The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.

Cabaletta Bio, Inc. (NASDAQ:CABA) is one of the small-cap stocks with potential to rise 1000 percent. The company’s 2026 story is focused on rese-cel, an experimental cell therapy being developed for autoimmune diseases, where the immune system mistakenly attacks the body. In its May 14 first-quarter update, Cabaletta said enrollment was progressing in a small registrational study of rese-cel in myositis, a group of rare autoimmune muscle diseases that can cause weakness and inflammation. If the study succeeds, Cabaletta expects it could support the company’s first planned application for FDA approval of rese-cel in myositis in 2027.

The update also gave investors a clearer timeline for upcoming clinical data. Cabaletta said it expects more results in the second half of 2026 from rese-cel studies in pemphigus vulgaris and lupus, along with data from patients receiving higher doses. The company also raised $150 million through a registered direct offering in May, with participation from investors including Bain Capital Life Sciences, Cormorant Asset Management, and Eli Lilly and Company. Cabaletta ended the first quarter with $116.6 million in cash, cash equivalents, and short-term investments, and said the offering extended its expected cash runway into mid-2027.

Cabaletta Bio, Inc. (NASDAQ:CABA) is a late-stage clinical biotechnology company developing engineered T-cell therapies for autoimmune diseases across rheumatology, neurology, and dermatology.

While we acknowledge the potential of CABA 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.

READ NEXT: 33 Stocks That Should Double in 3 Years and Cathie Wood 2026 Portfolio: 10 Best Stocks to Buy. 

Disclosure: None. Follow Insider Monkey on Google News.