15 Small-Cap Stocks Poised to Outperform in 2025: A Closer Look at Sangamo Therapeutics Inc. (NASDAQ:SGMO)

In our recent list of the top 15 small-cap stocks poised to outperform in 2025, we highlighted companies that are leading the charge in the rapidly evolving Artificial Intelligence sector. One stock that caught our attention was Sangamo Therapeutics Inc. (NASDAQ:SGMO), a biotechnology company focused on gene editing and gene therapy. In this article, we’ll take a closer look at SGMO’s performance, its recent developments, and why it ranks 7th on our list of small-cap stocks with high growth potential.

The Rise of Small-Cap Stocks in the AI Sector

The Artificial Intelligence sector has been one of the most exciting areas of investment in recent years. With the rapid advancement of AI technology, many companies have seen their share prices soar, resulting in triple- to quadruple-digit gains. Our list of 15 small-cap stocks was carefully curated based on a set of criteria: we only considered companies with more than $3 million in trading volume and less than $2 billion in market capitalization.

Sangamo Therapeutics Inc. (NASDAQ:SGMO) – A Promising Biotech Company

Shares of Sangamo Therapeutics have been up by 164.71 percent in the past year, reflecting investor optimism despite some declines in its five-year performance. Analysts have posted a more bullish outlook for the company, setting a price target of $7 in the latest research last month.

One of the most significant recent developments at SGMO is the termination of its partnership with Pfizer for their hemophilia A gene therapy co-development agreement. Following the termination, Sangamo now regains the rights to develop giroctocogene fitelparvovec, an investigational gene therapy product candidate for the treatment of adults with moderately severe to severe hemophilia A.

What’s Next for SGMO?

Sangamo has announced that it intends to explore all options to advance the program, including seeking a potential partner to collaborate with. This development could potentially lead to new partnerships and collaborations, which could further boost the company’s growth prospects.

While we acknowledge the potential of SGMO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as SGMO but trades at less than 5 times its earnings, check out our report on the cheapest AI stock.

Ranking 7th on Our List of Small-Cap Stocks

Sangamo Therapeutics Inc. (NASDAQ:SGMO) ranks 7th on our list of small-cap stocks poised to outperform in 2025. While we believe that SGMO has significant growth potential, we must acknowledge that some other AI stocks may offer even greater returns and do so within a shorter timeframe.

What’s Driving the Growth of Small-Cap Stocks?

The growth of small-cap stocks can be attributed to several factors, including:

  • Advancements in AI technology: The rapid advancement of AI technology has led to significant breakthroughs in various industries, resulting in increased investment and growth for companies at the forefront of this innovation.
  • Increased demand for AI solutions: As more businesses recognize the potential of AI to drive growth and efficiency, the demand for AI solutions is increasing, leading to higher valuations for companies that can provide these solutions.
  • Growing acceptance of gene editing and gene therapy: The growing acceptance of gene editing and gene therapy as a viable treatment option has led to increased investment in biotechnology companies like SGMO.

Conclusion

Sangamo Therapeutics Inc. (NASDAQ:SGMO) is an exciting company with significant growth potential. While it ranks 7th on our list of small-cap stocks poised to outperform in 2025, we believe that other AI stocks may offer even greater returns and do so within a shorter timeframe.

If you’re looking for more information on the cheapest AI stock or want to explore other investment opportunities, check out our reports on the 8 Best Wide Moat Stocks to Buy Now and the 30 Most Important AI Stocks According to BlackRock.

Disclosure

None. This article is originally published at Insider Monkey.