We recently compiled a list of 7 Best Russell 2000 Stocks to Buy According to Analysts. In this article, we will look at where Corbus Pharmaceuticals Holdings, Inc. (NASDAQ:CRBP) ranks among the best Russell 2000 Stocks to Buy According to Analysts.
The investor sentiment remains bullish toward the market, especially since the Fed’s recent decision to cut interest rates by half a percentage point, which is seen as a move to sustain economic health rather than a response to economic distress.
Moreover, the recent inflation report also showed positivity. After the first rate cut since March 2020, the August inflation report showed that the Personal Consumption Expenditures (PCE) price index rose 2.2%, the lowest level since early 2021. Core PCE, which excludes food and energy, also rose 0.1% for the month and recorded a 12-month increase of 2.7%.
While the market is reacting positively to the news, some experts are slightly worried about the market trends.
Bernstein’s Insights on Market Trends
Richard Bernstein, CEO of Richard Bernstein Advisors, joined CNBC ‘The Exchange’ on September 23 to discuss what’s happening in the market. He mentioned that stocks of small companies are not doing as well as riskier investments like cryptocurrencies. He is worried that the Federal Reserve is putting too much money into the economy, and it is not being spent wisely.
However, Bernstein believes that small and mid-sized companies will grow a lot by the end of the year, especially compared to the slower growth of big tech companies, such as the “Magnificent Seven.” Bernstein is also concerned that the Fed is lowering interest rates even though the profits are getting better, which might make the situation worse.
When asked if it’s time to focus on big tech stocks, Bernstein said many investors are doing that because of the current market trends. He thinks smaller companies offer better value and growth in the long run. He criticized risky investments like cryptocurrencies, saying they take money away from important areas like infrastructure, which could harm the economy. He warned that financial bubbles, where prices go too high too fast, can be just as harmful as regular inflation.
The bullish sentiment around small-cap stocks is also shared by Greg Tuorto, a portfolio manager at Goldman Sachs Asset Management, as we discussed his interview with Yahoo Finance in our article, 7 Cheap Small-Cap Stocks To Buy Now. Here is an excerpt from it:
“He [Greg Tuorto] highlighted several supportive factors for small caps, including a stable U.S. economy and opportunities in sectors like technology, healthcare, and consumer industries. Despite recent underperformance, he believes small caps are positioned for a rebound, driven by strong earnings growth rather than multiple expansions.
Tuorto also emphasized the potential for small caps to outperform large caps in 2025, given that their earnings outlook appears more favorable.”
Our Methodology
For this article, we made a list of the 35 biggest best weekly performers of the small-cap index in the week ending September 27. Next, we narrowed our list of 7 stocks with the highest average analyst price target upside. The stocks are listed in ascending order of their price target upside. We also added the hedge fund sentiment around each stock, which was taken from Insider Monkey’s database of over 900 elite hedge funds.
Why are we interested in the stocks that hedge funds pile into? 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).
Corbus Pharmaceuticals Holdings, Inc. (NASDAQ:CRBP)
Average Price Target Upside: 225.05%
Number of Hedge Fund Holders: 30
Corbus Pharmaceuticals Holdings, Inc. (NASDAQ:CRBP) is an oncology-focused company dedicated to developing innovative therapies aimed at addressing serious illnesses. The company’s diverse portfolio includes promising candidates that target well-understood biological pathways to create effective treatments for cancer and other conditions.
Among these, CRB-701 stands out as a next-generation antibody-drug conjugate designed to specifically target Nectin-4, a protein found on the surface of certain cancer cells. By binding to these cells, CRB-701 releases a cytotoxic agent that effectively works on cancer cells during trials while sparing healthy tissues, which presents a more targeted approach to cancer therapy.
Another significant asset in the Corbus Pharmaceuticals (NASDAQ:CRBP) pipeline is CRB-601, an anti-integrin monoclonal antibody. The candidate’s preclinical data has shown that it plays a crucial role in blocking TGFβ activation on cancer cells, which improves the immune system’s ability to identify and combat tumors. The dual-action approach of targeting cancer directly while empowering the immune system could yield promising outcomes for patients.
In addition to its oncology therapies, the company is advancing CRB-913, an inverse agonist for the CB1 receptor aimed at tackling obesity. By influencing a receptor in the brain that regulates hunger and fat storage, CRB-913 seeks to reduce appetite and alter the body’s fat processing and offers a potential new avenue for weight loss solutions.
The stock ranks 4th on our list of the best Russell 2000 stocks to buy according to analysts. It has a Buy rating according to 8 analysts. The average price target of $68.00 has a 225.05% upside from the current levels, as of September 27.
At the ASCO 2024 conference in June, the company presented encouraging results for CRB-701, showing an Overall Response Rate (ORR) of 44% in patients with metastatic urothelial cancer and 43% in those with cervical cancer.
These figures indicate that nearly half of the patients with bladder cancer experienced significant tumor reductions, while about two-fifths of cervical cancer patients saw similar improvements.
The Disease Control Rate (DCR) was even more favorable, with rates of 78% for bladder cancer and 86% for cervical cancer, demonstrating that a large portion of patients either experienced tumor shrinkage or stabilization, which is a positive indication in the fight against cancer.
Corbus Pharmaceuticals (NASDAQ:CRBP) reported cash, cash equivalents, and investments totaling $147 million, as of June 30. The company successfully raised $35.6 million through its ATM program in the second quarter and added approximately $28.8 million in net proceeds by August 1, 2024. With a total of about $176 million on hand, the company is well-positioned to fund its operations through the third quarter of 2027, allowing enough time to advance its clinical trials and development programs.
Overall CRBP ranks 4th on our list of best Russell 2000 stocks to buy according to analysts. While we acknowledge the potential of CRBP 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 timeframe. If you are looking for an AI stock that is more promising than CRBP 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 on Insider Monkey.