In this article, we will discuss the 10 best IPO stocks to buy heading into 2025.
Navigating The Future of IPOs
The current climate in the IPO market suggests a potential rebound, particularly looking ahead to 2025. While recent market volatility has stunted IPO activity, analysts believe that stability and a risk-on appetite from investors are crucial for revitalizing this sector. A significant number of companies are poised to go public, with many choosing to remain private longer due to favorable capital availability. This backlog indicates that once the market stabilizes, there could be a surge in IPOs as firms seek to capitalize on improved conditions.
Additionally, advancements in technology and strategic partnerships are positioning many companies for growth, making the future of the IPO market exciting for investors. This sentiment was discussed in the earlier days of October by Ashley MacNeill, Vista Equity’s head of equity capital markets, in a conversation on CNBC, which we covered in our article on the 8 Most Profitable New Stocks To Invest In. Here’s an excerpt from that conversation:
“For the IPO market to regain momentum, she emphasized 3 critical factors: a lack of market volatility, stable market conditions, and a risk-on appetite from investors. Most importantly, she highlighted the need for corporations to provide consistency and clarity regarding their business plans and execution strategies. This clarity emerged in 2023, leading her to believe that 2025 could be a promising year for IPOs.
McNeill also discussed the current status of private markets, noting that many companies are choosing to remain private longer due to the availability of capital. She pointed out that approximately 45% of US venture capital-backed firms are poised to go public, which translates to over 350 firms potentially looking to tap into the market…
…The implementation of GenAI has been transformative for many of these companies, positioning software firms to leverage this technology effectively. She characterized the sentiment around software versus AI as one where software is expected to benefit from AI advancements. However, she cautioned that it takes time to realize the measurable impacts of GenAI…”
READ ALSO: 7 Cheap New Stocks To Invest In Now and 10 Recent IPOs in Micro Cap Stocks.
Later again, on October 24, Ashley MacNeill of Vista Equity Partners joined CNBC’s ‘Closing Bell’ to shed light on the current state of the IPO market, which has been notably sluggish. MacNeill emphasized that for the IPO asset class to function effectively, 3 key conditions must align: a stable macroeconomic environment, investor willingness to deploy capital, and companies’ ability to communicate their earnings forecasts. She pointed out that while there has been some stability with the onset of the Fed’s rate-cutting cycle this fall, companies have struggled to provide consistent guidance regarding their earnings over the next 3 to 5 years.
Despite the prevailing sentiment of a strong economy and record highs in the stock market, the IPO market remains stagnant. MacNeill suggested that this disconnect may stem from a bifurcation between the tech IPO market and the broader IPO market. Companies are beginning to feel more comfortable sharing their narratives with investors, particularly regarding how GenAI fits into their business models and how they are navigating macroeconomic challenges. A significant theme in recent discussions has been that companies are choosing to remain private longer, largely due to the growth of private credit as an alternative source of capital. MacNeill noted that this trend has contributed to the delay in the IPO market’s return to normalcy. However, she remains optimistic about the evolution of IPOs, suggesting that public markets will regain their appeal as high valuations and investor demand for public offerings increase.
MacNeill referenced Robert Smith, Vista’s founder and CEO, who expressed optimism about upcoming mergers and acquisitions activity. This sentiment was echoed by Todd Bowley, a well-known investor who noted a resurgence in animal spirits, indicating a renewed eagerness among investors to engage in transactions. MacNeill agreed with this assessment, highlighting palpable energy among public investors eager to deploy capital in innovative sectors like technology and GenAI. However, she acknowledged that higher interest rates could impact IPO decisions as companies weigh the cost of equity against alternative funding sources. Historically, rising rates have not favored IPOs, yet MacNeill believes that current macroeconomic conditions are aligning favorably for potential public offerings.
Vista Equity Partners recently raised a $20 billion fund, with a significant portion allocated toward AI enterprise software companies. MacNeill likened investing in GenAI to early internet investments, suggesting that we are just at the beginning of a lengthy investment cycle. She emphasized that GenAI-enabled software represents a critical path forward for technology investments.
While the IPO market faces challenges due to macroeconomic uncertainties and evolving capital sources, there are signs of optimism as companies begin to communicate more effectively with investors and as investor appetite for innovative technologies grows. With that being acknowledged, we’re here with a list of the 10 best IPO stocks to buy heading into 2025.
