10 Most Promising Small-Cap Stocks According to Hedge Funds

7. Akero Therapeutics, Inc. (NASDAQ:AKRO)

Number of Hedge Fund Holders: 31

Market Capitalization as of October 10, 2024: $1.98 Billion

Akero Therapeutics, Inc. (NASDAQ:AKRO) ranks seventh on our list of the most promising small-cap stocks according to hedge funds. The biotechnology firm, along with its subsidiaries, engages in the development of treatments for patients with serious metabolic diseases.

The company has several ongoing clinical studies. Akero Therapeutics’ (NASDAQ:AKRO) leading drug, efruxifermin (EFX), is designed to protect people against cellular stress and helps regulate metabolism levels throughout the body.

The drug is currently being tested for MASH by addressing all drivers of disease progression. If positive, this will position Akero Therapeutics (NASDAQ:AKRO) as a prominent contender for developing an effective treatment for this severe case of liver inflammation. Currently, secondary endpoints show that EFX has the potential to sustain fibrosis improvement through 96 weeks of treatment.

Analysts are bullish on the stock and why wouldn’t they be? The stock has shown consistently promising results and is emerging as a prominent stakeholder in the pharmaceutical industry. Analysts’ price target of $49.5 points to an upside of 67% from current levels.