These Three Weight Loss Drug Stocks are Screaming Buys

Keep an eye on lesser-known obesity drug stocks.

Just days ago, Eli Lilly reported that its experimental weight loss pill helped patients lose about 11% of their body weight. However, that landed at the lower end of Wall Street’s expectations, with investors hoping it would match the effectiveness of Wegovy.

That news is a positive for stocks, like Viking Therapeutics (SYM: VKTX), which is developing its own dual GLP-1/GIP receptor agonist, VK2735 in both oral and injected formulations. Even better for VKTX, its trials have been successful so far.

In fact, as noted in a VKTX press release, “Viking announced positive top-line results from the Phase 2 VENTURE study of subcutaneous VK2735 in obesity. The VENTURE trial successfully achieved its primary and all secondary endpoints, with patients receiving VK2735 demonstrating clinically meaningful reductions in body weight compared with placebo. VK2735 also demonstrated encouraging safety and tolerability in the VENTURE study, with the majority of observed adverse events (AEs) being reported as mild or moderate.”

What makes VKTX a standout is its favorable side effect profiles, which are highly sought after.

As a result of current data and Eli Lilly news, VKTX recently jumped from about $25 to $39.70. From here, we’d like to see VKTX retest $55 near term.

There’s also Structure Therapeutics (SYM: GPCR).

Structure Therapeutics is another hot obesity drug stock to keep on radar.

For one, according to Raymond Stevens, Ph.D., CEO of Structure Therapeutics, its ACCESS and ACCESS II studies for aleniglipron, its once-daily oral small molecule GLP-1 program, remains on track for topline data readouts by the end of the year. Two, by the end of 2025, GPCR plans to initiate the Phase 1 study of ACCG-2671, which it believes represents the most advanced oral small molecule amylin agonist in development.

Roundhill GLP-1 & Weight Loss ETF (SYM: OZEM)

Or, if you want greater exposure to obesity drug stocks, there’s also the Roundhill GLP-1 & Weight Loss ETF (OZEM). With an expense ratio of 0.59%, the ETF is the world’s first GLP-1 ETF. At the moment, the ETF has 23 holdings, which includes Novo Nordisk, Eli Lilly, Viking Therapeutics, Roche Holding, Zealand Pharma, and Pfizer.

Currently oversold at $23.85, we’d like to see OZEM initially retest $27.50.

Bonus: Chart of Day

After gapping from about $120 to $86.67, UPS (UPS) now sits at 2020 lows.

All thanks to recent earnings and pulled guidance.

However, UPS CEO Carol Tome just bought 11,682 UPS shares or $1 million. The last time Tome bought UPS, she picked up 10,100 shares for $1 million in May 2020. Board Chair William Johnson bought 5,000 UPS shares of $432,477. The last time he bought shares was in July 2024, when he paid $643,035 for 5,000 shares.

With the stock down substantially on earnings and pulled guidance, it’s fair to say a good deal of negativity has been priced in.

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