Why SpringWorks Therapeutics Inc. (SWTX) Soared on Monday

We recently compiled a list of the 10 Firms Begin Trading Week With Impressive Gains. In this article, we are going to take a look at where SpringWorks Therapeutics Inc. (NASDAQ:SWTX) stands against the other stocks.

The stock market kicked off the trading week on a positive note, with all major indices clocking in gains, as investors brushed off President Donald Trump’s latest imposition of hefty tariffs on steel and aluminum products from Canada and Mexico.

The Dow Jones rose 0.38 percent, the S&P 500 grew 0.67 percent, while the Nasdaq rallied 0.98 percent.

Ten companies mirrored a broader market optimism amid a series of positive catalysts sparking buying appetite.

In this article, we will take a look at which companies led the charge and explore the reasons behind their performance.

To come up with Monday’s best performers, we considered only the stocks with at least $2 billion in market capitalization and $5 million in daily trading volume.

A closeup of a scientist in a lab coat, mixing two liquids for a compound to treat rare diseases.

SpringWorks Therapeutics Inc. (NASDAQ:SWTX)

SpringWorks Therapeutics Inc. rallied by 34.06 percent on Monday, a second consecutive day, to finish at $54 apiece following news reports that it is being targeted for acquisition by German healthcare and technology group Merck.

A report by Reuters citing people privy to the matter said that Merck and SWTX are in advanced talks for a potential merger. Merck confirmed the news later in the day but underscored that while negotiations are ongoing, no legally binding agreement has been signed and that a potential deal remains uncertain.

Assuming the talks are successful, the report said that a definitive signing could occur in the next few weeks.

SWTX is a company developing several treatments for different types of cancers and tumors.

Overall SWTX ranks 1st on our list of Monday’s best performers. While we acknowledge the potential of SWTX 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 timeframe. If you are looking for an AI stock that is as promising as SWTX but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.

Disclosure: None. This article is originally published at Insider Monkey.