The Future of Penny Stocks: Nektar Therapeutics (NASDAQ:NKTR) and the Outlook for Small-Cap Stocks
Introduction
In our previous article, we compiled a list of the 12 Best Penny Stocks to Invest in According to the Media. In this article, we will take a closer look at where Nektar Therapeutics (NASDAQ:NKTR) stands among other top penny stocks to buy according to the media.
Small-Cap Stocks Outlook for 2025
In a recent interview with CNBC, Tom Lee, managing partner of Global Advisors, 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, backed by interest rate cuts and the incoming administration. Companies are likely to feel confident about mergers, expansionary policies, and growth.
Lee pointed out 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%."
Delano Saporu, CEO of New Street Advisors, also shares similar thoughts and believes that small-cap stocks are well-positioned to outperform in 2025. 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 potential easing of regulations on businesses. Small-cap stocks are conventionally focused on the domestic market, with less exposure 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.
Exploring Penny Stocks in 2025
If you’re interested in exploring the best penny stocks to buy in 2025, be sure to check out our article: The10 Best Penny Stocks to Buy for 2025.
US Stock Market Outlook
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. Meanwhile, 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. Additionally, the Dow Jones U.S. Small-Cap Index has risen by 18%.
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 are likely to 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 Nektar Therapeutics (NASDAQ:NKTR) Is Among the Best Penny Stocks To Invest In According to Media?
As a clinical-stage biotechnology firm, Nektar Therapeutics (NASDAQ:NKTR) focuses on developing treatments for immunological dysfunction in autoimmune and chronic inflammatory diseases. The company’s oncology segment is working on medicines targeting biological pathways to treat cancer patients.
Nektar Therapeutics’ lead product candidate focused on immunology and inflammation, rezpegaldesleukin, is making significant progress in its clinical trials. The Phase 2 study of rezpegaldesleukin is underway with top-line data results expected in the first half of 2025.
The company’s lead oncology candidate, Nektar 255, has also shown promising results in treating radiation-induced lymphopenia patients. In a strategic move, Nektar Therapeutics (NKTR) has liquidated its manufacturing facility to streamline operations and improve its financial position.
Conclusion
Overall, NKTR ranks 6th on our list of Best Penny Stocks To Invest In According to Media. While we acknowledge the potential of NKTR to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns within a shorter time frame.
If you’re looking for an AI stock with more promising prospects than NKTR but trades at less than 5 times its earnings, be sure to check out our report on The Cheapest AI Stock.
Additional Reading
- 8 Best Wide Moat Stocks to Buy Now
- 30 Most Important AI Stocks According to BlackRock
Note: This article is originally published at Insider Monkey.
