Top 3 stocks with at least 100% upside potential
But markets are inherently risky, and finding the right combination of risk and reward looks more like art than science. However, no one forbids you to use science to minimize the risk.
We are talking about statistics – the science that studies numbers, patterns, and their relationship. With the help of statistics, investors can get an objective view of the market as a whole or a specific company. In addition, statistics are suitable as an assessment of the success of professional traders and analysts.
The financial experts used the tools of the TipRanks platform. They compiled a list of three companies that demonstrate a robust combination of risk and reward. Most Wall Street analysts recommend buying shares in each of these firms. In addition, the securities have excellent upside potential in the future – by 100% or more.
- Rezolute (RZLT)
Resolute is currently working on two projects, both of which at treating diabetes-related diseases. A leading candidate for a drug called RZ358 is presently in phase 2b of an open-label study.
The drug treats congenital hyperinsulinism (CHI), a rare childhood disease in which the pancreas produces too much insulin, resulting in deficient blood sugar levels. It Harms the entire body. RZ402, a second drug candidate, is in phase I clinical trials. It is an oral dosage formulation for treating diabetic macular edema, one of the causes of diabetes-related blindness.
In its third-quarter 2021 financial report, Resolute has included an update on the development of both leading drug candidates. Regarding RZ358, the company noted that patient enrollment is ongoing for the RIZE phase 2b study. The first data should in the second half of 2021.
In addition, the company announced the completion of a Phase I trial of a candidate for RZ402 and that early results have demonstrated the feasibility of a single daily oral dose of the drug. The company will begin Phase 1b research in the third quarter of 2021.
In addition, Resolute reported $ 32 million in cash and cash equivalents in its financial statement, which is enough to fund operations until the third calendar quarter of 2022.
Analyst H.C. Wainwright Douglas Cao kicked off his coverage of RZLT with an upbeat outlook, writing:
Resolute is poised to move into the spotlight with two newer drugs. Despite promising drugs with differentiated mechanisms of action, Resolute by the investment community; we associate market entry through a reverse merger and OTC listing. However, given the proximity of crucial growth catalysts and the company’s recent listing on the Nasdaq, we believe it is time for investors to take a look at this story.”
Cao recommends buying with a price target of $ 21, which implies 103% upside over the coming year.
Overall, three Wall Street analysts advise buying. The average price target of $ 25.33 suggests that the company’s stock has an impressive 145% upside potential over the year.
- Westport Fuel Systems Inc (WPRT)
Westport is a high-pressure direct fuel injection technology leader and manufactures machines designed for propane or hydrogen.
Westport holds 1,400 patents or patent applications related to alternative fuel systems. The company sold in 70 countries last year, with total revenues of $ 252 million.
For the first quarter of this year, Westport’s revenue reached $ 76.4 million, which is $ 3.81 million higher than the forecast and 14% more than in the first quarter of 2020. As a result, the company made a net loss in the first quarter, but the loss of $ 0.02 per share was well below its $ 0.12 loss in the same quarter last year. Westport aims to achieve $ 1 billion in annual sales by the middle of this decade.
Amit Dayal, the analyst at H.C. Wainwright, is impressed with the company’s first-quarter results. He notes the following: “The year-on-year revenue growth is attributable to a 25% increase in component sales driven by demand for light-duty vehicles. In addition, the gross margin for the quarter increased to 17% from 15.5% in the fourth quarter of 2020. “
Speaking about the company’s prospects, the analyst added: “It is essential that the company focuses more and more on driving growth in North America. We believe that regulatory factors in this area are now putting pressure on fleet owners to purchase vehicles with cleaner emissions. our opinion plays into the hands of the company’s existing solutions, which already meet the emerging need. “
Dayal recommends buying shares of the company. Its price target of $ 16 indicates an upside potential of 155% over the next 12 months.
Overall, three Wall Street analysts advise buying. The average price target for WPRT shares is $ 13.33, which speaks of 112% annual upside potential from current levels.
- Ayr Wellness (AYRWF)
Now let’s turn to the fast-growing cannabis industry. Ayr Wellness is an American cannabis company as well as MSO (a multi-state company). The company’s business ranges from growing cannabis to selling products. Ayr operates dispensaries in Arizona, Florida, Massachusetts, Nevada, and Pennsylvania and offers various products for both medical and recreational purposes.
The legal cannabis market is young and continues to increase. For example, Ayr posted 74% revenue growth in the first quarter of 2021 over the prior year to $ 58.4 million.
The company focused on expanding its presence. Ayr closed its acquisition of Liberty Health Sciences in Florida during the quarter. The move brought the firm 42 new dispensaries in Florida, making it the fourth-largest player in the third-largest state. Ayr has also completed acquisitions in Arizona and Ohio. In addition, the company expects to enter the New Jersey market by the end of the summer.
Echelon analyst Andrew Semple sees the company’s expansion as the main driving force: “We forecast strong growth in the company’s sales in the future.
In the coming quarters, Ayr will benefit from business synergies between acquisitions in Arizona and Florida, the closure of the New Jersey Garden State Dispensary (expected in the third quarter of 2021)
significant expansion in Arizona, Pennsylvania, Florida, New Jersey, and Nevada (as well as in the states of Massachusetts and Ohio, which will be operational in 2022) and the opening of 14 new dispensaries in 2021. “
Semple recommends buying, raising the price target from $ 58 to $ 61, which implies 100% upside potential for the stock next year.
Overall, four Wall Street analysts advise buying; one recommends holding. The median price target is $ 45.58, which shows an upside potential of 49% in the coming year.
