In this piece, we will take a look at ten stocks that will skyrocket. If you want to skip our analysis of the stock market, then take a look at 5 Stocks That Will Skyrocket.
The stock market has skyrocketed this year, leaving analysts scratching their heads. For instance, the S&P 500 index returned 16.51%, and the NASDAQ 100 and NASDAQ Composite jumped by 33% and 40% during the first half of this year even as the market worried about a recession and a potential economic slowdown.
Heading into the second half of 2023, all eyes are now focused on earnings. These will set the tone for the current quarter, and right off the bat, large banks and consumer defensive firms are set to report their financials. Both of these are important, as for the banks it will show how well they performed in the quarter after consecutive bank failures shook the market, and for the consumer defensive firms, their results will outline spending trends in an economy that has long been projected to contract as high interest rates reduce consumer tendency to spend. Crucially, they will also show whether the massive savings that have driven inflation so far are finally drying up to bring economic conditions to normal.
Taking a look at what professionals believe the earnings season will offer, strategists at JPMorgan Chase & Co. (NYSE:JPM) believe that the second half will be a tough one. According to them, companies will struggle as inflation finally comes down since it will impact their ability to sustain price increases which have beefed up profit margins as of late. As a result, they do not see any more share upgrades for the rest of the year - a somber development considering that we've got a full six months left before the topsy turvy 2023 comes to an end.
Other analysts, belonging to a slew of investment and financial firms such as Fidelity International, HSBC Asset Management, Janus Henderson, and Dupont Capital believe that chasing another rally in the second half based on the highs of the first might prove to be ill advised. They concur with JPMorgan that slowing inflation will make increasing prices harder for firms, and warn that investor expectations of a soft landing where the economy does not contract much but prices come down might clash with weaker fundamentals that dent corporate performance harder than expected. As a whole, everyone seems to be of the opinion that the first half's rally will not be reproduced as we move forward in time.
Digging deeper into some stocks that have skyrocketed this year, big technology firms, including mega cap firms have been the stars of the show. One firm that has stunned everyone with its share price growth is Meta Platforms, Inc. (NASDAQ:META). The firm's shares took a beating on the stock market last year, as a tough interest rate environment and a pivot towards the metaverse came at the wrong time for the company. However, so far this year, Meta's shares are up by 132% year to date. Despite this, the shares are rated a Strong Buy on average; yet, the average share price target of $286.59 is nearly in line with the current share price of $290.53. Meta has also missed analyst EPS estimates in three of the last four quarters.
Another big tech firm whose share price has soared this year is Microsoft Corporation (NASDAQ:MSFT). Microsoft's shares are up by 40% this year, and if we're to believe analysts, then their average share price target of $345 has little upside over the current share price of $337. Yet, even though Meta and Microsoft have both benefited from the hype in artificial intelligence, the true winner is none other than NVIDIA Corporation (NASDAQ:NVDA). Its shares have gained 196% in 2023, as investors flocked in droves to the firm whose products are responsible for powering the artificial intelligence networks. Like others though, while NVIDIA shares are rated a Strong Buy, its average share price target has little upside over the current price. However, the firm itself is quite optimistic, with NVIDIA chief Mr. Jensen Huang creating quite a turmoil in the market during the firm's latest earnings call when he pointed to a $1 trillion AI powered data center market that's up for grabs.
As to what lies ahead for the economy, and by extension the stock market, in general, David Rosenberg of Rosenberg Research is quite bearish for the next 12 months. In a recent CNBC interview, he shared:
So, the Fed's focused on lagging indicators. They inherently take time to turn. That's what the Fed is focused on. And I think they've already, tightening into such a deeply inverted yield curve, which of course everybody says is a relic of the past - ignore the yield curve - they say that every cycle. I think the Fed has already gone overboard. And again, maybe a recession was always in their plan to destroy the inflation they created through the overly accommodative policies they pursued in 2020 and 2021 so they will correct one mistake with another mistake. But for the people that say 'where's the recession?', it's like they were saying the same thing in 2000, oh, it was in 2001, where's the recession? I got that at Merrill every day in 2007, where's the recession? Where's the recession? Okay, yeah, well it came in a big time in 2008.
