3 High-Flying Growth Stocks With 104% to 123% Upside, According to Wall Street

Since the end of the Great Recession over 12 years ago, growth stocks have been the talk of the town on Wall Street. The combination of historically low lending rates and ongoing quantitative easing measures from the Federal Reserve has made capital cheap and abundant for fast-paced companies. This is why growth stocks have had no trouble…

running circles around value stocks.

But for some high-flying growth stocks, significant upside awaits, depending on the analyst or investment bank you ask. Although the following trio of growth stocks have already soared in value over the past couple of years, the high-water price target on Wall Street for each implies they’ll more than double in value over the coming 12 months.

Moderna: Implied upside of 112%

The first highflier that at least one Wall Street firm believes could more than double is biotech stock Moderna (NASDAQ:MRNA). Despite gaining almost 1,100% since the beginning of 2020, Wall Street’s peak price target of $490 over the coming year suggests it could shoot higher by another 112%.

Chances are that most people are familiar with the Moderna name. It’s been one of the key players on the coronavirus disease 2019 (COVID-19) vaccine front. The company’s vaccine, mRNA-1273, demonstrated a vaccine efficacy (VE) of 94% in U.S clinical studies in November of last year. Few other COVID-19 vaccine candidates have come close to mRNA-1273’s initial VE, which is what’s made it such a popular vaccine choice with the public.

Although it isn’t clear how we as a society will adapt to COVID-19 moving forward, the mutability of the SARS-CoV-2 virus that causes COVID-19, as well as the need to vaccinate billions of additional people worldwide, is creating a need for initial inoculations and, likely, booster shots. Should COVID-19 vaccines become necessary each year, Moderna would have itself a recurring revenue stream.

What’s more, Moderna is one of a small handful of drug companies looking to develop a combination vaccine for influenza and COVID-19. Being able to prepare people for two potentially deadly ailments each year could give Moderna a leg up on its growing competition.

However, I’d be remiss if I didn’t point out that Moderna’s only sustaining revenue stream is from its COVID-19 vaccine. If booster shots aren’t necessary beyond 2022, the company’s sales could shrink rapidly. Between new vaccine entrants, oral vaccine innovation, and Moderna’s whopping $94 billion market cap, there seems to be a lot of risk baked into this valuation.

Penn National Gaming: Implied upside of 123%

A second high-flying growth company with some serious projected upside is Penn National Gaming (NASDAQ:PENN). Even with Penn National’s share price surging 128% to $58.25 since the beginning of 2020, one Wall Street firm foresees it reaching $130 over the next 12 months. For those of you keeping score at home, this works out to an implied upside of 123%.

The buzz surrounding Penn National Gaming has to do with its push into online sports betting and iGaming, which includes online video games and other types of online casino betting. Specifically, investor buzz hit a boiling point last year when the company announced it was acquiring a 36% equity stake in Barstool Sports. This deal was viewed as a way for Penn National to break free from its reliance on its traditional casino operations and firmly move into the online betting/gaming arena. Though estimates vary wildly on Wall Street, online sports betting could be an up to…

 

Continue reading at THE MOTLEY FOOL

 

Leave a Reply

Your email address will not be published. Required fields are marked *