There’s always a strong case for undervalued biotech stocks.

For one, the industry is only expected to grow. In fact, according to Grand View Research, biotech could be worth about $3.88 trillion by 2030. After all, there’s always going to be a need for biotech. Fueling even more upside is artificial intelligence, which may be able to create new drugs that can treat untreatable issues.

There’s even newer innovation, demand for better treatment, pharmaceutical companies strengthening pipelines, gene editing and an unstoppable obesity treatment boom showing no signs of cooling. We’re even seeing a resurgence of M&A activity, with Eli Lilly (NYSE:LLY) buying Morphic Holding for $3.2 billion.

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In short, biotech is an exciting sector with great upside potential moving forward. Even better, at times, we’re offered even more opportunity when we uncover severely undervalued biotech stocks, such as:

Viking Therapeutics (VKTX)

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Every time I mention biotech opportunities, Viking Therapeutics (NASDAQ:VKTX) leads the list.

When I first highlighted VKTX on June 22, it traded at $23 a share. Not long after, it hit a high of about $99 before backing off. Now at $58, it’s still one of the top biotech stocks to buy and hold, thanks to the obesity story.

What’s encouraging about VK2735’s obesity treatment is that trial results show it’s outperforming other products already on the market.

As noted by Seeking Alpha, “Semaglutide (Wegovy) only showed an 8% loss after 20 weeks, while tirzepatide (Zepbound) took significantly longer to reach a larger weight loss. According to a new study, the weight losses from these GLP-1s on the market was far lower than the Viking Therapeutics drug candidate.”

With exemplary results like that, Viking Therapeutics could have a potential blockbuster hit on its hands. Plus, the company said the oral form of VK2735 helped patients lose about 3.3% of body weight after 28 days in Phase 1 trials.

Structure Therapeutics (GPCR)

Another top undervalued biotech stock to buy is Structure Therapeutics (NASDAQ:GPCR), an undervalued clinical-stage global biopharmaceutical company focused on obesity.

Over the last few weeks, the stock dropped from about $62.73 to about $37, where it’s again a strong buy opportunity. After catching support at about $37, it’s starting to pivot higher, last trading at $41.83. From here, I’d like to see it retest $52 in the near term.

Two, the company’s mid-stage obesity study of GSBR-1290 and capsule-to-tablet PK [pharmacokinetics] study achieved primary and secondary goals. Third, in its Phase 2a study, GSBR-1290 saw a meaningful and statistically significant placebo-adjusted average decrease in weight of 6.2% at 12 weeks.