7 Unstoppable Growth Stocks To Buy Now

1. Summit Therapeutics Inc. (NASDAQ:SMMT)

Year-to-date Share Price Gain as of September 11: 770.08%

Number of Hedge Fund Holders: 17

Summit Therapeutics Inc. (NASDAQ:SMMT) is a leading biotechnology company that develops new medicines for chronic diseases. The company has recently made a game-changing breakthrough as ivonescimab, a lung cancer drug received positive clinical trial results for its cancer experimental therapy.

The results show that ivonescimab is better off than the current standard drug Keytruda from Merck. Ivonescimab is a bispecific antibody, meaning that it can inhibit vascular endothelial growth factor (VEGF) that keeps the tumor from growing again. Investigators found that users of Summit Therapeutics Inc.’s (NASDAQ:SMMT) drug were 49% less likely to have worsened results as compared to the control randomized group that received Keytruda.

The stock of Summit Therapeutics Inc. (NASDAQ:SMMT) has been riding the wave of the breakthrough and has been up 770.08% on a year-to-date basis. Moreover, it was held by 17 hedge funds in Q2 2024, with total positions worth $218.86 million.

The drug is currently in phase 3 of clinical trials after which it will go through the FDA approval process. If all continues to go well, ivonescimab can become the standard care drug for many stage 1 lung cancer patients. The competitor treatment, Keytruda, made $25 billion in sales in 2023 and it won’t be wrong to expect the same results for ivonescimab.

Wall Street is also bullish on the stock. 3 analysts have a strong Buy rating on SMMT with their 12-month median price target of $25 presenting a 10% upside from current levels.

While we acknowledge the potential of Summit Therapeutics Inc. (NASDAQ:SMMT) to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for a promising AI stock that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: $30 Trillion Opportunity: 15 Best Humanoid Robot Stocks to Buy According to Morgan Stanley and Jim Cramer Says NVIDIA ‘Has Become A Wasteland’.

Disclosure. None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and investors. Please subscribe to our daily free newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.