We recently published a list of the 12 Best IPO Stocks to Buy in 2025. In this article, we are going to take a look at where Apogee Therapeutics, Inc. (NASDAQ:APGE) stands against other best IPO stocks to buy in 2025.
On February 25, Hamilton Lane co-CEO Erik Hirsch joined ‘Closing Bell Overtime’ on CNBC to discuss the developments that currently hinder the IPO pipeline. Erik Hirsch noted that there are two competing factors at play. On one side, there is general market uncertainty, which is currently the dominant issue. While on the other side, there are positive factors: many high-quality businesses in private markets are ready for an exit. They are mature, cash flow positive, and growing. The IPO market is the logical conclusion for them, and the public markets need more new names to reduce concentration in a few technology businesses. For the public markets to be healthy, they need fresh blood.
Hirsch believes the IPO market can have a good year without relying solely on software. There is room for more software companies, but there is also interest in traditional non-tech businesses to balance market weightings. He identified sectors that could see growth, such as manufacturing, which could benefit from reshoring and reinvestment in the US. The food supply chain and healthcare are also expected to benefit from administrative changes. Regarding President Trump’s positioning on tariffs, Hirsch thinks it is more about negotiating tactics than actual tariffs. If negotiations cease and tariffs become the focus, there will likely be a market reaction. The uncertainty extends to government job cuts, with questions about the scale of reductions and where displaced workers will go. Despite some positive signs for certain sectors and businesses ready for IPOs, market uncertainty, and regulatory changes are holding back the IPO market and dealmaking. The environment of unpredictability makes it challenging for companies to pursue IPOs or M&A deals at present.
Still, the IPO market holds promise due to a strong backlog of mature and high-quality private businesses eager for public exits.
Our Methodology
We used the Finviz stock screener to compile a list of the top companies that went public in the last 2 years. We then selected 12 stocks with high analysts’ upside potential that were also the most popular among elite hedge funds. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q4 2024. The hedge fund data was sourced from Insider Monkey’s database which tracks the moves of over 900 elite money managers.
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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A medical researcher carefully inspecting a Petri dish containing biopharmaceutical cultures.
Apogee Therapeutics, Inc. (NASDAQ:APGE)
Average Upside Potential as of March 21: 121.19%
Number of Hedge Fund Holders: 31
Apogee Therapeutics, Inc. (NASDAQ:APGE) is a biotechnology company that develops extended half-life monoclonal antibody therapies for inflammatory and immunological diseases. These include atopic dermatitis, asthma, and COPD (Chronic Obstructive Pulmonary Disease).
The company is prioritizing the development of APG279, which is a combination therapy for atopic dermatitis (AD) and other inflammatory diseases. This therapy combines APG777 and APG990, and targets different inflammatory pathways for potentially enhanced efficacy. Crucial to this is APG990, which showed an approximate 60-day half-life in Phase 1 trials. This supports the possibility of dosing APG279 only 2-4 times a year via a single 2mL injection.
The Phase 1 trials of APG990 showed strong tolerability, with no serious adverse events and only mild side effects, like headaches, in a small percentage of patients. Preclinical studies showed no safety concerns when combining APG777 and APG990. These results pave the way for Phase 1b head-to-head trial against DUPIXENT in 2025, with data expected in H2 2026. Apogee Therapeutics (NASDAQ:APGE) has $731.1 million in cash reserves, which is projected to fund operations into Q1 2028.
Overall, APGE ranks 10th on our list of the best IPO stocks to buy in 2025. While we acknowledge the growth potential of APGE, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than APGE 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 30 Best Stocks to Buy Now According to Billionaires
Disclosure: None. This article is originally published at Insider Monkey.
