5 high-octane growth stocks with a 54-94% increase, according to Wall Street
Over the past 12 years, growth stocks have been the key to driving the market as a whole. Even though value stocks have outperformed the two categories over the very long term, historically low lending rates and the trillions of dollars pumped into the US economy have created the perfect storm for growth stocks to thrive. .
Yet, according to Wall Street’s one-year consensus price targets, some growth stocks are far from reaching their full potential. If analysts’ consensus price targets prove to be correct, the following five high-octane growth stocks offer a 54% to 94% hike over the next year.
Vaxart: implied increase of 94%
The supercharged growth action on this list with the biggest implicit increase over the next 12 months is the clinical stage biotech action. Vaxart (NASDAQ: VXRT). If you’re wondering why I included a clinical-stage drug developer, it’s because all of the analysts who cover it are predicting recurring sales for the company, starting in 2022. If Wall Street’s estimates are correct , Vaxart’s stock could almost double from where it closed last week.
What makes Vaxart such a unique drug developer is its approach to treatment development. More specifically, it is developing oral recombinant vaccines, rather than vaccines administered by injection. It should be much easier to dispense and administer pills than injections, which could resolve factors such as reluctance to shoot and access to the vaccine.
Even though it has several treatments in the works, most of the buzz around Vaxart relates to its lab work on VXA-CoV2-1, an experimental oral tablet to treat coronavirus disease 2019 (COVID-19). Data from a Phase 1 study in February showed that VXA-CoV2-1 met all of its primary and secondary endpoints for safety and immunogenicity. The data also reported that oral treatment of Vaxart could be effective against variants of COVID-19.
While it’s probably a little too early to get too excited about Vaxart, it’s a name worth watching closely.
Trulieve Cannabis: 88% implied increase
It’s no secret that cannabis is expected to be one of the fastest growing industries in North America this decade. But among the marijuana stocks, the US multi-state operator (MSO) Trulieve Cannabis (OTC: TCNNF) offers some of the strongest advantages. If Wall Street’s consensus price target of just over $ 72 is correct, Trulieve could gallop up 88% in the coming year.
There are many unique growth strategies among MSOs, but none have proven to be more effective than Trulieve’s master plan. Currently, Trulieve has 88 operational clinics. But here’s the kicker: 82 of them are located in Florida, where medical marijuana is legal. By focusing its efforts on a single, big-dollar state, Trulieve was able to saturate the market, effectively strengthen its brand, and reduce its marketing costs. The company has been profitable for 13 consecutive quarters and, at the end of 2020, controlled 53% of the Sunshine State dried flower market and 49% of its high margin cannabinoid oils market.
Equally intriguing is the agreement of any stock recently announced by Trulieve to acquire MSO. Harvest Health and leisure (OTC: HRVSF) for $ 2.1 billion. Harvest focuses on five states, including Florida. In addition to solidifying an even larger presence in the Sunshine State, Trulieve will have access to the state’s 15 largest Harvest dispensaries in Arizona. The state of the Grand Canyon legalized recreational weed in November. Chances are, Trulieve could use Harvest’s infrastructure to replicate his success in Arizona.
Magnite: implied increase of 59%
Another high-octane growth stock with significant upside potential, according to Wall Street, is the sell-side advertising technology platform. Magnite (NASDAQ: MGNI). If analysts are correct that Magnite hit nearly $ 46 per share in 12 months, that would represent a potential upside of 59%.
Magnite is at the center of a double-digit growth trend that is expected to last for a long time to come. As consumers cut off traditional cable and switch to other forms of entertainment and content consumption, businesses will be more likely to shift their advertising investments online, to apps, and to streaming TV. connected (CTV). While mobile platforms accounted for nearly half of Magnite’s revenue last year, it’s CTV that appears to be the most intriguing long-term growth driver.
One of the biggest boost for Magnite is expected to come from its recently completed acquisition of cash and shares from SpotX. SpotX generated $ 31.2 million in sales (less traffic acquisition costs) in the first quarter, of which $ 19.7 million of that net revenue was attributable to CTV. This is a 70% increase over the previous year. The now consolidated company has sales side advertising platform exposure to people like fuboTV, Roku, Disney, and WarnerMedia, to name a few top platforms.
With Magnite profitable on a recurring basis and fully capable of sustainable double-digit growth, a return of 59% over 12 months is not excluded.
Teladoc Health: implied increase of 56%
A transformative health care stock Teladoc Health (NYSE: TDOC) should also offer abundant upside potential. Based on Wall Street’s consensus price target of around $ 229, Teladoc could rise 56% over the next 12 months.
Many people see Teladoc as one of the biggest winners during the COVID-19 pandemic. With doctors keen to keep high-risk people and infected patients out of their offices, many have turned to virtual visits. Teladoc ultimately processed 10.59 million telehealth visits last year, up from 4.14 million in 2019. But these people are probably forgetting that Teladoc increased its sales by an annual average of 74% in the six years leading up to the pandemic. .
What makes telemedicine such a winning trend is that it offers benefits all along the treatment chain. Telehealth allows patients to stay home for consultations, and it’s a tool doctors can use to more closely monitor their patients with chronic illnesses. This ease of monitoring could lead to improved patient outcomes. It also doesn’t hurt that virtual tours are billed at a lower rate than office tours.
Following its acquisition of Livongo Health, a leading company in the field of applied health signals in the fourth quarter, Teladoc has all the tools it needs to deliver next-level personalized care. In other words, this price target looks very realistic for next year.
Plug power: implied increase of 54%
Finally, hydrogen fuel cell solutions company Connect the power (NASDAQ: PLUG) is (pardon the irony) a high octane growth stock with sufficient upside potential. If analysts are correct about its price target of nearly $ 47 in one year, Plug could offer a 54% return to its shareholders.
The big buzz with Plug Power is the push in developed countries, including the United States, towards renewable energy sources. President Biden has proposed a massive infrastructure bill suitable for renewable energy projects, which signals the federal government’s willingness to invest in clean energy solutions.
Since the start of the year, Plug Power has recruited two major joint venture partners. South Korean group SK has taken a 10% stake in Plug and will work with the company to develop hydrogen fuel cell solutions for vehicles and charging stations. Meanwhile, the French automaker Renault has formed a joint venture with Plug to tackle the European light commercial vehicle market. Following these joint venture announcements, the company introduced a gross billing target of $ 1.7 billion by 2024, which would nearly quadruple its forecast sales for 2021.
It remains to be seen if the navigation will be smooth. The company recently restated the value of its income statements, and history has not always been favorable to the introduction of new automotive technologies.
This article represents the opinion of the author, who may disagree with the “official” recommendation position of a premium Motley Fool consulting service. We are heterogeneous! Questioning an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.