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5 Growth Stocks with 66% Upside Potential or More
Led by the artificial intelligence (AI) juggernaut, some tech-focused growth stocks have delivered blowout gains over the past year - leaving their valuations a little stretched as we enter 2024. However, with interest rates stubbornly high, other growth names have underperformed the broader market over the last 52 weeks, which means these names still have room to rally from here.
Although inflation came in higher than expected in December, expectations for Fed rate cuts this year are still being priced in. Moreover, with forecasts calling for U.S. bond yields to cool in the second half of the year, this represents an opportune time to invest in underappreciated growth stocks and reap the long-term benefits.
That said, here's a closer look at 5 growth stocks that analysts think are well-positioned for a breakout performance in 2024.
1. Gambling.com Stock
We start with Gambling.com (GAMB), an online gambling affiliate company, that connects users to licensed gambling operators through their websites and marketing channels. They earn a commission on the revenue generated by referred players.
With a current market cap of about $397 million, Gambling stock is up 4% over the past 52 weeks.
Analysts are forecasting forward revenue and EPS growth of 41.89% and 29.85% for GAMB, which is well north of the sector medians of 3.76% and 3.84%, respectively.
Overall, 6 analysts have unanimously earmarked a rating of “Strong Buy” for the stock, with a mean target price of $15.50. This denotes an upside potential of about 66% from current levels.
2. SoundHound AI Stock
Founded in 2005, California-based SoundHound AI (SOUN) develops and licenses voice AI technologies, including Houndify (a platform for building custom voice assistants), SpeakerID (voice biometrics for user authentication), and SoundHound Music (a music search and identification app), among others.
Over the past year, SoundHound AI stock has rallied 48%. Its market cap currently stands at $449.4 million.
Overall, 5 analysts have unanimously handed out a rating of “Strong Buy” for SOUN, with a mean target price of $4.75. This denotes an upside potential of 163% from current levels.
3. Xencor Stock
Established in August 1997, Xencor (XNCR) develops engineered monoclonal antibody therapeutics for severe and life-threatening diseases using their proprietary XmAb technology platform. It also focuses on treatments for autoimmune and allergic diseases, cancer, and other conditions. Xencor currently commands a market cap of $1.2 billion.
Xencor stock is down 27% over the past year, presenting an opportunity to buy shares on the dip.
Xencor has displayed impressive growth over the long haul, with revenue expanding at a CAGR of 19.67% over the past five years, and 29.62% over the last decade.
Analysts remain quite upbeat about the stock, which has a consensus "Strong Buy” rating and a mean target price of $39.75. This denotes an upside potential of 92.8% from current levels. Out of 13 analysts covering the stock, 11 have a “Strong Buy” rating, 1 has a “Moderate Buy” rating, and 1 has a “Strong Sell” rating.
4. Rocket Lab USA Stock
Founded in 2006, Rocket Lab USA (RKLB) is a California-based aerospace manufacturer and launch service provider. Rocket Lab is a full-stack company providing electron rocket, neutron rocket and on-orbit management services along with spacecraft components. Its market cap currently stands at $2.5 billion.
Rocket Lab stock is virtually unchanged over the past 52 weeks, despite some highs and lows over the course of the year.
Looking ahead, analysts are forecasting a forward revenue growth rate of 90.24% for the company, well above the sector median of 7.62%.
Overall, analysts have rated RKLB a “Strong Buy” on average, with a mean target price of $8.47 - implying an upside potential of about 71% from current levels. Out of 9 analysts covering the stock, 7 have a “Strong Buy” rating and 2 have a “Hold” rating.
5. Globalstar Stock
We conclude with Globalstar (GSAT), which was founded in 1990. Globalstar is a mobile satellite voice and data services provider, offering communication solutions for remote and underserved areas. The company currently commands a market cap of $3.59 billion.
Globalstar stock has zoomed 24.6% higher over the past year, but still trades below $2 per share.
Analysts are targeting forward revenue growth of 25.66% for GSAT, compared to the sector median of 3.76%.
Overall, analysts have a rating of “Strong Buy” for GSAT, with a mean target price of $4.18. This denotes an upside potential of about 126% from current levels. Out of 4 analysts covering the stock, 3 have a “Strong Buy” rating and 1 has a “Hold” rating.
On the date of publication, Pathikrit Bose did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
