We recently compiled a list of the 10 Small Firms Kick Off Monday with Strong Gains. In this article, we are going to take a look at where Lexeo Therapeutics, Inc. (NASDAQ:LXEO) stands against the other stocks with strong gains.

Wall Street's main indices kicked off Monday's trading with a strong finish, ending in the green territory as investors hoped President Donald Trump would dial back on his wide-ranging tariff plans to allow the US to skirt an economic slowdown.

The Nasdaq posted the largest gain, up 2.27 percent, followed by the S&P 500, up 1.76 percent, and the Dow Jones, at 1.42 percent.

Ten companies under the micro- and small-cap sectors mirrored the broader market optimism, registering double- to triple-digit gains at intra-day trading. In this article, let us explore the reasons behind their gains.

To come up with the list, we considered only the stocks with the highest gains in terms of percentage change.

Lexeo Therapeutics, Inc. (NASDAQ:LXEO)

Lexeo Therapeutics, Inc. (NASDAQ:LXEO) grew its share prices for a second straight day on Monday, rallying by as much as 57.56 percent at intra-day trading before finishing the day just up by 50.92 percent at $4.09 apiece.

Investor sentiment was largely fueled by the company’s optimistic outlook about the LX2020, its treatment candidate for arrhythmogenic cardiomyopathy.

In a statement, Lexeo Therapeutics (NASDAQ:LXEO) CEO Richard Nolan Townsend said the company was encouraged by the favorable safety profile and early data observed in participants dosed with LX2020 to date.

According to the company, LX2020 has so far been generally well tolerated with no treatment-related serious adverse events to date across both dose cohorts.

“We look forward to sharing additional clinical updates later in 2025 now that the second cohort of the LX2020 HEROIC-PKP2 Phase 1/2 trial in arrhythmogenic cardiomyopathy is fully enrolled,” he added.

On the same day, Lexeo Therapeutics (NASDAQ:LXEO) reported its latest quarterly earnings performance, with net loss widening by 82.7 percent to $25.924 million in the fourth quarter of 2024 from $14.188 million in the same period a year earlier.

Meanwhile, net loss for the full-year period also widened by 48 percent to $98.3 million from $66.4 million in 2023.

Overall, LXEO ranks 7th on our list of  small firms kick off Monday with strong gains. While we acknowledge the potential of LXEO 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 time frame. If you are looking for an AI stock that is as promising as LXEO but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.