Viking Therapeutics (NASDAQ: VKTX) has shown its strengths from a potential product perspective and an investment perspective in recent times. The company reported excellent data from clinical trials of two formulations of its leading weight loss drug candidate. In fact, after the first data report in late February, the stock surged 120% in just one trading session. It has maintained much of that gain in the weeks that followed, and today is up by almost 100% since the report.

The treatment area Viking is targeting is one with high demand and solid growth prospects. demand for already-commercialized weight loss drugs of the same class as Viking's candidate has consistently surpassed supply, prompting companies to increase their manufacturing capacities. And the weight loss drug market may reach sales of $100 billion annually by 2030, according to a forecast from Goldman Sachs Research.

So it's fair to say Viking is looking pretty great right now. But here's why you shouldn't buy the stock.

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Source Fool.com