We recently released a compilation of 10 Lesser-Known Stocks Priced Below $10 Poised for Tripling Growth In this piece, we'll examine how Vir Biotechnology, Inc. (NASDAQ:VIR) measures up against other undervalued stocks priced below $10 that have potential for tripling in value.
When discussing stocks with potential for tripling, it’s important to highlight the struggles faced by U.S. small-cap stocks amidst wider market difficulties caused by fluctuating tariff policies, which erode investor confidence. As of when this piece was written, the Russell index (tracking small-caps) had declined more than 15% since reaching its peak in November 2024 and stands at almost an 18-19% drop year-to-date. In contrast, larger cap-dominated markets have decreased around 13-14% on a yearly scale so far. This discrepancy underscores how economic instability and increased interest rates disproportionately affect smaller firms, often burdened with greater debts and feeling sharper rises in lending expenses.
Additionally, trade tensions have increased the volatility of small-cap stocks. Reuters It was reported that starting March 4, President Trump implemented a 25% tariff on imports from Canada, Mexico, and China. Additional levies are set to take effect by April 2nd, impacting approximately $2.2 trillion worth of commerce. These actions have led to counter-tariffs from both Canada and China, raising concerns about inflation and causing significant declines in global markets. Consequently, smaller businesses reliant on international supply lines now confront increased expenses that may undermine their profit margins.
Nevertheless, small-cap stocks may experience a rebound since President Trump’s focus on boosting the domestic economy has potential benefits for these domestically-focused American businesses. Additionally, bringing manufacturing activities back to the US along with higher spending on equipment and infrastructure (CAPEX) could enhance profitability within this segment. Moreover, experts anticipate that steady prices and declining interest rates might assist small-caps in recuperating during the latter part of 2025.
As such, inflation seems to be leveling off, which is beneficial for small-cap companies. While high rates have pressured these debt-reliant companies, the Federal Reserve’s decision to slow rate hikes in late 2024 provided some breathing room. With inflation settling between 1% and 3%—historically complimentary for small-caps—the sector’s performance is expected to get a boost. Therefore, as financial market trends are settling, analysts expect small-cap earnings to outpace large-cap in 2025, especially later in the year.
A substantial step that might benefit small-cap stocks is the resurgence in mergers and acquisitions (M&A), along with initial public offerings (IPOs). Despite a slowdown in deal volume due to economic concerns during recessions, M&A activities picked up again in 2024 and are anticipated to keep growing in 2025. Traditionally, an increase in M&A actions has enhanced performance throughout various market capitalizations and has been advantageous for smaller firms, turning them into attractive takeover options and boosting investor appeal.
Furthermore, industry developments and advancements in technology provide additional chances for small-cap businesses. Although the surge in artificial intelligence has primarily benefited large-tech sectors, numerous smaller firms play vital roles in AI-related areas such as cybersecurity and heat management. As noted in a report from 2023, this trend continues to evolve. PwC The report assessed the healthcare AI market at $11 billion and forecasted its expansion to reach $188 billion by 2030.
Even with market difficulties, certain small-cap stocks below $10 have outperformed the wider market, demonstrating strength despite inflation and trade-related uncertainties. These stocks exhibit significant potential for growth as circumstances continue to change.
Methodology
We selected widely accepted choices from trustworthy sites and put together a roster of equities valued at $10 or below that are anticipated to increase threefold. Additionally, we employed a filter tool to pinpoint securities with an estimated growth exceeding 300%. Our analysis included evaluating the stance of hedge funds based on data provided by Insider Monkey for more than 1,000 top-tier hedge funds monitored up until Q4 2024. This compilation ranks these investments according to the increasing count of their supporters among those prominent financial entities.
What draws us to the stocks that hedge funds heavily invest in? It boils down to this: our studies indicate that replicating the leading stock choices from premier hedge funds allows us to surpass market performance. Each quarter, our monthly bulletin features 14 small-cap and large-cap equities selected through this approach, delivering an impressive return of 373.4% since May 2014, which significantly outpaces its benchmark by 218 percentage points. ( see more details here ) .
A geneticist wearing a lab coat utilizing advanced microscopes to study hepatitis B and influenza A viruses.
Vir Biotechnology, Inc. (NASDAQ: VIR )
Upside Potential: 413.24%
Number Of Hedge Funds: 31
Vir Biotechnology, Inc., listed as VIR on NASDAQ, focuses on creating therapies for infectious illnesses and cancers. Their approach leverages the human immune system to combat conditions such as solid tumors. Currently, they are engaged in research aimed at designing targeted experimental drugs specifically against cancerous cells. Additionally, Vir is advancing PRO-XTEN technology with the aim of enhancing the safety and effectiveness of cancer treatment methods.
Even with declining revenues, Vir Biotechnology, Inc. (NASDAQ: VIR) reported operational enhancements for Q4 and fiscal year 2024. In Q4, the company’s revenue stood at $12.4 million, marking a drop from $16.8 million recorded during the previous year; similarly, annual income decreased to $74.2 million compared to $86.2 million previously. This reduction can be attributed mainly to diminished grants as well as lessened earnings sharing according to their agreement with GlaxoSmithKline. Concurrently, total expenditures were cut back to $506.5 million throughout 2024 because of halted projects, although an initial sum of $102.8 million paid out to Sanofi partially mitigated these savings. Additionally, general and administrative costs saw a decrease dropping to $119.0 million from $174.4 million owing to successful cost-reduction strategies.
Vir Biotechnology, Inc. (NASDAQ: VIR) concluded 2024 with approximately $1.10 billion in cash, cash equivalents, and investments, representing a decrease of $532.3 million compared to the previous year. This reduction was largely due to significant expenditures such as the licensing agreement with Sanofi. Despite this drop, the firm maintains robust finances, anticipating sufficient liquidity to sustain operations until mid-2027.
Looking ahead, Vir Biotechnology, Inc. (NASDAQ:VIR) is advancing its immuno-oncology pipeline while simultaneously expanding into infectious diseases, as the company enrolled its first patient in the Phase 3 ECLIPSE program for chronic Hepatitis Delta. This strengthens the company’s late-stage portfolio and builds investor confidence.
As such, analysts see high upside potential for the stock based on its existing pipeline and partnerships, which have attracted hedge funds that are looking for long-term growth. Thus, Vir Biotechnology, Inc. (NASDAQ:VIR) is considered one of the stocks that will triple.
Overall, VIR ranks 8th On our roster of low-priced stocks poised to multiply threefold, we recognize the appeal of VIR. However, we firmly believe that investments in artificial intelligence companies offer superior prospects for substantial gains over a brief period. One such AI stock has surged since the start of 2025, contrasting with widely followed AI equities which have declined roughly 25% during the same duration. Should you seek an AI-focused option more compelling than VIR yet trading below five times its earnings value, explore our detailed analysis on this opportunity. cheapest AI stock .
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Disclosure: None. This article is originally published at Insider Monkey .