We recently compiled a list of the 10 Stocks That Will Make You Rich In 2025. In this article, we are going to take a look at where Corcept Therapeutics Incorporated (NASDAQ:CORT) stands against the other stocks that will make you rich in 2025.
What to Expect from the Stock Market in 2025
Jurrien Timmer, Director of Global Macro at Fidelity Management & Research Company, recently shared his outlook for the stock market in 2025. His analysis reflects cautious optimism, emphasizing potential growth and significant risks. Timmer described 2024 as a “Goldilocks” year for U.S. stock returns, characterized by robust earnings growth and rising valuations. The S&P 500 Index experienced a substantial increase, concluding the year with a gain of approximately 28% as it reached new all-time highs. This performance was driven by strong earnings from major companies, particularly the so-called “Magnificent Seven” stocks whose growth has significantly influenced the overall market dynamics.
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Looking ahead to 2025, Timmer maintained a bullish stance on stocks but cautioned that investors should not expect returns to match the spectacular gains of the previous two years. He noted that while earnings forecasts remain strong, especially for the mega-cap stocks, valuations are stretched, currently sitting in the 90th percentile historically. This suggests that significant further expansion in price-to-earnings (PE) ratios could lead to a bubble scenario, which he believes is unlikely. He expects continued earnings growth to support stock prices in 2025. However, valuations may limit future growth. Timmer suggests that earnings must drive performance rather than further valuation expansion to avoid a bubble scenario.
With the bull market entering its third year, Timmer describes it as being in “later innings,” indicating increased caution regarding future performance. He also suggested several risks that could potentially impact the market in 2025. For instance, heavy reliance on a few mega-cap stocks poses a risk; if these stocks falter, it could drag down overall market performance despite broader participation from other stocks. Secondly, although he does not foresee a return to the high inflation rates of the past decades, he warns that rising inflation could lead to higher interest rates, which would negatively affect the stock market.
Our Methodology
To compile the list of 10 stocks that will make you rich in 2025, we conducted a consensus. We sifted through various internet rankings to get an initial list of stocks expected to explode in 2025. Next, we sourced analyst sentiment for each stock from CNN and ranked our list in ascending order of the analysts’ projected upside potential for the next twelve months. Please note that the data was recorded on Friday, December 20, 2024.
Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A biologist in a lab coat studying a culture of cells to find a cure for metabolic disorders.
Corcept Therapeutics Incorporated (NASDAQ:CORT)
Analysts Upside Potential: 47.86%
Corcept Therapeutics Incorporated (NASDAQ:CORT) is a pharmaceutical company that specializes in creating drugs that adjust how cortisol affects the body. Cortisol is a hormone that plays a crucial role in various bodily functions, but too much of it can lead to serious health issues. Its main product is Korlym (mifepristone), which is approved by the FDA for treating Cushing’s syndrome, a condition caused by excess cortisol.
During the fiscal third quarter of 2024, the company continued to add prescribers and more patients for Korlym. This resulted in its revenue growing 48% year-over-year to reach $182.5 million. Management noted that there is a rising awareness among physicians about hypercortisolism, leading to more screenings and treatments for affected patients. This shift is critical as it allows more individuals to receive necessary care. In addition to Korlym, Corcept Therapeutics Incorporated (NASDAQ:CORT) is preparing to submit a New Drug Application (NDA) for Relacorilant, by the end of the year. Relacorilant is a medication that also treats people with Cushing’s syndrome.
As the company anticipated approval for its Cushing syndrome, management has raised its full-year guidance for 2024. It now expects revenue in the range of $675 million and $700 million. ClearBridge Small Cap Value Strategy indicated an attractive growth runway for Corcept Therapeutics Incorporated (NASDAQ:CORT) considering the likelihood of FDA approval. Here’s what ClearBridge Small Cap Value Strategy stated regarding Corcept Therapeutics Incorporated (NASDAQ:CORT) in its Q2 2024 investor letter:
“Health care results lifted relative performance during the period and included our top two individual performers in Lantheus and newer portfolio addition Corcept Therapeutics Incorporated (NASDAQ:CORT). Corcept, which was added last quarter, announced that it had successfully reached its main goal in its Phase 3 trial for its treatment for patients with Cushing’s syndrome. We believe the new drug’s efficacy and safety significantly increases its likelihood of approval and offers an attractive growth runway via possible extension into other indications.”
Overall CORT ranks 7th on our list of the stocks that will make you rich in 2025. While we acknowledge the potential of CORT as an investment, 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 CORT but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.