In this article, we will discuss the 12 High Growth Large Cap Stocks to Buy Now.
BlackRock highlighted that its portfolio managers are broadly optimistic about US equities. Its portfolio managers opine that there is still some expected upside potential, despite the steep US stock valuations. However, the contrast between lagging European economic growth, and stock performance, is stark. The US Fed decided to reduce the policy rate by another 25 bps in a recent meeting as the apex bank sees inflation moving closer to its target of 2%.
However, the financial conditions remain loose after a historically sharp tightening cycle. The firm believes that such an unusual backdrop strengthens its view that the environment is being dominated by structural forces and not by a typical business cycle.
Overall, the firm remains overweight on the US given the positive view on the AI theme. The valuations for AI beneficiaries have strong backing as technology companies continue to beat high earnings projections. The asset manager believes that falling inflation continues to ease pressure on corporate profit margins.
High-Single Digit Growth in S&P 500
Goldman Sachs Research’s projections for the S&P 500 Index of stocks remain broadly the same as it was before Trump’s win. As per David Kostin, the chief US equity strategist at the firm, the S&P 500 is expected to reach 6,300 in the upcoming 12 months. The researchers expect growth in EPS of 11% in 2025 and 7% in the following year. That being said, David Kostin highlighted that the estimates might change as and when the new administration’s policy agenda gets revealed. Overall, strong earnings growth is expected to fuel continued equity market appreciation into next year.
Historically, the S&P 500 index generated a median return of 4% between election day in November and calendar year-end, as per Goldman Sachs. Together with the resilience in broader economic growth data and the expectation for further rate cuts, the near-term outlook for US equities remains healthy, as per Kostin.
READ ALSO: 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In.
US Tariffs’ Impact
Several investors remain focused on trade policy, and Mr. Trump might have plans to implement some of the tariffs without legislation. Goldman Sachs believes that Trump will impose tariffs on imports from China. These are expected to average an additional 20 percentage points. Furthermore, European companies can face tariffs. The large investment bank also highlighted that, during Trump’s previous administration, domestic-facing and defensive industries, including utilities, telecom services, and real estate, outperformed. On the other hand, the stocks of automobiles, capital goods, and technology hardware underperformed.
The company believes that M&As might increase under Trump’s presidency. Though the policy uncertainty will take time to recede, there are expectations that antitrust regulation will be more relaxed. Moreover, the continued economic expansion and higher confidence among CEOs might result in increased corporate combinations. Approximately, $4 trillion of corporate spending in the next calendar year might roughly get evenly split between returning cash to shareholders and growth investments (such as CapEx, R&D, and M&A).
Amidst such optimism, let us now have a look at the 12 High Growth Large Cap Stocks to Buy Now.
A financial analyst looking at a monitor displaying the stocks of the public company.
Our Methodology
To list the 12 High Growth Large Cap Stocks to Buy Now, we sifted through several online rankings and a screener. We extracted the stocks that have a healthy 5-year revenue growth and a market cap of more than $10 billion. Finally, the stocks were ranked in ascending order of upside potential, as of 12th November.
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 High Growth Large Cap Stocks to Buy Now
12) Super Micro Computer, Inc. (NASDAQ:SMCI)
5-Year Revenue Growth: ~33.6%
Average Upside Potential: ~20.8%
Market cap as of 12 November: $12.3 billion
Super Micro Computer, Inc. (NASDAQ:SMCI) develops and manufactures high-performance server and storage solutions based on modular and open architecture in the US and internationally.
Super Micro Computer, Inc. (NASDAQ:SMCI) placed itself as a key provider of AI infrastructure, which should support its topline growth as a result of healthy demand for advanced computing solutions. The company’s product portfolio consists of a range of servers, storage systems, and networking equipment, with a strong focus on innovative cooling technologies in a bid to support the increasing power requirements of AI workloads.
A key differentiator for Super Micro Computer, Inc. (NASDAQ:SMCI) is its strong focus on liquid cooling solutions, mainly Direct Liquid Cooling (DLC) racks. Analysts believe that this strategy aligns with the higher power density requirements of next-generation AI systems. The company’s rapid time-to-market capabilities for rack-scale DLC production should act as a competitive advantage. This ability to bring innovative cooling solutions to the market should result in increased Average Selling Prices (ASPs) and fuel revenue growth as demand for advanced AI infrastructure increases.
