I'll readily admit that I don't know how the stock market will perform in 2026. It could continue to climb. On the other hand, the momentum from last year could evaporate. However, I think the individual stocks that outperform the S&P 500 (SNPINDEX: ^GSPC) this year will be those with key catalysts. With that in mind, I predict that three stocks will crush the market in 2026. Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispen ...

Core Insights - The article highlights three stocks that are expected to perform strongly in 2026, emphasizing their growth potential and market positioning. Group 1: Amazon - Amazon's share prices have lagged behind the S&P 500 over the past 12 months, but earnings growth is expected to drive future performance [2] - The company is focusing on improving efficiency, which is anticipated to continue positively impacting its bottom line [2] - Amazon Web Services (AWS) is expected to benefit significantly from the rise of agentic AI, with increased investments in AI leading to greater returns [3] Group 2: BeOne Medicines - BeOne Medicines has seen its stock price increase by over 50% in the last year, yet it remains underrated in the biotech sector [4] - The company's flagship product, Brukinsa, is recognized as the gold standard for treating various blood cancers, with sales expected to rise in both the U.S. and Europe [4] - BeOne has received regulatory approval in China for sonrotoclax and is awaiting U.S. approval, with potential for accelerated approval of another drug pending positive clinical results [6] Group 3: Enterprise Products Partners - Enterprise Products Partners offers a forward distribution yield of 6.6%, making it attractive for income investors [7] - The company has a strong track record of increasing its distribution for 27 consecutive years [7] - The anticipated boom in data center construction for AI applications is expected to drive demand for the company's natural gas pipelines, positioning it for growth [8]

Summary of Conference Call Notes Industry Overview - The focus has shifted back to company fundamentals in the China Pharma and Biotech sector, moving away from last year's emphasis on sector beta. [1] - Key companies discussed include BeOne, Kelun-Biotech, and Innovent, which have garnered significant investor attention. [1] BeOne - **Market Cap and Sales Potential**: BeOne's current market cap is $41 billion, with investors optimistic about Brukinsa's potential, expecting peak sales of $5 billion, which some consider conservative. [2] - **IRA Price Cut Exemption**: Brukinsa was not included in the recent IRA price cut announcement, leading to an expected sales upside of 10%-20%, potentially increasing peak sales to $6 billion by 2033. [2][6] - **Sonro Concerns**: Investors are worried about the lack of detailed data on Sonro's efficacy. However, the company believes these concerns are minor, as Sonro's trial results are comparable to venetoclax, which has a significant market presence. [2][9] Kelun Biotech - **Sales Expectations for sac-TMT**: Expectations for sac-TMT's sales range from $4-5 billion to over $10 billion, with Bernstein estimating $8 billion. [3] - **Phase 3 Data Catalyst**: The first global Phase 3 data release in 2026 is anticipated to be a major catalyst for stock performance. [3] - **Market Positioning**: Kelun's strategy focuses on squamous and PD-L1 high patients, avoiding direct competition with Dato-DXd, which targets non-squamous patients. [3][23] - **Market Size for 2L+ EGFRm**: The market for 2L+ EGFRm NSCLC is expected to be smaller than 1L TKIs, but projections indicate reasonable sales of CNY 4 billion. [3][25] Innovent - **Sales Focus**: Investors are primarily interested in mazdutide and IBI363, with concerns about pricing pressures due to competition from GLP-1 drugs. Sales estimates for mazdutide are expected to drop from CNY 3 billion to 2 billion in 2026. [4] - **Long-term Sales Estimates**: Despite short-term pressures, long-term estimates for mazdutide remain at CNY 5.4 billion and 10 billion at peak. [4] - **New Trials and Data**: Innovent is initiating six non-China Phase 1 trials in 2025, with expected readouts for new drugs, including IBI3003, which has received Fast Track designation from the FDA. [4] Financial Metrics - **Valuation and Performance**: The conference included a detailed ticker table with performance metrics for various companies, indicating significant upside potential for stocks like Kelun-Biotech and Innovent. [5] Additional Insights - **Regulatory and Competitive Landscape**: The discussions highlighted the importance of regulatory developments, such as the IRA price cuts, and competitive dynamics in the oncology market, particularly concerning CLL and AML treatments. [2][12][19] - **Clinical Trial Data**: The efficacy of treatments like Sonro and sac-TMT was compared against existing therapies, emphasizing the need for robust clinical data to support market positioning. [9][25] This summary encapsulates the key points from the conference call, focusing on the companies and industry dynamics discussed.

