What do all investors have in common? They want to see returns. No matter which strategy is employed or what types of stocks are sought after, the goal remains consistent at the end of the day. Sure, it’s easy to understand the objective at hand. Unmasking these compelling names, though, is an different story entirely.
While the task can feel overwhelming, Wall Street pros tell investors that rewards will come to those who step back and take note of the bigger picture. We mean to say investors should trim down a stock market search to only the best of the best. Look for names that have not only cleared a pathway to growth but also have the Street’s analysts in their corners.
Using TipRanks’ Stock Screener tool, we were able to track down seven stocks that fit the bill. Not only does each boast substantial upside potential from current levels of at least 50%, but each has also received enough bullish recommendations in the last three months to earn a “Strong Buy” consensus rating. Here’s the scoop.
Evofem Biosciences (EVFM)
Evofem Biosciences (NASDAQ:EVFM) work centers around women’s sexual and reproductive health, offering woman-controlled contraception and protection from sexually transmitted infections (STIs). While shares have struggled year-to-date, the analyst community has been impressed with its recent performance.
In December, the FDA accepted the NDA for Amphora, its multipurpose vaginal pH regulator (MVP-R) candidate, and set a May 25 PDUFA date. While the review will be for a contraception indication, the product is also being evaluated to determine its efficacy in preventing urogenital chlamydia and gonorrhea in women.
Based on recent positive Phase 2b trial data for Amphora’s use in STI prevention, Oppenheimer’s Leland Gershell sees a huge opportunity for EVFM beyond just contraception. “We expect eventual label expansion to STI prevention to be enabled by a single confirmatory trial, to begin in 2H20. With Amphora set to be a non-hormonal, use-on-demand contraceptive as well as the only non-barrier method to prevent sexually-transmitted infection … With the stock having reacted only modestly since the data announcement, we recommend investors take advantage of current levels to build a position in EVFM,” he stated.
As a result, he bumped up the price target from $11 to $20, in addition to publishing a bullish call. Should the target be met, a 268% twelve-month gain could be in the cards.
Meanwhile, Roth Capital analyst Yasmeen Rahimi doesn’t dispute the fact that financing risk has hampered the stock, but argues that non-dilutive funding should address these concerns. Highlighting its noteworthy execution, the analyst views the potential approval in May as a significant inflection point. It isn’t surprising, then, that she left her “buy” rating and $12 price target as is.
While only one other analyst has published a review recently, it was also bullish, making the Street consensus a “strong buy.” Not to mention the $14.33 average price target suggests 164% upside potential. See the EVFM stock analysis.
Misonix, Inc. (MSON)
One of the more established healthcare names on Wall Street, Misonix (NASDAQ:MSON) debuted on the public market 25 years ago, making a name for itself as an ultrasonic surgical device producer. Even though investors have expressed concern about the company’s capital needs, the situation appears to be on the mend.
According to MSON’s most recent 8K filing, it has increased its revolving credit line from $5 million to $20 million. On top of this, the company reported that it had modified its term loan.
Craig-Hallum analyst Alexander Nowak sees this news as encouraging for the company. He argues that the increase in its credit line should address any lingering fears related to its capital. If that wasn’t enough, based on the analyst’s estimates, Misonix could be cash flow positive in the next twelve months.
To this end, Nowak tells investors that his bullish thesis remains intact. However, the four-star analyst chose not to assign a price target along with his “buy” rating.
Turning now to the rest of the Street, other analysts also take a bullish approach when it comes to MSON. With 100% Street support, the message is clear: the stock is a “strong buy.” Adding to the good news, the $28.50 average price target indicates that shares could surge 63% over the next twelve months. See the MSON stock analysis.
Playa Hotels & Resorts (PLYA)
When it comes to all-inclusive resorts on popular beachfront vacation destination, Playa Hotels & Resorts N.V. (NASDAQ:PLYA) is a must-watch name. With the company owning or managing 21 resorts in Mexico, Jamaica and the Dominican Republic, it has certainly earned this status. Despite the 14% fall shares have taken so far in 2020, one analyst remains confident in the strength of its long-term growth narrative.
In fact, Macquarie analyst Chad Beynon was impressed enough with PLYA to throw his hat into the mix with an opinion. Initiating coverage by issuing an “outperform” recommendation, he also set a $10 price target. This conveys his confidence in the resort company’s ability to climb 40% higher in the next twelve months.
In Beynon’s view, outlined in his recent research note titled “Beachfront property at massive discount,” the analyst writes that after conducting a survey of 500 people, he believes a recovery is on the horizon. To top it all off, he makes the argument that the stock is an exciting play to catch on the growth of the tourism markets in the Caribbean and Mexico.
Like Beynon, Wall Street analysts have high hopes for Playa. With three “buy” ratings assigned in the last three months compared to no “holds” or “sells,” the word on the Street is that the stock is a “strong buy.” Given the average price target of $11, the upside potential lands at 54%. See the PLYA stock analysis.
Through a de novo drug discovery collaboration with the University of Washington, BeyondSpring (NASDAQ:BYSI) is developing cutting-edge treatments for cancer. Shares are up 13% year-to-date, and according to some members of the Street, this figure stands to keep rising higher.
Nomura’s Christopher Marai points to its plinabulin candidate for the treatment of chemotherapy-induced neutropenia (CIN) and other immune oncology (IO) indications as being especially promising. The product, which is currently being evaluated in several Phase 2 and 3 studies, could de-risk the company.
On top of this, the analyst sees additional value should the drug be approved for indications beyond CIN. “However, we note that multiple ongoing studies are helping to further elucidate benefits conferred by plinabulin beyond CIN, including its use as an anticancer agent and in IO. The company also is leveraging the founder/CEO’s expertise in E3 ligase biology to develop novel ‘molecular glue’ protein-degrading compounds, including ones targeting KRAS, with its ubiquitination platform,” he stated.
With BeyondSpring slated to file its first NDA for plinabulin’s use in CIN patients in China during 1Q20 and in 2H20 in the U.S., Marai is looking forward to big things from the company. Taking this into consideration, the analyst kicked off his coverage by publishing a bullish call. Assigning a $34 price target, shares could be in for a 94% gain over the next twelve months.
On Wall Street, other analysts share this bullish outlook. A “strong buy” consensus rating breaks down into four “buys” versus no “holds” or “sells.” The average price target, $33.33, indicates 90% upside potential. See the BYSI stock analysis.
EQT Corporation (NYSE:EQT) is best known for being the largest natural gas producer in the U.S., notably spinning off its midstream business into a separate company, Equitrans Midstream (ETRN), in 2018. With operations spanning Pennsylvania, West Virginia and Ohio, the company is committed to advancing its top-tier asset base located in the Appalachian Basin. Despite taking a substantial hit due to headwinds facing the industry, some recommend buying on recent weakness.
Part of the issue can be attributed to climate change. As the U.S. experiences warmer winter temperatures, the demand for natural gas heating has sunk lower. This isn’t helped by the fact that the ramp up of U.S. fracking has caused an oversupply of gas, hampering several industry players including EQT.
That being said, Stephen Richardson of Evercore ISI is staying on board. “EQT has outlined the multiple monetization levers at its disposal (ETRN stake, minerals royalty interest, non-core E&P assets) as part of a commitment to reduce leverage by $1.5 billion by mid-2020. With the market value of ETRN a known quantity, recent mineral deal comps reducing royalty valuation uncertainty, and management’s transparency on the noncore assets being marketed, the monetization target seems highly achievable in our view,” he commented.
Bearing this in mind, Richardson continues to stand with the bulls, reiterating both the Outperform rating and $13 price target. This implies that shares could get a 146% boost over the next twelve months.
Looking at the consensus breakdown, three “buys” and a single “hold” received over the previous three months coalesce into a “strong buy” consensus rating. Additionally, shares could skyrocket 152% in the next twelve months based on the $13.25 average price target. See the EQT stock analysis.
Earthstone Energy (ESTE)
Earthstone Energy (NYSE:ESTE) is an independent energy company focused on developing and operating its portfolio of oil and gas properties, which are primarily located in the Midland Basin of west Texas and the Eagle Ford trend of south Texas. After announcing its preliminary results for the fourth quarter of 2019, powerful returns could be in store for investors in 2020, according to some members of the Street.
The company reported that it will be dialing back its 2020 budget by 21% year-over-year, with the new budget landing at $160 million to $170 million. For the fourth quarter, production of 17.4 kboe/d was pre-reported, which was 22% above the consensus estimate and 16% above the high-end of guidance (14–15 kboe/d). Not to mention oil production is expected to beat the Street consensus by 25% at 11.5 kbbl/d. The strong performance most likely came as a result of reduced downtime and solid well performance, with nine Midland and ten Eagle Ford wells being completed.
This prompted management to release 2020 production guidance of 15.5 to 16.5 kboe/d, which is above the consensus of 15.2 kboe/d and reiterate its 2H20 FCF forecast. RBC Capital analyst Brad Heffern sees the latter of the two as being especially important. “We now see a relatively clear path to ESTE’s goal of FCF at $50/bbl in 2H20, which is quite a feat for a company of ESTE’s size,” he noted.
In line with his optimistic take on the energy company, the analyst maintained both his Outperform call as well as the $8 price target, implying 75% upside potential.
What does the rest of the Street think about ESTE’s long-term growth prospects? As it turns out, the majority of analysts covering the energy name agree with Heffern. With an average price target of $8.81, the potential twelve-month gain is 92%. See the ESTE stock analysis.
Sequans Communications (SQNS)
Taking its place at the forefront of the tech industry, Sequans Communications S.A. (NYSE:SQNS) provides 4G and 5G chips and modules for IoT devices. As the world gears up for 5G, analysts believe that SQNS is well positioned to capitalize on the opportunity.
Writing for Needham, analyst Rajvindra Gill highlights the company’s impressive Q4 performance. During the quarter, a $35 million strategic deal drove a 25% quarter-over-quarter increase in revenue, with the figure coming in at $9.2 million. This deal should help generate sales of $8 million in 2020 and about $10 million per year over the next two years. Adding to the good news, gross margin saw an improvement and its operating loss narrowed.
Gill added, “Moreover, SQNS continued to experience strong traction in Cat M/NB, benefiting from the ongoing ramp of Monarch SiP coupled with a win at a large metering company. We expect Cat 1 sales to partially recover in Q1, with a full recovery in Q2. We continue to expect SQNS to benefit from the ramp in Cat M/NB, broadband stabilization and strong long-term growth in vertical markets.”
Given all that SQNS has going for it, the Needham analyst kept a “buy” rating on the stock. After raising the price target from $6 to $7, the upside potential now lands at 40%.
Out of three total analysts that have published a call in the last three months, 100% see the stock as a “buy,” making the Street consensus a “strong buy.” Should the $8.42 average price target be met, a possible twelve-month gain of 68% could be in the cards. See the SQNS stock analysis.
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.