Jim Cramer Latest Portfolio: 10 Stocks to Buy and Sell

4. Axsome Therapeutics Inc (NASDAQ:AXSM)

Number of Hedge Fund Investors: 33

A caller recently asked Jim Cramer about AXSM. Here is what he said:

“This is central nervous system, CNS. If you can make a breakthrough in CNS, your stock will double. If not, it will just go down. That’s a double or nothing stock right there.”

Axsome Therapeutics Inc (NASDAQ:AXSM) is making treatments for central nervous system (CNS) disorders. The company has two approved drugs on the market. The first is Sunosi, which is used for treating excessive daytime sleepiness in patients with narcolepsy or obstructive sleep apnea. The second is Auvelity, approved for treating major depressive disorder. But what makes the stock interesting is the list of several candidate drugs. These include an oral candidate for Alzheimer’s disease agitation, a candidate treatment for acute migraines, a potential treatment for narcolepsy, and a candidate treatment for fibromyalgia.

As of the end of the first quarter, Axsome Therapeutics Inc (NASDAQ:AXSM) had $330 million in cash and marketable securities on its balance sheet.

Needham recently started covering the stock with a Buy rating, citing revenue growth potential. The firm sees Axsome Therapeutics Inc (NASDAQ:AXSM) risk-adjusted revenue growing by 8 to 10 times in five years.