As we dive into the new year, investors are eagerly awaiting the potential performance of small-cap stocks in 2025. In this article, we will take a closer look at where Elevation Oncology, Inc. (NASDAQ:ELEV) stands among the best penny stocks to buy according to the media.
Expert Predictions for Small-Cap Stocks
On December 24, Global Advisors’ managing partner, Tom Lee, shared his thoughts on the potential of small and mid-cap stocks in 2025. According to Lee, 2025 is expected to be a good year for small and mid-cap stocks due to interest rate cuts and the incoming administration.
Lee pointed out that companies will be expansionary and confident about mergers, driven by these factors. Moreover, he reiterated that small-cap stocks are trading at a discount with a medium P/E multiple of 10.
In an interview with CNBC, Lee stated:
"I think small caps could in the next couple of years outperform by more than 100%."
New Street Advisors’ CEO Delano Saporu Shares Similar Thoughts
Delano Saporu, CEO of New Street Advisors, also shares similar views on the potential of small-cap stocks. According to Saporu, the economy has shown resilience in 2024, especially with the recovery in the last quarter signaling a promising outlook for businesses.
Donald Trump’s win has already driven significant gains in small-cap stocks amid growing enthusiasm around the potential easing of regulations on businesses. Small-cap stocks are conventionally focused on the domestic market, making them less exposed to international trade compared to large-cap counterparts.
Therefore, Trump’s tariff policies will not have a major impact on small-cap stocks compared to large-cap stocks.
The US Stock Market Delivers Impressive Gains
Heading into 2025, the US stock market is expected to deliver a second consecutive year of impressive gains. The S&P 500 index surged more than 25% in 2024, while the tech-heavy Nasdaq 100 jumped up to 28%.
The Russell 2000 index, which covers small-cap companies, soared more than 15% over the last year, while the Dow Jones U.S. Small-Cap Index has risen by 18%.
Torsten Slok’s Economic Outlook for 2025
Torsten Slok, economist at Apollo Global Management (APO), released his 2025 economic outlook for the US. According to Slok, the US economy will deliver strong results with no signs of major slowing in 2025.
Slok added that interest rates will likely stay ‘higher for longer’ despite the Fed’s current interest rate-cutting cycle. The US economy is expected to register GDP growth of 2.2% in 2025, signaling a modest growth driven by less restrictive monetary policy, resilient consumer spending, and a steadying labor market.
Why Elevation Oncology, Inc. (NASDAQ:ELEV) Is Among the Best Penny Stocks To Invest In According to Media?
An oncology center with medical staff operating infusion pumps in the background.
Elevation Oncology, Inc. (NASDAQ:ELEV) is a US-based oncology company that is engaged in the development of targeted therapeutics for cancer treatment. The company’s specialty lies in selective cancer therapies to treat patients across a range of solid tumors.
Our Methodology
To compile our list of the best penny stocks to invest in according to the media, we gathered over 50 penny stocks from financial media websites on the internet. We then selected the top 12 penny stocks that were the most widely held by hedge funds, as of Q3 2024.
The list is ranked in ascending order based on the number of holdings among hedge funds.
ELEV’s Products and Pipeline
Elevation Oncology’s main products have cleared initial FDA approvals and are showing promising results in their initial research phases. The company’s next move relies on the final development of these treatments.
Overall, ELEV ranks 11th on our list of Best Penny Stocks To Invest In According to Media. While we acknowledge the potential of ELEV to grow, 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 ELEV but 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.
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We hope this article provides valuable insights into the small-cap stocks outlook for 2025 and why Elevation Oncology, Inc. (NASDAQ:ELEV) is among the best penny stocks to buy according to media.
