We recently published a list of the 12 Best Up and Coming Stocks to Buy According to Wall Street Analysts. In this article, we are going to take a look at where Janux Therapeutics Inc. (NASDAQ:JANX) stands against other up and coming stocks to buy according to Wall Street Analysts.
Tom Lee, Fundstrat managing partner, joined CNBC’s ‘Closing Bell’ on March 22 to discuss the current market sentiment. When asked about the recent report on tariffs, which oscillates between an iron fist and an olive branch, Lee expressed optimism. He suggested that markets should interpret the situation positively because many clients view tariffs as punitive and potentially recession-inducing. However, a mutually agreed or reciprocal tariff deal could create a favorable scenario for businesses, potentially setting the stage for a significant recovery rally. Addressing the immediate challenge of volatility leading up to April 2, Lee acknowledged the dilemma investors face during this period of uncertainty. He noted that many are overwhelmed by market fluctuations and tempted to give up. Drawing a parallel to the Cuban Missile Crisis in 1962, which lasted 12 days, Lee pointed out that markets historically bottom before crises are resolved. For instance, during that crisis, the stock market reached its lowest point seven days in and recovered two-thirds of its losses before the resolution. He suggested this historical pattern could serve as a template for today’s market behavior.
When asked about the economy, Lee remarked on how quickly sentiment has deteriorated. He attributed part of this decline to divisive political leadership that affected consumer confidence and noted that CEO confidence has also dropped unexpectedly. CEOs have become hesitant to make decisions, which is contributing to what he described as a growth shock. However, he remained hopeful that this slowdown would be temporary if it does not persist for months. The conversation shifted to concerns about a potential recession, with Jeffrey Gundlach recently estimating a 50% to 60% chance of one occurring in the next few quarters. Lee countered this by stating that while a 10% drawdown in the S&P 500 already prices in a 40% chance of recession, markets do not fully align with Gundlach’s pessimistic view. He highlighted that economies like China, Europe, Canada, and Mexico have been outperforming the US since February 18. If punitive tariffs were truly driving global recessions, these economies would also be struggling. Instead, Lee described markets as more paralyzed than outright pessimistic.
Our Methodology
We used the Finviz stock screener to compile an initial list of the top stocks that went public in the last 5 years. We then selected the 12 stocks with high analysts’ upside potential as of March 21 that were also the most popular among elite hedge funds. The stocks are ranked in ascending order of their upside potential. We have also added the hedge fund sentiment for each stock, as of Q4 2024, which was sourced from Insider Monkey’s database.
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 rack of test tubes and beakers being stirred in a laboratory, as researchers analyze the data.
Janux Therapeutics Inc. (NASDAQ:JANX)
Average Upside Potential as of March 21: 162.90%
Number of Hedge Fund Holders: 54
Janux Therapeutics Inc. (NASDAQ:JANX) is a clinical-stage biopharmaceutical company that develops immunotherapies for cancer. Using its TRACTr and TRACIr platforms, it’s advancing candidates like JANX007 and JANX008 for various solid tumors. It also collaborates with Merck Sharp & Dohme Corp. to further develop its TRACTr technology.
The company is concentrating its efforts on its TRACTr therapy, specifically JANX007, which targets prostate-specific membrane antigen (PSMA) for prostate cancer treatment. Recent Phase 1 clinical trial data for JANX007 in metastatic castration-resistant prostate cancer (mCRPC) showed promising results. 100% of patients achieved PSA50 declines, 63% achieved PSA90 declines, and 50% demonstrated anti-tumor activity. The company plans to provide updates on JANX007 data in 2025 and is continuing patient enrollment in the ongoing Phase 1 trial.
On March 1, Scotiabank reduced its price target for the company from $62 to $41, while maintaining a Sector Perform rating. This adjustment reflects a more conservative outlook on JANX007’s potential, despite promising dose-escalation results from the ongoing Phase 1 trial. The firm believes that Janux Therapeutics Inc. (NASDAQ:JANX) has not yet met all the benchmarks necessary to establish a competitive advantage and attract a pharmaceutical acquisition.
Overall, JANX ranks 1st on our list of the best up and coming stocks to buy according to Wall Street Analysts. While we acknowledge the growth potential of JANX, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than JANX but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
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