Core Insights - BeOne Medicines Ltd. (NASDAQ:ONC) is recognized as one of the top high-growth European stocks to invest in, with a Market Outperform rating and a price target of $396 set by Citizens due to strong Phase 3 trial results in gastric cancer patients [1] - The HERIZON-GEA-01 trial demonstrated high efficacy in patients with advanced gastric or gastroesophageal adenocarcinoma (GEA), further supporting the company's growth potential [1] - BeOne's Brukinsa is projected to generate approximately $3.8 billion in revenue by 2025, bolstered by a robust development pipeline across various indications [2] - The company has achieved its first clearance for sonrotoclax, a next-generation BCL2 inhibitor, which is expected to lead to further approvals globally [2] - BeOne maintains a strong cash position of $4.1 billion, and the recent decline in share price is viewed as a "unique buying opportunity" in the hematology/oncology sector [3] - BeOne Medicines Ltd. specializes in oncology medicines, focusing on treatments for blood cancers and solid tumors [3]

Summary of BeOne Medicines Conference Call Company Overview - **Company**: BeOne Medicines (ONC/688235.SS) - **Industry**: Oncology - **Headquarters**: Switzerland - **Focus**: Discovering and developing innovative cancer treatments, with a portfolio in hematology and solid tumors, including products like Brukinsa and Tevimbra [7][10] Key Points from the Conference Call Approval and Market Entry - **Sonro Approval**: On January 5th, 2025, the China NMPA approved sonrotoclax (BCL2 inhibitor) for relapsed/refractory chronic lymphocytic leukemia (R/R CLL) and mantle cell lymphoma (R/R MCL) [1] - **Approval Timeline**: The NDA review took only eight months, which is considered quick compared to the typical 12-18 months for new drug approvals, indicating a significant unmet need for BCL2 inhibitors in China [1] Market Dynamics - **Sales Ramp-Up**: There is a focus on tracking the sales ramp-up of venetoclax and lisaftoclax, as well as feedback from physicians and patients regarding the new BCL2 inhibitors [2] - **Differentiation Potential**: Sonrotoclax and lisaftoclax are expected to disrupt the market due to: 1. **Better Tolerability**: Both drugs showed lower rates of neutropenia and discontinuation compared to venetoclax, with sonrotoclax showing a lower rate than lisaftoclax [2] 2. **Quicker Dose Ramp-Up**: Lisaftoclax has a 4-6 days daily dose ramp-up scheme, while sonrotoclax and venetoclax follow a weekly ramp-up [2] Financial Projections - **Earnings Adjustments**: FY2025-2027 earnings estimates were adjusted, with EPS revised from US$3.78/US$6.26/US$6.64 to US$3.59/US$4.65/US$4.46 [6] - **Sales Estimates**: Near-term sales estimates for sonro were fine-tuned with increased SG&A investment, and R&D spending was increased due to multiple pipeline assets entering the proof of concept stage [6] - **Target Prices**: The 12-month target prices were updated to US$385.79 for ONC and Rmb345.86 for the A-share [6] Risks and Challenges - **Key Risks**: 1. Uncertainties in R&D and regulatory approvals, especially for the early-stage solid tumor franchise [7][10] 2. Competition from BTK and PD-1 inhibitors [7][10] 3. Development risks for clinical-stage assets [7][10] 4. Market access bottlenecks [7][10] Investment Rating - **Current Rating**: The company maintains a "Buy" rating, with shares trading at a modest discount due to broader macroeconomic factors and concerns around its product pipeline [7][10] Additional Insights - **Clinical Development Team**: BeOne Medicines has a growing internal clinical development team, which may provide cost savings and advantages in product launch times compared to peers [7] - **Market Position**: The company is well-positioned to grow and bring additional therapies to both the local Chinese market and the global pharmaceutical stage [7] This summary encapsulates the critical insights from the conference call regarding BeOne Medicines, its market strategies, financial outlook, and associated risks.