Super Micro Computer, Inc. (NASDAQ:SMCI) has been expanding manufacturing with a new campus in Malaysia along with increased capacity in Silicon Valley. Its strategic investments and healthy relationships with critical partners such as NVIDIA place it well for future growth.
Needham & Company LLC initiated coverage on the shares of Super Micro Computer, Inc. (NASDAQ:SMCI) on 18th September 2024. The company issued a “Buy” rating with a price target of $60.00. Columbia Acorn Fund, distributed by Columbia Management Investment Distributors, released its Q3 2024 investor letter. Here is what the fund said:
“Super Micro Computer, Inc. (NASDAQ:SMCI) had a tough quarter due to a confluence of negative events. It declined, but is still up significantly for the year. While demand for the company’s AI server racks remains strong, with revenue up over 100%, gross margins have fallen sharply for two straight quarters, implying a price war. In addition, Super Micro was the subject of a short-seller report and a delay in filing its annual report with the SEC. We have been taking profits in the stock all year and have only a small position, which we are maintaining given the strong performance and demand for Super Micro’s AI racks and a depressed stock valuation.”
11) Datadog, Inc. (NASDAQ:DDOG)
5-Year Revenue Growth: ~52.1%
Average Upside Potential: ~24.2%
Market cap as of 12 November: $41.9 billion
Datadog, Inc. (NASDAQ:DDOG) offers software solutions. It provides a cloud-based monitoring and analytics platform that integrates and automates infrastructure monitoring, application performance monitoring, and log management for the real-time observability of customers.
Datadog, Inc. (NASDAQ:DDOG)’s ability to offer unified insights throughout the diverse technology stacks appears to be well-received by customers, mainly as organizations ramp up their digital transformation initiatives. The company’s strong emphasis on innovation is the cornerstone of its strategy. It continues to expand its product portfolio, with a strong focus on Al and ML capabilities. Notably, recent introductions consist of LLM Observability for monitoring Al applications, Bits Al for streamlining incident response, and Live Debugger in order to help developers in production environments.
These new offerings place Datadog, Inc. (NASDAQ:DDOG) in a strong position to capitalize on the increased demand for Al-driven observability solutions. The new product launches include monitoring for Oracle Cloud and the On Call service. With companies increasingly adopting Al and ML technologies, the requirement for sophisticated monitoring and analytics tools should grow. This should open up new revenue streams for Datadog, Inc. (NASDAQ:DDOG). Its expansion into adjacent markets, including cloud security and developer experience, should also act as a potential tailwind.
Apart from the growth catalysts mentioned, the rise of Al and ML applications should also boost demand for Datadog, Inc. (NASDAQ:DDOG)’s services. The company expects strong growth, stemming from the positive trends in digital transformation and cloud migration. Furthermore, the company expects to maintain healthy demand for its security and service management products.
Analysts at TD Cowen upped their price target on the shares of Datadog, Inc. (NASDAQ:DDOG) from $160.00 to $165.00, offering a “Buy” rating on 8th November. Baron Funds, an investment management company, released its Q2 2024 investor letter. Here is what the fund said:
“In our view, the enterprise software winners will have to be better at delivering AI services and features than build-your-own AI tools, and they will have to use their incumbency or leadership advantages to ward off upstarts. We believe the winners will be the ones that have a well-established product development culture of innovation and iteration; differentiated proprietary, industry, and customer data; distribution advantages with large customer bases, successful go-to-market efforts, and key partners; well-designed workflows where AI improves the user interface, intelligent predictions/recommendations, and automation; and established always-on connectivity and feedback from their customers; among other things.
Here are a few examples of our software investments that we believe are AI winners: Datadog, Inc. (NASDAQ:DDOG), a cloud observability platform that the leading LLM providers are using today to monitor their AI apps; these AI customers are already driving nearly $100 million of annual recurring revenue for Datadog already.”
10) Agnico Eagle Mines Limited (NYSE:AEM)
5-Year Revenue Growth: ~27.9%
Average Upside Potential: ~31.5%
Market cap as of 12 November: $38.5 billion
Agnico Eagle Mines Limited (NYSE:AEM) is a gold producer. It focuses on the exploration, development, and expansion of its gold properties mainly from underground operations.
