10 Worst High-Risk High-Reward Growth Stocks To Buy

3. Rhythm Pharmaceuticals, Inc. (NASDAQ:RYTM)

Beta (5Y Monthly): 2.3

3-Year Sales Growth: 245.54%

Number of Hedge Fund Holders: 39

Analyst Upside Potential: 47.12%

Rhythm Pharmaceuticals, Inc. (NASDAQ:RYTM) is a commercial-stage biopharmaceutical company focused on developing precision therapies for rare genetic obesity disorders caused by melanocortin-4 receptor pathway deficiencies. It specializes in treating hyperphagia and severe obesity linked to rare genetic conditions.

On March 19, Needham analyst Alan Carr raised the price target on the stock from $64 to $66, while maintaining a Buy rating on the stock. The analyst cited optimism around the Phase 3 trial results for setmelanotide in Hypothalamic Obesity to be one of the reasons behind the increased rating. Topline data for the HO trial is expected in April 2025 (first half of 2025), positioning it as a near-term stock driver. Moreover, Carr’s bullish stance also stems from a review of existing clinical data and positive feedback from key opinion leaders, which suggest setmelanotide could achieve a 15–20% placebo-adjusted BMI reduction. Carr believes that a successful trial could drive a more than 20% stock surge, leveraging Rhythm Pharmaceuticals, Inc.’s (NASDAQ:RYTM) high volatility. It is one of the worst high-risk high-rewards growth stocks to buy.