Methodology
We used the Finviz stock screener to compile a list of 15 stocks that went public in the last 2 years. We then selected the 10 stocks with high analysts’ upside potential and that were also the most popular among elite hedge funds. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q2 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
10 Best IPO Stocks To Buy Heading into 2025
10. Silvaco Group Inc. (NASDAQ:SVCO)
Average Upside Potential: 163.55%
Number of Hedge Fund Holders: 19
Silvaco Group Inc. (NASDAQ:SVCO) develops and markets electronic design automation (EDA) software and technology CAD software. These software tools are used by semiconductor companies to design and develop integrated circuits (ICs), which are essential components in various electronic devices, from smartphones to computers.
In the second quarter of 2024, the company experienced significant growth, reporting a 19% year-over-year increase in revenue, reaching $14.96 million. TCAD and EDA revenues were particularly strong, growing by 34% and 20%, respectively. While SIP revenue saw a decline of 30%, the overall picture remains positive, with gross bookings surging by 36% year-over-year
The company’s TCAD and EDA divisions experienced remarkable growth, driven by the soaring demand for advanced semiconductor design and simulation tools. This momentum was further fueled by the acquisition of ten new clients and a 5-year extension of a significant SIP licensing agreement. It also completed its initial public offering in May, raising a substantial $106 million.
Silvaco Group Inc. (NASDAQ:SVCO) made significant strides by launching and commercializing its innovative AI-powered digital twin modeling platform, FTCO. This strategic move, coupled with a strengthened partnership with Micron Technology, expanded the reach of FTCO and secured a substantial $5 million investment.
The TCAD Baseline Release expands to support planar CMOS, FinFET, and GAA transistor technologies, enabling semiconductor companies to accelerate technology development. The platform offers advanced CMOS process and device simulation, boosting performance, yield, and efficiency. It supports highly accurate 3D process simulation, stress simulation, and cryogenic applications. This collaboration with Purdue University leverages NEMO5 for atomistic quantum transport simulation, providing a competitive and attractive solution for advanced CMOS design.
The increasing demand for advanced semiconductor design and simulation tools, along with the successful integration of AI-powered solutions, further solidifies the company’s leadership position.
9. Oddity Tech Ltd. (NASDAQ:ODD)
Average Upside Potential: 31.58%
Number of Hedge Fund Holders: 21
Oddity Tech Ltd. (NASDAQ:ODD) operates as a global consumer technology company, offering an AI-driven online platform that deploys data science to identify consumer needs and develop solutions in the form of beauty and wellness products. It creates personalized product recommendations and efficient supply chain operations, providing a seamless and innovative customer experience.
The company’s 6-year investment in technology continues to yield significant returns, enabling it to maintain record-high margins and reinvest in technology, science, and new brand development. It’s the leading D2C platform, capitalizing on the growing online demand, and anticipating online sales to reach 50% of the market in the coming years. With over 50 million unique users, the company has a captive audience for new products, categories, and brands. This strategy has proven successful with brands like IL MAKIAGE and SpoiledChild.
The company’s brand-building machine is another key differentiator. By leveraging first-party data, it creates brands with strong product formulations and unique brand identities. By using digital biology, it is developing next-generation, science-backed products to address consumer needs.
The second quarter and first half of 2024 were record-breaking for the company. It made $404 million in H1 2024 revenue, a 28% increase. Whereas in Q2 alone, it made a revenue of $193 million, up 27% year-over-year. Its impressive online presence, and strategic investments in technology and new brands position Oddity Tech Ltd. (NASDAQ:ODD) for continued growth and success. While short-term challenges exist, the long-term outlook remains positive, driven by the company’s strong market position and innovative approach.
8. Ibotta Inc. (NYSE:IBTA)
Average Upside Potential: 30.37%
Number of Hedge Fund Holders: 22
Ibotta Inc. (NYSE:IBTA) is a technology company that offers a rewards platform that allows consumers to earn cash back on their purchases at various retailers. Its Ibotta Performance Network (IPN) enables consumer packaged goods brands to deliver digital promotions to consumers. Through the IPN, it offers promotional services to publishers, retailers, and advertisers.
It reported strong second-quarter results, driven by significant third-party publisher (3PP) business growth. Total revenue reached $87.93 million, a 29% year-over-year increase, excluding one-time revenue from the previous year. The Ibotta Performance Network (IPN) has resonated strongly with consumers, publishers, and CPG brand clients.
