10 Best QQQ Stocks to Buy According to Analysts

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1. Summit Therapeutics Inc. (NASDAQ:SMMT)

Average Upside Potential: 100.50%

Number of Hedge Fund Holders: 17

Summit Therapeutics Inc. (NASDAQ:SMMT) is a biopharmaceutical oncology company focused on developing novel therapies for rare genetic diseases. The pipeline includes potential treatments for cystic fibrosis and mitochondrial diseases. Its research and development efforts are aimed at addressing unmet medical needs and improving the lives of patients with rare genetic disorders.

The company has partnered with MD Anderson for 5 years to accelerate the development of ivonescimab, a lead drug candidate for lung cancer treatment. Ivonescimab is currently being evaluated in 20 clinical trials, including 7 for NSCLC. Early-stage trials have shown promising results. Summit Therapeutics Inc. (NASDAQ:SMMT) has seen a significant rise in its stock price, up 700% since the year started largely due to the promising results of this lead candidate.

It completed enrollment for a Phase 3 trial and expects positive results from previous trials to drive continued growth. It’s  Partnering with Akeso, the company conducted successful Phase 3 clinical trials (HARMONi-A and HARMONi-2) for ivonescimab in NSCLC, demonstrating its potential.

The company has a strong financial position that allows it to invest in R&D and other growth initiatives. Despite increased IP R&D expenses due to a licensing agreement amendment, overall operating expenses remained stable in Q2 2024. With a promising pipeline, strategic partnerships, and positive clinical data, it appears to be a potential investment opportunity.

While we acknowledge the growth potential of Summit Therapeutics Inc. (NASDAQ:SMMT), 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 SMMT but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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