12 Hot Stocks to Buy According to Analysts

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1. Zai Lab Limited (NASDAQ:ZLAB)

Average Upside Potential: 96.31%

Gain Over Past 6 Months: 37.08%

Zai Lab Limited (NASDAQ:ZLAB) is a fully integrated, commercial-stage, global biopharmaceutical company based in China and the United States. The company came into being in 2014 to address the unmet medical needs in China. Thus, Zai Lab focuses on discovering, developing, and commercializing innovative products to cater to medical conditions with large unmet needs in the areas of oncology, immunology, neuroscience, and infectious diseases.

Zai Lab follows an integrated approach offering competitive advantages for the firm and its partners, with internal R&D centers, small-molecule and large-molecule manufacturing facilities, a strong clinical development team, a highly specialized commercial team for marketing innovative products, and an experienced regulatory affairs group. Although Zai aims to leverage its strength in China and scientific expertise to emerge as a global biopharma leader, it currently focuses on greater China, the second-largest pharmaceutical market in the world. The recent policy updates in China also tend to be supportive of innovation and hence offer a favorable environment to Zai.

The firm continues to advance its global pipeline of innovative medicines while delivering strong commercial results. In the most recent quarter, the net product revenues ended up growing 47% year-over-year to reach $101.8 million. Bank of America Securities has kept a Buy rating on the stock having a price target of $29.00. The stock is a strong buy according to analysts, with an average upside potential of 96.31%.

While we acknowledge the potential of ZLAB 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 ZLAB but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.

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