Investors can choose from thousands of stocks, and while that may sound like a good thing, more choices aren’t always better. It’s easy to get overwhelmed by the number of available stocks and miss out on compelling opportunities.
Luckily, stock analysts simplify deciphering good stocks from less promising ones. These experts offer price targets and explain the rationale behind their decisions. Further, investors can glean through these notes to determine the reasons others are feeling bullish or bearish about certain assets.
Also, some stocks have the potential to outperform market indices, and analysts tend to notice them before other market participants. These three stocks have great support from analysts and the potential to generate outsized gains in the future.
Microsoft (MSFT)
Microsoft (NASDAQ:MSFT) is a staple in many investment portfolios and makes up a large percentage of many funds. If you have exposure to funds that mirror the S&P 500 or Nasdaq 100, you have some exposure to Microsoft stock.
Shares have gained 36% year to date (YTD) and are up by almost 200% over the past five years. Despite these gains, many analysts believe the stock can rally from here.
Wells Fargo (NYSE:WFC) recently reiterated its overweight rating and gave Microsoft a $400 price target, representing a 22.3% increase over the current price of roughly $327 per share.
WFC’s $400 price point is nearly in line with the average price target on Tip Ranks. MSFT is labeled as a strong buy with an average target price of $397.19 from 34 analysts. The highest price target is $440 while the lowest price target is $298.10.
Microsoft’s dominance across gaming, cloud computing, PCs, and artificial intelligence gives it plenty of moat. Expect the tech conglomerate to benefit shareholders for many years ahead.
Perion (PERI)
Perion (NASDAQ:PERI) is a small ad-tech company with a $1 billion market cap and a 13 P/E ratio. The company boasts double-digit revenue and earnings growth, truly a hidden gem in the stock market.
Oppenheimer analyst Jason Helfstein agrees. Helfstein gave Perion a $45 price target which implies roughly a 50% upside. The average price target on Tip Ranks is slightly less, at $41.75 per share across five analyst ratings.
The small-cap advertising company gives investors exposure to CTV, search, and social ads. Shares have gained 20% YTD, surging over 950% during the past five years.
Perion has double-digit profit margins and a well-diversified advertising portfolio. PERI reported double-digit revenue and earnings gains in 2022. That’s the time many ad companies like Meta Platforms (NASDAQ:META) and Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) reported year-over-year (YOY) declines.
The company’s outperformance of larger peers, low valuation, and good financials make it an enticing opportunity for long-term investors.
Celsius Holdings (CELH)
Celsius Holdings (NASDAQ:CELH) is a sports beverage company that has gained over 4,000% within the past five years. With shares up by over 50% YOY, many analysts believe the stock can go even higher.
Roth MKM reiterated a “buy” and maintained a $220 price target for Celsius Holdings. This price target implies a 42.9% upside from the stock’s $154 price point. Also, the 10 analysts on Tip Ranks are optimistic about CELH stock and have an average price target of $215.
The highest price target on Tip Ranks is $250 while the lowest price target is $191. Every price target from these 10 analysts implies a double-digit growth potential for CELH.
Although the sports beverage company has a frothy valuation, high revenue and earnings growth can support that valuation. Celsius Holdings reported triple-digit revenue and earnings growth YOY. Those growth rates can help the company gain more market share in the beverage industry and generate long-term gains for investors.
On this date of publication, Marc Guberti held long positions in PERI and CELH. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
