We recently published a list of Top 10 Trending Stocks as AI Hype Fades. In this article, we are going to take a look at where Protagonist Therapeutics, Inc. (NASDAQ:PTGX) stands against other top trending stocks as AI hype fades.

The US stock market took a major hit recently due to tariff-related uncertainties and a broader concern about AI stock valuations. Jeff Sonnenfeld, Yale School of Management senior associate dean for leadership studies, recently talked about the latest data showing a decline in CEO sentiment amid President Donald Trump’s tariff policies.

“We’re seeing with the CEO community, it’s not just the report you had this morning on the plunge in retail sentiment, the plunge in consumer sentiment, and CEO confidence indices by other indices such as Chief Executive Magazine. But we had 100 CEOs across sectors, 60% Republican, about 30% Democrat, 10% independent, and they were overwhelmingly discouraged. There’s a lot of goodwill that had been accumulated after the election. Even though most large CEOs didn’t support President Trump, they did rally and were encouraged to go down to Mar-a-Lago to talk about company-specific issues. The same thing happened in 2017. That goodwill dissipates quickly, and it’s happening right now. 85% think these tariff moves are a disaster, even though they’re in favor of tariffs. They want selective tariffs.”

With tariff deadlines fast approaching, it would be interesting to see how the market reacts to potential changes in President Trump’s policies and stance.

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For this article, we picked 10 stocks Wall Street analysts were discussing lately. With each company we have mentioned the number of hedge fund investors. 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 research scientist wearing a lab coat working with precision in a biopharmaceutical laboratory.

Protagonist Therapeutics, Inc. (NASDAQ:PTGX)

Number of Hedge Funds Investors: 38

Senior markets correspondent George Tsilis in a latest program on Schwab Network talked about several growth catalysts of biopharma company Protagonist Therapeutics, Inc. (NASDAQ:PTGX).

“This is an interesting play on some of the aspects of inflammatory diseases and also hematology. So there’s actually quite a few catalysts for this biotech company. But there was a main catalyst today that they reported—some very positive two phase 2B data associated with an oral pill that they are actually developing in conjunction with Johnson and Johnson for ulcerative colitis, which is actually becoming sort of a chronic illness for many folks. There’s a lot of other treatments that are a little bit more evasive, but an oral application is something I think the market is really looking for. And so they generated some very positive results that led to a huge move to the upside in the stock. But even if you go back not too long ago, the company actually received some positive data in conjunction with Takata Pharmaceuticals for a hematology drug that deals with blood clotting, which is a byproduct of a certain type of blood cancer. They’re actually in phase three trial in that regard. The company’s becoming—if you look at its income statement, particularly in the last year—they’re generating more collaborative licensing revenues.”

Overall, PTGX ranks 8th on our list of top trending stocks as AI hype fades. While we acknowledge the potential of PTGX, our conviction lies in the belief that under the radar AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than PTGX 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.