Agnico Eagle Mines Limited (NYSE:AEM)’s focus on operational performance, cost control, and capital discipline should result in long-term growth. The company targets realizing the full potential of its assets with the help of continuous improvement and by advancing its pipeline of projects and supplemental exploration program.
Wall Street analysts are optimistic about Agnico Eagle Mines Limited (NYSE:AEM)’s pipeline projects. For example, in Q3 2024, the company advanced site preparation for the underground project, which includes the completion of a pad that will host the surface infrastructure for the underground project as well as the removal of the overburden for the portal. Agnico Eagle Mines Limited (NYSE:AEM) continues to focus on the expansion plan for the Detour Lake mine.
The expansion project is a low-risk one because of factors such as a favorable location in an established mining jurisdiction and current infrastructure which can support increased production. Agnico Eagle Mines Limited (NYSE:AEM)’s financial strategy consists of enhancing the balance sheet via strategic investments and preparing for further growth opportunities. The expansion will also result in higher production volumes, which can result in lower per-ounce costs. This will ultimately enhance profitability and cash flow generation.
Analysts at UBS Group initiated coverage on the shares of Agnico Eagle Mines Limited (NYSE:AEM) on 17th September. They gave a “Buy” rating and a price target of $95.00. Alluvium Asset Management, an asset management company, released its Q2 2024 investor letter. Here is what the fund said:
“Our gold miners had quite divergent performance, Agnico Eagle Mines Limited (NYSE:AEM) was up 11.4%, but Regis Resources was down 12.9%. They both provided quarterly updates. Regis reported business disruptions due to poor weather, but management maintained its output and cost guidance. It also announced the approval of two underground projects that will add around 25% to production levels from 2027, but they will cost circa AUD 150m. Agnico reported more positive results and reiterated guidance. We have revised our long term gold price and exchange rate assumptions (which remain conservative). On our earnings based models we still view Regis as cheap and Agnico as expensive. But that ignores management, and, to a large extent, growth prospects. And when we consider those factors the equation looks decidedly more balanced. So despite Regis trading at an even larger discount to our valuation we have not bought more, and despite Agnico trading at an even larger premium to our valuation, we have not recently sold any. The Fund’s combined position in these gold miners is 6.6%.”
9) DexCom, Inc. (NASDAQ:DXCM)
5-Year Revenue Growth: ~27.9%
Average Upside Potential: ~31.5%
Market cap as of 12 November: $29.01 billion
DexCom, Inc. (NASDAQ:DXCM) is a medical device company, which focuses on the design, development, and commercialization of continuous glucose monitoring (CGM) systems in the US and internationally.
DexCom, Inc. (NASDAQ:DXCM) rolled out Stelo CGM, its first over-the-counter glucose sensor in the US. It targets non-insulin-using Type 2 diabetes and prediabetes patients. Wall Street experts opine that this move should expand its addressable market. This roll-out demonstrates a significant step in DexCom, Inc. (NASDAQ:DXCM)’s product strategy. The move aligns with its goal of expanding the user base beyond traditional insulin-dependent patients. Also, the competitive pricing strategy for Stelo is expected to ramp up adoption, potentially offsetting challenges in other segments of the company’s business.
Moving forward, the company’s strong emphasis on product innovation and healthy position in the CGM market should act as principal growth enablers. Also, it focuses on customer experience and managing for long-term growth. DexCom, Inc. (NASDAQ:DXCM) has advanced its international product portfolio with the launches of Dexcom G7 in Australia and Dexcom ONE+ in France.
For FY 2024, DexCom, Inc. (NASDAQ:DXCM) expects revenue of ~$4.00 – 4.05 billion and non-GAAP gross profit margin of ~63%. It expects adjusted EBITDA margin of ~29%. As of September 30, 2024, the company had $2.49 billion in cash, cash equivalents, and marketable securities and its revolving credit facility remains undrawn. Notably, the cash balance demonstrates significant financial and strategic flexibility as DexCom, Inc. (NASDAQ:DXCM) plans to expand production capacity and explore new market opportunities.