It is actively expanding its reach through partnerships with publishers like Schnucks and Instacart, optimizing the platform to enhance the user experience and drive higher redemption rates. The partnership with Instacart is a significant milestone, expanding the reach to millions of new consumers. The rise in promotional spending and the need for more effective marketing strategies are benefiting the business. The data-driven approach and pay-per-sale model provide a compelling value proposition for brands.
Ibotta Inc. (NYSE:IBTA) is focused on expanding the company’s reach into new categories, such as general merchandise, and deepening relationships with existing clients. As it continues to innovate and grow its network, the company is well-positioned for long-term success.
Baron Small Cap Fund stated the following regarding Ibotta, Inc. (NYSE:IBTA) in its Q2 2024 investor letter:
“We initiated a position in Ibotta, Inc. (NYSE:IBTA) in its April IPO. Ibotta offers cashback rewards on various purchases through its Ibotta Performance Network (IPN) and direct-to-consumer app. Ibotta partners with retailers (e.g., Family Dollar and Kroger) who want to offer loyalty programs, and earns money from brands (e.g., Nestle and Unilever) who want to offer digital cashback rewards on their products. For example, brands find these cashback rewards useful as a measurable way to attract customers away from private label brands and launch new items. Ibotta gets paid on a measurable basis, averaging $0.80 per cashback redemption. In total, Ibotta serves over 2,400 brands, and through its third-party retailer network, reaches over 200 million potential end consumers (“redeemers”). Given the scalability of offering online rewards across its platform, Ibotta has a highly profitable and cash flow generative model, with 70% incremental margins in its third-party business.
Ibotta was founded in 2011 as a direct-to-consumer app in a highly competitive space. In 2021, Ibotta began powering cashback rewards programs with the IPN for large third-party retailers, which is a much faster growing space and is already half of Ibotta’s revenue today. To date, Ibotta has credited American consumers with $1.8 billion in cash rewards through its network. With the IPN, Ibotta competes in a very large, digital total addressable market, and we believe that Ibotta, which enables effective return on brand spending, has significant room to grow from a base of $320 million in revenue in 2023….” (Click here to read the full text)
7. Acelyrin Inc. (NASDAQ:SLRN)
Average Upside Potential: 101.01%
Number of Hedge Fund Holders: 23
Acelyrin Inc. (NASDAQ:SLRN) is a clinical biopharma company that focuses on identifying, acquiring, and accelerating the development and commercialization of transformative medicines. It is dedicated to advancing innovative treatments that address unmet medical needs and improve the lives of patients.
In Q2 2024, the company reported positive Phase 3 results for izokibep in hidradenitis suppurativa (HS), achieving the HiSCR75 primary endpoint and strong response rates in HiSCR90 and HiSCR100 within 12 weeks. Preliminary data from two-thirds of participants show continued improvement through week 16. This followed the earlier positive Phase 2b/3 results in psoriatic arthritis (PsA), reinforcing izokibep’s potential across multiple indications.
It will be completing ongoing trials for izokibep in HS and PsA but not starting new trials in these areas. The Phase 2b/3 trial in uveitis will continue, with top-line data expected in Q4 2024 and an additional Phase 3 trial planned if results are favorable. Acelyrin Inc. (NASDAQ:SLRN) also decided to discontinue the development of SLRN-517, its early anti-c-KIT program, which necessitated a 33% workforce reduction.
Lonigutamab is being developed as a subcutaneous treatment for thyroid eye disease (TED), an autoimmune disorder affecting over 100,000 patients in the US. It targets the IGF-1 receptor, providing rapid and durable disease-modifying effects. Acelyrin Inc. (NASDAQ:SLRN) completed the Phase 1 proof-of-concept trial and is now starting a dose-ranging Phase 2 trial to establish an optimal dosing regimen for the upcoming Phase 3 program.
This patient-centric approach aims to address the unmet needs of TED patients while balancing benefit-risk to define effective dosing. All of these events position the company well for growth.
6. Webtoon Entertainment Inc. (NASDAQ:WBTN)
Average Upside Potential: 105.72%
Number of Hedge Fund Holders: 23
Webtoon Entertainment Inc. (NASDAQ:WBTN) is a leading global digital comics platform that provides a vast library of web comics, ranging from original works to licensed adaptations of popular stories. Its platform is accessible on various devices, including smartphones, tablets, and computers, and is known for its innovative storytelling format, combining high-quality visuals with engaging narratives.
