Is Janux Therapeutics, Inc. (JANX) the Best Small Cap Stock to Buy with the Biggest Upside Potential?

From Yahoo Finance: 2025-05-05 07:58:00

Janux Therapeutics, Inc. (JANX) is among the top small-cap stocks with the biggest upside potential. BofA Securities’ Jill Carey Hall discussed the impact of tariffs on small caps and highlighted the importance of earnings recovery. Small caps have faced negative earnings revisions, leading to weak guidance this season.

Hall emphasized the need for selective investing in small caps, focusing on high-quality domestic stocks with strong margins. She suggested avoiding tariff and refinancing risks and choosing stocks with positive revisions. The sector outlook depends on earnings revisions, economic backdrop, and Fed expectations, with utilities being a defensive sector option.

Janux Therapeutics, Inc. (JANX) ranks ninth among small-cap stocks with the biggest analyst upside potential. The company is a preclinical stage biopharmaceutical developing cancer therapeutics based on Tumor Activated T Cell Engager platform technology. Analyst Soumit Roy is bullish on JANX due to upcoming catalysts, promising technology, and substantial cash position supporting future development initiatives.

Despite the potential of Janux Therapeutics, Inc. (JANX), some AI stocks may offer greater returns in a shorter time frame. JANX’s focus on earlier treatment lines and various dosing regimens showcases its long-term potential amid competitive pressures. Investors seeking promising AI stocks can explore other options with significant growth potential in the market.



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