For much of the past 18 months, Wall Street and investors have enjoyed an historic stock market rally. Since bottoming out on March 23, 2020, the widely followed S&P 500 has doubled in value. For some context, the S&P 500 has average an…
annualized total return (including dividends paid) of closer to 11% since the beginning of 1980.
But for some stocks, there’s plenty of upside still to come. According to high-water price targets from select analysts and/or Wall Street investment banks, the following four growth stocks offer share-price upside ranging from a low of 187% to a high of 434% over the coming 12 months.
Plug Power: Implied upside of 187%
The first high-growth stock with the potential to get investors’ motors running is hydrogen fuel-cell solutions provider Plug Power (NASDAQ:PLUG). Analyst Amit Dayal of H.C. Wainwright sees Plug Power heading to $78, which is a far cry from its closing price of $27.19, as of this past weekend. Dayal’s Street-high price target implies a 187% increase in Plug’s shares.
The excitement surrounding Plug Power has to do with developed countries emphasizing green-energy alternatives to reduce carbon emissions. Plug’s hydrogen fuel cells can be used to power consumer and commercial vehicles, and they have industrial applications, as well (e.g., forklifts). Further, there’s an opportunity for the company to benefit at multiple levels of this green-energy shift, such as in building hydrogen refilling stations.
The buzz surrounding this company hit a crescendo in January, shortly after Plug landed two major partnerships. First, SK Group took a 10% equity stake in the company and agreed to form a joint venture to bring fuel-cell technology to South Korea and other Asian countries. A few days later, Plug and French automaker Renault struck an agreement to form a joint venture to go after Europe’s light commercial-vehicle market.
There’s absolutely no question that Plug Power has top-notch joint-venture partners and an incredible opportunity at its doorstep. The big question is: Can it grow into its current $16 billion market cap with profitability still years away? To that end, I’m not so certain.
Columbia Care: Implied upside of 228%
Marijuana stocks are another source of supercharged growth potential. In particular, U.S. multistate operator (MSO) Columbia Care (OTC:CCHWF) offers jaw-dropping upside. With the highest price target on Wall Street calling for $12 a share, and Columbia Care ending the previous week at $3.66, the upside potential here totals 228% over the coming year.
Like a number of smartly run MSOs, Columbia Care has predominantly targeted limited-license cannabis markets. These are markets where regulators purposely limit how many dispensaries can open, as well as how many licenses a single business can hold. By planting its flag in limited-license markets like Ohio, Virginia, and Pennsylvania, Columbia Care is ensuring that it’ll have a fair shot to build up its brands and garner a loyal following in potential billion-dollar markets without being overrun by other MSOs that have deeper pockets.
The other factor that really stands out with Columbia Care is its penchant for inorganic growth. This is a company that’s been pulling the trigger on…
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