Market 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]

Core Insights - The article identifies 7 hidden multibagger stocks that have shown significant returns and potential upside, emphasizing the importance of selecting stocks with strong fundamentals and growth prospects [1][5]. Group 1: Stock Selection Criteria - Stocks were selected based on a minimum return of 75% over the past year and a market capitalization of at least $1 billion [1]. - The shortlisted stocks were required to have at least 30% potential upside, leading to a ranking of the top 7 stocks [1]. Group 2: Market Outlook - The S&P 500 index is expected to show positive performance for the third consecutive year, with AI adoption potentially driving a productivity boom similar to the late 90s [3]. - Goldman Sachs anticipates that reducing tariff uncertainties could enhance economic security, leading to increased capital deployment in defense, energy, and infrastructure sectors [4]. Group 3: Individual Stock Highlights - **Praxis Precision Medicines, Inc. (NASDAQ:PRAX)**: Achieved a 264% price return over the past year with a potential upside of 33%. The company reported positive results from a key study on a treatment for severe epilepsy [6][8]. - **Solaris Resources Inc. (NYSEAMERICAN:SLSR)**: Recorded a 139% price return with a potential upside of 43.36%. The company is focused on copper and other minerals, with a significant project expected to produce 4.5 million tonnes of Copper Equivalent [10][11]. - **Ouster Inc. (NASDAQ:OUST)**: Experienced a 138.5% price return and has a potential upside of 55.37%. The company is noted for its strong client base and growth prospects in lidar sensor technology [14][15]. - **Xeris Biopharma Holdings, Inc. (NASDAQ:XERS)**: Achieved a 75% price return with a potential upside of 61.3%. The company is advancing a new formulation for hypothyroidism treatment [18][19]. - **Applied Digital Corporation (NASDAQ:APLD)**: Saw a 192.6% price return and has a potential upside of 62.36%. The company is investing in advanced cooling systems for data centers, positioning itself for growth in the AI sector [21][22]. - **IREN Limited (NASDAQ:IREN)**: Recorded a 190.5% price return with a potential upside of 91.23%. Despite recent funding challenges, the company has strong fundamentals supported by a significant AI contract with Microsoft [24][26]. - **UniQURE (NASDAQ:QURE)**: Achieved a 186% price return with a potential upside of 117.16%. The company is developing a gene therapy for Huntington's disease, although it faces regulatory challenges [28][29].

Group 1 - The author has been a Netflix shareholder for over 23 years, highlighting the bittersweet nature of this long-term investment experience [3][4] - Netflix has grown significantly, now serving over 300 million streaming paid memberships worldwide, compared to approximately 700,000 subscribers in 2002 [6] - The company has adapted to changing times, transitioning from DVD rentals to becoming a leading premium streaming video service, demonstrating its ability to innovate despite initial setbacks [8] Group 2 - The experience of owning a small percentage of Netflix has provided valuable lessons in patience and the importance of holding onto winning investments [4][5] - Netflix's strategic decisions, such as the controversial split of its DVD and streaming services, have ultimately proven successful, showcasing the company's resilience and forward-thinking approach [8] - The narrative emphasizes that complacency can lead to a decline in leadership, underscoring the need for continuous adaptation in the competitive streaming industry [7]

Group 1: Reddit - Reddit is identified as a fast-growing tech stock with a market cap of $40 billion, showing a year-over-year revenue growth rate of 43% since late 2022, and a record 78% growth in Q2 [4][7] - The platform has seen a 21% increase in daily active unique visitors, reaching 110 million in Q2, indicating significant user growth potential compared to larger competitors like Meta Platforms [5][6] - The stock has already increased by over 500% since its IPO in 2024, with predictions suggesting it could increase in value by as much as six times over the next decade [7] Group 2: Roku - Roku remains the number one streaming platform in North America despite a decline of over 80% from its 2021 high, and it continues to expand in Latin America and Europe [8][9] - The company is expected to benefit from increased ad revenues as streaming viewership surpasses traditional TV in the U.S., with a 17% year-over-year increase in hours of content streamed [9][10] - Roku's price-to-sales (P/S) ratio is 3.2, which is close to the S&P 500 average, and if it rises above 10, it could become a multibagger stock [11][12] Group 3: SentinelOne - SentinelOne is a cybersecurity company with a unique AI-driven technology platform that has been recognized as a leader in endpoint security for five consecutive years [14] - Despite a 75% decline since its IPO in late 2021, the company has a revenue of $864 million over the last four quarters and a significant amount of cash on its balance sheet, allowing for continued growth [15][16] - The enterprise-value-to-revenue ratio of SentinelOne is approximately 5, which is significantly lower than its peers, suggesting potential for substantial stock appreciation as profitability improves [17][18]