Driven by the excitement around artificial intelligence, the tech-heavy Nasdaq index has soared to extremely high valuations. These elevated valuations indicate that investors should be more cautious in selecting individual stocks.
With valuations for previously successful stocks becoming more extended, investors should focus on uncovering the next hidden gems. One approach to uncovering these potential high-growth stocks is by analyzing consensus analyst ratings and price targets.
By seeking out strong buy recommendations, investors can find stocks that garner the most positive sentiment from analysts.
We have further refined this approach by incorporating Wall Street’s price targets. This approach helps uncover NASDAQ stocks with significant upside potential, offering a data-backed viewpoint for investors in search of future success stories.
Here are five underrated NASDAQ stocks that Wall Street is bullish on:
Wall Street bullish stock no. 1: Patterson-UTI Energy (PTEN)
Patterson-UTI Energy (PTEN) is a leading provider of drilling and completion services for oil and gas companies. Wall Street anticipates nearly a 40% return in PTEN’s stock over the next year.
Rising oil and gas prices benefit Patterson-UTI Energy, as exploration and production companies increase their activities to take advantage of these profitable prices.
Responding to the price surge, oil and gas producers are expected to significantly increase drilling activity in the coming months. This translates to a higher demand for Patterson-UTI’s services, boosting their revenue and profitability.
Wall Street bullish stock no. 2: DexCom (DXCM)
DexCom (DXCM) is a leading name in continuous glucose monitoring (CGM) technology. Wall Street sees a 30% upside for the stock over the next 12 months.
2023 saw the largest expansion of coverage in DexCom’s history, making their CGM technology more accessible to patients. The introduction of Dexcom G7 in the US and international markets received a positive response, contributing to the company’s success.
As awareness of CGM increases and access improves, DexCom is expected to see continued growth in sensor sales, a key revenue driver. With a strong track record, innovative products, and a growing market, DexCom is well-positioned to maintain its leadership position in the CGM market and deliver continued growth for investors.
Wall Street bullish stock no. 3: Royalty Pharma (RPRX)
Royalty Pharma (RPRX) is the leading biopharmaceutical royalty company. Wall Street expects RPRX’s stock price to rise by 45% in the next year. It also pays a solid 2.7% dividend yield.
Royalty Pharma is one of the more unique names on the list. Its business model thrives on acquiring royalties and revenue interests tied to successful drugs from pharmaceutical and biotech companies. This provides a recurring revenue stream, with minimal operational risk and high visibility into future cash flows.
Wall Street bullish stock no. 4: VinFast Auto (VFS)
VinFast (VFS) is a Vietnam-based electric vehicle (EV) manufacturer with ambitious plans that should translate to rapid growth. Wall Street expects nearly 80% upside over the next year for VFS’ stock.
VinFast has quickly established itself as a major player in the Vietnamese market, becoming the country’s top-selling car brand in just two years. VinFast took advantage of the growing demand for EVs in Vietnam, thereby establishing its leadership position in the emerging market.
VinFast is actively expanding its operations into international markets—this global reach opens up significant growth potential for the company.
Wall Street bullish stock no. 5: Exact Sciences Corp (EXAS)
Exact Sciences (EXACT), a leading player in the field of molecular diagnostics, is making waves in the healthcare industry with its focus on early cancer detection. Wall Street expects over 55% upside for the stock in the next 12 months.
Exact Sciences initially focused on colorectal cancer, a widespread and frequently fatal disease. The company’s success with its successful product Cologuard has fueled its growth and expansion into other areas of cancer detection.
Through acquisitions and internal development, Exact Sciences now offers a suite of tests targeting various cancers, including lung, prostate, and breast cancer.
Bottom line
While past performance doesn’t guarantee future success, analyzing current trends and expert opinions can help investors navigate the ever-changing market landscape. We combined insights and Wall Street ratings to find the five Nasdaq stocks that hold impressive potential for future growth.
