We recently compiled a list of the 10 Best Hot Stocks To Buy Right Now. In this article, we are going to take a look at where Apogee Therapeutics, Inc. (NASDAQ:APGE) stands against the other hot stocks.
While the market is seeing significant positives after the Fed rate cut, there have been some pressures. For example, dockworkers from the International Longshoremen’s Association (ILA) have gone on strike at major U.S. ports along the East and Gulf coasts, marking the first such strike in nearly 50 years. The dispute involves a six-year contract covering 25,000 workers, with the ILA demanding significant wage increases and addressing concerns over automation.
While the US Maritime Alliance has offered wage and pension boosts, negotiations have still stalled. The strike could cause major disruptions to imports, especially food, clothing, and car shipments, with potential economic losses of $4 or $5 billion per week.
Moreover, CBS reported that Hurricane Helene is projected to be one of the most expensive storms in U.S. history, with Moody’s Analytics estimating property damage between $15 and $26 billion. AccuWeather forecasts that the overall damage and economic loss could reach up to $110 billion.
Central Banks, Port Strikes, and Inflation Risks: What Lies Ahead
Deepak Puri, Deutsche Bank Private Bank CIO of the Americas, recently joined CNBC’s ‘Money Movers’ as he discussed the current high expectations in the U.S. economy and noted that while inflation and employment are relatively stable, challenges lie ahead due to factors like the port strike, global conflicts, and post-hurricane reconstruction.
He mentioned that Chicago Fed President, Austan Goolsbee has highlighted the difficulty in maintaining the current economic balance. Puri advises patience in the markets due to various uncertainties, including the upcoming election.
Puri explained that while many central banks are lowering interest rates, it is uncertain whether the U.S. economy will avoid a downturn. Inflation remains a risk, and the U.S. port strike could cause serious economic problems if it lasts long, even though it hasn’t yet impacted the market much. He warned that several issues combined could affect inflation and overall economic performance.
When discussing the balance between inflation and jobs, the CIO said that concerns about the job market were bigger until recently, but now inflation is becoming more of a risk. He highlighted how challenging it is for the Fed to manage this situation, especially as consumer spending remains steady but is shifting. Meanwhile, sectors like housing and manufacturing, which are sensitive to interest rates, will need to take up the slack.
Finally, Puri talked about whether the Fed could pause rate cuts like the European Central Bank did. He thinks the Fed will keep lowering rates, but the size of future cuts will depend on upcoming labor market data.
Our Methodology
For this article, we made a list of the top 55 best-performing stocks on a year-to-date basis with a market cap of over $2 billion, as of October 1. We narrowed our list to 10 stocks that were most favored by analysts. The best hot stocks to buy right now are listed in ascending order of the average price target upside. We also mentioned the hedge fund sentiment around each stock which was taken from Insider Monkey’s database of over 900 elite hedge funds.
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 lab conducting research on cell-based therapeutics and biotechnology.
Apogee Therapeutics, Inc. (NASDAQ:APGE)
Number of Hedge Fund Holders: 30
Year-to-Date Share Price Gains: 101.02%
Average Price Target Upside: 46.57%
Apogee Therapeutics, Inc. (NASDAQ:APGE) is a clinical-stage biotechnology company focused on developing innovative biologics for treating various inflammatory and immunological conditions, including atopic dermatitis (AD), asthma, and chronic obstructive pulmonary disease (COPD).
Its antibody programs aim to address the shortcomings of current therapies by targeting established mechanisms and using advanced antibody engineering to enhance their effectiveness and longevity.
The company’s lead program, APG777, is targeted for atopic dermatitis, a major and under-addressed market. According to Future Market Insights, revenue generated by atopic dermatitis treatments was $13.44 billion in 2023 and is expected to increase by 12% this year to $15.05 billion. Moreover, it is expected to reach $45.50 billion by 2034 at a compound annual growth rate of 11.7% during the period from 2024 to 2034.
With four proven targets in its lineup, Apogee (NASDAQ:APGE) seeks to provide better effectiveness and dosing using both single therapies and combinations of antibodies. By using its broad range of programs and knowledge, it is dedicated to offering valuable options for patients who do not get enough help from current treatments.
In the second half of 2025, it plans to release 16-week proof-of-concept data for APG777. For APG808, a novel antibody targeting IL-4Rα for the treatment of COPD, interim Phase 1 data is expected in the fourth quarter of 2024.
Additionally, the company will launch the APG990 trial, focused on atopic dermatitis and other inflammatory diseases, with healthy volunteers in the third quarter of 2024.
Recently, Apogee (NASDAQ:APGE) expanded its portfolio with APG333, a new antibody targeting thymic stromal lymphopoietin (TSLP), to improve treatment effectiveness across various respiratory conditions, which is anticipated to begin clinical trials in 2025.
In addition, the company reported a strong cash position of $790 million in Q2, which should support its operations through 2028.
It is one of the best hot stocks to buy as it has been covered by 7 analysts with an average price target of $84, representing an upside of 46.57%, as of October 1. All 7 analysts keep a Buy-equivalent rating on the stock.
On September 30, BTIG analyst Julian Harrison maintained a Buy rating on Apogee’s (NASDAQ:APGE) stock with an $81 price target. His positive outlook stems from various factors related to the company’s APG808 program and its market positioning.
The recent FDA approval of Dupixent for treating COPD with eosinophilic phenotype reduces the risk associated with developing APG808, as it targets a similar patient group, highlighting the acceptance of biologic therapies in the COPD market.
In addition to that positive results from the Phase 1 trials of APG777 also support this view because they share modifications that allow for longer-lasting effects, which could mean less frequent dosing compared to current treatments.
Harrison pointed out the large market for APG808, especially for eosinophil-driven COPD patients who need better options. His recommendation suggests that positive interim data could improve patient care and help the drug reach more people.
Overall APGE ranks 8th on our list of the hot stocks to buy. While we acknowledge the potential of APGE 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 timeframe. 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.
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Disclosure: None. This article is originally published at Insider Monkey.