So, as talk of a recession continues to rage in the market coupled with a critical earnings cycle, here's a list of stocks that might skyrocket. A few notable picks are Enterprise Products Partners L.P. (NYSE:EPD), Energy Transfer LP (NYSE:ET), and Digital Realty Trust, Inc. (NYSE:DLR).
10 Stocks That Will Skyrocket
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Our Methodology
To compile our list of stocks that will skyrocket, we used newsletter coverage by Stock Gumshoe for the past two months to pick out those companies that are mentioned in marketing newsletters and had business models that can aid in explosive share price growth. Of course, as is the case with such stocks, if they were sure plays then the growth would already have occurred and they wouldn't be stocks that could skyrocket. With these details in mind, let's take a look at ten stocks that will skyrocket according to investment newsletter publishers. The companies are ranked by hedge fund sentiment, and the list starts by listing over the counter stocks that are primarily traded on foreign markets first.
10 Stocks That Will Skyrocket
10. Hon Hai Precision Industry Co., Ltd. (OTCMKTS:HNHPF)
Number of Hedge Fund Investors In Q1 2023: N/A
While you might not have heard of Hon Hai Precision Industry Co., Ltd. (OTCMKTS:HNHPF), you're likely to have used a product manufactured by the firm. The company is also known as Foxconn, and it is Apple's primary manufacturing partner for the iPhone. However, Hon Hai Precision Industry Co., Ltd. (OTCMKTS:HNHPF) has been rapidly expanding its operations over the past couple of years, and it is making key investments in semiconductor fabrication and electric vehicles - two of the hottest industries right now.
Just like Energy Transfer LP (NYSE:ET), Enterprise Products Partners L.P. (NYSE:EPD), and Digital Realty Trust, Inc. (NYSE:DLR), Hon Hai Precision Industry Co., Ltd. (OTCMKTS:HNHPF) is a stock that might skyrocket.
9. Rolls-Royce Holdings plc (OTCMKTS:RYCEY)
Number of Hedge Fund Investors In Q1 2023: N/A
Rolls-Royce Holdings plc (OTCMKTS:RYCEY) is one of the most well known companies in the world. It was one of the first to manufacture an automobile. These days, it makes and sells jet engines - providing the firm with stable catalysts to recover from the growth in global air travel in the aftermath of the coronavirus pandemic. At the same time, it is also making crucial investments in modular nuclear plants to meet Britain's energy needs and even generate power on the Moon.
8. Electreon Wireless Ltd (OTCMKTS:ELWSF)
Number of Hedge Fund Investors In Q1 2023: N/A
Electreon Wireless Ltd (OTCMKTS:ELWSF) is one of the more interesting companies that is developing a wireless road based charging infrastructure to charge commercial and passenger electric vehicles. It's currently in the early stages of its business, and 2022 was the first year when it brought in revenue. However, the shares are up by a whopping 136% year to date.
Black Stone Minerals, L.P. (NYSE:BSM) manages oil and gas interests that allow it to profit from petroleum exploration on properties that it has interests in. It has interests in millions of acres of land across nearly every American state. The firm's shares are rated Buy on average and the average share price target is $18.80.
By the end of 2023's March quarter, 8 out of the 943 hedge funds part of Insider Monkey's database had invested in the company. Black Stone Minerals, L.P. (NYSE:BSM)'s largest hedge fund investor in our database is Thomas Clay's Epacria Capital Partners since it owns an $11 million stake.
Gevo, Inc. (NASDAQ:GEVO) is aiming to target the growing market for sustainable aviation fuel. Out of the six latest analyst notes covering the shares, four have rated them Buy. The firm is in the early stages of its operations, making it quite risky. However, it has several plans that can enable it to start producing sustainable fuels which can prove to be catalysts.
By the end of March 2023, 12 of the 943 hedge funds surveyed by Insider Monkey had bought and owned Gevo, Inc. (NASDAQ:GEVO)'s shares. D. E. Shaw's D E Shaw is the largest investor out of these, through its $5.1 million investment.
Enterprise Products Partners L.P. (NYSE:EPD), Gevo, Inc. (NASDAQ:GEVO), Energy Transfer LP (NYSE:ET), and Digital Realty Trust, Inc. (NYSE:DLR) are some stocks poised to skyrocket based on analyst sentiment and fundamentals.