Aristotle Atlantic Partners, LLC, an investment advisor, released its Q3 2024 investor letter. Here is what the fund said:
“DexCom, Inc. (NASDAQ:DXCM)detracted from performance in the third quarter following an uncharacteristic earnings miss, which manifested late in the quarter. The miss was attributed to share loss in the durable medical equipment (DME) channel, reaching a full rebate threshold with insurance companies sooner than expected and a recent salesforce realignment that resulted in slower new patient starts. Management was clear that these are Dexcom specific issues around execution and that they were taking action to remediate those effects. The company stood by their long-range plan which calls for 15%-plus topline growth. We believe Dexcom now trades at a relatively attractive valuation given the strong long-term growth profile.”
8) Pinterest, Inc. (NYSE:PINS)
5-Year Revenue Growth: ~27.8%
Average Upside Potential: ~31.6%
Market cap as of 12 November: $20.7 billion
Pinterest, Inc. (NYSE:PINS) carries out its operations as a visual search and discovery platform in the US and internationally.
Wall Street experts believe that Pinterest, Inc. (NYSE:PINS)’s unique selling proposition revolves around its ability to connect users with ideas and products they might not have known they wanted. As a result, it makes it an attractive platform for advertisers who focus on reaching out to consumers early in the buying process.
The analysts are optimistic about Pinterest, Inc. (NYSE:PINS)’s strategic partnerships with tech giants such as Amazon and Google. The collaborations should fuel revenue growth throughout various regions and categories. The Amazon partnership has increased coverage in underserved categories, which has supported Pinterest, Inc. (NYSE:PINS)’s advertising reach. Furthermore, its integration with Google demonstrated promising signs, with its inclusion in ‘targeted placements’ in Google Ads Manager. This hints at the potential for further data sharing and revenue opportunities.
Pinterest, Inc. (NYSE:PINS)’s advertising strategy continues to evolve, with a strong focus on improving the ad tech stack and increasing ad relevancy. Also, its Al-driven initiatives, like Performance+, continue to demonstrate potential for cost savings and efficiency improvements for advertisers. All such advancements, together with the platform’s high-intent user base, place Pinterest, Inc. (NYSE:PINS) favorably amidst the competitive digital advertising market.
Analysts at Wedbush upped their price target on the shares of Pinterest, Inc. (NYSE:PINS) from $37.00 to $38.00, giving a “Neutral” rating on 8th November. ClearBridge Investments, an investment management company, released its Q3 2024 investor letter. Here is what the fund said:
“Selection in the communication services sector also weighed on performance, primarily driven by a decline in Pinterest, Inc. (NYSE:PINS), which operates a social media platform where users can express their interests and discover ideas through images they “pin” to their pages. Having been a strong contributor in the first half of the year, the company gave back some of its gains as investors captured gains and an uptick in economic uncertainty pushed out spending by leading advertisers. We capitalized on this weakness to add to the position, as we believe that several of its internal initiatives to increase the monetization of its users and become a better value-added advertiser to its customers are coming to fruition.”
7) ICON Public Limited Company (NASDAQ:ICLR)
5-Year Revenue Growth: ~24.6%
Average Upside Potential: ~34.0%
Market cap as of 12 November: $17.4 billion
ICON Public Limited Company (NASDAQ:ICLR) is a clinical research organization, that offers outsourced development and commercialization services in Ireland, the Rest of Europe, the US, and internationally.
Wall Street experts are optimistic about the company’s acquisition of PRA Health Sciences. This acquisition has expanded ICON Public Limited Company (NASDAQ:ICLR)’s market share and capabilities, mainly in late-stage clinical research. This strategic move places the company to compete more effectively with other top-tier CROs and potentially tap a larger share of the growing outsourced R&D market. The acquisition should result in expanded service offerings, cost synergies, enhanced technological capabilities, and improved bargaining power.
The analysts believe that ICON Public Limited Company (NASDAQ:ICLR) might benefit from potential lower interest rates, which can result in significant investment in the biotech sector and increase demand for CRO services. Also, the company might benefit from a continued trend toward increased outsourcing penetration in the pharmaceutical industry. Moving forward, the company continues to focus on strategic partnerships and M&A, mainly in lab services and the Asia Pacific region.
