In this article, we’re going to talk about the 12 NASDAQ stocks with biggest upside potential according to analysts.
Potomac Wealth Advisors president Mark Avallone joined CNBC’s ‘The Exchange’ on November 16 to discuss where he sees investing opportunities following Trump’s election. He believes investing in the tech sector makes the most sense given the implications of the 2024 election results for the financial markets. He noted that the election has shifted the underlying dynamics affecting businesses, particularly regarding regulation and taxation. The new administration has changed the previous climate of heightened regulation and discussions around increasing capital gains and corporate taxes. Avallone believes that the potential for reduced regulation and lower taxes on corporations could create a more favorable environment for business growth.
He emphasized that corporate America’s ability to deliver earnings will be crucial, relying on continued efficiencies and advancements in technology. This perspective supports his thesis that investing in technology remains a sound strategy for investors. When discussing specific stocks, Avallone highlighted major tech companies from the MAG7 as particularly attractive. He expressed confidence that the current administration would foster a more supportive environment for these companies, allowing them to thrive.
Avallone also touched on the defense sector, which has historically benefited from global conflicts. He pointed out that defense companies have shown resilience and believes that ongoing global tensions will sustain demand for defense stocks, providing a hedge against market volatility.
However, Avallone expressed caution regarding the healthcare sector, which has been lagging due to heavy regulation and political scrutiny. He noted that despite an aging population driving demand for medical equipment, regulatory pressures have hindered growth in this area. Overall, his analysis underscores a cautious optimism about investing in technology and defense while highlighting potential challenges within healthcare as businesses navigate the post-election landscape.
Methodology
We sifted through Finviz to compile a list of 30 NASDAQ stocks with high upside potentials. We then selected the 12 stocks with the biggest upside potential according to analysts. The stocks are ranked in ascending order of their analysts’ upside potential.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
12 NASDAQ Stocks with Biggest Upside Potential According to Analysts
12. Dyne Therapeutics Inc. (NASDAQ:DYN)
Average Upside Potential as of November 21: 73.44%
Dyne Therapeutics Inc. (NASDAQ:DYN) is a clinical-stage muscle disease company focused on advancing innovative life-transforming therapeutics for people with genetically driven diseases. Its primary focus is on myotonic dystrophy type 1 (DM1), and Duchenne muscular dystrophy (DMD), among other rare diseases.
A significant milestone for the company was the FDA’s clearance of the IND application for DYNE-101, a drug designed to treat DM1. The drug is being evaluated in the ongoing Phase 1/2 ACHIEVE trial for adults with DM1. New data from this trial, including safety, efficacy, and patient-reported outcomes, is expected in early January 2025. This data will inform the go-forward dose and regimen for DYNE-101.
In parallel, the company is also advancing its DYNE-251 program for Duchenne muscular dystrophy (DMD). Positive results from the Phase 1/2 DELIVER trial have led to the start of a new study to test a specific dosage of DYNE-251 (20 mg/kg every 4 weeks). The company is aiming for faster approval processes for both DYNE-101 and DYNE-251.
Despite challenges, with positive clinical data and regulatory approvals, the company is well-positioned to bring innovative therapies to patients with significant unmet needs.
11. SpringWorks Therapeutics Inc. (NASDAQ:SWTX)
Average Upside Potential as of November 21: 76.03%
SpringWorks Therapeutics Inc. (NASDAQ:SWTX) is a clinical-stage biopharmaceutical company applying a precision medicine approach to acquiring, developing, and commercializing life-changing medicines for populations suffering from rare diseases and cancer. Its lead product, OGSIVEO (nirogacestat), is an FDA-approved oral treatment for adult patients with progressing desmoid tumors.
It has made significant progress in the treatment of desmoid tumors. In September, over 800 unique patients filled prescriptions for OGSIVEO. As of the third quarter, ~420 treatment centers have ordered OGSIVEO since its approval and around 65% of patients are receiving the medication in convenient blister pack formats, which are convenient, easy to use, and help patients adhere to their medication schedule. The company aims to complete the full transition to blister packs by the end of the year.
The company reported strong third-quarter 2024 results, driven by a 23% quarter-over-quarter increase in net product revenue to $49.30 million coming from continued strong commercial execution of the OGSIVEO launch. SpringWorks Therapeutics Inc. (NASDAQ:SWTX) has achieved significant growth, which places it well within its industry to return promising shareholder value.
Hedge Fund Resource Center