For the past 12 years, growth stocks have been the key to sending the broader market higher. Even though value stocks have been the better performer of the two categories over the very long-term, historically low lending rates and trillions of dollars being pumped into the U.S. economy have created a perfect storm for growth stocks to thrive.
Yet according to Wall Street’s one-year consensus price targets, some growth stocks aren’t anywhere near realizing their full potential. If analysts’ consensus price targets prove accurate, the following five high-octane growth stocks offer upside ranging from 54% to 94% over the next year.
Vaxart: Implied upside of 94%
The supercharged growth stock on this list with the greatest implied upside over the coming 12 months is clinical-stage biotech stock Vaxart (NASDAQ:VXRT). If you’re wondering why I’ve included a clinical-stage drug developer, it’s because all of the analysts covering it are forecasting recurring sales for the company, beginning in 2022. If Wall Street’s estimates are correct, Vaxart’s stock could nearly double from where it closed this past week.
What makes Vaxart such a unique drug developer is its approach to developing treatments. Specifically, it develops oral recombinant vaccines, rather than vaccines administered by injection. It should be a lot easier to dispense and administer pills than injections, which could resolve factors like shot hesitancy and vaccine access.
Even though it has multiple treatments in the works, most of the buzz surrounding Vaxart has to do with its work in the lab on VXA-CoV2-1, an experimental oral tablet to treat the coronavirus disease 2019 (COVID-19). Data from a phase 1 study in February showed VXA-CoV2-1 met all of its primary and secondary safety and immunogenicity endpoints. The data also signaled that Vaxart’s oral treatment may be effective against COVID-19 variants.
Though it’s probably a bit too early to get overly excited about Vaxart, it’s a name worth closely monitoring.
Trulieve Cannabis: Implied upside of 88%
It’s no secret that cannabis is set to be one of North America’s fastest-growing industries this decade. But among marijuana stocks, U.S. multistate operator (MSO) Trulieve Cannabis (OTC:TCNNF) offers some of the most robust upside. If Wall Street’s consensus price target of a little over $72 is correct, Trulieve could gallop higher by 88% over the coming year.
There are a lot of unique growth strategies among MSOs, but none has proved more successful than Trulieve’s blueprint. At the moment, Trulieve has 88 operational dispensaries. But here’s the kicker: 82 of them are located in medical marijuana-legal Florida. By focusing its efforts on a single big-dollar state, Trulieve has been able to saturate the market, effectively build up its brand, and keep its marketing costs down. The company has been profitable for 13 consecutive quarters, and as of the end of 2020 controlled 53% of the Sunshine State’s dried flower market and 49% of its high-margin cannabinoid oils market.
Equally intriguing is Trulieve’s recently announced all-stock deal to acquire MSO Harvest Health & Recreation (OTC:HRVSF) for $2.1 billion. Harvest has a focus on five states, one of which happens to be Florida. Aside from solidifying an even bigger presence in the Sunshine State, Trulieve will gain access to Harvest’s state-leading 15 dispensaries in Arizona. The Grand Canyon State legalized recreational weed in November. There’s a good chance Trulieve can use Harvest’s infrastructure to duplicate its success in Arizona.
Magnite: Implied upside of 59%
Another high-octane growth stock with significant upside potential, according to Wall Street, is sell-side advertising technology platform Magnite (NASDAQ:MGNI). If analysts are correct about Magnite hitting nearly $46 a share in 12 months, it would…