We recently compiled a list of the 10 Hottest Smid-Cap Stocks So Far In 2025. In this article, we are going to take a look at where Compass Therapeutics, Inc. (NASDAQ:CMPX) stands against the other smid-cap stocks.
As the name suggests, smid-cap stocks have a valuation between $200 million and $20 billion. The definition is pretty flexible, but I’ll be working with the broadest one. Most stocks on the market fall into this category, so I think it is a good way to check the general pulse of the broader economy and look into some up-and-coming companies that may one day be the large caps of tomorrow.
We will be taking a look at some of them in this article by looking through stocks within the aforementioned market cap, sorted by their year-to-date gains so far in 2025. Do note that OTC stocks will not be included in this list.
You should keep in mind that while some of these stocks could be good buys, there is also a significant downside risk to stocks that have gained a lot recently.
A biopharmacist holding a magnifying glass up against a microscope lens, studying a biological sample.
Compass Therapeutics, Inc. (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.
Overall CMPX ranks 3rd on our list of the hottest smid-cap stocks so far in 2025. While we acknowledge the potential of CMPX 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 time frame. If you are looking for an AI stock that is more promising than CMPX but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 10 Hottest Mid-Cap Stocks So Far in 2025 and 10 Hottest Large-Cap Stocks So Far in 2025
Disclosure: None. This article was originally published at Insider Monkey.