ICON Public Limited Company (NASDAQ:ICLR)’s net business wins in Q3 2024 came in at $2,328 million. This reflects a net book to bill in the quarter of 1.15, and a trailing twelve-month net book to bill of 1.21. The company’s full-year 2024 financial revenue guidance stood at $8,260 million – $8,300 million, which implies a YoY rise of 1.7% – 2.2%. It expects adjusted EPS of between $13.90 – $14.10, reflecting a YoY growth of 8.7% – 10.2%.
As per Wall Street analysts, the shares of ICON Public Limited Company (NASDAQ:ICLR) have an average price target of $280.50. Baron Funds, an investment management company, released its first quarter 2024 investor letter. Here is what the fund said:
“Solid stock selection in life sciences tools & services was mainly due to double-digit gains from clinical genetic testing company Natera, Inc. and global contract research organization ICON Public Limited Company (NASDAQ:ICLR). ICON’s shares rose in response to management’s optimistic messaging in the face of a firming industry backdrop and accelerating trends, which led investors to believe that the company’s initial guidance for fiscal year 2024 was more conservative than initially believed. The company continues to experience strong demand despite lingering concerns over biotechnology funding levels. Customer preference is shifting toward functional outsourcing services, which should disproportionally benefit ICON as the leader in this market.”
6) Cenovus Energy Inc. (NYSE:CVE)
5-Year Revenue Growth: ~35.4%
Average Upside Potential: ~37.9%
Market cap as of 12 November: $29.2 billion
Cenovus Energy Inc. (NYSE:CVE) is engaged in developing, producing, refining, transporting, and marketing crude oil, natural gas, and refined petroleum products in Canada and internationally.
Cenovus Energy Inc. (NYSE:CVE)’s flagship Christina Lake Steam Assisted Gravity Drainage (SAGD) facilities continue to serve as the cornerstone of its upstream business. Wall Street experts opine that the company’s upstream operations, mainly its oil sands assets, have been a source of strength. In the Oil Sands segment, Cenovus Energy Inc. (NYSE:CVE) is progressing with the tie-back of Narrows Lake, building a 17-kilometre pipeline connecting the reservoir to the Christina Lake processing facility, which is expected to add between 20,000 bbls/d and 30,000 bbls/d of production.
The company highlighted that the project is ~93% constructed. The critical tie-ins to the Narrows Lake pipeline were completed during the Christina Lake turnaround. Notably, the project is on track for its first production in mid-2025. The company remains optimistic about its strategic initiatives, which form a base for long-term growth. At Sunrise, as part of the growth program, Cenovus Energy Inc. (NYSE:CVE) brought 2 new well pads online in Q3 2024, which will continue to ramp up into the next quarter. Also, one additional well pad is expected to come online in early 2025.
Cenovus Energy Inc. (NYSE:CVE)’s healthy portfolio of long-life, low-decline oil sands assets and positive leverage to improving commodity prices should act as growth drivers. Its low steam-to-oil ratio and cost-reduction initiatives resulted in some of the most efficient SAGD operations among industry peers. This efficiency equates to lower production costs and a lower carbon footprint, placing Cenovus Energy Inc. (NYSE:CVE) well in terms of both profitability and environmental sustainability.
As per Wall Street analysts, the shares of Cenovus Energy Inc. (NYSE:CVE) have an average target price of $22.13. L1 Capital, an investment management firm, released its Q1 2024 investor letter. Here is what the fund said:
“Cenovus Energy Inc. (NYSE:CVE) (Long +20%) shares performed strongly as the WTI oil price increased 16% to ~US$83/bbl, while refining margins in the U.S. Midwest improved dramatically from a low base. During March, Cenovus’s 2024 investor day was well received, where its 5-year outlook for the business included growth in upstream production of around 150m bbl/d above the current 800m bbl/d and a material turnaround of its downstream refining business. Over the next five years, the company expects to generate C$32b of cumulative free cash flow based on a US$75/bbl WTI oil price, a highly attractive prospect given its current market cap of ~C$51b. Furthermore, it has committed to return 100% of excess cash flow back to investors once it reaches its C$4b net debt target (expected in 2024). Cenovus’s strong cash flow generation, combined with the long-life nature of its oil sands assets and its low cost of production, make it one of our preferred Energy exposures.”
