Wall Street thinks 3 stocks will skyrocket 50% or more
How far can stocks go? The answer: It depends on the stock. With valuations at record highs, there’s good reason to believe that many stocks don’t have much more leeway.
However, there are a few notable exceptions if analysts’ opinions are correct. Here are three stocks that Wall Street says will skyrocket 50% or more.
Ionis Pharmaceutical (NASDAQ: IONS) has been a big loser so far this year with stocks down 34%. However, Wall Street analysts seem to believe biotech stock can make an impressive comeback. The average price target for Ionis reflects a premium of 56% above the current share price.
The main reason for Ionis’ poor performance since the start of the year was rockDisappointing results from an advanced study evaluating tominersen for the treatment of Huntington’s disease, a rare genetic disorder. Roche authorized the experimental therapy of Ionis in 2017.
However, most analysts seem to remain optimistic about Ionis. This is probably because of the company’s robust pipeline. Ionis has nearly 50 clinical trial programs, including seven in advanced stage studies.
The company expects several key data reads in the second half of 2021. Perhaps the most important of these is Biogenicresults expected from an advanced study of tofersen in the treatment of neurodegenerative disorders in amyotrophic lateral sclerosis (ALS).
Quidel (NASDAQ: QDEL) is another stock that fell significantly in 2021. After jumping more than 40% in early February, shares of the diagnostic testing company plunged 56% below the all-time high.
Bad news for Quidel is good news for Americans. The volume of COVID-19 testing has declined dramatically with fewer suspected cases of the disease. This is largely due to the increased availability of vaccines.
Wall Street analysts still like Quidel’s outlook, however. The consensus price target for the stock is 52% above the current stock price.
What is behind this rosy outlook? Analysts might expect a resurgence of COVID-19 testing in the fall and winter, especially with the emergence of new coronavirus variants. Quidel is also likely to benefit from a bad cold and flu season.
Scotts Miracle Gro
Scotts Miracle Gro (NYSE: SMG) has taken investors on a roller coaster so far this year. The stock has seen four fluctuations – up and down – of at least 20%. Analysts seem to think the race could be fun going forward: The average price target for Scotts reflects a 53% premium to its current share price.
Scotts’ primary growth driver is its Hawthorne segment, which is a leading supplier of hydroponics and gardening products to the cannabis industry. Hawthorne is expected to have huge growth prospects as legal cannabis markets in states that have recently legalized cannabis expand.
However, we cannot overlook Scotts’ core business for lawns and gardens. Earlier this month, the company raised its guidance for fiscal 2021 mainly due to the strength of its U.S. consumer segment.
Wall Street is likely to view Scotts Miracle-Gro as one of the few stocks that offers less aggressive investors a way to profit from the cannabis boom. Scotts even offers a dividend, which very few pot stocks do.
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 motley! Challenging 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.