These 3 stocks are crushing the market. Wall Street thinks they can go at least 78% higher.
What’s better than a title that’s a big winner? A title that is a big winner and should be able to keep winning in the future.
There are more in this category than you might think. The following three stocks are absolutely crushing the market so far this year. And Wall Street thinks they can go at least 78% higher.
1. Lantheus holdings
The share price of Lantheus Enterprises (NASDAQ: LNTH) nearly doubled in 2022. Much of the stock’s gain came after Lantheus reported fourth quarter 2021 results in late February.
Lantheus develops imaging diagnostics, targeted therapies and artificial intelligence (AI) solutions to discover and treat serious medical conditions. Its products include Pylarify, which is an imaging agent used to detect prostate cancer, and Pylarify AI, an AI platform that helps assess prostate-specific membrane antigen (PSMA PET) positron emission tomography scans. ).
The company continues to fire at full speed. Its third-quarter 2022 revenue soared 134.4% year-over-year to $239.3 million. Lantheus posted a third quarter profit of $61.2 million. It also significantly raised the revenue and profit forecast for the full year.
Even after the huge gains, Wall Street still likes this stock a lot. The 12-month consensus price target for Lantheus reflects 78% upside potential.
2. Axsome Therapeutics
Shares of Axsome therapeutics (NASDAQ: AXSM) have soared more than 40% so far this year. The stock received a big boost with the US Food and Drug Administration (FDA) approval in August of Auvelity for the treatment of major depressive disorder.
Auvelity is not the only Axsome product on the market. The company has won back the US rights to the sleep disorder drug Sunosi from Jazz Pharmaceutical in May 2022. Axsome expects to complete its acquisition of the ex-US rights to the drug before the end of this year.
Other products may be on the way. Axsome CEO Herriot Tabuteau said on the quarterly conference call earlier this month that the company plans to resubmit FDA approval for AXS-07 for the treatment of migraines in the third quarter of 2023. He also said that Axsome expects to file for US approval of AXS-14 for the treatment of fibromyalgia next year.
With strong prospects for Auvelity and these other pipeline programs, it’s no surprise that Wall Street analysts are decidedly optimistic about Axsome. The analysts’ 12-month average price target is approximately 90% higher than the current Axsome share price.
3. Therapeutic Dice
Therapeutic Dice (NASDAQ: DICE) stands out as another strong winner in 2022. The biotech stock is up nearly 30% year-to-date. That’s particularly impressive considering that Dice shares were down more than 45% year-to-date at the end of May.
What changed things so drastically for the drugmaker? On October 11, Dice reported excellent results from a Phase 1 study evaluating investigational oral therapy DC-806 in the treatment of psoriasis.
Some of the big gains after this positive news evaporated due to Dice’s $345 million public offering of shares. However, raising additional funds following a stock price surge is usually a smart move for a clinical-stage biotech company.
Wall Street’s enthusiasm for the potential of Dice and its promising psoriasis candidate hasn’t waned, however. The consensus price target for the stock is nearly double Dice’s current stock price.
Another common denominator
These three stocks have crushed the market this year. Analysts think they could all go much higher. You’ve probably noticed that all three are health care stocks as well. But there is another common denominator that investors should be aware of.
Lantheus, Axsome and Dice are riskier than many stocks. Of the three, only Lantheus is profitable at the moment. Each of these companies faces uncertainties related to its development programs. Dice is the riskiest of the bunch because its lead contender still has a long way to go before it can potentially secure regulatory approvals.
Risk-averse investors are better off looking elsewhere. However, aggressive investors should check out these big winners who may well continue to gain.
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Keith Speights has no position in the stocks mentioned. The Motley Fool fills positions and recommends Axsome Therapeutics. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.