We recently published a list of 15 Stocks That Took a Nosedive in January. In this article, we are going to take a look at where Crinetics Pharmaceuticals, Inc. (NASDAQ:CRNX) stands against other stocks that took a nosedive in January.
Historically, the S&P 500’s performance in January sets the pace for the rest of the year. According to Jared Blikre, Yahoo Finance Markets Editor, the S&P 500 returned nearly 17% in January, which is pretty impressive because a positive January usually translates as a positive year for the markets. Jared also added that while the energy and utilities sectors are lagging, the communication services and healthcare segments are showing signs of strength.
At the same time, while the S&P 500 remained positive at the end of January, some stocks declined due to various reasons especially the launch of the Chinese OpenAI rival, DeepSeek, and new regulations amid the new administration.
15 companies in diverse sectors such as the financials, biotechnology, healthcare, technology, and energy industries, declined due to unsupportive market conditions, macroeconomic environment, and other factors. That said, let’s take a look at the 15 stocks that took a nosedive in January.
To come up with the 15 names, we only considered stocks with a market capitalization of more than $2 billion. We then shortlisted the stocks based on their performance in the past quarter and picked the 15 with the largest 30-day decline from January 3, 2024, to February 3, 2025.
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A doctor and a patient discussing the success of the clinical trial for a new nonpeptide somatostatin receptor agonist.
Crinetics Pharmaceuticals, Inc. (NASDAQ:CRNX)
30-day Decline as of February 3, 2025: 26.7%
Crinetics Pharmaceuticals, Inc. (NASDAQ:CRNX) registered a share price of $39.98 on February 3, marking a 27% decline from its share price on January 3. Crinetics (NASDAQ:CRNX) is a pharmaceutical company that develops therapies for people with endocrine diseases.
Early in January, the stock saw a steep decline amid safety and health concerns following the release of critical trial data. On January 11, Dennis Ding, an analyst at Jefferies maintained a hold rating on the stock and set a price target of $55. Ding gave a hold rating on the stock over its recent trial data for a drug, which raised concerns over its efficacy.
The analyst also highlighted that while the therapy showed promising signs, the performance fell short, explaining the decline in its share price. He also added that while these concerns hold, the stock remains expensive. This coupled with high investor expectations, the data from the trial had to be stronger. Despite this, analysts are bullish on the stock, and their median price target points to an upside of 91% from current levels.
Overall, CRNX ranks 9th on our list of stocks that took a nosedive in January. While we acknowledge the potential of CRNX to grow, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CRNX but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
