Unveiling the Investment Gems: 3 Turnaround Stocks Projected for 151% to 600% Growth in 2024, Backed by Exclusive Insights from Wall Street Analysts!
For individuals possessing a positive perspective, 2023 proved to be an exceptional year. The classic Dow Jones Industrial Average hit all-time highs, while the S&P 500 and Nasdaq Composite finished the year with significant gains of 24% and 43%, respectively.
All equities, though, may not benefit from the big indexes’ stellar performance. Several once-rising equities are now 75% or more below their historical highs, creating a varied market environment.
Based on the optimistic predictions of a few Wall Street experts, there appears to be hope for some of these former superstars. These are three turnaround stocks that could rise as much as 600% in the upcoming year, according to certain Wall Street analysts.
Unveiling the Investment Gems: 3 Turnaround Stocks Projected for 151% to 600% Growth in 2024
- Novavax: Implied upside of 600%
- JD.com: Implied upside of 151%
- Petco Health and Wellness: Implied upside of 170%
Novavax: Implied upside of 600%
Wall Street analyst Vernon Bernardino believes that biotech firm Novavax (NASDAQ: NVAX) is a key participant in the story of the year thus far. In spite of a startling 98% decline from its peak, Bernardino sees shares of Novavax rising to $35, which would represent a remarkable 600% increase from the $5 closing price on January 5.
The outcome of an arbitration case involving canceled orders for Novavax’s COVID-19 vaccine with the international vaccine organization Gavi will determine the company’s future. Gavi is requesting $700 million, a crucial amount that might have a big effect on Novavax’s financial situation. The company’s future solvency may depend on whether it can satisfy this demand.
In 2024, Novavax has a crucial cost-cutting plan in place as well. Novavax intends to further reduce costs by $300 million throughout the new year, having already cut operating expenses by half in the first nine months of 2023—a staggering $950 million decrease compared to 2022. If these extreme cost-cutting efforts are executed successfully, their cash burn rate might be significantly reduced.
The other unknown in this situation is the demand for the COVID-19 vaccination. Unlike Moderna and Pfizer/BioNTech, which created messenger-RNA vaccines, Novavax developed a protein-based vaccination using conventional methods. Shares of Novavax might likely experience a significant upside in the upcoming year if the company sees increased demand for its COVID-19 vaccine or if it gains traction when it begins late-stage studies for a combo vaccine (influenza and COVID-19).
Even though I’m not nearly as optimistic about Novavax as Bernardino is, if everything goes well for Novavax in 2024, a triple-digit gain might be in store.
JD.com: Implied upside of 151%
Chinese e-commerce giant JD.com (NASDAQ: JD) is another major turnaround possibility for 2024, according to a Wall Street analyst’s prediction. Benchmark analyst Fawne Jiang cut her company’s price estimate for JD to $67 from $73 in the middle of October. However, Jiang expects shares of JD.com to rise by up to 151% even at this lower level.
The fact that China is still recovering from more than three years of lockdowns due to the pandemic is currently the largest obstacle facing the country’s second-ranked e-commerce giant. Economic growth has been modest even after authorities abandoned the divisive “zero-COVID” mitigation approach in December 2022.
On the other hand, there is a long potential runway for e-commerce in China. The nation with the second-highest gross domestic product,
In China, JD.com stands out primarily because to its operational approach. While JD is more of a true direct-to-consumer (DTC) supplier, Alibaba, the biggest player in e-commerce, mainly depends on third-party sales through its online marketplace to earn money. That is to say, JD manages the logistics of sending goods to customers as well as inventories. Comparatively speaking, JD has more control over their margins because to the DTC strategy.
It’s also important to keep in mind that JD.com is currently spinning out its industrial and real estate businesses, hoping to list them all on the Hong Kong stock exchange. Spinoffs frequently increase shareholder value by making it easier for investors to analyze how businesses expand and turn a profit.
The valuation undoubtedly encourages upside as well. As of right now, JD is trading at about eight times forward-year earnings. Considering the additional regulatory risks associated with purchasing equities in China, this is historically inexpensive. Even while reaching $67 by the end of 2024 could be difficult, “up” does seem to be the right course for JD’s stock.
Petco Health and Wellness: Implied upside of 170%
According to a Wall Street analyst’s call, Petco Health & Wellness (NASDAQ: WOOF), a provider of products and services for pets, is the third turnaround stock with enormous upside in 2024. According to Evercore ISI analyst Oliver Wintermantel, Petco stock may trade for $8 per share, or a possible 170% gain over where it closed last week.
The main thing that supports Wintermantel’s appeal is that owners are prepared to part with their cash for their feathered, gilded, hairy, and scaled “family members.” According to data from the American Pet Products Association (APPA), U.S. pet sector expenditures have not decreased consecutively year for over 25 years.
That’s excellent news for companies serving the pet market, which seems to be growing all the time.
Sadly, Petco Health & Wellness hasn’t been able to benefit from this consistent increase in spending (keep in mind that APPA’s expenses go beyond pet food and treats to include sales of veterinary treatment and supplies). CEO Ron Coughlin has observed, in particular, a recent trend in consumer preference toward value-based products. Petco is continuing to cut operating costs and is changing its product line to reflect this value focus, but its projection has consistently fallen short of expectations.
In the meanwhile, Petco can easily increase profits without significantly raising operational costs by boosting its internet sales.
Even though Petco stock might bottom in 2024, with so many obstacles to overcome, a $8 price objective might be asking for too much.
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