Some of the best biotech opportunities can be found in oversold obesity treatment stocks. Look at Eli Lilly (NYSE:LLY), for example.

The last time I mentioned LLY, I said, “Oversold shares of Eli Lilly could easily bounce higher on sales of its obesity drugs. And it could easily jump higher with its Zepbound drug being considered for the treatment of sleep apnea.” That was on July 30, as the stock traded at about $780.

Today, it’s already up to $893.04 and could easily push aggressively higher thanks to growing demand for its obesity treatments and strong earnings. In fact, LLY just posted that its 2024 Q2 EPS passed its 2023 Q2 EPS by $1.33. Additionally, its Q2 2024 net income of $2.97 billion beat its Q2 2023 net income by $1.21 billion. And, again thanks to obesity treatments, it raised guidance well above estimates.

While Eli Lilly has certainly been fun to watch, it’s not the only oversold obesity stock to bet on. Here are three more biotech stocks you may want to buy and hold today.

Viking Therapeutics (VKTX)

Viking Therapeutics (NASDAQ:VKTX) is another one of the top biotech stocks to buy, especially when it recently dipped to less than $50.

Now trading at $59.13, I strongly believe VKTX could run back to all-time highs, as it nears Phase 3 trials for its obesity treatment, VK2735.

The company just announced plans to start a late-stage trial for its obesity drug VK2735 later this year. “We are advancing this compound into Phase 3 development,” CEO Brian Lian said, as noted in a company press release, adding that “we are currently preparing for an end-of-phase 2 meeting with the agency, which we expect to occur later this year.”

In addition, Phase 1 trials of the oral form of the treatment showed encouraging safety and tolerability, with positive signs of clinical activity, as noted in a company press release. Patients also reported a mean weight loss of up to 5.3% from baseline after 28 days. The company expects to move into Phase 2 with the oral treatment later this year.

Structure Therapeutics (GPCR)

Oversold at support dating back to January, Structure Therapeutics (NASDAQ:GPCR) is also a buy.

Helping, the company recently reported positive topline data from its Phase 2a obesity study of GSBR-1290, which “demonstrated a clinically meaningful and statistically significant placebo-adjusted mean weight loss of 6.2% at 12 weeks,” according to a company press release.

GPCR is also on track to initiate a 36-week Phase 2b study of GSBR-1290 in the fourth quarter of the year. Should it continue to show solid progress, shares of GPCR could easily push aggressively higher. 

Even better, CNBC reported that JPMorgan analysts stated:

“We think the opportunity for oral GLP-1s is underappreciated and think this market could generate $30bn in sales by 2035. GPCRs lead asset, 1290, is a pure-play option for this opportunity, and even a small share would support substantial upside to the stock.”

Altimmune (ALT)

There’s also Altimmune (NASDAQ:ALT), whose pemvidutide treatment led to weight loss while preserving lean mass, as noted by Seeking Alpha.

Last trading at $6.41, we’d like to see the oversold biotech stock initially retest $9.

Helping, its Phase 2 MOMENTUM obesity trials showed that after 48 weeks of treatment, patients achieved weight loss of up to 15.6%. “A full analysis of body composition data showed class-leading lean mass preservation with 21.9% of weight loss attributable to lean mass and 78.1% attributable to fat,” the company added.

The preservation of lean mass could set ALT apart from the competition. At the moment, market-leading treatments like Wegovy and Zepbound can lead to significant loss of muscle mass. However, based on ALT’s study, that’s not the case.

B. Riley analysts also reiterated a “buy” on ALT with a price target of $20.

On the date of publication, Ian Cooper did not have (either directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.