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 Day One Biopharmaceuticals, Inc. (NASDAQ:DAWN) 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 close-up of a scientist in a laboratory environment, working on a biopharmaceutical product candidate.
Day One Biopharmaceuticals, Inc. (NASDAQ:DAWN)
Number of Hedge Fund Holders: 36
Potential upside: 301.12%
Day One Biopharmaceuticals, Inc. (NASDAQ:DAWN) focuses on creating targeted cancer treatments, especially for kids and young adults. This clinical-stage biopharma company develops therapies for patients with genetic cancer markers. Specializing in pediatric and young cancer treatments, Day One has a promising front in bringing these treatments to market.
The year 2024 was successful for Day One Biopharmaceuticals, Inc. (NASDAQ:DAWN). The FDA authorized OJEMDA for treating relapsed or resistant pediatric low-grade glioma (pLGG). The drug took off fast, bringing in $57 million in just eight months, with $29 million in the fourth quarter alone (up 44% from Q3). The company logged over 1,600 prescriptions, with 280 patients actively using the therapy by year-end.
Day One Biopharmaceuticals, Inc. (NASDAQ:DAWN) grew by expanding into priority medical centers and scoring a favorable CMS designation that boosted its profit margins. Furthermore, the prescriptions doubled in Q4 compared to the previous six months combined, showing the increasing demand.
Day One Biopharmaceuticals, Inc. (NASDAQ:DAWN) keeps building its pipeline further with its Phase III FIREFLY-2 trial for frontline pLGG treatment expanding worldwide, aiming to finish enrollment by mid-2026. In addition, it has also started testing DAY301, a new antibody-drug that targets PTK7. The drug is in Phase Ia/b dose escalation trials, meanwhile, the company struck a licensing deal with Ipsen to sell OJEMDA outside the U.S.
On the financial end, Day One is well-positioned with over $500 million in cash, giving it plenty of runway without a need to raise funds soon. Its solid finances, consistent execution, and promising drug candidates make Day One Biopharmaceuticals, Inc. (NASDAQ:DAWN) potentially one of the best low risk stocks for investors interested in cutting-edge cancer treatments.
Overall, DAWN ranks 2nd on our list of low risk high reward stocks set to triple by 2030. While we acknowledge the potential of DAWN 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 DAWN but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.