As 2025 comes to a close, investors reflect on a year marked by policy uncertainty and trade unpredictability. Despite these challenges, corporate earnings remained strong, propelling the S&P 500 to double-digit gains for the third consecutive year. Equities proved resilient, buoyed by AI enthusiasm and Federal Reserve rate cuts.

Raymond James analysts are eyeing 2026, identifying well-positioned stocks for the new year. Lexeo Therapeutics, a clinical-stage biotech, leads the list with its focus on gene therapies for inherited cardiovascular diseases and Alzheimer’s. The company’s leading program, LX2006, showed promising results in Phase I/II studies for Friedreich’s ataxia cardiomyopathy.

Lexeo’s LX2006 is on track for accelerated approval, with pivotal data expected in 2027. The company also has another drug candidate, LX2020, in Phase I/II trials for PKP2-ACM. Analysts are optimistic about Lexeo’s potential, with a Buy rating and $25 price target, projecting a ~137% upside in the coming year.

Phathom Pharmaceuticals, a biotech specializing in acid-related GI issues, has seen significant growth with its approved drug, Voquezna. The drug, designed to suppress gastric acid, has broadened its indications and is showing strong prescription volume growth and revenue. With a net loss narrowing, Phathom is poised for continued success.

Analysts are bullish on Phathom, citing improved execution, expanding clinical reach, and a strong leadership team. The stock has surged 340% in recent months, prompting a Buy rating with a $28 price target from Raymond James analyst Martin Auster. Consensus is Strong Buy, with an average price target of $25.40, suggesting a ~44% upside potential in the next year.

Read more at Yahoo Finance: Raymond James Sees an Attractive Setup in These 2 ‘Strong Buy’ Stocks