The company made $320.97 million in revenue in Q2 2024 and its earnings per share were $0.20. Key growth drivers included 11.5% growth in paid content revenue and strong performance in advertising, particularly triple-digit growth in Japan. IP adaptation revenue also grew by 24.9%. Total revenue grew by 13.7% year-over-year in the first half of 2024.
Webtoon Entertainment Inc.’s (NASDAQ:WBTN) vast content library and global user base of 170 million monthly active users continue to fuel growth. However, the company faced some challenges during the quarter. The weaker foreign exchange environment, particularly the Korean won and Japanese yen negatively impacted reported revenue. Additionally, the delay in launching the AI-driven personalized recommendation model led to softer user dynamics in Korea.
Looking ahead, the company is focused on expanding its global footprint, particularly in Japan and other key markets. It also plans to increase marketing spend to drive user acquisition and retention, which may impact short-term profitability. While the company’s long-term growth prospects remain strong, it will need to navigate the challenging macroeconomic environment and execute effectively its strategic initiatives to deliver sustained growth.
5. Kaspi.kz (NASDAQ:KSPI)
Average Upside Potential: 42.45%
Number of Hedge Fund Holders: 25
Kaspi.kz (NASDAQ:KSPI) is a leading Kazakh fintech company operating a super app that functions like a one-stop shop, offering online shopping, digital banking with loans and deposits, a payment system, and a loyalty program, all conveniently accessible through the mobile app. It has become a major force in Kazakhstan’s digital world and recently expanded its reach by acquiring a majority stake in a prominent Turkish e-commerce platform.
It acquired a controlling stake in Türkiye’s Hepsiburada, a bold move that positions it for regional dominance. The company is making a strategic move to expand its footprint in Central Asia. It has expressed interest in acquiring Humo, Uzbekistan’s leading payment system. This acquisition would be its first major venture in Uzbekistan, a rapidly growing market with a booming digital landscape.
The company recently released a positive update, boasting impressive financial performance for the first 9 months of 2024. Revenue jumped by a significant 34% year-over-year, and net income climbed a healthy 23% compared to the same period in 2023. This growth isn’t just a one-time bump and the company has been strategically expanding its core businesses.
Both its Marketplace and Payments platforms are experiencing rapid growth, solidifying its position as a financial leader. These segments, now contributing a substantial 68% of consolidated net income, are up from 63% last year. Kaspi.kz (NASDAQ:KSPI) is constantly innovating to keep users engaged. New initiatives like Kaspi Gift Cards and a merchant deposit service demonstrate its commitment to both user experience and solidifying its market presence. Strong financial performance, strategic expansion plans, and continuous innovation paint a promising picture for the company’s future.
4. CG Oncology Inc. (NASDAQ:CGON)
Average Upside Potential: 80.04%
Number of Hedge Fund Holders: 27
CG Oncology Inc. (NASDAQ:CGON) is a late-stage clinical biopharmaceutical company focused on developing and commercializing a potential backbone bladder-sparing therapeutic for patients afflicted with bladder cancer. It is dedicated to advancing therapies that address unmet medical needs and improve the lives of cancer patients. The lead product candidate, CG0070, is a novel oncolytic virus designed to selectively target and destroy cancer cells.
Cretostimogene, a potential treatment for BCG-unresponsive, high-risk non-muscle invasive bladder cancer (HR-NMIBC), is expected to be submitted for a Biologics License Application (BLA) in H2 2025. This drug candidate is seen as a potential game-changer due to its favorable tolerability profile, which could give it a competitive edge over other treatments that have faced tolerability issues. Analysts at Roth/MKM are optimistic about cretostimogene’s efficacy for both HR-NMIBC and intermediate-risk NMIBC (IR-NMIBC), projecting global sales to exceed $2 billion by 2033. CMO, Dr. Vijay Kasturi, emphasizes the drug’s potential as a non-surgical, bladder-sparing option.
The company reported strong second-quarter 2024 financial results and significant business updates, generating a quarterly revenue of $111,000. It highlighted the positive final results from the CORE-001 Phase 2 study of cretostimogene grenadenorepvec in combination with pembrolizumab in BCG-Unresponsive HR-NMIBC, demonstrating a 54% complete response (CR) rate at the 24-month landmark.
