We recently published a list of the 10 Best Small-Cap Stocks to Buy Now. In this article, we are going to take a look at where BioCryst Pharmaceuticals, Inc. (NASDAQ:BCRX) stands against the other small-cap stocks.
The S&P 500 index has reached its all-time highs, achieving returns of over 20% for the second consecutive year post-COVID. With the index hitting all-time highs, small-cap stocks can be a good option to explore with higher growth potential in the long term.
However, the Russell 2000 small-cap index returned a little over 7% in 2024 compared to the 23% returns by the S&P 500. Over the past five years (through February 25, 2025), the S&P 500 has almost doubled the return of the Russell 2000 small cap, with returns of 102% against 47%, respectively.
Small-Cap Stocks Prospects in 2025
On December 30, MJP Wealth Advisors chief investment officer Brian Vendig appeared on Yahoo! Finance’s Catalysts to address the potential outlook of small-cap stocks in 2025. Vendig said that a stable economy and policy will positively impact the small-caps, creating business expansion and merger opportunities. However, the Trump administration’s harsh tariff policies could impact the broader small-cap stocks as these companies contribute significantly to the U.S. domestic market.
The role of the Fed will also be key in keeping the economy afloat. Vendig said that the market is expected to be choppy in the first few months of 2025. Businesses will start to progress in the second half of 2025 as the policies become clearer. However, Vendig believed that if earnings remain intact, he will likely stay constructive on stocks. He is also bullish on bonds, which might be a good opportunity as well. He said:
“I’m definitely not one to recommend adding to mega-cap tech at this point, but I think taking a look at some of those value-oriented sectors that help to play into innovation and growth for the economy still makes sense.”
With that said, let’s take a look at the Best Small-Cap Stock to Buy Now.
A clinical researcher in a lab examining a new biopharmaceutical product.
Our Methodology
We used the Finviz stock screener to compile a list of 30 small-cap stocks. We then selected the top 10 best small-cap stocks based on hedge fund sentiment as of Q4 2024. We have used analyst upside, as of February 27, as a secondary metric to rank the stocks with the same number of hedge fund holders. The list is sorted in ascending order of number of hedge fund holders.
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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
BioCryst Pharmaceuticals, Inc. (NASDAQ:BCRX)
Analyst Upside: 41.51%
No. of Hedge Fund Holders: 39
BioCryst Pharmaceuticals, Inc. (NASDAQ:BCRX) is a biotechnology company developing novel small-molecule drugs that target key enzymes involved in infectious and inflammatory diseases.
2024 was a year of development with strong financial progress for BioCryst Pharmaceuticals. For the full-year 2024, the company posted revenues of $450.7 million, a 36% year-over-year growth. The company’s GAAP operating loss was around $2.5 million in 2024, a notable improvement from a loss of $103.7 million in 2023. BioCryst’s revenue growth was primarily driven by ORLADEYO, the company’s lead product, which generated around $124.2 million in net revenue, reflecting a 36.6% increase from a year ago. On February 12, the company reported that Infarmed in Portugal has recommended ORLADEYO for the routine prevention of recurrent attacks of hereditary angioedema (HAE) in eligible patients. This development is set to add to ORLADEYO sales in 2025.
Based on strong performance in 2024, the company has raised its 2025 revenue guidance to $560 to $575 million. ORLADEYO’s revenue is expected to reach $535 to $550 million in 2025. BioCryst Pharmaceuticals, Inc. (NASDAQ:BCRX) is aiming to achieve a 20% revenue CAGR over the next three years and targets $750 million in global revenue by 2027.
Overall, BCRX ranks 1st on our list of best small-cap stocks to buy now. While we acknowledge the potential of BCRX as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than BCRX but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.