5) PDD Holdings Inc. (NASDAQ:PDD)
5-Year Revenue Growth: ~74.9%
Average Upside Potential: ~44.2%
Market cap as of 12 November: $157.7 billion
PDD Holdings Inc. (NASDAQ:PDD) is a multinational commerce group, which owns and operates a portfolio of businesses.
Market experts believe that PDD Holdings Inc. (NASDAQ:PDD)’s strength in its e-commerce business model appears to be a major positive, which should drive its long-term growth. Also, the analysts are optimistic about the company’s Pinduoduo platform due to its wide range of product offerings, such as agricultural produce, apparel, shoes, food and beverage, electronic appliances, and furniture, among others. Next, PDD Holdings Inc. (NASDAQ:PDD)’s growth trajectory is expected to be also supported by the strengthening of its Temu platform. This is an innovative online marketplace, which capitalizes on online ads, social media, coupon codes, and games in a bid to attract and retain users.
The accelerated path to profitability for Temu demonstrates PDD Holdings Inc. (NASDAQ:PDD)’s effective cost management and scalability in its business model. Also, it exhibits that its strategy of leveraging the experience from the Chinese market to expand internationally continues to yield favorable outcomes.
Its innovative approach to e-commerce, mainly its group-buying model integrated with social media platforms, appears to be well-received by Chinese consumers. Furthermore, Temu’s success might offer PDD Holdings Inc. (NASDAQ:PDD) a valuable hedge against potential slowdowns or higher competition in the domestic Chinese market. Through diversifying the revenue streams geographically, the company can reduce its dependency on a single market.
As per Wall Street analysts, the shares of PDD Holdings Inc. (NASDAQ:PDD) have an average price target of $168.99. Baron Funds, an investment management firm, released its Q3 2024 investor letter. Here is what the fund said:
“During the third quarter we re-initiated a small investment in PDD Holdings Inc. (NASDAQ:PDD). We believe the company is truly unique in the global e-commerce landscape, with an innovative business model, and very strong growth prospects. Founded in 2015 as Pinduoduo, the company has grown into China’s second-largest e-commerce player, capturing over 20% market share. PDD’s Consumer-to-Manufacturer (C2M) model, which connects manufacturers directly to consumers eliminated intermediaries, allowing for ultra-low prices that attract price-sensitive consumers and small merchants. Its discovery-based, algorithm-driven shopping experience has created a highly engaging platform, driving user and merchant growth in a virtuous cycle. We expect PDD to continue gaining share in China given its dominance in the value-for-money segment, growing branded product offerings at affordable prices, and high operational efficiency. PDD’s network effects and cost advantage, supported by its lean structure and efficient C2M model, are set to grow as it scales, both domestically and internationally. Its cross-border e-commerce platform, Temu, launched in September 2022, has rapidly become one of the world’s fastest-growing apps. Leveraging China’s excess capacity and PDD’s supply-chain efficiency, Temu wields strong pricing power over Chinese suppliers and attracts overseas consumers with competitively priced products. While still in early stage, Temu has achieved 2% of the global ex-China e-commerce market and a variable breakeven in the U.S. market, underscoring PDD’s focus on sustainable growth. Despite its rapid growth and profitability, PDD trades at a double-digit free cash flow yield (despite losses from the early-stage international expansion through Temu), significantly below sector peers. While concerns over geopolitical tensions exist, we believe PDD’s growing competitive edge, strong cash flow, and disciplined management position it to create substantial long-term value for shareholders.”
4) BeiGene, Ltd. (NASDAQ:BGNE)
5-Year Revenue Growth: ~48.1%
Average Upside Potential: ~45.6%
Market cap as of 12 November: $20.5 billion
BeiGene, Ltd. (NASDAQ:BGNE) is an oncology company, which is engaged in discovering and developing various treatments for cancer patients in the US and internationally.
BeiGene, Ltd. (NASDAQ:BGNE)’s in-house clinical operations team carries out trials throughout 5 continents, ensuring rigorous data quality via collaborations with regulators and investigators in more than 45 countries. This strategic approach tends to maximize resources by channeling data-gated investments into promising clinically differentiated candidates quickly and de-prioritizing others.
