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 Dyne Therapeutics, Inc. (NASDAQ:DYN) 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 lab technician working with chemicals and equipment to create a novel therapeutic drug.
Dyne Therapeutics, Inc. (NASDAQ:DYN)
Number of Hedge Fund Holders: 38
Year-to-Date Share Price Gains: 166.16%
Average Price Target Upside: 51.04%
Dyne Therapeutics, Inc. (NASDAQ:DYN) is a clinical-stage company dedicated to creating innovative treatments for genetically driven muscle diseases. It is focused on developing targeted oligonucleotide therapies for serious muscle diseases using its proprietary FORCE platform.
The platform is designed to improve the delivery of treatments to muscle tissue and it aims to stop or reverse disease progression. The company is currently concentrating on myotonic dystrophy type 1 (DM1), Duchenne muscular dystrophy (DMD), and facioscapulohumeral muscular dystrophy (FSHD).
The FORCE platform uses engineered antigen-binding fragments (Fabs) that target the TfR1 receptor, which is highly expressed on muscle cells. The approach offers advantages over traditional monoclonal antibodies, such as better tissue penetration, increased tolerability, and reduced immune activation risks.
It combines these Fabs with a linker that has demonstrated safety and efficacy to deliver therapeutic payloads, including antisense oligonucleotides (ASOs) and small molecules, to address the genetic causes of diseases.
The company aims to expand its portfolio by exploring additional muscle-related conditions, including rare skeletal, central nervous system, cardiac, and metabolic muscle diseases, while ensuring that its selected therapeutic payloads effectively target the genetic basis of these disorders.
On September 3, Dyne (NASDAQ:DYN) announced positive results from its Phase 1/2 DELIVER trial of DYNE-251, a treatment for Duchenne muscular dystrophy DMD targeting exon 51 skipping (skipping over faulty parts of the gene that are responsible for producing dystrophin). Dystrophin is a key protein that helps maintain the structure of muscle cells.
In the 20 mg/kg group, dystrophin levels reached 3.71% of normal, which is much higher than previous treatments. Patients also showed better movement and other important health improvements.
The treatment was mostly safe, with most side effects being mild or moderate. There were two cases of more serious side effects at a higher dose, but both patients recovered.
On September 23, Piper Sandler analyst Edward maintained an Outperform rating on Dyne (NASDAQ:DYN) with a $23 price target. The analyst recommended buying shares of the company as he expects new results from the Phase I/II ACHIEVE and DELIVER trials, along with the start of important registration studies by the end of 2024.
Tenthoff believes higher doses of DYNE-101 (5.4 mg/kg and 6.8 mg/kg) will lead to better results. Although Dyne’s (NASDAQ:DYN) stock dropped due to serious side effects from the 40 mg/kg dose of DYNE-251, the 20 mg/kg dose given every four weeks has shown important benefits, like effective exon skipping and improved dystrophin levels.
Overall DYN ranks 6th on our list of the hot stocks to buy. While we acknowledge the potential of DYN 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 DYN 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.