In the current bullish stock market, it’s an exhilarating period for savvy investors betting on the upcoming market sensations.
The optimism is connected to the S&P 500 shattering the historic 5000 threshold, supported by the U.S. Federal Reserve’s bullish projection of 2.9% growth in the first quarter (Q1). As the market seems ready to embrace risk, now is perhaps an opportune time for investing in high-potential market sensations.
This climate of uncertainty presents a chance for the forward-thinking long-term investor to capitalize on long-term bets trading at highly attractive levels. That said, we spotlight three enticing stocks that, while potentially speculative, hold promise for stellar gains in the long run.
Ardelyx (ARDX)
Over the past year, biopharma player, Ardelyx (NASDAQ:ARDX) has witnessed a remarkable 182% surge in value. Perhaps whats backing the bullish narrative around ARDX, is XPHOZAH, catering to patients with hyperphosphatemia. According to Future Market Insights, The hyperphosphatemia treatment market is expected to grow from $12.7 billion in 2023 to $20.2 billion by 2033, with a CAGR of roughly 4.8%.
Moreover, top nephrologists surveyed by the firm express a high intention to adopt XPHOZAH within the first six months of its availability, a heartening reception from the medical community. Stellar ratings across novel mechanisms, efficacy, tolerability, and dosing attributes reinforce this positive sentiment.
Despite lower fourth-quarter revenue and EPS, the company’s irritable bowel syndrome (IBS) drug IBSRELA continued to impress. It posted a remarkable 22% quarter-over-quarter surge in net sales, reaching an impressive $28.1 million. Echoing this confidence, TipRanks analysts assign Ardelyx a ‘strong buy’ rating with a robust 47% upside potential.
SoundHound AI (SOUN)
SoundHound AI (NASDAQ:SOUN) has seen its shares skyrocket by 85% year-to-date (YTD), triggered by an investment from Nvidia (NASDAQ:NVDA). Despite the relatively modest size, the disclosure of Nvidia’s $3.7 million investment in SoundHound AI sent the SOUN stock’s price to the moon.
Regardless of the size of the investment, Nvidia strongly suggests the company’s belief in SoundHound AI’s leadership in the emergent conversational AI space. SoundHood has grown its top line at a rapid pace, delivering a massive 43% YOY growth, outpacing analyst estimates in the past couple of quarters. Furthermore, estimates suggest that the global conversational AI market size could grow by 23.6% from 2023 to 2030, reaching $41.4 billion by 2030. Such a massive total addressable market is a testament to SOUN stock’s long-term growth potential.
Moreover, TipRanks analysts underscore this sentiment, assigning SoundHound AI a ‘strong buy’ rating, with a projected 19.13% upside potential and an average price target of $4.67.
Adverum Biotechnologies (ADVM)
Adverum Biotechnologies (NASDAQ:ADVM), is a pioneering force in gene therapy innovations, with a distinct focus on ocular and rare diseases. Valued at under $3, the company has experienced an impressive 185.7% YOY increase, marking a clear growth trajectory. Additionally, its market capitalization has jumped from $76 million in 2023 to $200 million in 2024, reflecting a robust 169.7% bump in value.
Advancing through the LUNA trials, ADVM has investors eagerly awaiting critical data, with regards to the safety and efficacy, presenting a potential game-changer in gene therapy. Interim data from the phase 2 LUNA study for Wet age-related macular degeneration shows promising signs of robust clinical activity. Specifically, the study shows a reduction in treatment burden and maintaining visual and anatomical outcomes in difficult patient groups.
Moreover, the anticipation is heightened by the prospect of breakthrough results, further emphasized by TipRanks analysts assigning a ‘moderate buy’ and projecting an enticing 100% upside potential with an average price target of $4. As the company approaches this critical juncture, investors can wager on this high-risk high-reward play. This makes it one of those market sensations.
On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines
