We recently compiled a list of the 12 NASDAQ Stocks with Biggest Upside Potential According to Analysts. In this article, we are going to take a look at where Ideaya Biosciences Inc. (NASDAQ:IDYA) stands against the other NASDAQ stocks.
Potomac Wealth Advisors president Mark Avallone joined CNBC’s ‘The Exchange’ on November 16 to discuss where he sees investing opportunities following Trump’s election. He believes investing in the tech sector makes the most sense given the implications of the 2024 election results for the financial markets. He noted that the election has shifted the underlying dynamics affecting businesses, particularly regarding regulation and taxation. The new administration has changed the previous climate of heightened regulation and discussions around increasing capital gains and corporate taxes. Avallone believes that the potential for reduced regulation and lower taxes on corporations could create a more favorable environment for business growth.
He emphasized that corporate America’s ability to deliver earnings will be crucial, relying on continued efficiencies and advancements in technology. This perspective supports his thesis that investing in technology remains a sound strategy for investors. When discussing specific stocks, Avallone highlighted major tech companies from the MAG7 as particularly attractive. He expressed confidence that the current administration would foster a more supportive environment for these companies, allowing them to thrive.
Avallone also touched on the defense sector, which has historically benefited from global conflicts. He pointed out that defense companies have shown resilience and believes that ongoing global tensions will sustain demand for defense stocks, providing a hedge against market volatility.
However, Avallone expressed caution regarding the healthcare sector, which has been lagging due to heavy regulation and political scrutiny. He noted that despite an aging population driving demand for medical equipment, regulatory pressures have hindered growth in this area. Overall, his analysis underscores a cautious optimism about investing in technology and defense while highlighting potential challenges within healthcare as businesses navigate the post-election landscape.
Methodology
We sifted through Finviz to compile a list of 30 NASDAQ stocks with high upside potentials. We then selected the 12 stocks with the biggest upside potential according to analysts. The stocks are ranked in ascending order of their analysts’ upside potential.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A scientist in a laboratory conducting tests on a molecular diagnostic sample.
Ideaya Biosciences Inc. (NASDAQ:IDYA)
Average Upside Potential as of November 21: 118.80%
Ideaya Biosciences Inc. (NASDAQ:IDYA) is a clinical-stage synthetic lethality-focused precision medicine oncology company committed to discovering and developing targeted therapeutics for patient populations selected using DNA sequencing and other molecular diagnostics. Its lead product includes IDE397, aimed at solid tumors with certain genetic characteristics.
The company recently announced positive interim Phase 1 expansion data for IDE397, a potential first-in-class MAT2A inhibitor, in MTAP-deletion urothelial cancer (UC) and non-small cell lung cancer (NSCLC) patients. The data, presented at the EORTC-NCI-AACR Symposium (ENA 2024), demonstrated a 33% overall response rate by RECIST 1.1, including one complete response and eight partial responses. The drug was well-tolerated, with no drug-related serious adverse events.
It is advancing IDE397 as a monotherapy and in combination with other therapies, including Trodelvy, in MTAP-deletion solid tumors. The company believes that IDE397 has the potential to address the significant unmet needs of these patient populations.
The recent positive clinical data for IDE397 highlights the company’s potential to address significant unmet medical needs in oncology. While Ideaya Biosciences Inc. (NASDAQ:IDYA) is still in its early stages and faces financial challenges, its innovative approach and strong pipeline position it for long-term growth and value creation for shareholders.
Overall IDYA ranks 5th on our list of the NASDAQ stocks with biggest upside potential according to analysts. While we acknowledge the potential of IDYA as an investment, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than IDYA 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.