3 Monster Stocks in the Making

Think of some of the biggest and most successful stocks on the market. Now, go back 20 or 30 years. Some of them didn't even exist that long ago. Others were only a fraction of their current size.

What if you could buy potential huge winners of the future while they have relatively small market caps? Three Motley Fool contributors believe you can. Here's why they think Axsome Therapeutics (NASDAQ: AXSM), Iovance Biotherapeutics (NASDAQ: IOVA), and Viking Therapeutics (NASDAQ: VKTX) are monster stocks in the making.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

Image source: Getty Images.

A growth stock that's already started to take off in 2025

David Jagielski (Axsome Therapeutics): One stock that's been picking up steam this year is Axsome Therapeutics. Entering trading this week, shares of the mid-cap biotech stock were up more than 35% since January. And there may be a bigger rally to come after the company recently reported strong earnings.

Through the first three months of the year, the company's revenue soared by 62% to $121.5 million. Leading the way was its potential blockbuster drug, Auvelity, which regulators approved in 2022 as a treatment for major depressive disorder. Revenue for Auvelity rose 80% in the most recent quarter, climbing to $96.2 million. Narcolepsy drug Sunosi also reported strong 17% growth as its sales totaled $25.2 million for the period.

And there's more growth ahead. Earlier this year, the company announced approval for its migraine treatment, Symbravo, which can enable people to recover from migraine pain within two hours. At its peak, analysts believe the drug could generate around $341 million in the U.S., by 2035.

Axsome is building up a promising portfolio of assets that could help drive up its value in the future. While it isn't profitable today, the company's net loss of $59.4 million this past quarter was an improvement from the $68.4 million loss it incurred a year ago. As the business continues to develop more drugs, scale its operations, and make progress toward breaking even, the stock could have a lot more upside.

Poised to change how solid tumors are treated

Keith Speights (Iovance Biotherapeutics): Several drugmakers have achieved success with chimeric antigen T-cell (CAR-T) therapies targeting blood cancers. But around 91% of cancers are solid tumors. One company is in the lead position to address those indications with a CAR-T-like approach: Iovance Biotherapeutics.

Iovance is pioneering tumor-infiltrating lymphocyte (TIL) therapies. The TIL process is similar to that of CAR-T therapies. A sample is collected from a patient's tumor. TILs are isolated and amplified in a specialized facility. They're then put back into the patient's body to target and kill cancer cells.

The company already has one TIL therapy on the market. The U.S. Food and Drug Administration (FDA) approved Amtagvi in February 2024 as a treatment for advanced melanoma. The drug's sales topped $164 million last year and are growing rapidly.

Melanoma should be only the tip of the iceberg for Iovance, though. The company is also evaluating Amtagvi in pivotal clinical studies targeting cervical cancer and non-small cell lung cancer. It's working with Merck to test the drug in combination with blockbuster immunotherapy Keytruda in treating multiple types of cancer. Iovance is conducting phase 2 clinical trials of Amtagvi targeting endometrial cancer and head and neck squamous cell carcinoma.

Amtagvi isn't Iovance's only promising pipeline program. The drugmaker has second- and third-generation TIL therapies in clinical development as well.

For now, Iovance is small with a market capitalization of around $600 million. The company disappointed investors with lower-than-expected first-quarter results, which stemmed from lower production capacity due to maintenance work at its cell therapy center. It is also unprofitable. However, I think those dynamics will likely change as Amtagvi gains market share and advances in clinical trials targeting other types of cancer.

A small player taking on giants

Prosper Junior Bakiny (Viking Therapeutics): The anti-obesity market is the hottest therapeutic area in the biopharma industry right now. Though the field is dominated by two of the largest drugmakers on the planet, Viking Therapeutics, a mid-cap biotech, hopes to make some noise. The company's leading candidate, VK2735, has delivered encouraging phase 2 results. It is working on starting phase 3 studies for this product.

Elsewhere, Viking Therapeutics is developing an oral version of its crown jewel, which is undergoing mid-stage studies. Current GLP-1 leaders and many in development are administered via subcutaneous injection once weekly. But an oral formulation would give patients more choices and attract a reasonable number.

Though Viking doesn't have a single drug on the market, its progress in the past year is exemplary and points to the company's strong innovative capabilities, especially when we look beyond its anti-obesity drugs. Viking aced phase 2 studies for VK2809, an investigational therapy for metabolic dysfunction-associated steatohepatitis (MASH). The company's VK0214, a potential treatment for a rare nervous system disease called X-linked adrenoleukodystrophy (X-ALD), is also making strides.

Despite showing strong promise, there are some risks involved with the stock, including the usual ones clinical-stage biotech companies have to deal with, such as potential clinical or regulatory setbacks. However, Viking Therapeutics could generate incredible returns provided it can deliver approvals across weight management, MASH, and X-ALD. Those who get in on the stock now could be glad they did so down the line.

Should you invest $1,000 in Axsome Therapeutics right now?

Before you buy stock in Axsome Therapeutics, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Axsome Therapeutics wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $614,911!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $714,958!*

Now, it’s worth noting Stock Advisor’s total average return is 907% — a market-crushing outperformance compared to 163% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of May 5, 2025

David Jagielski has no position in any of the stocks mentioned. Keith Speights has no position in any of the stocks mentioned. Prosper Junior Bakiny has positions in Viking Therapeutics. The Motley Fool has positions in and recommends Axsome Therapeutics, Iovance Biotherapeutics, and Merck. The Motley Fool recommends Viking Therapeutics. The Motley Fool has a disclosure policy.