Biotech Breakouts: 3 Stocks With Massive Upside Potential
Investing in biotechnology stocks is complex due to the science behind the company’s drug candidates. They can be difficult to trade because these stocks are highly volatile, with double-digit moves in both directions a common occurrence.
However, biotech stocks offer a compelling risk-reward proposition as a long-term investment. The payoff in these three stocks can be massive for investors with the patience and time to hold them through the clinical trial phase.
Viking: An Obesity Challenger with Big Upside
Viking Therapeutics Inc. (NASDAQ: VKTX) surged higher in 2024 in sympathy with the popularity of GLP-1 weight loss drugs.
But in 2025, the stock has dropped more than 40%, including a 20% dip after its August clinical trial update. The results weren’t bad, with patients showing an average of 12.2% weight loss. Viking didn’t fail the trial in any sense.
Investors were concerned that those losses were shown at the highest dosage, which conflicts with competitors with similar or better results at lower doses. They were also reacting to a 28% dropout rate, which suggests the drug may have caused more side effects than preferred.
Does that justify a nearly 50% drop in VKTX stock? Analysts seem to think that reaction seems excessive and have issued a consensus price target of $87.50, indicating a bullish 270% upside from the stock’s current level.
The market for obesity drugs will be large enough to accommodate more than just the big two drug makers (i.e. Novo Nordisk and Eli Lilly). That makes this a good time for conviction investors to start accumulating.
Technically, VKTX appears to be bottoming. The relative strength indicator is around 34, approaching oversold territory, and the MACD shows signs that the bears are losing steam. After forming a death cross pattern in late August, investors should watch for signs of a golden cross as an indication of momentum.
ImmunityBio: A Penny Stock with Serious Potential
ImmunityBio Inc. (NASDAQ: IBRX) stock is up about 8.4% in 2025 with most of that gain coming in the last month. Why? In late August, the company revealed that all five patients in its pilot study with glioblastoma “attained 100% disease control” with a regimen that includes the company’s ANKTIVA drug.
ANKTIVA received FDA approval in April 2024 for bladder cancer treatment and is now in clinical trials for the treatment of other cancers. The company is also looking at the drug as a possible treatment for HIV and those with Long COVID.
This broad utility makes it one of the most exciting immunotherapy drugs in development.
Analysts have given ImmunityBio a consensus price target of $10.75, which would be a more than 280% gain. However, investors may want to wait for a slight pullback. However, caution is warranted in the short term. IBRX is trading above its 200-day SMA and has an RSI of 76, a historically resistant level for the stock.
Investors may want to wait for a pullback before initiating a position, but the long-term thesis remains intact. If ANKTIVA proves effective across multiple conditions, IBRX could move from penny stock status to biotech heavyweight.
Maze Therapeutics: Early Success in Rare Diseases
Maze Therapeutics Inc. (NASDAQ: MAZE) began publicly trading in February 2025. Since then, the stock is up approximately 86% and analysts believe there’s more room for growth.
On Sept. 11, Maze reported promising Phase 1 results for its lead candidate, MZE782, a potential treatment for phenylketonuria (PKU) and chronic kidney disease (CKD).
On Sept. 11, Maze announced positive results from its Phase 1 study of MZE782. This establishes proof of mechanism for a potent, oral SLC6A19 inhibitor with the potential to treat phenylketonuria (PKU) and chronic kidney disease (CKD). The key for investors is that the company can now take the trial into Phase 2.
That still leaves years to go before there’s FDA approval, and that’s no guarantee. However, analysts believe the stock has further to run. HC Wainwright is the most bullish with a $50 price target, which would mean MAZE stock would grow 2x from its current level.
Parabolic moves like the one in MAZE stock usually signal caution. The stock’s RSI is trending towards overbought, though the stock recently found support around the $22.40 level. Confirmation of that support would suggest that momentum is on the bulls' side.
MAZE offers investors exposure to rare disease therapeutics—an area of biotech that often sees strong pricing power and lower competition. If clinical progress continues, the stock could see sustained gains.
