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

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1. ImmunityBio, Inc. (NASDAQ:IBRX)

Analyst Upside: 200.19%

Market Cap: $1.94 billion 

Number of Hedge Fund Holders: 8

ImmunityBio, Inc. (NASDAQ:IBRX) is a clinical-stage immunotherapy company that develops next-generation therapies to treat cancer and infectious diseases. Its immunotherapy platform activates the adaptive and innate immune systems to create long-term immunological memory. The company attained a net product revenue of around $6.0 million during the three months ending September 30, 2024, surpassing analyst estimates and net product revenue of $1.0 million in the prior quarter.

The FDA’s approval of ImmunityBio’s ANKTIVA, a treatment for non-muscular invasive bladder cancer (NMIBC), has put it on a positive trajectory. Commercially available in the US since May 2024, ANKTIVA is now widely accessible to patients through government and commercial insurance programs. The company has secured coverage for over 200 million medical lives through reimbursement policies. The US launch of the treatment is continually gaining momentum, with the Centers for Medicare and Medicaid Services issuing its permanent J-code, a billing code used in the medical field, effective January 1, 2025.

ImmunityBio, Inc. (NASDAQ:IBRX) plans to expand its product globally and submitted a Marketing Authorization Application (MAA) for ANKTIVA in 30 countries in the EU in fiscal Q4 2024. It also submitted ANKTIVA for potential approval to the Medicines and Healthcare Products Regulatory Agency (MHRA) in the UK. Investors are thus bullish on the stock due to its potentially profitable global expansion endeavors.

Overall, IBRX ranks first among the 10 best small cap stocks to buy according to analysts. While we acknowledge the potential of small cap stocks, 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 IBRX 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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