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Stoke Therapeutics (STOK) shares have surged 167% year-to-date, driven by clinical progress and new collaborations. The company's high price-to-earnings ratio of 42.4x is above its industry peers and sector averages, indicating market optimism about future growth and profitability. However, investors should be aware that the valuation leaves little room for disappointment and may be stretched relative to sector standards.

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