Never ignore the power of momentum. Sometimes the fastest-moving objects are the ones that keep on racing ahead.
That could be the case with a select group of stocks that have delivered tremendous gains this year. These three stocks have soared 179% or more so far in 2024. They could go even higher, according to Wall Street.
1. Summit Therapeutics
Summit Therapeutics (NASDAQ: SMMT) is sizzling hot this year, with its shares skyrocketing around 220%. All of this huge gain has come since late May.
Many investors had seemingly thrown in the towel on Summit. Before the stock took off, it was down 55% year to date. What happened to turn things around? The company reported surprisingly good results for its lead pipeline candidate.
Summit’s ivonescimab, combined with chemotherapy, thumped Merck‘s blockbuster cancer immunotherapy Keytruda in a phase 3 clinical trial as a first-line treatment of patients with PD-L1-positive non-small cell lung cancer.
In this study, which was conducted in China, patients receiving the ivonescimab/chemo combo achieved “statistically significant and clinically meaningful improvement” in progression-free survival compared to those receiving Keytruda, Summit said.
Wall Street thinks the stock still has plenty of room to run. All six of the analysts surveyed by LSEG in June rate the stock as a buy or a strong buy. The average 12-month price target for Summit Therapeutics reflects an upside potential of nearly 27%.
2. Super Micro Computer
Shares of Super Micro Computer (NASDAQ: SMCI) have nearly tripled so far in 2024. By mid-March, the tech stock was up 318% year to date before giving up some of its gains.
It’s easy to discern why Super Micro Computer’s shares have risen so much. The company reported stellar results for its fiscal second quarter in January and its fiscal third quarter in April.
Supermicro has been one of several beneficiaries of the artificial intelligence (AI) boom. It has especially enjoyed strong demand for its AI rack scale plug-and-play solutions.
In March, Super Micro Computers joined the S&P 500 index. This was a big honor for the company and served as a nice catalyst. Mutual funds and exchange-traded funds (ETFs) that track the S&P 500 had to buy Supermicro stock for their portfolios.
The average 12-month price target for the shares is 21% higher than the current price. However, there isn’t a bullish consensus on Wall Street. Of the six analysts surveyed by LSEG this month, only two rate it as a buy, with the other four recommending holding Super Micro Computer.
3. Viking Therapeutics
Summit isn’t the only biotech that has won big this year. Shares of Viking Therapeutics (NASDAQ: VKTX) have soared 179%. At one point earlier in 2024, Viking’s stock was up nearly 408% year to date.
The biggest story for Viking was its announcement in late February of results from a phase 2 study of its experimental obesity drug VK2735. In this study, patients receiving VK2735 experienced up to 13.1% placebo-adjusted mean weight loss. Importantly, the drug’s safety profile also looked good.
Wall Street remains exceptionally positive about Viking’s prospects. The average 12-month price target for the stock reflects an upside potential of nearly 120%. The most pessimistic price target is 73% above the current share price.
Is Wall Street right about these high-flying stocks?
I’m unsure if any of these three stocks will hit Wall Street’s price targets over the next 12 months. But I suspect all of them could deliver market-beating gains for investors over the next few years.
My favorite in the group right now is Viking Therapeutics. The company not only has a promising obesity drug; it also has promising therapies targeting the liver disease nonalcoholic steatohepatitis (NASH) and a rare genetic disorder called X-linked adrenoleukodystrophy (X-ALD). I think Viking could be a top takeover candidate if its pipeline programs continue to achieve success in clinical testing.
Should you invest $1,000 in Viking Therapeutics right now?
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Keith Speights has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Merck and Summit Therapeutics. The Motley Fool has a disclosure policy.
3 Stocks That Have Soared 179% or More in 2024 and Could Go Even Higher, According to Wall Street was originally published by The Motley Fool
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