Three Shares with Unyielding Potential, as Perceived by Wall Street, Anticipated to Surge Over 35%
Wall Street's affection for a stock doesn't guarantee it's the best pick, but it's wise to examine analysts' views. They base their opinions on thorough examinations of the underlying businesses behind each stock. Sometimes, analysts become overly enthusiastic about stocks with impressive future prospects, even predicting substantial near-term growth. In that spirit, here are three exceptional stocks Wall Street anticipates will surge more than 35% in the next 12 months.
1. Brookfield Renewable
Brookfield Renewable Partners, or BEP (-3.19%), is a limited partnership focusing on renewable power. Operating hydroelectric, wind, and solar facilities with around 37 gigawatts of generating capacity, the company ensures a steady supply of renewable energy.
Unfriendly policies from the Trump administration have threatened the prosperity of renewable energy stocks. As a result, BEP's unit price has dipped nearly 30% below its pre-election high in late 2024. However, analysts remain optimistic about BEP's future, with an average 12-month price target 46% higher than its current unit price.
Analysts share similar enthusiasm for BEPC (-2.77%), a sibling stock targeting investors seeking the tax benefits of a limited partnership. The average 12-month price target for BEPC hovers around 35% above its current share price.
Despite political challenges, the growing demand for electricity, primarily due to AI adoption, should complement Brookefield Renewable's growth trajectory. More than 90% of BEP's development pipeline is located within the planet's top 10 data center markets, further bolstering its appeal.
2. Novo Nordisk
Pharmaceutical giant Novo Nordisk (NVO -0.57%) has a distinguished background. However, its success skyrocketed in recent times thanks to Novo Kseqdik and Wegovy, both dependent on semaglutide.
A stock market downturn occurred since mid-2024, with underperforming sales of Ozempic triggering the slide. Amid fears of Medicare's inclusion of Ozempic, Wegovy, and Rybelsus in its 2027 list for drug pricing negotiations, investors grew nervous.
Regardless, Wall Street's faith in Novo Nordisk remains steadfast, as suggested by the average 12-month price target that reflects a 39% potential profit margin. Analysts are buoyed by the enduring demand for Ozempic and Wegovy and the potential of Novo's pipeline, including promising candidates like CagriSema and an oral semaglutide version, targeting obesity and type 2 diabetes.
3. Summit Therapeutics
While Summit Therapeutics, or SMMT (6.42%), still lacks approved products, this biotech giant could soon join the ranks of pharmaceutical industry heavyweights. Summit's primary hope lies in its lead pipeline candidate, ivonescimab.
Strong clinical trial results from Akesobio last year solidified ivonescimab's prowess in improving progression-free survival in non-small cell lung cancer (NSCLC) patients. Summit's US commercialization rights for ivonescimab (in countries like USA, Canada, Europe, Japan, Latin America, Middle East, and Africa) have propelled its stock price. With the average 12-month price target reaching 50% above its current share price, Wall Street perceives this stock as a potential long-term winner.
However, Summit must first demonstrate consistent results in its own clinical trials and secure US regulatory approval for ivonescimab to establish itself as a market player. If successful, Summit could potentially surpass its current outlook and achieve higher returns.
- Investing in Brookfield Renewable Partners (BEP) could be a wise financial decision, considering analysts' optimism about its future, with an average 12-month price target 46% higher than its current unit price, despite the challenges caused by unfavorable policies.
- Analysts view Novo Nordisk (NVO) as a strong investment option, with a 39% potential profit margin reflected in the average 12-month price target, despite temporary setbacks like the stock market downturn and Medicare pricing fears.