For the past 13 months, investors have enjoyed a virtually uninterrupted super-rally from the bear market bottom set on March 23, 2020. Through late last week, the nearly 125-year-old Dow Jones Industrial Average, benchmark S&P 500, and technology-dependent Nasdaq Composite were higher by 83%, 86%, and 105%, respectively, since the bear market bottom…
But even with all three major indexes at or near all-time highs, Wall Street still sees value. Based on Wall Street’s consensus price targets for publicly traded companies over the next 12 months, five stocks of various industries and sizes are expected to deliver gains for their shareholders ranging from 103% to as much as 146%.
Skillz: Implied upside of 103%
First up is mobile gaming and esports provider Skillz (NYSE:SKLZ), which went public via a special purpose acquisition company (SPAC) back in mid-December. Skillz closed on April 15 at $15.10 a share but has a consensus one-year price target by Wall Street professionals of $30.67. For you math-phobes at home, that’s an implied upside of 103%.
Skillz is what you might call a disruptor in the gaming space. Rather than go toe to toe with highly competitive developers, it built a platform that allows gamers to compete against each other for cash and prizes. The kicker is that Skillz and gaming developers get to keep a percentage of the cash for hosting and innovation. Because Skillz is acting as the medium and not incurring extensive gaming development costs, the gross margin on the revenue it brings in is a cool 95%!
What should really excite investors is the company’s potential with the National Football League (NFL). In early February, the two signed a multiyear agreement that’ll see developers competing to launch NFL-themed games on the platform by late 2021 or early 2022. Football is the most popular sport in the U.S. by a mile, so this could be the perfect opportunity for Skillz to shine.
One last note: Wall Street is looking for the company’s sales to quadruple between 2020 and 2024 to nearly $1 billion.
Intercept Pharmaceuticals: Implied upside of 103%
Embattled biotech stock Intercept Pharmaceuticals (NASDAQ:ICPT) is another company analysts could see more than doubling over the next 12 months. With a consensus price target of $41.64, Intercept, like Skillz, offers an upside of up to 103%.
The future for the company rests with obeticholic acid (OCA), which is an experimental treatment for nonalcoholic steatohepatitis (NASH). NASH is a liver disease affecting up to 5% of the U.S. population. It can lead to fibrosis, cancer, and even death. NASH has no approved U.S. Food and Drug Administration (FDA) treatments but is an estimated $35 billion indication.
In the phase 3 Regenerate study, OCA met one of its two co-primary endpoints — a statistically significant improvement in liver fibrosis without a worsening of NASH — which was all that was needed to declare the study a success. However, Intercept was given a Complete Response Letter from the FDA regarding its new drug application filing, with the agency requesting additional safety data. It’s worth noting that the highest dose (and most effective) led to considerably higher instances of pruritus (itching) and trial dropouts relative to the placebo.
Even if OCA was approved for a small subset of the sickest patients, it would have billion-dollar-plus potential.
Plug Power: Implied upside of 121%
Another stock analysts believe has big-time potential is hydrogen fuel-cell solutions provider Plug Power (NASDAQ:PLUG). If Wall Street’s one-year price target of $57.53 proves accurate, it’ll offer 121% upside to shareholders.
Through the first five weeks of 2021, Plug Power couldn’t be stopped. Democrats’ taking back of the Senate by the narrowest of margins in January appeared to pave the way for a clean-energy agenda, at least over the next two years. This was coupled with…
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