10 Stocks with Biggest Upside Potential According to Hedge Funds

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1) Jazz Pharmaceuticals plc (NASDAQ:JAZZ)

Average Upside Potential: 59.99%

Number of Hedge Fund Holders: 44

Jazz Pharmaceuticals plc (NASDAQ:JAZZ) identifies, develops, and commercializes pharmaceutical products for unmet medical needs in the US, Europe, and internationally.

Its continued focus on developing medicines for complex and underserved patient populations placed it well in the pharmaceutical industry. Jazz Pharmaceuticals plc (NASDAQ:JAZZ) continues to actively invest in its pipeline to fuel future growth. It has been targeting late-stage programs like zanidatamab (zani) for gastroesophageal cancer, Epidiolex in Japan, and Zepzelca for non-small cell lung cancer. In a bid to enhance shareholder value, Jazz Pharmaceuticals plc (NASDAQ:JAZZ) announced a $500 million share repurchase program.

In the oncology space, the company has been working to strengthen its position via pipeline development and strategic initiatives.  Its emphasis on large market opportunities in sleep disorders, epilepsy, and oncology places the company well for robust long-term revenue expansion. Jazz Pharmaceuticals plc (NASDAQ:JAZZ)’s leading position in narcolepsy and idiopathic hypersomnia treatments, together with a diverse product portfolio throughout neuroscience and oncology, means that the company is well-positioned for a long-term growth trajectory.

Jazz Pharmaceuticals plc (NASDAQ:JAZZ) saw record revenues of more than $1 billion in Q2 2024, which were driven by healthy execution and improved demand for its key growth drivers, Xywav, Epidiolex, and Rylaze. The company has affirmed GAAP net income guidance of $385 million – $530 million.

Royal Bank of Canada upped its price objective from $174.00 to $175.00, giving an “Outperform” rating on 4th October.

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

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