We recently published a list of 10 Low Risk High Reward Stocks Set to Triple by 2030. In this article, we are going to take a look at where Allogene Therapeutics, Inc. (NASDAQ:ALLO) stands against other low risk high reward stocks set to triple by 2030.
The market is getting tough these days with increasing interest rates, tense world politics, and inconsistent economic conditions, and investors are constantly looking for opportunities. As we hit the middle of the decade, people are focusing more on diversifying investments and managing risks. Morgan Stanley’s Investment Committee believes investors should avoid passive strategies and big tech stocks. The Committee suggests looking at undervalued opportunities that might give better returns with less risk.
The broader market is trading way too high now—over 22 times forward earnings, putting it in the 95th percentile of historical values. In addition to this, the top 10 stocks make up almost 40% of the index, creating a problem where investors just focus on a few companies called the “Magnificent 7”. Wall Street’s predictions for earnings growth in 2025-2026 seem unrealistic, especially with signs of the economy slowing down and profit margins getting squeezed. These dangers, plus the fact that stocks and bonds are both volatile and moving together, show why investors need alternatives other than passive U.S. stocks.
President Trump’s renewed tariff regime—some as high as 145%—has hurt economic forecasts worldwide and messed up supply chains, as reported by Reuters. Companies like Electrolux, Diageo, and Logitech have already lowered sales forecasts or stopped giving guidance altogether because of tariff impacts. Although countries including India might benefit from changing trade patterns, most global businesses are facing new economic uncertainty.
With all these headwinds, many investors are moving to safer assets like high-dividend stocks, preferred securities, and undervalued healthcare and consumer defensive companies. These lower-risk stocks help reduce portfolio swings and can benefit when money flows to safer investments during market downturns.
Furthermore, investors are also reflecting this shift, as seen in a recent Barclays survey of 325 hedge fund managers. The survey shows managers handling nearly $9 trillion and growing demand for strategies with minimal exposure to equity markets, some seeking as low as 5% exposure or even zero. Multi-manager hedge funds, algorithmic strategies, and defensive plays are now more popular than traditional approaches.
In this complicated environment, finding overlooked, low-risk stocks with strong fundamentals and long-term potential is crucial. These companies operate in resilient sectors and offer both protection against losses and the chance for substantial returns by 2030.
Methodology
To identify the 10 Low Risk High Reward Stocks Set to Triple by 2030, we began by screening publicly traded companies using Finviz, focusing on those with an equity beta below 1.0 to ensure relatively low market risk. We then filtered this subset to include only those stocks with a projected upside potential of over 300%, indicating high return prospects. To further validate investor confidence, we analyzed hedge fund sentiment using Insider Monkey’s database, which tracks the holdings of over 1,000 elite hedge funds as of the end of the fourth quarter of 2024. The final list is ranked in ascending order based on the number of hedge funds holding each stock.
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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A biotechnologist in a laboratory testing an Immuno-oncology treatment.
Allogene Therapeutics, Inc. (NASDAQ:ALLO)
Number of Hedge Fund Holders: 15
Potential upside: 461.63%
Allogene Therapeutics, Inc. (NASDAQ:ALLO) is a company progressing with allogenic CAR T cell therapies that could alter treatment for cancer and autoimmune diseases. It is working to build a strong clinical pipeline while keeping costs in check, aiming to lead the field in scalable cell therapies.
Allogene Therapeutics, Inc. (NASDAQ:ALLO) had $373.1 million in cash, cash equivalents, and investments at the year-end, and management expects it should keep the company running into late 2026. R&D costs for Allogene Therapeutics, Inc. (NASDAQ:ALLO) for the year were $192.3 million, with about $20.4 million of that being non-cash stock compensation. Meanwhile, G&A expenses were at $65.2 million, including $31.3 million in stock compensation, and overall, Allogene lost $257.6 million for the year, or $1.32 per share. For 2025, the company is planning on a cash burn of about $170 million, with total GAAP expenses around $250 million, of which $50 million will be stock-based pay.
Clinically, Allogene Therapeutics, Inc. (NASDAQ:ALLO) continues to push forward on multiple fronts. It received FDA clearance in early 2025 for its Phase 1 Resolution Basket trial evaluating ALLO-329 in autoimmune diseases, with proof-of-concept data expected by year-end. Meanwhile, ALLO-501A is being studied in the pivotal ALPHA3 trial for first-line large B-cell lymphoma, and ALLO-316 is progressing in renal cell carcinoma with an update expected in mid-2025.
On the clinical side, the company is moving ahead quickly as the FDA just cleared its Phase 1 Resolution Basket trial for ALLO-329 in autoimmune diseases. It expects early results by year-end and is also testing ALLO-501A in a pivotal ALPHA3 trial for large B-cell lymphoma, and ALLO-316 for kidney cancer, with updates coming mid-2025.
With its healthy cash position, advancing pipeline, and smart spending, Allogene Therapeutics, Inc. (NASDAQ:ALLO) stands out as one of the best low risk stocks that could see substantial gains by 2030.
Overall, ALLO ranks 9th on our list of low risk high reward stocks set to triple by 2030. While we acknowledge the potential of ALLO as an investment, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than ALLO but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
