In our recent article, we highlighted the top 10 Best Biotech Penny Stocks to Buy Now. Today, we focus on Applied Therapeutics, Inc. (NASDAQ:APLT) and where it stands among other biotech penny stocks in the market.
The year 2024 has shown promising growth prospects for the healthcare industry, attracting investors to explore new opportunities, particularly in the biotech sector. Despite the risks associated with continuous mergers and acquisitions, the biotechnology market is expected to reach USD 4.25 trillion by 2033, with a CAGR of 11.8%. The U.S. market alone is projected to reach USD 763.82 billion by 2033, showing significant growth potential.
Fitch Ratings has a Neutral outlook for the global biotech industry in 2024, citing moderating inflation rates as a key factor. The industry is supported by factors such as an aging population, increased healthcare access, and a rise in chronic and specialist conditions. Biotech stocks like Vincerx Pharma (VINC), Corbus Pharmaceuticals (CRBP), and Viking Therapeutics (VKTX) have seen substantial gains in 2024, with returns ranging from 134% to 446%.
Laura Chico, an industry expert, highlights key areas in biotech that are prone to buyouts, including oncology, immunology, inflammation, neuro, and rare diseases. Monitoring FDA approval news, scientific and clinical risks, and the disease categories targeted by companies can provide insights into potential investment opportunities.
Healthcare Equity Strategist Jared Holz emphasizes the potential in well-positioned small-cap and large-cap biotech stocks, suggesting that it’s not too late to invest in the sector. Applied Therapeutics, Inc. (NASDAQ:APLT) emerges as a top biotech stock to watch, focusing on developing therapies for rare central nervous system diseases and diabetic complications. With positive results from its phase 2 study, the company has garnered attention from investors and analysts alike.
With a Strong Buy rating from Wall Street analysts, Applied Therapeutics has a high price target of $14.00 and a low target of $11.00, indicating potential upside. The company reported significant growth in cash reserves and a strategic focus on its drug development pipeline. Ranked 1st on our list of the best biotech penny stocks to buy, Applied Therapeutics, Inc. (NASDAQ:APLT) showcases promising potential in the current market landscape. While we recognize the potential of investing in APLT, our belief is that AI stocks offer a more promising opportunity for higher returns in a shorter timeframe. If you are seeking a more promising AI stock than APLT, look into our report on the cheapest AI stock trading at less than 5 times its earnings. For more insights, check out Analyst Sees a New $25 Billion “Opportunity” for NVIDIA and Jim Cramer’s Recommendations for June. Please note that this article is originally published on Insider Monkey. No disclosures.