Our Stock of the Week is XERIS Biopharm (XERS). XERS is an old favorite that has been chugging along with 20% revenue growth and is on the verge of posting positive eps. It has several potential catalysts coming up in 2025. The first is the development of a drug using their patented drug delivery system, which has the potential for a billion dollars in sales should it go as planned. Currently, analysts are not pricing in this new drug into estimates or price targets.
In addition, the company has its product tested by at least two large biotech companies, including Amgen (AMGN), which could result in a licensing or partnership deal.
The company’s commercial products are selling well, and the stock is cheap based on those sales alone.
On December 6, the stock hit its highest levels since 2021 but pulled back into a very poor small-cap and biotechnology market. We believe it has a good chance of bouncing back if there is a Santa Claus rally, but even if there isn’t, the market is a good value in the lower $3 area.
As always, we will not chase the stock on Monday morning but will be watching to trade it aggressively as conditions develop.
This post is for educational purposes only! This is not advice or a recommendation. We do not give investment advice. Do not act on this post. Do not buy, sell, or trade the stocks mentioned herein. We WILL actively trade this stock differently than discussed herein. We will sell into strength and buy or sell anytime for any reason. We will actively trade into any unusual activity. At the time of this post, principals, employees, and affiliates of Shark Investing, Inc. and/or principals, clients, employees, and affiliates of Hammerhead Financial Strategies, LLC, directly or indirectly, controlled investment and/or trading accounts containing positions in XERS. To accommodate the objectives of these investing and/or trading accounts, the trading in these shares will be contrary to and/or inconsistent with the information contained in this posting.
