3 reserves for the growth of monsters that could reach new heights
On Wall Street, things always change. Stock prices fluctuate, new players debut in the market, the macro environment shakes and long-term trends change. However, one thing remains the same: growth is the name of the game. Growth stocks are constantly gaining a place on investors̵
7; wish lists, given their potential to bring returns. This growth potential exceeds and exceeds the norm, as these plays have already made some impressive gains in 2020, and upward will continue to come in the long run. Knowing what you are looking for is one thing, but how should investors find these opportunities? One strategy is to take a cue from Wall Street professionals. With this in mind, we used the TipRanks database during our search for exciting growth names, according to the analyst community. By closing three stocks that match the bill, each ticker backed by analysts will make more profits on top of its impressive climbs so far. Here are all the details. Sunnova Energy International (NOVA) First we have Sunnova Energy International, which is one of the best providers of residential solar and energy storage services. Although it has jumped 160% so far, several analysts believe the name has more room to release. After talking to NOVA founder and CEO John Berger, five-star analyst Joseph Osha of JMP Securities is even more confident about the prospects for long-term growth, noting that “stocks seem significantly undervalued.” Pointing out the storage business in particular, the analyst believes that this is a major force. “NOVA has achieved efficiency in increasing the percentage of attached storage devices and has managed to make its business-oriented business model perform well. The storage demand environment has increased over the last 60 days and we believe we may be at a turning point for the industry, ”Osha said. Taking a closer look at the attachment rates, this figure reached 34% in Q2. Part of this strong result is due to the company’s move to island markets, with Berger mentioning that accession tariffs in Hawaii, Guam, Saipan and Puerto Rico are virtually 100%. In addition, prices are improving in Texas and Florida. Explaining this, Osha said: “Summarizing all this together, we get 34%, which Mr. Berger believes will grow, albeit with very different dynamics in different markets. We also note that NOVA sells storage to existing customers and these sales are not reflected in the stated coupling rate. “Reflecting more positives, Osha says that NOVA’s relationship with Tesla and Generac distinguishes it by also choosing the dealer’s ideal partners. Moreover, the overall storage market seems solid and cell manufacturers are struggling to keep up with demand. To that end, Berger argues that the space is “as strong as you think it would be if attachment rates continued to rise in the new geographic areas, and customer revenue also increased.” While some investors have expressed concerns about Sunrun’s (RUN) competition, Osha believes that while RUN’s approach works relatively well, “smaller developers may end up losing.” As a result, the analyst sees room for a higher rating for NOVA. In line with its optimistic approach, Osha remained with the bulls, repeating a market efficiency rating and a price price of $ 43. Investors could gain a profit of 48% if this goal is met over the next twelve months. (To view Osha’s recording, click here) Do other analysts agree? They are. In the last three months, only purchase ratings have been issued, more precisely 10. Therefore, the message is clear: NOVA is a strong purchase. Given the $ 33.70 average price target, stocks could jump 16% next year. (See Sunnova Energy International’s stock analysis for TipRanks) Big Lots (BIG) As a retailer, Big Lots offers its customers everything from groceries and household items to affordable furniture and electronics. With a solid position in 2021, some members of the street believe that its 87% profit so far is just the beginning. Introducing Piper Sandler, five-star analyst Peter Keith tells customers that “the setting remains extremely favorable.” The company’s guidelines for the Q3 comp were above its mark, but the invitation to EPS from $ 0.50 to $ 0.70 (against Keith’s forecast of $ 0.12) was a big surprise. “In the past, Q3 was not only a negative quarter for EPS, but BIG also steered the huge EPS up despite ~ $ 12 million in additional rental costs (from DC sales) and ~ $ 10 million in COVID costs,” Keith said. To this end, the analyst increased its forecast for Q4. Keith explained, “The Q4 is set to be quite strong, the return to discrete sales could not be more appropriate for the time, our research work continues to show increased demand for home furnishings and any positive impact from the new major retailer (who joined in end of July) has not yet affected the sales trend. “In terms of close activity, the new CMO Jack Pestello has helped strengthen BIG’s sales efforts, with Keith already seeing compelling offers during store inspections. In