Wall Street is likely to uncork the champagne on what's been another successful year for the market. The benchmark S&P 500 was up 25% for the year, which is more than double the average annual total return of the widely followed index since 1980.
There are still some big gains to be had according to some analysts. The following four growth stocks are expected to deliver upside of 119% to 189% in the next few years, based on the high-water one-year price targets issued by analysts and investment banks.
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Nio has an implied upside of 154%.
Nio is an electric vehicle manufacturer. Nio is one of the strongest expected upside EV stocks, with them being particularly hot for over a year now. Nio is expected to reach almost $87 in 2022, based on the highest currency-converted price target among financial institutions. It has an implied upside of 154%.
It looked like the company wouldn't have any issues ramping up production to an annual run-rate of 150,000 EV. Supply chain concerns and a chip shortage caused this plan to be thrown out the window. Nio delivered a record 10,878 vehicles in November.
This works out to an annual run-rate of 130,000 vehicles.
Nio's production ramp-up has Wall Street excited. It will play a key role in its success. Three EV models have been introduced, with three new vehicles planned for 2022.
The battery-as-a-service solution was introduced in 2020. The upfront cost of a new EV is reduced in exchange for a monthly fee based service. The service allows owners to upgrade their batteries in the future. Nio has found a way to keep buyers loyal to the brand by giving up some near-term revenue.
China is the No. 1 auto market in the world and Nio is based there. Nio's price target is asking a bit much, but it's definitely in his favor.
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Implied upside is 119%.
Another high-growth stock that's the apple of at least one Wall Street firm's eye is technology-driven real estate platform Redfin. Truist Securities is expecting up to 119% upside in Redfin's shares over the next year, with an $88 price target.
The growth thesis is built on two drivers. It is undercutting the competition on a cost basis. Traditional real estate firms charge 2.5% or 3% listing fee/commission, while Redfin charges 1% or 1.5% depending on how much previous business has been done with the company. The average selling price of a new home in the U.S. was $477,800 in October.
The real estate industry is ripe for disruption because of its stodgy nature and Redfin brings personalization to the table. It offers a Concierge service to help clients maximize the selling value of their home, as well as an iBuyer program that purchases homes from sellers with cash. 3D and virtual home tours were offered by the company.
The big question is how it's going to fare with interest rates, and therefore mortgage rates, in the years to come. While homebuying activity does tend to abate during periods of higher lending rates, Redfin's core advantages could keep its hamster on the wheel.
The peak price target is far too optimistic. Patients who own shares in Redfin have a bright future.
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One analyst thinks you should buy Vaxart for a great upside opportunity in the future. The analyst expects Vaxart to hit $18 in 2022, which would mean a gain of 189% from where it closed this past weekend.
There are two factors that make Vaxart tick. The company's future is dependent on the VAAST platform. "Vector-Adjuvant-Antigen Standardized Technology" is what it stands for. Vaxart wants to differentiate itself by developing drug candidates in oral form that are typically administered as a vaccine. It makes administration easier and safer, and it targets both systemic and mucosal immunity.
Vaxart is on the map because of the experimental oral coronaviruses disease 2019. Vaxart's oral tablet is designed to act as a vaccine for healthy individuals, unlike the oral COVID-19 pills that are targeted at already-infecting patients.
Will it work for $64,000? High levels of neutralizing antibodies, which have been observed following traditional COVID-19 vaccines, weren't present in an early stage study. Vaxart expects better results from its mid-stage trial.
Unless Vaxart's results match the efficacy of traditional vaccines, it will be hard for the company to reach a lofty price target.
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There is an implied upside of 143%.
The cloud-based video conferencing platform, Zoom Video Communications, is expected to offer significant upside in the years to come. With a $450 price target, the recently battered Zoom could offer gains of 143% in the upcoming year.
During the Pandemic, Zoom was a huge winner. With the traditional office environment disrupted, remote work and virtual meetings became commonplace.
Now is the time to question whether the low-hanging fruit of the epidemic can be kept growing. It looks like it will sustain double-digit growth potential for the time being. Businesses of all sizes should benefit from the efficiency that Zoom brings to the table.
It's been a popular solution for smaller businesses. The company's bread-and-butter has been wooing small and medium-sized businesses. It has had 14 consecutive quarters of a net dollar expansion rate of at least 130% for businesses with 10 or more employees. Existing customers with 10 or more employees have spent at least 30% more from the previous year for 3.5 years.
There's no doubt that Zoom will need to remain innovative and look at acquisition opportunities to command a premium valuation. A price target of $450 is a target that can be reached by shares in the future.
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