Stocks with moonshot potential are drawing attention amidst the current bullishness in the stock market. Despite the latest inflation reports pointing to a potential delay in the Federal Reserve’s interest-rate cuts, the investing sentiment remains optimistic. The current Fear and Greed Index reading 69 suggests that investors are in a risk-on mood, looking to place their bets on companies with the potential for significant long-term returns.
Savvy investors will want to find lucrative opportunities to diversify their portfolios with stocks offering substantial growth potential in this market. According to Tipranks, the stocks covered in the article are forecasted to rise by at least 35% from their current prices, while some may even see gains surpassing 70%. That said, considering such stocks with high upside potential might be an opportune moment.
Stocks With Moonshot Potential: Lithium Americas (LAC)
Lithium Americas (NYSE:LAC) has been one of the more talked about high-potential stocks over the past few years. The positive sentiment surrounding its long-term bull case is based on its Thacker Pass project in Nevada. This venture promises annual production of 80,000 tons of lithium carbonate equivalent over a 40-year life span. Moreover, the project is expected to generate an average annual EBITDA of $1.1 billion, potentially taking its stock price to the moon. Automotive giant General Motors invested $650 million in the project, signing a ten-year off-take agreement, amplifying LAC’s strategic importance in the electric vehicle (EV) ecosystem.
With lithium prices down currently, analysts forecast a looming shortage by 2025, making it an opportune moment to invest in undervalued lithium stocks such as LAC. The Thacker Pass project boasts a staggering after-tax net present value of $5.7 billion compared to LAC’s market cap of $910 million, underscoring the stock’s soaring potential.
JD.com (JD)
Chinese eCommerce giant, JD.com (NASDAQ:JD) presents an excellent value proposition to investors. JD stock trades at under 0.3 times sales while continuing to impress with its quarterlies. It wrapped up another solid quarter, marked by comfortable top-and-bottom-line beats. Moreover, it’s the fourth consecutive quarter where it bested estimates across both lines by considerable margins.
Its fourth-quarter (Q4) report showed a notable 10.1% year-over-year (YOY) increase in non-GAAP net income per American depositary share (ADS), reaching 75 cents. Additionally, company sales rose 3.6% to a whopping $43.11 billion. These figures not only surpass expectations but highlight JD.com’s resilience and strategic prowess amidst a slowing Chinese economy.
Despite the headwinds, JD.com has attracted substantial traffic through aggressive pricing strategies, which are set to enhance customer loyalty in the long term. Furthermore, initiating a new $3 billion stock buyback program and its attractive 2.30% dividend yield add to its allure at this time.
Grab Holdings (GRAB)
Grab Holdings (NASDAQ:GRAB) operates one of Southeast Asia’s most popular super-apps, with a strong presence across multiple areas, including mobility, deliveries, and financial services. It operates in a powerful region teeming with economic expansion and a burgeoning middle class, and it is a key facilitator of entrepreneurship and the gig economy.
Its financial accomplishments underscore its enviable position, with a Q4 GAAP EPS of one cent, surpassing expectations by four cents. Likewise, its revenue shot up to a whopping $653 million, marking a 30.1% increase YOY and beating forecasts by $20.34 million.
The company reported a profit of $11 million, a remarkable turnaround from a net loss of $391 million in the prior-year period. As we advance, the company’s future appears even brighter. Grab has provided an FY2024 revenue guidance of $2.7 billion to $2.75 billion, indicating a YOY growth of 14% to 17%, with adjusted EBITDA expected to be between $180 million and $200 million.
Petco Health and Wellness (WOOF)
Petco Health and Wellness (NASDAQ:WOOF) is having it rough from a financial perspective, but the market punditry is bullish on its foray into the pet insurance space. Its recent expansion of Petco’s partnership with Nationwide in providing pet insurance products marks a critical step in strengthening its service offerings. The introduction of their first co-branded product serves as a key catalyst for growth within the burgeoning pet insurance market.
The pet insurance sector is poised for significant expansion, with Grand View Research expecting an annual growth rate of roughly 17% from 2024 to 2030 to reach $33.57 billion. This incredible growth trajectory presents a lucrative opportunity for Petco, making it an attractive bet at just 0.11 times forward sales estimates. Hence, looking for opportunities within the thriving pet care industry should closely watch Petco’s advancements.
Li Auto (LI)
Li Auto (NASDAQ:LI) continues to captivate investors’ attention with its solid growth trajectory, in the Chinese EV space. It delivered an impressive 20,251 vehicle deliveries, representing a robust 21.8% increase YOY. Although this figure represents a 35% drop sequentially, its cumulative performance in the first two months of the year, with 62,330 vehicles delivered underscores its momentum. Moreover, the company expects to deliver a massive 50,000 cars in March, potentially taking its stock price to new heights.
Furthermore, the company is gearing up for an exciting spring with the release of new models tailored to meet diverse consumer needs. Leading the pack are Li MEGA, designed for multi-generational families, and the Li Auto Mega MPV, equipped with cutting-edge including Nvidia’s (NASDAQ:NVDA) Orin chips, Hesai LiDAR, triple screens, and advanced air suspension. Hence, with multiple catalysts on the horizon, expect LI stock to continue marching ahead with aplomb.
Denali Therapeutics (DNLI)
Denali Therapeutics (NASDAQ:DNLI) is looking to address some of the most challenging medical conditions, including neurodegenerative diseases and lysosomal storage disorders. Moreover, its work on overcoming the blood-brain barrier (BBB) marks a significant stride in brain disease treatment. Looking forward, Denali has set its sights on completing recruitment for its late-stage programs, gearing up for commercialization while broadening its disease target portfolio.
Despite experiencing a setback in a collaborative ALS trial with Sanofi (NASDAQ:SNY), Denali’s remains resilient. This bump in the road hasn’t deterred its dedication in pushing the boundaries of biopharmaceutical research. It is looking to embark on a new mid-stage trial targeting multiple sclerosis; a central nervous system disorder. The upcoming trial promises to unveil further insights into the drug’s adaptability and its broader therapeutic potential covering a variety of neurological conditions.
Bloom Energy (BE)
Bloom Energy (NYSE:BE) has made significant strides within the nascent hydrogen space. A major development for BE is its research agreement with Shell (NYSE:SHEL), a collaboration aimed at improving environmental sustainability in the production of hydrogen. The firm’s focus on enhancing hydrogen electrolysis aims to address the production challenges of clean fuels, promoting greater adoption.
Moreover, with it holding the largest operating electrolysis manufacturing capacity, the firm’s efforts to reduce emissions in hydrogen production can have a huge impact across the entire industry. This focus on environmental sustainability is complemented by solid results, with it delivering a record sales figure of $1.3 billion reported in 2023. This revenue spike is attributed to the growth in both product and service segments, indicating potential for sustained growth. Hence, the company’s strategic focus, coupled with a forward sales ratio of 1.57, presents an attractive investment opportunity.
On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines
