After a shaky September, investors are getting some relief. Bolstered by a more optimistic outlook on trade following the partial deal with China, the market is trending upwards again. In just the last five days, both the S&P 500 and NASDAQ are up 1%.
Bearing this in mind, investors are looking for the stocks to buy that have the potential to lift their portfolios to new heights. These investments are the stocks with the strongest long-term growth narratives, capable of delivering massive returns.
While finding these stocks can seem like an impossible mission, I used the TipRanks Stock Screener to accomplish this task. The tool, which can filter search results by analyst price target, enabled me to zero in on seven stocks with impressive growth prospects. Each boasts about 100% upside potential and has a Strong Buy consensus from Street analysts, based on the last three months-worth of ratings.
Let’s dive in on the following seven stocks to buy.
Zynerba Pharmaceuticals (ZYNE)
Zynerba Pharmaceuticals (NASDAQ:ZYNE) develops treatments for rare neuropsychiatric disorders using pharmaceutically-produced cannabinoid (CBD) therapeutics designed for transdermal delivery. While it has been bogged down by confusion surrounding data from its Zygel trial, several analysts believe this resulted from a misunderstanding and that ZYNE is primed for further gains on top of its already posted 182% year-to-date growth.
On Sept. 18, the company released data from its open label Phase 2 clinical trial to test the safety and efficacy of CBD Zygel in cases of pediatric epilepsy. While the trial demonstrated positive top line data, ZYNE shares took a hit plummeting 22% in just one day.
Nonetheless, H.C. Wainwright’s Oren Livnat argues that this reaction was “unwarranted.” “This reasoning entirely misses the point of this study,” he commented. He instead views the data as reinforcing Zygel’s better safety and efficacy than GW Pharma’s (NASDAQ:GWPH) competing therapy, Epidiolex. As a result, the four-star analyst reiterated his Buy rating and $23 price target, suggesting shares could soar 168% over the next twelve months.
With four Buy ratings vs. one Hold assigned in the last three months, other analysts appear to agree. ZYNE sports a Strong Buy Street consensus and $19 average price target, putting the upside potential at 124%. Get the ZYNE Stock Research Report.
It’s no question that the Street is keeping a close eye on Amarin Corporation (NASDAQ:AMRN) ahead of its upcoming FDA advisory committee (AdCom) meeting for its Vascepa drug. The Nov. 14 panel will determine if the biotech’s omega-3 fatty acid (fish oil) drug, which has already been approved to treat high triglyceride levels, will be approved as a suitable method for reducing major adverse cardiovascular events (MACE).
With a lot riding on the outcome of the AdCom, Wall Street analysts have come out in support of the company. Seven Buy ratings and one Hold received in the last three months deliver a clear message: Amarin is a Strong Buy. Its $32 average price target implies 96% upside potential from the current share price.
One of the analysts who recently published a bullish call, Jeffries’ Michael Yee, stated that he expects a positive AdCom outcome to drive about 10% new prescription growth and 14% total prescription growth.
“Of note, the final ICER guidance report for Vascepa was released this morning and largely appears in line with the draft guidance released in late July. Scripts continue to grow, and we think 2020 Street estimates remain low with a likely positive AdCom vote and approval later this year,” the four-star analyst explained.
This prompted a reiteration of his Buy rating and $30 price target. While lower than the average consensus estimate, his price target conveys his confidence in AMRN’s ability to climb a solid 85% higher over the next year. Get the AMRN Stock Research Report.
Health Insurance Innovations (HIIQ)
Health Insurance Innovations (NASDAQ:HIIQ) is one of the stocks to buy that offers customers a cloud-based technology platform to enable the distribution of health insurance products. Even though shares are down 8.48% year-to-date, analysts have this stock pegged as a must-watch growth stock.
B.Riley FBR’s Randy Binner argues that HIIQ’s strong financial results reported in its most recent quarter aren’t built in to the share price. He noted:
Overall, we continue to see supportive market M&A activity, good normalized cash flows, and the potential for a clear pivot to Medicare sales. This discount is, in large part, the result of short-seller-focused blogs, tweets, and other reports, which, we believe, are inconsistent with good reported financial results and should be behind the company, as the Simple Health and FTC matters were resolved in 1H19.
Based on these factors, the five-star analyst reiterated his Buy rating and $45 price target. Binner tells investors that he sees 69% upside potential from the current $26.69 share price.
As only Buy ratings have been assigned over the last three months, there’s no doubt that the rest of the Street is on the same page. Accompanying its Strong Buy analyst consensus, its $54 average price target implies 102% upside potential. Get the HIIQ Stock Research Report.
Green Thumb Industries (GTBIF)
If you’re looking to round out your portfolio with a massive cannabis growth stock, look no further than Green Thumb Industries (OTHER OTC:GTBIF).
While shares dipped 10% in the last month, the analyst consensus breakdown indicates that the medical marijuana company could be a long-term winner, with its potential twelve month gain coming in at 121%. Seven Buy ratings and no Holds or Sells received in the last three months add up to a Strong Buy Street consensus. Additionally, in the past year, the cannabis stock has only been assigned Buy ratings.
Part of what sets GTBIF apart from other cannabis stocks is its geographic positioning. Back in August, the company acquired Fiorello Pharmaceuticals, giving it one of only ten vertically integrated licenses for cultivation and processing in New York. With the state’s medical cannabis market doubling since January 2018 to reach 105,000 registered customers as of Aug. 20, GTBIF’s position as one of the few key players in the space could drive significant revenue growth.
GTBIF’s strength geographically prompted five-star Cowen & Co. analyst Vivien Azer to not only initiate coverage with a Buy and set a $18.50 price target (106% upside potential), but also call the company her “favorite name among the multi-state operator (MSO),” earning it a firm place on this list of stocks to buy. Get the GTBIF Stock Research Report.
Known for producing the technology that allowed for the first online sale of health insurance, eHealth (NASDAQ:EHTH) now focuses primarily on providing Medicare Advantage plans, Medigap as well as other prescription drug plans.
In just the last three days, both Raymond James and RBC Capital gave EHTH its stamp of approval as one of the key stocks to buy. While acknowledging the general sell-off that has taken place over the last two months without “any fundamental news” occurring, RBC’s Frank Morgan maintains his optimistic outlook. The five-star analyst notes that despite there being substantial investor concern regarding policy churn as well as the effects on eHealth’s constrained lifetime value metric, he expects to see a potential turnaround fueled by an update on 2020 annual enrollment performance for the period that starts on Oct. 15.
The rest of the Street takes a similar approach when it comes to eHealth. Eight Buy ratings compared to no Holds or Sells received in the last three months cements its status as a Strong Buy. Adding to the good news, its $132 average price target reflects that it’s well positioned to skyrocket. We are talking 118% upside potential here. Get the EHTH Stock Research Report.
Celsius Holdings (CELH)
A series of recent positive development has put beverage maker Celsius Holdings (NASDAQ:CELH) on the Street’s radar.
To start, the largest grocery chain by revenue in the U.S., Kroger (NYSE:KR), announced on Oct. 8 that it would be expanding its partnership with CELH to sell the company’s fitness drinks in more than 1,100 stores nationwide. This comes on the heels of the release of CELH’s new Grapefruit Melon Green Tea flavor.
Not to mention CELH has remained committed to expanding its product offerings in the space through its recent acquisition of health food and beverage company, Func Foods. Following the announcement of the deal, Maxim Group analyst Anthony Vendetti took a bullish stance on CELH, reiterating an $8 price target along with his Buy rating. He thinks that shares could surge 147% over the next twelve months.
Like Vendetti, other Wall Street analysts are optimistic on Celsius Holdings. With 198% upside potential, it’s no wonder CELH earns a Strong Buy consensus rating. Get the CELH Stock Research Report.
While not the sexiest of stocks to buy on the Street, OptiNose (NASDAQ:OPTN) is undoubtedly making a name for itself as a key player in the ear, nose and throat (ENT) disease space.
Even though shares have taken a serious beating in the last six months, slipping over 20%, one analyst believes that the dip represents a unique buying opportunity.
According to top-rated analyst, David Steinberg of Jeffries, part of the appeal lies with the company’s XHANCE nasal spray. XHANCE is the only FDA-approved nasal spray that features an exhalation delivery system (EDS) for the treatment of nasal polyps, which occur as a result of chronic inflammation. Unlike other nasal sprays that require patients to sniff the medicine, patients blow into the spray to reduce the likelihood of medicine dripping into the throat.
With the company seeking approval for XHANCE’s use in the treatment of chronic sinusitis, significant growth could be in store. According to Steinberg, if approved, XHANCE sales could land within the range of $350 million to $800 million. This lends itself to his conclusion that OPTN’s risk/reward looks particularly appealing, reiterating his Buy rating and $21 price target (171% upside potential).
As only bullish ratings have been assigned to the stock in the last three months, the word on the Street is that OPTN is a Strong Buy. It tops our list with the best growth prospects, with its $23 average price target suggesting upside potential totaling 202%. Get the OPTN Stock Research Report.
TipRanks offers investors the latest insight into eight different sectors by tracking the activity of over 5,000 Wall Street analysts. As of this writing, Maya Sasson did not hold a position in any of the aforementioned securities.