5 Stocks That Started The Year On A High

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1. Akero Therapeutics Inc. (NASDAQ:AKRO)

Akero Therapeutics Inc. is a clinical-stage biotechnology company that develops transformative treatments for serious metabolic diseases. The company’s key product is efruxifermin (EFX) which is going through phase 3 of clinical trials. It was news related to this particular medication that caused the stock to surge 94% in January.

The company announced positive results of the Phase 2b study of EFX, a treatment for metabolic dysfunction-associated steatohepatitis, also referred to as MASH. The drug was well-received by participants with only minor adverse effects and no deaths reported.

Investors are likely to continue receiving the benefits of this development despite the massive price appreciation in January. This was further confirmed by Bank of America when it upgraded the stock from Neutral to Buy, raising the price target to $63 from the previous price target of $35. The stock last closed at $54.08 on Friday.

Akero Therapeutics is not on our latest list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 30 hedge fund portfolios held AKRO at the end of the third quarter which was 31 in the previous quarter. While we acknowledge the potential of AKRO as a leading AI investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as AKRO 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

Disclosure: None. This article was originally published at Insider Monkey.

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