Small-Cap Highlights: Inovio's Surge, Alstom's Plunge, and a Recall of Children's Snacks

Inovio’s stock tripled in price following the approval of the company’s first drug. French train manufacturer Alstom sharply lowered its annual forecast, while Once Upon a Farm’s stock plummeted after the recall of its children’s snack bars. Freedom Finance Global analyst Georgy Timoshin selected three defensive stocks amid the tech sector’s collapse. The highlights of the small-cap sector for the week of November 2–6 are featured in the Oninvest digest.

Inovio Pharmaceuticals shares rose 214% to $1.89 at the close of trading on November 2. The U.S. Food and Drug Administration (FDA) approved VOCERYQ under an accelerated approval process—an immunotherapy that helps reduce the frequency of surgeries in adults with recurrent respiratory papillomatosis. This rare HPV-related condition causes papillomas to form in the airways, which must be surgically removed.

Seven of the 26 patients whose data were used to evaluate efficacy did not require additional surgeries within one year of treatment. Inovio plans to fully launch the drug in the first quarter of 2027. It already has a competitor—Precigen’s Papzimeos, which was approved in 2025. Later this week, on November 5, Inovio announced plans to issue new shares.

At the close of trading on November 5, the Nasdaq Composite fell 5.5%. The sell-off in AI stocks intensified following the Democrats’ victory in the U.S. midterm elections: investors fear restrictions on the construction of data centers. Against this backdrop, Freedom Finance Global analyst Georgy Timoshin has selected three stocks from companies outside the technology sector, each with its own reasons for growth.

John B. Sanfilippo & Son, a manufacturer of nuts and snacks, is focusing on contract manufacturing and restoring its margins. The real estate fund Saul Centers is focusing on high occupancy rates at its shopping centers and dividends. Meanwhile, Inogen, a manufacturer of portable oxygen concentrators, is focusing on sales growth abroad and expanding its partner network.

Shares of Once Upon a Farm, a manufacturer of organic baby food co-founded by actress Jennifer Garner, fell 37% on November 2 to $9.44. The company recalled its Tractor Wheels snack bars due to a choking hazard. The FDA reported cases of airway obstruction in children aged one and a half to two and a half years; in some cases, emergency medical care was required.

Tractor Wheels has accounted for about 18% of the company’s net revenue since the beginning of the year. Once Upon a Farm is still assessing the costs of the recall and potential insurance reimbursement. BofA downgraded the stock from “Buy” to “Underperform” and lowered its price target from $21 to $10. The bank fears that the recall will undermine parents’ trust in the entire brand.

Alstom shares fell nearly 30% on the Paris Stock Exchange between November 2 and 3. Due to problems with train production and certification, the company expects to produce about 4,000 railcars in fiscal year 2026–2027, instead of 4,400–4,500. The forecast for the adjusted operating margin has been lowered from 6.5% to approximately 1%. Instead of positive free cash flow, Alstom now expects an outflow of about €1.5 billion.

After revising its forecast, JPMorgan downgraded the stock to “neutral,” while Citi downgraded it to “neutral” with a “high risk” label. The banks lowered their price targets to €15.60 and €14, respectively.