5 Most Promising Stocks to Buy Before They Take Off

In this article, we discuss the 5 most promising stocks to buy before they take off. To read the detailed analysis of the current earnings week, go directly to the 10 Most Promising Stocks to Buy Before They Take Off.

5. Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY)

Performance (YTD) as of April 23: -23.20%

Average Upside Potential as of April 23: 49.07%

Number of Hedge Fund Holders: 44

Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY) is a Massachusetts-based company that discovers, develops, and commercializes novel therapeutics. According to our database, 44 hedge funds held stakes in Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY) in the fourth quarter of 2023, with positions worth $582.613 million. With 1.111 million shares of the company worth $212.677 million, VenBio Select Advisor is the largest shareholder of the company, as of December 31, 2023. The stock has gone down by 23.20% year-to-date, as of April 23.

On April 7, Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY) reported positive results from the KARDIA-2 Phase 2 study for Zilebesiran for the treatment of hypertension. The study reached the primary endpoint and key secondary endpoint, and the investigational RNAi therapeutic has the potential of two doses per year.

In the last three months, 21 Wall Street analysts have covered Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY), and 13 keep a Buy rating on the stock. The average price target of $223.00 represents an upside of 49.07% to the present levels, as of April 23. The stock ranks among our most promising stocks to buy before they take off.

4. Warner Bros. Discovery, Inc. (NASDAQ:WBD)

Performance (YTD) as of April 23: -26.66%

Average Upside Potential as of April 23: 59.46%

Number of Hedge Fund Holders: 56

Warner Bros. Discovery, Inc. (NASDAQ:WBD) is a media and entertainment company that operates through three segments, Studios, Network, and DTC. As of April 23, the stock’s performance has declined by 26.66% year-to-date.

Based on 9 Wall Street analysts’ ratings, Warner Bros. Discovery, Inc. (NASDAQ:WBD) has a consensus rating of Moderate Buy and the average price target of $13.61 has an upside of 59.46% to the last price of $8.54, as of April 23.

Warner Bros. Discovery, Inc. (NASDAQ:WBD) was part of 56 hedge funds’ portfolios in Q4 of 2023 with a total stake value of $1.122 billion. As of December 31, 2023, Harris Associates is the biggest shareholder in the company and has a position worth $904.761 million.

Longleaf Partners stated the following regarding Warner Bros. Discovery, Inc. (NASDAQ:WBD) in its fourth quarter 2023 investor letter:

“The rules have improved how we analyze existing holdings and influenced the price at which we will buy a new holding and/or trim or add to an existing one. This has resulted in a higher level of resizing positions in the portfolio and exiting some long-term holdings this year. A good example in the portfolio today is Warner Bros. Discovery, Inc. (NASDAQ:WBD), a company that we bought too early but that remains a holding in the portfolio. Our average price for the initial WBD investment in 2021 was $26.48, or a P/V ratio in the mid-60s%. However, P/EV on the initial report was 79%. Under the new rules, we would not pay that price for the company today. We most likely would have waited for a mid-60s% P/EV, which would have equated to a $mid-teens entry price. In this case, we would have missed a too-large initial downturn in the stock price. The overweight rule dictated that we trimmed the position after the price ran up in the first half of 2023, which benefitted overall performance as the stock price subsequently fell again. However, even with the new rule lens, we remain confident in our case for the business and management’s ability to deliver going forward.”

3. BeiGene, Ltd. (NASDAQ:BGNE)

Performance (YTD) as of April 23: -20.55%

Average Upside Potential as of April 23: 80.39%

Number of Hedge Fund Holders: 15

BeiGene, Ltd. (NASDAQ:BGNE) is a Cayman Islands-based company that develops and commercializes oncology medicines. The stock is one of the most promising stocks to buy before they take off.