Additionally, cretostimogene monotherapy showed a 75.2% CR rate in BCG-Unresponsive HR-NMIBC in the BOND-003 Phase 3 study. The company initiated an Expanded Access Program for cretostimogene grenadenorepvec in June and expects to release primary results from the BOND-003 registrational study later this year. With a strong cash position of $552.9 million, CG Oncology Inc. (NASDAQ:CGON) is well-positioned to fund operations through 2027.
3. Apogee Therapeutics Inc. (NASDAQ:APGE)
Average Upside Potential: 57.81%
Number of Hedge Fund Holders: 30
Apogee Therapeutics Inc. (NASDAQ:APGE) is a clinical-stage biotechnology company advancing differentiated biologics for the treatment of atopic dermatitis (AD), chronic obstructive pulmonary disease (COPD), asthma, and other inflammatory and immune (I&I) diseases with high unmet need among patients.
The company’s flagship program, APG777, is specifically focused on atopic dermatitis, a significant and underserved market. With a portfolio of 4 promising targets, Apogee Therapeutics Inc. (NASDAQ:APGE) aims to enhance treatment efficacy and dosing by utilizing both single therapies and combination antibody approaches. In H2 2025, it plans to release 16-week proof-of-concept data for APG777. Additionally, interim Phase 1 data for APG808, a novel IL-4Rα antibody targeting COPD, is anticipated in Q4 2024.
The company is set to initiate the APG990 trial in the third quarter of 2024, targeting atopic dermatitis and other inflammatory diseases. Furthermore, Apogee has expanded its portfolio with APG333, a novel antibody targeting TSLP to address respiratory conditions. Clinical trials for APG333 are expected to commence in 2025. With a robust cash position of $790 million, Apogee is well-positioned to fund operations through 2028.
The recent FDA approval of Dupixent for COPD with eosinophilic phenotype has reduced the risk associated with developing APG808, as both treatments target a similar patient population, demonstrating the growing acceptance of biologic therapies in the COPD market. Additionally, the positive results from the Phase 1 trials of APG777 further bolster this perspective. The modifications incorporated into APG777 enable longer-lasting effects, potentially leading to less frequent dosing compared to existing treatments. These factors, coupled with the company’s strong financial position, position Apogee Therapeutics Inc. (NASDAQ:APGE) for significant growth and success in the future.
2. Nextracker Inc. (NASDAQ:NXT)
Average Upside Potential: 87.54%
Number of Hedge Fund Holders: 39
Nextracker Inc. (NASDAQ:NXT) is an energy solutions company that provides solar tracker and software solutions for utility-scale and distributed-generation solar projects globally. Its innovative tracking solutions enhance the efficiency and energy output of solar power plants. By optimizing solar panel orientation, its technology helps maximize energy production and reduce the overall cost of solar power.
The company delivered strong financial results in FQ1 2025, with revenue surging 50.13%. This marks the 6th consecutive quarter of double-digit growth. US revenue soared 71%, while international revenue climbed 29%. Its backlog reached approximately $4 billion. Additionally, it introduced innovative products such as agri PV solutions and NX low carbon tracker.
Nextracker Inc. (NASDAQ:NXT) has been actively enhancing its product portfolio, including the launch of the NX Horizon Low Carbon Tracker in April 2024. It has secured orders for solar tracker solutions with 100% US domestic content. To offer comprehensive solutions for utility-scale projects, the company acquired Ojjo and Solar Pile International. Earlier this year, it was selected to provide NX Horizon-XTR tracker systems for the 1.17 GW Al Kahfah solar power project in Saudi Arabia. This recent order expands the company’s total capacity of smart solar trackers in the Middle East, India, and Africa region to over 10 GW.
Nextracker Inc. (NASDAQ:NXT) is the world’s largest solar tracker provider with a 30% market share and is well-positioned to capitalize on the rapid growth of solar energy. With global solar energy expected to grow over 25% annually for the next 5 years, driven by increasing government incentives, Its innovative tracking systems, which can increase energy output by up to 25%, offer a significant advantage. The company’s strong financial position, proven technology, and global presence make it a compelling investment opportunity.
