We recently compiled a list of the 15 Stocks That Will Go to The Moon According to Analysts. In this article, we are going to take a look at where Summit Therapeutics Inc. (NASDAQ:SMMT) stands against the other stocks.
The Stock Market Under Trump Admin
While stocks initially fell based on worries regarding Trump tariffs on America’s major trading partners, major indexes recovered from their initial losses as the President delayed tariffs on Mexico. He agreed to a 30-day pause on tariffs on Mexico and Canada in return for the two countries bolstering border enforcement to halt fentanyl smuggling and money laundering.
Reuters reported that Trump raising tariffs on steel and aluminum imports to a flat 25% pushed up share prices of US steelmakers. The chaos around tariffs doesn’t end here. According to CNN, the President is looking to pursue more tariffs. Trump has been keen on reciprocal tariffs and wants agencies to investigate plans for new reciprocal tariffs that would increase America’s revenue. He reiterated this keenness saying:
“They charge us a tax or tariff and we charge them the exact same”
These tariffs are expected to hit developing countries, especially India, Brazil, Vietnam, and other Southeast Asian and African countries, considering the large gap in tariff rates charged on US goods brought into these nations relative to what the United States charges them.
On February 14, the New York Times reported that global stock markets are holding up after Trump revealed his plan for reciprocal tariffs against all trading partners. While some countries such as Vietnam, India, and Taiwan have said that they would import specific US goods more, French winemakers are ramping up shipments to the country before levies. The threat of tariffs continues to result in uncertainty, regarding how they could be inflationary and potentially spook investors.
Sucharita Kodali, Retail Analyst at Forrester Research, appeared on CNBC to talk about the potential impact of tariffs on companies. In her opinion, all US companies would face some kind of challenges, with higher prices for both consumers as well as these firms. Based on her analysis, this is going to result in 20 basis points to a 150 basis points negative impact on the US GDP. Meanwhile, RBC’s Tom Narayan previously told CNBC that auto stocks will be the hardest hit by Trump’s Canada and Mexico tariffs, which are being deemed really inflationary and disruptive for the US auto consumer.
Our Methodology
We used a stock screener to find stocks which had the highest average upside potential (at least 25%), as of February 24. The 15 stocks that will go to the moon according to analysts have been arranged in ascending order of their average upside potential. Please note that we excluded penny stocks from our screening criteria. We have also mentioned the hedge fund sentiment for these stocks, as of Q4 2024.
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 laboratory employee in a sterile environment inspecting a microscope focused on a Clostridioides difficile infection sample.
Summit Therapeutics Inc. (NASDAQ:SMMT)
Average Upside Potential: 44.67%
Number of Hedge Fund Holders: 25
Summit Therapeutics Inc. (NASDAQ:SMMT) is a biopharmaceutical oncology company that focuses on the development, discovery, and commercialization of medicinal therapies aimed at improving life quality, increasing potential life duration, and serving serious unmet medical needs. Summit Therapeutics was founded in 2003.
The company’s lead pipeline product candidate is ivonescimab, a novel drug that has been designed to improve the balance of anti-tumor activity and safety. More than 2,300 have been treated with the drug across all clinical trials globally. The novel drug is an investigational therapy not approved by any regulatory authority other than China’s National Medical Products Administration and is currently being investigated in Global Phase 3 clinical trials.
Truist analyst Asthika Goonewardene assigned Summit Therapeutics Inc. (NASDAQ:SMMT) a buy rating and a $35 price target. The potential of ivonescimab was highlighted, stating that the drug could generate annual sales in the double-digit billions and could make an entry into the United States and Europe as early as 2026. Furthermore, Summit could be an attractive acquisition target for bigger biopharmaceutical companies with ivonescimab having the potential to go beyond just lung cancer and address a larger market.
Overall SMMT ranks 9th on our list of the stocks that will go to the moon according to analysts. While we acknowledge the potential of SMMT as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a deeply undervalued AI stock that is more promising than SMMT 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.