10 Best Hot Stocks To Buy Right Now

Page 9 of 9

1. Viking Therapeutics, Inc. (NASDAQ:VKTX)

Number of Hedge Fund Holders: 50

Year-to-Date Share Price Gains: 239.17%

Average Price Target Upside: 83.87%

Viking Therapeutics, Inc. (NASDAQ:VKTX) is a biopharmaceutical company that focuses on creating new treatments for metabolic and hormone-related disorders. It has three key drugs in clinical trials. One of these is VK2735, which works on two important receptors (GLP-1 and GIP) and has shown good results in early trials for treating metabolic issues.

VK2735, demonstrated significant weight loss in a Phase 2 study, with up to a 15% reduction in body weight over 13 weeks. Viking is advancing this drug into Phase 3 development, while also exploring a monthly dosing regimen.

It is also testing an oral tablet version of VK2735, which showed strong safety and tolerability in a Phase 1 trial, with promising weight loss results.

On September 30, TipRanks reported that Morgan Stanley analyst Michael Ulz maintained a Buy rating on Viking Therapeutics (NASDAQ:VKTX) stock with a price target of $105 as the analyst’s positive outlook is mainly driven by VK2735 oral drug’s Phase 1 results. It includes good safety and weight loss even at lower doses.

Ulz expects more weight loss data at higher doses to be revealed during Obesity Week, which could further boost the stock. He highlighted that VK2735 has a better safety profile, especially fewer gastrointestinal side effects, compared to its competitors. This advantage could help it stand out in the market.

Another drug, VK2809, targets thyroid hormone receptors and has shown success in treating liver diseases like non-alcoholic steatohepatitis (NASH) and fatty liver disease. In the Q2 earnings call, management said that VK2809 showed important improvements in both NASH and liver scarring and met key goals in its study. Viking plans to meet with the FDA to talk about the next steps for the drug.

Viking Therapeutics (NASDAQ:VKTX) is also working on a new class of treatments, DACRAs, for obesity and other metabolic disorders. Additionally, it is also working on VK0214 to treat X-linked adrenoleukodystrophy (X-ALD), a rare nerve and muscle disease, and has finished signing up patients for an early study.

Viking Therapeutics’s (NASDAQ:VKTX) stock has been covered by 14 analysts and all of them maintain a Buy-equivalent rating on the stock. The average price target of $114 represents an upside of 83.87% for the company as of October 1, which is why the company tops our list of the best hot stocks to buy.

While we acknowledge the potential of Viking Therapeutics (NASDAQ:VKTX) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than VKTX but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

Read Next: $30 Trillion Opportunity: 15 Best Humanoid Robot Stocks to Buy According to Morgan Stanley and Jim Cramer Says NVIDIA ‘Has Become A Wasteland’.

Disclosure. None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and investors. Please subscribe to our daily free newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.

Page 9 of 9