We recently published a list of 10 Best Short-Term Stocks To Buy Right Now. In this article, we are going to take a look at where Puma Biotechnology, Inc. (NASDAQ:PBYI) stands against other best short-term stocks with a buying opportunity for investors.

Thrilling highs, daunting lows, and the energized chase after the next big opportunity – this thoroughly defines the current stock market. In this roller coaster ride, momentum investing is an often-seen strategy piquing the investors’ interest, which involves capitalizing on continuing existing market trends. The approach holds onto the hope that high performers in the past will continue to perform better in the future as well. A curious subset within the strategy is the price momentum stocks, whose recent downturns are seen as an opportunity as they show potential for a swift rebound.

READ ALSO: 12 Best Multibagger Stocks to Buy in 2025

2025 has started with many changes, leading to complications in the U.S. stock market. The political changes, including the change in the U.S.’s stand in the Ukraine-Russia war, tariff changes leaning towards unfavorable imports, and the advent of artificial intelligence (AI) models from foreign countries, have brought down the stock value of many dominating leaders in the industry. For instance, CNBC reported a $750 billion drop in the tech industry’s Magnificent 7’s value as of March 10, 2025, owing to new tariffs. However, this decline has been attributed more to institutional selling than fundamental weaknesses. Discerning investors perceive it as a potential opportunity.

It is not just the tech giants feeling the heat. Price momentum stocks with negative one-year returns in the broader market continue to attract investors’ interest despite the fluctuations in the market. Despite the decline over the past year, these stocks have shown positive momentum in more recent periods, getting the attention of many analysts in the market. Such patterns are common in companies that underwent a restructuring, launched a promising product, or benefited from favorable market conditions. To identify these stocks, we must be willing to go deeper beyond the surface-level metrics, and hence, we present this article to you.

Before going into the article, however, investors are asked to approach the momentum investing strategy with caution. The strategy, particularly concerning stocks with recent negative returns, can be like walking a tightrope. We must consider the possibility of the factors that led to their decline, resurfacing in the future, or the short life of the recent positive momentum. Hence, in addition to the information we share in our article, thorough research alongside a well-defined exit strategy is highly recommended.

The pursuit of high returns can be tempting. Hence, investors are suggested to estimate the risk tolerance levels and long-term objectives and align them with their investment decisions. Even during tough times, the stock market presents investors with many opportunities. Discernment and prudence are required to make informed investment decisions that provide the best chance of generating an optimal return for your investment.

Our Methodology

We have used three key criteria to identify the 10 best short-term momentum stocks: a minimum decline of 30% over the past year, a minimum gain of 7.5% in the past month, and average daily trading volume of at least 100,000 shares. In addition, we have considered technical indicators focusing on stocks that recently crossed above their 20-day Simple Moving Average (SMA) and where the 20-day SMA exceeds the 200-day SMA, which signals a potential upward trend. To rank the list, we used the one-month returns. With it, we prioritized the most recent momentum performers. We have also considered the hedge fund interest from Insider Monkey’s Q4 2024 database for each stock on our list to project the level of market backing.

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 examining a biological sample to develop a new drug candidate.

Puma Biotechnology, Inc. (NASDAQ:PBYI)

Last 52 weeks return: -36.40%

Last 1 month’s return: 16.08%

No. of hedge fund portfolios: 18

The U.S.-based pharmaceutical company, Puma Biotechnology, Inc. (NASDAQ:PBYI) is focused on developing and commercializing innovative cancer treatments. Its lead product, Nerlynx, is used for HER2-positive breast cancer patients to prevent recurrence. The company distinguishes itself from its competitors through targeted oncology therapies.

Puma Biotechnology, Inc. (NASDAQ:PBYI) has seen a 36.40% decline in value over the past 52 weeks owing to various reasons. Significant among them is Nerlynx’s declining sales. The company was also facing challenges in expanding the dose range for alisertib without needing further FDA consultations. It all reflected negatively on the company’s values.

However, recent trading activity indicates some positivity, with the stock having climbed 16.08% in the last month. This was after a 9% increase in NERLYNX ex-factory bottle sales during Puma Biotechnology, Inc. (NASDAQ:PBYI)’s fourth quarter. Additionally, the company conducted clinical trials, including a Phase I trial with Enhertu and two Phase II trials for alisertib – a novel aurora A kinase inhibitor under investigation for the treatment of various forms of cancer, with data expected in 2025.

With 18 hedge fund portfolios from the Insider Monkey database currently holding positions, Puma Biotechnology, Inc. (NASDAQ:PBYI) is gaining attention as a possible near-term investment opportunity among short-term stocks.

Overall, PBYI ranks 7th on our list of 10 Best Short-Term Stocks To Buy Right Now. While we acknowledge the potential for PBYI as an investment, our conviction lies in the belief that some AI stocks hold more significant 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 PBYI 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.