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We just covered the Billionaire Joe Edelman’s 10 Stock Picks with Huge Upside Potential and Praxis Precision Medicines, Inc. (NASDAQ:PRAX) ranks 1st on this list.

Praxis Precision Medicines, Inc. (NASDAQ:PRAX) is still pre-revenue but Wall Street is piling into the stock because of a rare triple-catalyst setup in neurology. There are two major regulatory decisions that could transform the company into a commercial powerhouse in late 2026 and early 2027. In March, the FDA granted Priority Review for relutrigine in pediatric epilepsy. The PDUFA target action date is set for September 2026. Similarly, in April, the FDA accepted the NDA for ulixacaltamide with a PDUFA date of January 2027. This drug is the first positive Phase 3 program in essential tremor, a market that has seen no new innovation in decades. Recent data from the EMBRAVE trial was also positive.

In early April, Praxis Precision Medicines, Inc. (NASDAQ:PRAX) reported that 71% of patients treated with elsunersen achieved a >50% reduction in motor seizures. Analysts believe the success of elsunersen and relutrigine validates Praxis’s entire precision neuroscience platform. Funds view the company’s lead programs as having a combined $20 billion potential revenue opportunity. The firm has aggressive capital management, which has eliminated the bankruptcy risk often associated with clinical-stage biotech. After a successful follow-on offering in early 2026, Praxis ended Q1 with roughly $1.5 billion in cash. This extends its runway into 2028, ensuring it can fund the commercial launches of its own drugs without further dilution.

While we acknowledge the potential of PRAX as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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