Recursion Pharmaceuticals Stock Could Be a 10-Bagger, but Only if It Comes Through on This Big Claim

Investing in growth stocks can lead to significant returns for investors in the long run. But oftentimes, the best returns come from smaller stocks, which have modest market values. These stocks can be risky options, but due to their low valuations, they tend to have the most room to rise higher if their businesses prove to be the real deal.

One stock that is your typical high-risk, high-potential-reward option is Recursion Pharmaceuticals (NASDAQ: RXRX). The company has a market capitalization of $2 billion, it doesn't have any approved products, it's burning through cash, and it may be years before the business is ever profitable. This is not a stock into which you'll probably want to make a big investment.

However, could it be worthwhile to put a more modest amount into the business, given the potential that the stock possesses? After all, the healthcare stock may be a 10-bagger in the future -- if it can come through on a fairly bold claim.

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Source Fool.com