1 Under-$10 Stock Poised for a Potential 963% Jump by 2026

Biotech Stocks Under $10: A Rare Opportunity for Massive Growth

Finding stocks priced below $10 that offer the potential for extraordinary returns is uncommon, especially in today’s cautious investment climate. While most industries rarely see such dramatic upside, the biotech sector can be an exception. When promising clinical results and regulatory progress align, a single innovation can dramatically alter a biotech company's valuation. This is why analysts believe a particular biotech stock trading under $10 could soar by up to 404% in 2026. Let’s explore the reasons behind this optimism.

Introducing Arcturus Therapeutics

Arcturus Therapeutics (ARCT) specializes in developing medicines and vaccines based on messenger RNA (mRNA) technology. Rather than simply alleviating symptoms, Arcturus aims to enable the body to produce essential proteins itself, addressing the underlying causes of disease. With a current market capitalization of $194.3 million, ARCT shares fell 64% last year, even as the S&P 500 Index rose by 16%. However, the stock has rebounded 10% so far this year.

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Arcturus has achieved a significant milestone by creating KOSTAIVE, the first approved self-amplifying mRNA vaccine for Covid-19. The company is actively working with international partners to develop additional mRNA-based vaccines targeting Covid-19 variants and pandemic influenza. Beyond vaccines, Arcturus is advancing mRNA therapies for conditions such as cystic fibrosis (CF) and ornithine transcarbamylase (OTC) deficiency, a rare genetic disorder.

High-Risk, High-Reward: The mRNA Investment Case

Arcturus is gaining attention as a promising biotech stock under $10, thanks to positive clinical updates, a clearer development pipeline, and cost-saving measures that extend its financial resources. The company’s inhaled mRNA therapy for cystic fibrosis, ARCT-032, is generating excitement. Interim results from a Phase 2 trial released in October showed that a daily 10 mg dose administered for 28 days was generally safe and well tolerated among six adult patients with Class I CF. Notably, advanced CT scans analyzed with FDA-approved AI technology showed a reduction in mucus buildup in four out of six participants.

Building on these encouraging results, Arcturus plans to initiate a 12-week safety and preliminary efficacy study involving up to 20 CF patients in the first half of 2026. Additionally, a third group is being enrolled to test a higher 15 mg daily dose over 28 days, which will help fine-tune the optimal dosage. These upcoming trials are crucial, as positive outcomes could significantly strengthen the investment case for ARCT-032.

Beyond cystic fibrosis, Arcturus is also developing ARCT-810 for the treatment of OTC deficiency, a rare metabolic disorder. The company is working with regulators to design pivotal studies for both children and adults, aiming to keep this program on track for the first half of 2026. Arcturus’ vaccine platform continues to gain validation as well. In Japan, its partner Meiji Seika Pharma launched an improved two-dose vial of KOSTAIVE targeting the JN.1 variant XEC in August 2025, following regulatory approval. Additional late-stage and early-stage trials for Covid-19 and pandemic influenza vaccines have demonstrated strong immune responses and favorable safety profiles, supporting the ongoing development of Arcturus’ proprietary STARR self-amplifying mRNA technology. These achievements underscore the adaptability of Arcturus’ mRNA platform for both therapeutic and vaccine applications.

Currently, Arcturus generates most of its revenue from licensing agreements, consulting, technology transfer, and research collaborations with other biotech firms. In the third quarter, the company reported $17.2 million in revenue and a net loss of $13.5 million. As of the end of the third quarter, Arcturus held $237.3 million in cash and equivalents. With further cost reductions planned and the Phase 3 cystic fibrosis trial postponed until 2027, management expects its financial resources to last through 2028, providing ample time to advance its key projects without immediate funding concerns.

Although investing in biotech always involves considerable risk, Arcturus’ promising interim data for cystic fibrosis, the upcoming larger Phase 2 trial, regulatory progress for its rare disease program, and a solid financial position make it a compelling high-risk, high-reward opportunity.

Analyst Outlook for ARCT Shares

Wall Street analysts currently assign ARCT stock a “Moderate Buy” rating. Of the 11 analysts covering the company, seven recommend a “Strong Buy” while four suggest holding. The consensus price target of $34.14 implies a potential gain of up to 404% from current levels. The highest target, at $72, points to a possible increase of 963% over the next year. While such gains may seem ambitious, biotech stocks have a history of surging dramatically when a breakthrough product reaches the market.