Do Redditors Think That Altimmune Inc. (ALT) Has a Big Upside Potential? - InvestingChannel

Do Redditors Think That Altimmune Inc. (ALT) Has a Big Upside Potential?

We recently compiled a list of the 11 Reddit Stocks with Biggest Upside Potential. In this article, we are going to take a look at where Altimmune Inc. (NASDAQ:ALT) stands against the other Redditor-approved stocks.

Paul Hickey, Bespoke co-founder, together with Dana D’Auria, Envestnet co-chief Investment Officer, joined CNBC’s ‘Closing Bell: Overtime’ on November 12 to discuss the market’s reaction to the election results and earnings. Paul Hickey believes that the AI bull market is likely to continue now.

This recent conversation centered around the key forces to watch in the current political and economic landscape, particularly in light of potential energy impacts from Ukraine, shifts in Middle Eastern policies, and possible market effects from trade policies with China. Hickey thinks that as President-elect Donald Trump’s cabinet begins to take shape, it will provide clearer insights into future expectations. He emphasized that while election results can lower barriers to the market and reduce speed bumps, their impact is often overstated. He notes that over the past 16 years, the market has shown strong performance under different administrations, with annualized returns of 16.3% during both Barack Obama’s and Donald Trump’s first terms, and 14% under Joe Biden. This consistency, according to Hickey, suggests that market returns have remained relatively stable despite varying political landscapes.

The conversation also highlighted the ongoing AI bull market, which has been broadening since the summer and is expected to continue. The S&P 500 recently closed above 6,000, reflecting positive momentum in the markets, including gains in the NASDAQ. There was a discussion about how a sweeping victory for one party could have been perceived as detrimental to equities; however, Republicans achieved this outcome and equities responded positively. To maintain this momentum, D’Auria suggested that Republicans might need to exercise more fiscal responsibility. The implication is that a single party cannot implement all its plans without consideration of fiscal implications.

D’Auria thinks that as tax cuts from 2017 are likely to be extended under Republican leadership, inflation concerns may arise due to higher tariffs and increased government spending. The Republican stance thus far has been viewed as pro-business, which is reflected in current market performance. However, a potential challenge lies ahead; she is of the idea that stocks are now being priced with expectations of a low regulatory environment. This regulatory landscape will be crucial for sustaining market growth moving forward.

As the market continues to react positively to political developments and the ongoing AI bull market, investors should consider focusing on stocks with significant upside potential.

Methodology

We sifted through threads to compile a list of 30 trending stocks with high upside potentials. We then selected the 11 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 researcher in a lab coat examining a petri dish of a biopharmaceutical drug.

Altimmune Inc. (NASDAQ:ALT)

Average Upside Potential as of November 11: 167.76%

Altimmune Inc. (NASDAQ:ALT) is a clinical-stage biopharmaceutical company that develops peptide-based therapeutics for obesity and liver diseases. Its lead drug, Pemvidutide, targets obesity and liver inflammation. They are also developing HepTcell, an immunotherapy for chronic hepatitis B.

The company reported positive developments for its drug candidate Pemvidutide, a novel GLP-1/glucagon dual agonist in its obesity program, designed to treat obesity and metabolic dysfunction-associated steatohepatitis. It finished enrolling patients in its Phase 2b IMPACT trial (~190 people). This trial assesses Pemvidutide’s effectiveness and safety in treating MASH. Top-line data on the drug’s success is expected in the second quarter of 2025. If successful, Pemvidutide could become the first MASH treatment to achieve both reduced liver fat and significant weight loss within 24 weeks.

Overall, it has finalized the design of four pivotal Phase 3 trials with the FDA  to assess the impact on obesity-related comorbidities. Additionally, data from a Phase 2 study highlighted its ability to reduce body fat by 21.9% while preserving lean muscle mass, especially in older adults. To expand Pemvidutide’s potential, the company plans to submit IND applications for up to three additional indications by the end of 2024, with the first trial anticipated to start in H1 2025.

Altimmune Inc. (NASDAQ:ALT) is confident that 2025 will be a significant year for Pemvidutide and the company based on the progress made and upcoming milestones.

Overall ALT ranks 2nd on our list of the Redditor-approved stocks with biggest upside potential. While we acknowledge the potential of ALT 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 ALT but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

 

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.

 

Disclosure: None. This article is originally published at Insider Monkey.

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