3 Stocks with Monster Upside Potential, According to Wall Street
Rising government bond yields in response to surging inflation, a significant decline in crude oil due to worries around COVID-19 lockdowns in China, and the ongoing Russia-Ukraine war, have fueled the latest stock market retreat. The United States 10-year yield improved nearly 2.8% intraday. The Dow Jones Industrial Average has slumped 1.8% over the past five days, while the S&P 500 index has declined 3.7% over the last five days.
But despite the heightened market volatility, certain stocks with strong financials and solid growth prospects have the potential to withstand the current economic and geopolitical headwinds. So, it could be profitable to invest in fundamentally strong growth stocks, which are expected to offer good returns relative to the broader market in the coming months.
Novavax, Inc. (NVAX)
NVAX in Gaithersburg, Md., is a biotechnology company. It focuses on discovering, developing, and commercializing vaccines for serious infectious diseases. The company’s vaccine candidates include NVX-CoV2373, a coronavirus vaccine candidate, NanoFlu, a nanoparticle seasonal equipment influenza vaccine candidate, and ResVax, a respiratory syncytial virus fusion protein nanoparticle vaccine candidate.
On April 8, NVAX and Serum Institute of India Pvt. Ltd., the world’s largest vaccine manufacturer, received emergency use authorization (EUA) from the Thailand Food and Drug Administration (Thai FDA) for Novavax’s protein-based vaccine for active immunization to prevent COVID-19 caused by severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2). The vaccine is expected to maintain sustained demand globally due to the resurgence of COVID-19 cases.
On March 23, NVAX and Serum Institute of India announced the first emergency use authorization of Novavax’s COVID-19 vaccine in adolescents aged between 12 and 18 in India. This might expand global access to the Novavax vaccine.
In its fiscal 2021 fourth quarter, ended Dec. 31, 2021, NVAX’s revenue from royalties and other increased 523.6% year-over-year to $127.21 million. The company’s cash and cash equivalents improved 173.8% from the prior year to $1.52 billion. And NVAX’s total current assets rose 72.7% year-over-year to $2.16 billion for its fiscal year 2021 (ended Dec. 31, 2021).
The $901.87 million consensus revenue estimate for its fiscal year 2022 first quarter, ended March 31, 2022, represents 285.6% growth from the same period in 2021. And the $3.38 consensus EPS estimate for the to-be-reported quarter indicates a 210.8% year-over-year rise.
The stock declined 59.8% in price year-to-date. However, the 12-month median price target of $179.86 indicates a 212.6% potential upside from yesterday’s closing price of $57.54. The price targets range from a low of $83.00 to a high of $250.00. Among the seven Wall Street analysts that rated NVAX, five rated it Buy, while two rated it Hold.
Virgin Orbit Holdings, Inc. (VORB)
VORB is a vertically integrated space company. The Long Beach Calif.-based company operates responsive space launch systems and solutions for small satellites. VORB also offers launch services for national security and defense, civil spaceports, and commercial customers in the U.S and internationally.
This month, VORB and the Satellite Applications Catapult, an independent innovation and technology company, agreed to…