11 Best Breakout Stocks to Buy According to Analysts

5. Zai Lab Limited (NASDAQ:ZLAB)

Stock Upside Potential as of May 2: 70.85%

Number of Hedge Fund Holders: 26

Zai Lab Limited (NASDAQ:ZLAB) is a biopharmaceutical company that is discovering, developing, and commercializing innovative products for unmet medical needs in areas like oncology, immunology, neuroscience, and infectious diseases. Its lead product includes Zejula for treating ovarian cancer, VYVGART for generalized myasthenia gravis, and NUZYRA for community-acquired bacterial pneumonia. The stock is up by about 25% for the year, outperforming the overall market and emerging as one of the best breakout stocks to buy, according to analysts.

Zai Lab Limited (NASDAQ:ZLAB) has been in fine form, attributed to strong sales growth, financial strength, and significant progress in the development of the Zai Lab pipeline. The VYVGART franchise remains a key value driver, generating $93.6 million in net product revenue last year. Consequently, total product sales increased 49% in 2024 to $397.6 million.

Zai Lab Limited (NASDAQ:ZLAB) has already set its sights on the Chinese market as it looks to unlock new revenue opportunities. The National Medical Products Administration of China is evaluating its application to widen the use of repotrectinib for patients suffering from solid tumors associated with NTRK gene fusion. The push comes on the heels of Zai Lab securing clearance for the KarXT New Drug Application in China.