Jim Cramer Recommends Eli Lilly Over Viking Therapeutics

Viking Therapeutics, Inc. (NASDAQ:VKTX) is one of the stocks Jim Cramer shared insights on. When a caller asked about the company during the lightning round, Cramer commented:

“No, no, no. We have Eli Lilly. Why do we have to settle? Let’s, don’t, don’t go for the raggedy rest. Let’s go for the best.”

Viking Therapeutics, Inc. (NASDAQ:VKTX) is a clinical-stage biopharmaceutical company focused on therapies for metabolic and endocrine disorders. The company’s pipeline includes VK2809 for non-alcoholic steatohepatitis, along with candidates for diabetes, hip fracture recovery, obesity, and rare genetic conditions. When a caller asked about the stock in a January episode, Cramer responded:

“Okay, people, people think that even if Lily’s stock can’t go up, why would we want Viking Therapeutics? And a lot of people were in it for a takeover. So far it doesn’t look like that’s materializing, so they’re giving up and they are selling it. I prefer Eli Lilly.”

Since the above comment, Viking Therapeutics, Inc. (NASDAQ:VKTX) stock has declined by nearly 23%. The stock dropped over 40% between August 18 and 19 after the trial data of its oral anti-obesity drug showed that 20% of the patients dropped out due to negative effects.

While we acknowledge the potential of VKTX as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.