BeiGene, Ltd. (NASDAQ:BGNE)’s unique R&D and clinical advantages, together with the tremendous launch trajectory of BRUKINSA, should continue to strengthen the company’s global oncology leadership. In the US, BRUKINSA, with the broadest label of any BTK inhibitor, is the leader in new patient starts in both frontline and relapsed/refractory (R/R) CLL in addition to other approved B-cell malignancies.
In the solid tumor area, BeiGene, Ltd. (NASDAQ:BGNE) continues to expand its access to the PD-1 inhibitor, TEVIMBRA, for patients worldwide and is building global commercial capabilities to aid its prolific pipeline of potential cancer medicines.
BeiGene, Ltd. (NASDAQ:BGNE) has been laying the foundation for future franchises in breast, lung, and gastrointestinal cancers across 3 signature platform technologies such as multi-specific antibodies, protein degraders, and antibody-drug conjugates. Also, strategic partnerships with industry giants such as Amgen and Novartis fueled the commercial capabilities. In Q3 2024, it saw revenues of $1,002 million as compared to $781 million in the same period of 2023. This increase mainly stemmed from growth in BRUKINSA product sales in the US and Europe of 87% and 217% respectively.
Citigroup upped its price objective on shares of BeiGene, Ltd. (NASDAQ:BGNE) from $269.00 to $288.00, giving a “Buy” rating on 8th August. Baird Asset Management controlled Chautauqua Capital Management, a boutique investment firm, released the third-quarter 2024 investor letter. Here is what the fund said:
“BeiGene, Ltd. (NASDAQ:BGNE) is expected to have excellent top- and bottom-line growth over the next several years, driven by Brukinsa, their best-in-class product in several hematology cancers, with a global market size of approximately $9 billion in 2023. Even though the company is truly global in nature, incorporated in Switzerland and headquartered in Basal, Beijing, and Cambridge, MA, its valuation was depressed due to negative sentiment towards China, as it does have a large R&D and sales team in China. The recent rally in China stocks has somewhat reduced the extreme pessimism seen earlier in the year.”
3) Genmab A/S (NASDAQ:GMAB)
5-Year Revenue Growth: ~40.3%
Average Upside Potential: ~63.04%
Market cap as of 12 November: $14.5 billion
Genmab A/S (NASDAQ:GMAB) is engaged in developing antibody therapeutics for the treatment of cancer and other diseases primarily in Denmark.
In a significant move to further strengthen its position, Genmab A/S (NASDAQ:GMAB) completed a $1.8 billion acquisition of ProFound Bio. This was a strategic decision targeted at enhancing its market position and expanding its technological capabilities. Experts remain optimistic about this acquisition as the transaction provided Genmab A/S (NASDAQ:GMAB) worldwide rights to ProfoundBio’s portfolio of next-generation ADCs, further strengthening its clinical pipeline.
Additionally, the transaction provided the company with access to ProfoundBio’s novel ADC technology platforms. These complement Genmab A/S (NASDAQ:GMAB)’s already validated suite of proprietary technology platforms. The combination of technology platforms of both companies might create new opportunities to garner and develop new medicines with the potential to transform the treatment of cancer and improve patients’ lives.
The analysts believe that Genmab A/S (NASDAQ:GMAB)’s antibody therapeutics have placed it as a significant player in the field, with products such as Darzalex achieving commercial success. Moreover, the recent launch of Epkinly (epcoritamab) should act as a potential game-changer. Notably, this can become a backbone in diffuse large B-cell lymphoma (DLBCL) treatment. This places Genmab A/S (NASDAQ:GMAB) favorably against competitors in the lymphoma space.
Genmab A/S (NASDAQ:GMAB)’s continued innovation in antibody therapeutics is expected to lead to breakthrough treatments and should help it sustain a competitive edge. Analysts at BMO Capital Markets reissued an “Outperform” rating on the company’s shares, setting a price target of $48.00 (up from $46.00) on 8th November 2024.
2) Moderna, Inc. (NASDAQ:MRNA)
5-Year Revenue Growth: ~128.5%
Average Upside Potential: ~67.9%
Market cap as of 12 November: $16.6 billion
Moderna, Inc. (NASDAQ:MRNA) is a biotechnology company, that discovers, develops, and commercializes messenger RNA therapeutics and vaccines for the treatment of infectious diseases, immuno-oncology, rare diseases, autoimmune, and cardiovascular diseases.
