Insider Monkey·2025-12-19 07:11Market Overview - The article discusses the potential for strong market momentum to continue into 2026, with a focus on identifying the next wave of multibagger stocks [1][2] - Chris Toomey from Morgan Stanley expects a solid year for markets in 2026, driven by secular tailwinds, improving earnings visibility, supportive fiscal and monetary policies, and a revival of market enthusiasm due to deregulation and increased M&A activity [3][4] Investment Strategy - Toomey emphasizes the importance of market leadership broadening, suggesting that previously overlooked sectors may present new investment opportunities, moving beyond the dominance of mega-cap technology stocks [5] - The methodology for selecting the best multibagger stocks includes filtering for stocks with a market capitalization over $500 million, at least 150% returns over the past year, and a minimum of 50% upside potential [7] Company Highlights CytomX Therapeutics, Inc. (NASDAQ:CTMX) - Market Cap: $696.38 million, with a 1-year price return of 263.72% and an upside potential of 58.20% [9] - 90% of analysts are bullish on CTMX, with a median price target of $6.50, indicating a healthy upside potential [10] - H.C. Wainwright has reiterated a "Buy" rating with a $10.00 price target, anticipating critical data for the CX-2051 therapy in colorectal cancer [11] - The firm outlines performance benchmarks for CX-2051, categorizing potential outcomes into "slam dunk," "bull," and "bear" scenarios based on expected response rates and survival metrics [12] - The company is progressing with its CX-2051 program, with enrollment nearing 100 patients ahead of a planned Phase 1 update in Q1 2026 [13][14] Trevi Therapeutics, Inc. (NASDAQ:TRVI) - Market Cap: $1.59 billion, with a 1-year price return of 169.11% and an upside potential of 73.40% [15] - The appointment of David Hastings as CFO is seen as a strategic move to support the company's transition into advanced development stages [16] - Trevi is preparing for a Phase 3 program for Haduvio in chronic cough associated with idiopathic pulmonary fibrosis (IPF), with an End-of-Phase 2 meeting with the FDA expected in Q4 2025 [17] - Ongoing studies have shown no safety signals, and the company has a cash balance of $194.9 million as of Q3 2025, positioning it well for future clinical developments [18][19]