Astronomical. Frothy. Nosebleed level. Take your pick of the best way to describe the valuation of the stock market right now. The raging bull market from the last decade combined with the huge rebound from the coronavirus-fueled market meltdown last year has…
pushed stock valuations to sky-high levels.
That doesn’t mean there aren’t stocks that could still go much higher, though. Here are three growth stocks to buy that Wall Street thinks could soar 30% or more.
Pinterest‘s (NYSE:PINS) shares are down nearly 40% from the peak earlier this year. Wall Street analysts think that the stock can regain most of this decline. The consensus price target for Pinterest reflects a 37% premium above its current share price.
Investors especially soured on Pinterest after the company reported a drop in monthly active users (MAUs) in its second-quarter update. That’s concerning because advertisers pay based on how many potential consumers they’re reaching.
However, I think Wall Street’s optimism about Pinterest is justified. Pinterest CEO Ben Silbermann noted in the company’s Q2 conference call, “In Q2, monthly active users on our mobile apps grew in the U.S. year over year and internationally by more than 20%.” The decline came from web users. That makes sense with the reopening of the economy.
Over the long term, Pinterest should have excellent growth prospects. The company is engaging users more with new features including interactive video. It’s focused on increasing monetization with Pinterest Shopping ads. Pinterest is also expanding its international reach.
Teladoc Health (NYSE:TDOC) has taken an even worse beating than Pinterest. The healthcare stock has plunged more than 50% from its first-quarter highs. Analysts, though, believe that Teladoc is a bargain now with the average price target more than 40% above the current share price.
Like Pinterest, the main concern for Teladoc is that the user boom experienced in the pandemic last year will fade. The company has already seen its membership growth rate slow significantly.
But Teladoc continues to perform very well on several fronts. Its revenue per member per month soared…
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