz stock screener to identify over 350 stocks with share price gains of over 100% in the last 12 months, as of November 13. Next, we narrowed our list to 28 stocks with share price gains of 200% either in the last 12 or 24 months and Buy or better ratings from analysts. From that list, we removed the stocks that had negative share price returns compared to 24 months ago and finally narrowed the list to 10 stocks with an average analyst price target upside of over 100%. The 10 best multi-bagger stocks are listed in ascending order of their average price target upside.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
7. Delcath Systems, Inc. (NASDAQ:DCTH)
1-Year Share Price Performance: ~226%
2-Year Share Price Performance: ~224%
Average Price Target Upside: 122.45%
Delcath Systems, Inc. (NASDAQ:DCTH) specializes in interventional oncology, focusing on treating liver cancers, including those that are primary or metastatic. Its key products are the HEPZATO KIT and CHEMOSAT Hepatic Delivery System, both designed to deliver high-dose chemotherapy to the liver while managing systemic exposure during percutaneous hepatic perfusion (PHP) procedures.
In the U.S., the HEPZATO KIT, a drug-device combination regulated by the FDA, includes the chemotherapy drug melphalan and Delcath’s Hepatic Delivery System (HDS). The HDS isolates liver blood flow from the systemic circulation and filters it during treatment, enabling high-dose, targeted therapy with reduced risk of systemic side effects and liver toxicity.
The treatment is approved for adults with metastatic uveal melanoma affecting the liver under specific conditions. In Europe, Delcath offers the HDS as the CHEMOSAT system, a Class III medical device approved for PHP procedures at medical centers treating several liver cancers.
In the third quarter, Delcath (NASDAQ:DCTH) achieved $11.2 million in revenue, marking a 44% increase from the prior quarter. This included $10 million in U.S. sales from HEPZATO KIT and $1.2 million from European sales of CHEMOSAT. With 12 active HEPZATO treatment centers in the U.S., the company aims to have 15 by year-end and reach 30 by the end of 2025. Additionally, a $10 million revenue milestone triggered a $25 million funding influx from exercised warrants.
In Europe, CHEMOSAT revenue grew 100% year-over-year, though it remained stable compared to the prior quarter. The company is expanding CHEMOSAT’s presence in France, Italy, and Spain to support research and trials.
Furthermore, Delcath’s (NASDAQ:DCTH) gross margin reached 85% for the quarter. R&D expenses declined to $3.9 million from $4.6 million due to lower access program costs, while SG&A costs rose to $7 million due to commercial launch activities. With $14 million in cash, no outstanding debt, and recent warrant exercises adding $25 million, the company anticipates achieving profitability while funding further clinical trials.
While we acknowledge the potential of DCTH as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than DCTH but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.
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