1. Structure Therapeutics Inc. (NASDAQ:GPCR)
Average Upside Potential: 136.77%
Number of Hedge Fund Holders: 43
Structure Therapeutics Inc. (NASDAQ:GPCR) is a clinical-stage global biopharmaceutical company developing novel oral small molecule therapeutics for metabolic and cardiopulmonary diseases, focused on G-protein coupled receptors (GPCRs) as a therapeutic target class.
Despite reporting a loss per share of $0.18 in Q2 2024, the company exceeded earnings expectations in 3 out of the last 4 quarters. Its robust pipeline of innovative drug candidates positions it for significant growth in the obesity and diabetes markets. It has 4 approved products: Crysvita for X-linked hypophosphatemia and tumor-induced osteomalacia, Mepsevii for mucopolysaccharidosis VII, Dojolvi for long-chain fatty acid oxidation disorders, and Evkeeza for homozygous familial hypercholesterolemia. It’s a promising company in the obesity treatment market with GSBR-1290, an oral GLP-1 agonist.
It recently announced positive results from phase IIa studies of its obesity drug GSBR-1290. The drug showed promising results in reducing weight and has the potential to become a leading oral treatment for obesity. Based on these results, Structure Therapeutics Inc. (NASDAQ:GPCR) plans to start a larger phase IIb study in Q4 2024. With the potential to disrupt the $100 billion GLP-1 agonist market, Structure Therapeutics is well-positioned for significant growth.
This is a promising clinical-stage biopharmaceutical company developing innovative treatments for various diseases. With a strong pipeline of drug candidates and a focus on addressing significant unmet medical needs, the company is well-positioned for future growth and success.
Baron Health Care Fund stated the following regarding Structure Therapeutics Inc. (NASDAQ:GPCR) in its fourth quarter 2023 investor letter:
“Structure Therapeutics Inc. (NASDAQ:GPCR) is a biotechnology company dedicated to making oral small molecule medicines to target the obesity and diabetes market. Recent share weakness has been due to two large pharmaceutical acquisitions in the space: Roche’s purchase of Carmot and AstraZeneca’s in-licensing of Eccogene’s GLP-1 asset. These developments were followed by updates from Structure that implied it had a promising asset, but it might be inferior to Eli Lilly’s first-in-class product. Shares fell as analysts reduced the probability of success surrounding potential peak sales. We think it is too early to reach a final conclusion on the company’s oral small molecule GLP-1, as these data sets are limited in total sample size, and there are compelling arguments for both sides. Given how quickly this space changes and our smaller position sizing due to the aforementioned dynamics, we are monitoring our position and making decisions based on our evolving analysis.
We initiated a small position in Structure Therapeutics Inc., a clinical-stage biotechnology company. Structure is developing an oral small molecule GLP-1 with once daily dosing. We think the GLP-1 class of obesity/diabetes drugs has the potential to be the largest drug class ever and that parts of the market will be particularly well suited to oral medications. Some people find oral medications more convenient than injectables, and oral small molecule drugs are cheaper and easier to manufacture than injectables, which could allow for lower pricing and greater access, particularly in international markets. Structure’s drug is still in its early phase of development, but there is reason to think that it could be successful. The drug was designed through the company’s structure-based drug discovery platform and was designed to selectively activate the G-protein signaling pathway, which should lead to a better efficacy/safety profile. In late September, Structure announced promising results from a Phase 1 multiple ascending dose study in non-diabetic overweight/obese individuals. Although there were only a few patients in the study, the drug impressively demonstrated reductions in mean body weight of up to 4.9% placebo-adjusted after 28 days, which would suggest a best-in-class profile. Then, in December, Structure announced results from its Phase 2a study, including a diabetic cohort and a non-diabetic overweight/obese cohort. The interim data from the obesity cohort continued to look competitive with 4.7% placebo-adjusted weight loss after 56 days. The diabetes data was somewhat underwhelming, with a 1.0% placebo-adjusted HbA1c reduction and 3.3% to 3.5% placebo-adjusted weight loss over 84 days (in comparison, Lilly’s orforglipron showed a 1.5% to 1.7% HbA1c reduction and 4.1% to 6.3% placebo-adjusted weight loss in a similar study). Structure is planning to study additional doses and titration regimens to optimize the drug’s profile in diabetes. Overall, we would characterize the early data as supportive of an active GLP-1 drug that has the potential to be among the leaders in the category. At this point we have a small position in the stock while we await more data to evaluate the competitiveness of Structure’s drug.”
While we acknowledge the growth potential of GPCR, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than GPCR but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
