We recently published a list of 11 Best Guru Stocks to Buy According to Wall Street Analysts. In this article, we are going to take a look at where Biohaven Ltd. (NYSE:BHVN) stands against other Guru stocks to invest in.
Wall Street seems to be breathing a little easier after the initial panic over President Trump’s tariffs earlier this month, but the rollercoaster is not over just yet. All three major indexes closed last week in the red, with the Dow and NASDAQ both dipping over 2%, and the broader market down more than 1%. Even though markets remain closed on April 18 for Good Friday, the general consensus is that the worst of the trade war headlines might be dying down.
Marko Papic, chief strategist of geomacro strategy at BCA Research, remains cautiously optimistic, noting that while the idea of President Trump striking 90 trade deals in 90 days sounds ambitious, they will likely be small, symbolic wins that still help calm markets. That said, volatility is expected to continue, and Papic predicts the broader market could dip again before bouncing back, potentially giving investors a buying opportunity.
Investors are deep in earnings season right now, and some of Wall Street’s biggest banks have reported solid first-quarter results. A big part of their success came from their trading desks, which cashed in on the recent market volatility, especially in equities. However, despite strong numbers on paper, bank CEOs remain cautious and are hesitant to make big moves right now because of the market uncertainty. The US dollar also just had its worst weekly performance since 2022. Meanwhile, investors are playing it safe and rapidly buying bonds, which pushed the 10-year Treasury yield down to around 4.28%.
While some investors are seeing the current market dip as a buying opportunity, Daniel Von Ahlen from GlobalData TS Lombard says otherwise. He believes the risks of a recession are being seriously underestimated. Even though Trump’s recent tariff halt gave markets a bit of a boost, Ahlen thinks that bounce will not last. In his view, this is not the time to scoop up stocks on the cheap, he is actually advising people to sell into rallies and avoid the usual buy-the-dip strategy. Ahlen suggests getting a bit more cautious and selective. Instead of jumping into the whole market, he recommends focusing on defensive sectors, like utilities, consumer staples, and healthcare, that tend to hold up better in downturns.
The market uncertainty is reflected in ETFs as well, which are often considered wiser investment options due to active management strategies and lower risk compared to individual investing. For example, the Guru ETF is down 8.30% year-to-date as of April 18. However, over the last 12 months, the fund has posted share price returns of 13.38%. Similarly, five-year share returns stand at an impressive 51.57%. GURU gives retail investors a way to tap into the top stock picks of major hedge funds at a relatively low 0.75% expense ratio. It offers a more affordable and flexible way to try and beat the broader market using expert insights. So, let’s take a look at the best Guru stocks to buy.
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Our Methodology
For this article, we looked up the GURU ETF, which had 82 holdings as of April 18. Next, we manually searched for the average upside potential of each stock and selected 11 stocks with the highest values. The list below is ranked in ascending order of the upside potential as of April 18. We have also mentioned the hedge fund sentiment as of Q4 2024.
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).
Biohaven Ltd. (NYSE:BHVN)
Number of Hedge Fund Holders: 41
Average Upside Potential: 213.78%
Biohaven Ltd. (NYSE:BHVN) is a Connecticut-based biotech company, developing treatments for neuroscience, immunology, and cancer. The company is working on late-stage candidates for epilepsy, depression, migraines, spinal muscular atrophy, obesity, and neurodegenerative diseases like Alzheimer’s and Parkinson’s. BHVN ranks 1st on our list of the best Guru stocks to buy.
On March 7, Piper Sandler maintained an Overweight rating on Biohaven Ltd. (NYSE:BHVN) with a $76 price target. The investment firm remains confident in Biohaven, highlighting the company’s solid R&D pipeline, especially BHV-1300, which showed strong IgG-lowering results with a clean safety profile in early trials. With several milestones expected in 2025, analysts see plenty of room for growth and believe the stock is slightly undervalued right now.
In Q4 2024, Biohaven Ltd. (NYSE:BHVN)’s R&D spending increased to $167.5 million from $134.8 million in the prior-year quarter. This reflects the company’s growing pipeline, with more advanced clinical and preclinical trials underway. However, non-cash share-based compensation fell by $2 million since no new equity awards were granted in Q4 2024. Biohaven posted a net loss of $186.8 million for the fourth quarter, up from a $144.8 million loss in the same period last year.
According to Insider Monkey’s fourth quarter database, 41 hedge funds held long positions in Biohaven Ltd. (NYSE:BHVN), compared to 42 funds in the preceding quarter.
Overall, BHVN ranks 1st among the 11 Best Guru Stocks to Buy According to Wall Street Analysts. While we acknowledge the potential of BHVN as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than BHVN but that trades at less than 5 times its earnings, check out our report about this 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.
