Top 10 Small Cap Stocks to Buy with the Highest Upside Potential

2. Wave Life Sciences Ltd. (NASDAQ:WVE)

Analyst Upside: 71.67%

Market Cap: $1.96 billion 

Number of Hedge Fund Holders: 34

Wave Life Sciences Ltd. (NASDAQ:WVE) is a clinical-stage biotechnology company that develops and commercializes ribonucleic acid (RNA) medicines through PRISM, a discovery and drug development platform. PRISM combines a deep understanding of human genetics with chemistry innovation and multiple modalities for scientific discoveries and breakthroughs that treat prevalent and rare disorders. It is developing treatments for obesity and other metabolic disorders, Duchenne muscular dystrophy, Huntington’s disease (HD), and alpha-1 antitrypsin deficiency.

Wave Life Sciences Ltd. (NASDAQ:WVE) also has collaboration agreements with GlaxoSmithKline, Takeda Pharmaceutical Company Limited, and Asuragen, Inc. for various research and development operations. It delivered three positive clinical data sets in 2024 and received supportive initial FDA feedback on Huntington’s Disease. The company is also rapidly advancing its obesity program towards the clinic and is strengthening its balance sheet to support its growing pipeline. As a result, it posted solid financial results in the third quarter of 2024, with revenue worth $7.7 million. It expects its future performance to be in line with its growth goals.

The company’s recent clinical programs are strongly supported by human genetics, have well-defined patient populations, and offer novel treatment approaches to collectively address around 10 million patients. Investors are bullish on the stock because of incoming positive data from trials, which also led the stock to gain around 135% over the past 12 months. Wave Life Sciences Ltd. (NASDAQ:WVE) expects to select candidates for its recent clinical programs in 2025. It ranks second on our list.