The shares of Viking Therapeutics (NASDAQ:VKTX), HEICO Corporation (NYSE:HEI), and ABM Industries (NYSE:ABM) are all sinking sharply today.
Viking Therapeutics (NASDAQ:VKTX) has developed an anti-obesity drug, while HEICO Corporation (NYSE:HEI) sells components for airplanes and ABM Industries (NYSE:ABM) Industries provides various functions for offices, such as janitorial and parking services.
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Viking Therapeutics (NASDAQ:VKTX), whose shares are sinking about 10%, is retreating along with a number of other companies in the anti-obesity space. These names are falling after Merck (MRK) disclosed that it would collaborate with China-based drug maker Hansoh (HNSPF) to create an oral anti-obesity drug. The deal marks the first time that Merck has entered the anti-obesity space.
HEICO Corporation (NYSE:HEI) is sinking after its fiscal fourth quarter sales came in at $1.01 billion, which was $20 million below analysts' average estimate. However, its revenue did increase 8% versus the same period a year earlier, and it generated earnings per share of 99 cents, versus analysts' mean estimate of 98 cents. The company reported its financial results yesterday after the market closed.
Finally, ABM Industries (NYSE:ABM) Industries is dropping after the firm reported this morning that its adjusted EBITDA had sunk 11% during its fiscal Q4 versus the same period a year earlier to $128 million. Additionally, its operating profit tumbled 82% year-over-year to $19.2 million.
While we acknowledge the potential of VKTX, HEI and ABM our conviction lies in the belief that some 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 VKTX, HEI and ABM 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.