9 Oversold Biotech Stocks to Invest In

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1. Soleno Therapeutics Inc. (NASDAQ:SLNO)

Analyst Upside: 153.93%

RSI Value: 34.22

Number of Hedge Fund Holders: 52

Soleno Therapeutics, Inc. (NASDAQ:SLNO) ranks among the most oversold biotech stocks to invest in. Soleno Therapeutics, Inc. (NASDAQ:SLNO) reported third-quarter adjusted earnings of $0.47 per share on November 4, significantly exceeding analyst projections of $0.05 per share. Revenue also came in significantly higher than the consensus expectations at $66 million.

Despite the strong results, the company’s stocks tumbled that day. Investor concerns regarding discontinuation rates for VYKAT XR, the company’s treatment for hyperphagia (extreme hunger) in patients with Prader-Willi syndrome (PWS) seem to be the main cause of the company’s sharp stock decline.

In a similar vein, Piper Sandler had reaffirmed an Overweight rating and $145 price target for Soleno Therapeutics, Inc. (NASDAQ:SLNO) back in early October, implying that the stock had been oversold due to recent safety issues. According to the firm, concerns over the safety of the company’s VYKAT XR medication, which were raised in the FDA Adverse Event Reporting System (FAERS) database, and a brief thesis published in August are what have led to the company’s stock declines.

However, Piper Sandler maintained its optimism regarding VYKAT XR’s ongoing launch and saw the stock drop as a “compelling buying opportunity” for investors.

Soleno Therapeutics, Inc. (NASDAQ:SLNO) is a clinical-stage biopharmaceutical company that develops and commercializes novel therapeutics to treat rare diseases.

While we acknowledge the potential of SLNO to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than SLNO and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 10 Best Magic Formula Stocks for 2025 and 10 Best Retirement Stocks to Buy According to Hedge Funds.

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