Summary of BeOne Medicines Conference Call Company Overview - **Company**: BeOne Medicines (ONC/688235.SS) - **Industry**: Oncology, specifically focused on hematology and solid tumors - **Key Products**: Sonrotoclax (BCL2 inhibitor), Brukinsa, Tevimbra - **Location**: Domiciled in Switzerland Key Points from the Conference Call Approval and Market Entry - **Sonrotoclax Approval**: Approved in China for late-line Chronic Lymphocytic Leukemia (CLL) and Mantle Cell Lymphoma (MCL) on January 5th, 2025, marking its first approval globally [1] - **NDA Review Duration**: The approval process took only eight months, which is considered quick compared to the typical 12-18 months for new drug approvals [1] - **Unmet Need**: The rapid approval reflects a significant unmet need for BCL2 inhibitors in China, as venetoclax was only approved for Acute Myeloid Leukemia (AML) [1] Market Dynamics and Sales Potential - **Sales Ramp-Up**: Interest in tracking the sales ramp-up of venetoclax and lisaftoclax, along with feedback from physicians and patients regarding the new BCL2 inhibitors [2] - **Differentiation Factors**: - **Tolerability**: Both new drugs showed lower rates of neutropenia and discontinuation compared to venetoclax, with sonrotoclax showing a lower rate than lisaftoclax [2] - **Dose Ramp-Up**: Lisaftoclax employs a 4-6 days daily dose ramp-up, while sonrotoclax and venetoclax use a weekly ramp-up [2] Financial Projections and Valuation - **Earnings Adjustment**: FY2025-2027 earnings per share (EPS) estimates adjusted from US$3.78/US$6.26/US$6.64 to US$3.59/US$4.65/US$4.46 [6] - **Increased Probability of Success (POS)**: Blended POS increased from 76% to 95% due to the approval of sonrotoclax [6] - **Target Prices**: Updated 12-month target prices to US$385.79 for ONC and Rmb345.86 for A-share, down from US$408.79 and Rmb366.48 respectively [6] Company Positioning and Risks - **Growth Potential**: BeOne Medicines is well-positioned for growth with a strong internal clinical development team and a focus on oncology [7] - **Key Risks**: - Uncertainties in R&D and regulatory approvals, especially for early-stage solid tumor products - Competition from BTK and PD-1 inhibitors - Development risks for clinical-stage assets - Market access bottlenecks [7][10] Conclusion - **Investment Rating**: Maintained a Buy rating on BeOne Medicines, indicating confidence in its growth potential and market positioning despite broader macroeconomic concerns [7]

Chautauqua Capital Management, a division of Baird Asset Management, is a boutique investment firm that released its third-quarter 2025 investor letter for the “Baird Chautauqua International and Global Growth Fund”. A copy of the letter can be downloaded here. Global equity markets delivered solid results in the third quarter, driven by the resolution of significant trade conflicts and a shift in U.S. monetary policy toward a more dovish stance. Baird Chautauqua International Growth Fund underperformed the ...

Leadership Changes - BeOne Medicines has promoted Wang Lai to the newly created role of co-president, indicating a leadership expansion as the company advances its late-stage pipeline and globalization efforts [1] - Wang, who has been the global head of R&D since April 2021, will retain his R&D responsibilities while also overseeing business development and managing business alliance relationships starting January [2][4] Financial Performance - BeOne generated global revenue of approximately US$3.8 billion last year, a significant increase from US$1.4 billion in the previous year, driven by flagship products Brukinsa and Tevimbra [6] - Brukinsa achieved global sales of 18.7 billion yuan in 2024, ranking second globally and first in China in its class, contributing to the company's first profitable half-year in early 2024 [6] Product Development - Tevimbra, a PD-1 antibody treatment, has received regulatory approvals across the EU's 27 member states, Iceland, Norway, and 16 other countries in North America, Europe, and Asia-Pacific [7]

Core Viewpoint - BeiGene is positioned for sustainable revenue growth through the launch of new products, with a revenue target of $5.1 billion to $5.3 billion likely to be achieved [1] Group 1: Revenue Growth and Product Launch - BeiGene's cancer therapy Brukinsa is expected to continue boosting global sales in the coming years due to its best-in-class characteristics and expanding market penetration [1] - The company is entering a new development phase, projected to achieve positive profits and positive free cash flow starting in 2025 [1] Group 2: Operational Efficiency and Rating - BeiGene is anticipated to leverage its global operational platform to enhance operational efficiency and cash generation capabilities [1] - The rating for BeiGene is set at "Buy," with a target price of HKD 252 [1]

Core Viewpoint - BeiGene is expected to achieve sustainable revenue growth through the launch of new products, with a revenue target of $5.1 billion to $5.3 billion deemed highly achievable [1] Group 1: Revenue Growth Potential - Analysts from Daiwa Capital Markets believe that BeiGene's revenue target is likely to be met, supported by its global operational platform which will enhance operational efficiency and cash generation capabilities [1] - The company's cancer therapy Brukinsa is projected to continue boosting global sales in the coming years due to its best-in-class characteristics and expanding market penetration [1] Group 2: Financial Outlook - From 2025 onwards, BeiGene is expected to achieve positive profits and positive free cash flow, attributed to a more diversified revenue structure and improving profit margins [1] - Daiwa Capital Markets has assigned a "Buy" rating to the stock, with a target price set at HKD 252.00 [1]