As Wall Street prepares to bid farewell to a remarkable year, marked by record highs and a 43% surge in the Nasdaq Composite, optimism continues to linger. The Dow Jones Industrial Average achieved a record high, reflecting the overall strength in the market, particularly for growth stocks. The anticipation of a resilient U.S. economy and the likelihood of the Federal Reserve cutting interest rates in 2024 have investors bullish on fast-paced companies.
Amid the diverse array of growth stocks, three stand out, poised for substantial growth in 2024, according to Wall Street analysts’ consensus price targets.
1. Plug Power (NASDAQ: PLUG): Implied Upside of 102%
- Consensus Price Target: $9.13 per share
Plug Power, a hydrogen fuel-cell solutions company, is anticipated to experience triple-digit growth in 2024, with Wall Street projecting a 102% increase based on a consensus price target of $9.13 per share. The optimism revolves around the global shift towards renewable energy, with developed countries promoting greener transportation. Plug Power secured significant wins, including a green hydrogen deal with Amazon and partnerships with SK Group and Renault. However, aggressive expansion efforts have led to a substantial net loss, and the company’s dilution strategies pose challenges for shareholders.
2. Lexicon Pharmaceuticals (NASDAQ: LXRX): Implied Upside of 293%
- Consensus One-Year Price Target: $5.15 per share
Lexicon Pharmaceuticals, a small-cap biotech company, is expected to surge by 293% in 2024, as per Wall Street’s consensus one-year price target of $5.15 per share. The approval of Inpefa (sotagliflozin) by the U.S. Food and Drug Administration for heart failure treatment in certain patients and the ongoing development of LX9211 fuel this optimism. The unique SGLT1/SGLT2 inhibitor, Inpefa, is forecasted to contribute significantly to sales. However, potential dilution risks, despite a recent fundraising effort, pose challenges for Lexicon shareholders.
3. Cassava Sciences (NASDAQ: SAVA): Implied Upside of 316%
- Consensus Price Target: $99.50 per share
Cassava Sciences, a clinical-stage biotech company, is poised for a remarkable 316% surge in 2024, according to Wall Street’s consensus price target of $99.50 per share. The company gained attention in 2021 with positive results from its simufilam study for Alzheimer’s disease. Currently in a phase 3 trial, Cassava Sciences faces allegations of flawed trials, posing a potential risk to its only developed experimental therapy. The company’s success hinges on overcoming the challenges associated with treating Alzheimer’s and addressing accusations of trial irregularities.
While these stocks present significant growth potential, investors must navigate associated risks and closely monitor developments throughout 2024.