addition, cutting promotions should portend good results for the retailer. BIG halved the number of promotional days in the third quarter of 2020 compared to the third quarter of 2019. Therefore, although BIG is guided by fixed gross margins during the year, Keith says there is room for improvement. According to management, most categories had some stock constraints in Q3, but suppliers were catching up with demand, especially in key segments such as furniture, home office and small appliances.In addition to the good news, a buyout permit was announced. shares worth $ 500 million, which according to Keith should “add a little juice to EPS in the next quarters’. Everything BIG did about it convinced Keith to keep his overweight rating. In addition to the call, he left the price tag at $ 75, suggesting a 40% potential increase. (To watch Keith’s recording, click here) Turning to the rest of the street, opinions are evenly divided. With 3 purchases and 3 arrests made in the last three months, the word on the street is that BIG is a moderate purchase. At $ 60.33, the average price target assumes a 12% upside potential. (See analysis of large batch stocks for TipRanks) Amicus Therapeutics (FOLD) Last but not least, we have Amicus Therapeutics, which develops therapies for ultrasorous diseases, including lysosomal storage disorders (LSD). With 77% so far, even more growth can be achieved for this healthcare name, according to numerous Street professionals. Although proud of the next generation of phase 3 enzyme replacement therapy, one of its gene therapy assets has received considerable attention. During the CNSA conference, FOLD presented additional follow-up data from its Phase 1/2 CLN6 Battens gene therapy program. The program evaluates AT-GTX-501, its gene therapy for use in CLN6 Batten disease, a fatal condition in which children experience a rapid and progressive decline in cognitive and motor function. It has a population of about 1,000 patients worldwide. The presentation included additional intermediate data on safety and efficacy. Based on safety data for 13 patients treated with the candidate, the therapy was well tolerated. It should be noted that five patients reported eleven grade 3 SAEs, including four that were considered potentially treatment-related. These include vomiting, fever and upper abdominal pain, which are symptoms often seen with AAV gene therapy. Weighing Cowen, five-star analyst Ritu Baral said the fact that no immunogenicity to AAV9 or CLN6 was observed was an important contribution. In terms of efficacy data, the results for twelve patients who reached the 12-month time point and eight who reached the 24-month time point were analyzed against the natural age-adjusted history. According to the aggregate assessment of motor and language in Hamburg (HM&L), which assesses ambulatory and speech, the average rate of decline in patients treated was much lower than the natural history for the same period of time. If we dig a little deeper, at the 12-month time point, the average rate of decline in treated subjects is 0.4 points, compared to 1.2 points in natural history subjects. At the 24-month time point, the mean rate of decline was 0.6 points in treated subjects, compared with 2.4 points in participants in natural history. Moreover, management stated that 63% of patients with a natural history experienced a further 2-point drop in HM&L’s score two years after their first drop, while only 13% of AT-GTX-501 gene therapy recipients had the same. What does all this mean? “We believe that this update is gradually positive and shows the durability of the AT-GTX-501’s performance for up to two years. Interim efficacy results showed a nominally statistically significant and very likely clinically significant delay in disease progression over 24 months in CLN6 Battens … The natural history collection collected is a relatively recent review of the chart by the same researcher as the FOLD study and therefore we believe it is probably reliable, “Baral said. If this was not enough, the analysis of the control of natural history may be sufficient for registration in the United States. “We believe that, given the rarity and severity of CLN6, a possible controlled PBO test is not feasible. We believe that data from the natural history of the disease is rapidly solidifying into a body of evidence that will be relevant to both the FDA and the EMA, ”explained Baral. Given all the above, Baral has high hopes. Along with a rating of superiority, it maintains a price price of $ 31 per share. This target sets the potential for an increase of 81%. (To watch Baral’s recording, click here) Other analysts seem to be repeating Baral’s mood. 3 Buys and no retentions or sales are added to a clear consensus rating. Based on an average price target of $ 23.67, the potential for an increase is 38%. (See stock analysis of Amicus Therapeutics for TipRanks) Disclaimer: The opinions expressed in this article are those of the analysts only. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.