BeiGene, Ltd. (NASDAQ:BGNE) has gone down by 20.55% year-to-date, as of April 23. BeiGene, Ltd. (NASDAQ:BGNE) has a consensus Buy rating among 9 analysts, and its average price target of $252.11 represents an upside of 80.39% from current levels, as of April 23.

In Q4 of 2023, 15 hedge funds held positions in BeiGene, Ltd. (NASDAQ:BGNE), and their total stakes amounted to $2.891 billion. As of the fourth quarter of 2023, Baker Bros. Advisors is the most prominent shareholder in the company with a position worth $1.906 billion.

2. ON Semiconductor Corporation (NASDAQ:ON)

Performance (YTD) as of April 23: -24.48%

Average Upside Potential as of April 23: 94.74%

Number of Hedge Fund Holders: 45

ON Semiconductor Corporation (NASDAQ:ON) is an Arizona-based company that offers intelligent sensing and power solutions. In Q4 of 2023, 45 hedge funds had investments in ON Semiconductor Corporation (NASDAQ:ON) with positions worth $885.107 million. As of Q4 of 2023, D E Shaw is the top investor in the company. In the quarter, the firm increased its stake by 66% to 2.975 million shares worth $248.5 million.

The stock’s price has lost 24.48% year-to-date, as of April 23. ON Semiconductor Corporation (NASDAQ:ON) has a Buy-equivalent rating from 15 Wall Street analysts, and the average price target of $119.63 represents an upside of 94.74% from the current levels, as of April 23.

Fred Alger Management stated the following regarding ON Semiconductor Corporation (NASDAQ:ON) in its fourth quarter 2023 investor letter:

“ON Semiconductor Corporation (NASDAQ:ON) specializes in designing, marketing, and manufacturing a range of semiconductors, including analog, discrete, and data management types, with an emphasis on power semiconductors. The company has a global operational and sales presence, catering to key electronics sectors such as computing, wireless communications, networking, automotive. industrial, and consumer electronics. After experiencing several quarters of strong sales growth, the company reduced its fiscal 2024 revenue forecast due to a general slowdown in the Automotive and Industrial sectors. The revision is attributed to decreased electric vehicle demand, inventory overhang in Europe, and a slowdown in other markets Despite strong margins in Silicon Carbide (SIC), diminished demand led to a 20% decrease in their 2024 SiC revenue projection, negatively impacting the company’s share price. Nevertheless, we maintain a positive outlook on the company’s fundamentals, given its leadership in SiC products, which we believe are essential for the growth of the electric vehicle market.”

1. Li Auto Inc. (NASDAQ:LI)

Performance (YTD) as of April 23: -27.70%

Average Upside Potential as of April 23: 115.06%

Number of Hedge Fund Holders: 31

Li Auto Inc. (NASDAQ:LI) is a designer, developer, manufacturer, and seller of smart electric vehicles. It is the top stock on our list of the most promising stocks to buy before they take off. Li Auto Inc. (NASDAQ:LI) has a share price return of -27.70%, as of April 23.

As of April 23, Li Auto Inc. (NASDAQ:LI) has a consensus rating of Buy among 10 Wall Street analysts. The average price target of $53.83 implies an upside of 115.06% from the last price of $25.03.

In the fourth quarter of 2023, 31 hedge funds had stakes in Li Auto Inc. (NASDAQ:LI), with total positions worth nearly $1.15 billion. As of December 31, 2023, Two Sigma Advisors is the most significant shareholder in the company with a stake worth $228.843 million.

Should you invest $1,000 in Li Auto Inc. (NASDAQ:LI) right now?

Before you buy stock in LI, consider this:

The Insider Monkey Quarterly Newsletter just identified what we believe are the 14 best stocks for investors to buy now… and LI wasn’t one of them. The 14 stocks that made the cut could produce monster returns in the next few months.

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Disclosure: None. You can also look at the 13 Best Ethical Companies to Invest in 2024 and the 14 Dividend Growth Stocks with Highest Growth Rates.

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