One of Moderna, Inc. (NASDAQ:MRNA)’s key focus areas for growth is the respiratory syncytial virus (RSV) vaccine, mRESVIA. The US FDA approved mRESVIA in 2024. Moving forward, the company remains focused on fueling sales growth and reducing its cost structure. Moderna, Inc. (NASDAQ:MRNA)’s future growth potential stems from its diverse pipeline of mRNA-based therapeutics and vaccines. Its mRNA-4157, in combination with Merck’s Keytruda, demonstrated promising results in early-stage trials for melanoma and head and neck squamous cell carcinoma.
Moderna, Inc. (NASDAQ:MRNA)’s investigational therapeutic for MMA (mRNA-3705) was selected by the U.S. FDA for the Support for Clinical Trials Advancing Rare Disease Therapeutics (START) pilot program. The FDA and the company have agreed on the pivotal study design. Moderna, Inc. (NASDAQ:MRNA) anticipates to start a pivotal study in H1 2025.
Wall Street analysts are quite optimistic about a joint agreement with Cenra Healthcare to promote Moderna’s mRNA respiratory vaccine portfolio in Taiwan, which includes COVID-19 vaccines. Cenra’s strong presence in the market should help ensure broader access to Moderna, Inc. (NASDAQ:MRNA)’s vaccines. This partnership will enable it to expand its future portfolio, primarily as respiratory diseases are posing a global threat.
Moderna, Inc. (NASDAQ:MRNA)’s progress in cancer vaccines, mainly the combination of mRNA-4157 with Keytruda, reflects promise in catering to significant unmet medical needs. The company’s work on combination vaccines, like the Flu+COVID vaccine, might offer a competitive edge in the evolving vaccine landscape. Its broad pipeline, such as candidates for CMV, norovirus, and other indications, should translate into multiple avenues for future growth and revenue diversification.
As per Wall Street analysts, the shares of Moderna, Inc. (NASDAQ:MRNA) have an average target price of $87.71.
1) Sarepta Therapeutics, Inc. (NASDAQ:SRPT)
5-Year Revenue Growth: ~35.0%
Average Upside Potential: ~72.6%
Market cap as of 12 November: $11.06 billion
Sarepta Therapeutics, Inc. (NASDAQ:SRPT) is a commercial-stage biopharmaceutical company, which is focused on the discovery and development of RNA-targeted therapeutics, gene therapies, and other genetic therapeutic modalities for treating rare diseases.
Sarepta Therapeutics, Inc. (NASDAQ:SRPT)’s flagship product, Elevidys, received expanded approval from the U.S. FDA, placing the company as a dominant player in the DMD treatment market. Elevidys exhibited statistically significant effects on secondary endpoints reflective of muscle function in clinical trials, catering to a critical unmet need in DMD treatment. One key challenge that is being faced by Sarepta Therapeutics, Inc. (NASDAQ:SRPT) is ensuring sufficient manufacturing capacity to meet the expected high demand for Elevidys.
The company focuses on addressing this by transitioning to suspension manufacturing by around 2026, which is expected to fuel production capacity. Beyond Elevidys and the DMD market, Sarepta Therapeutics, Inc. (NASDAQ:SRPT) possesses several avenues for future growth such as Exon-Skipping Therapies and mergers and acquisitions. The successful long-term data from ongoing studies might further strengthen Elevidys’ position as the standard of care for DMD. This will result in even broader adoption and use in younger patients.
Sarepta Therapeutics, Inc. (NASDAQ:SRPT)’s gene therapy portfolio for Limb-Girdle Muscular Dystrophy provides a strong opportunity for diversification and growth. With SRP-9003, the company should become a key leader in another rare disease space. The total revenues rose by $135.4 million in Q3 2024 compared to the same period of 2023. The increase stemmed from the initial product launch of ELEVIDYS in June 2023 and the expanded label in June 2024.
Royal Bank of Canada reaffirmed an “Outperform” rating on the shares of Sarepta Therapeutics, Inc. (NASDAQ:SRPT), setting a price objective of $182.00 on 21st October.
While we acknowledge the potential of SRPT as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for a deeply undervalued AI stock that is more promising than SRPT but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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