The Potential of Penny Stocks in 2025
As we dive into the new year, investors are eager to know which penny stocks have the potential to perform well in 2025. 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 Karyopharm Therapeutics Inc. (NASDAQ:KPTI) stands against other best penny stocks to buy according to the media.
Small-Cap Stocks Outlook for 2025
On December 24, Global Advisors’ managing partner, Tom Lee, shared his thoughts on the potential of small and mid-cap stocks in 2025. According to Lee, 2025 is going to be a good year for small and mid-cap stocks, driven by interest rate cuts and the incoming administration. Companies are expected to feel confident about mergers, and with a medium P/E multiple of 10, small-cap stocks are trading at a discount.
In an interview with CNBC, Lee stated: "I think small caps could in the next couple of years outperform by more than 100%." This sentiment is echoed by New Street Advisors CEO Delano Saporu, who believes that small-cap stocks are well-positioned to outperform in 2025. The economy has shown resilience in 2024, and with a promising outlook for businesses, investors can expect significant gains in small-cap stocks.
Why Small-Cap Stocks?
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.
If you’re interested in exploring the best penny stocks to buy in 2025, be sure to check out our previous article: 10 Best Penny Stocks to Buy for 2025.
A Strong US Stock Market
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, while 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, and the Dow Jones U.S. Small-Cap Index has risen by 18%.
Torsten Slok’s Economic Outlook
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 will likely 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.
Our Methodology
To compile our list of the best penny stocks to invest in according to the media, we gathered over 50 penny stocks from financial media websites on the internet. We then selected the top-performing stocks based on their growth potential and market performance.
Karyopharm Therapeutics Inc. (NASDAQ:KPTI)
Karyopharm Therapeutics Inc. is a biopharmaceutical company that develops novel cancer treatments. The company’s lead asset, XPOVIO, has shown promising results in treating adult patients with plasma cells that cause cancer. With further developments of its candidates in ongoing phase three studies, Karyopharm Therapeutics Inc. looks like a solid penny stock to invest in.
Ranking 8th on Our List
Overall, KPTI ranks 8th on our list of Best Penny Stocks To Invest In According to Media. While we acknowledge the potential of KPTI to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame.
If you’re looking for an AI stock that is more promising than KPTI but trades at less than 5 times its earnings, check out our report on the cheapest AI stock: Cheapest AI Stock.
Disclosure
This article is originally published at Insider Monkey. The author has no disclosure to make.
View Comments
We invite you to share your thoughts and opinions on the potential of penny stocks in 2025. What do you think about Karyopharm Therapeutics Inc. (NASDAQ:KPTI)? Do you have any other favorite penny stocks? Let us know in the comments below!
