Just because Wall Street likes a stock doesn’t mean it’s a great pick. However, it’s not a bad idea to at least consider how analysts view a given stock. After all, their opinions are (or at least, should be) based on a thorough review of the underlying businesses for the stock.
Sometimes, analysts are highly bullish about stocks that have great long-term prospects. In some cases, they’re so optimistic that their price targets reflect expectations of significant near-term gains. Here are three unstoppable stocks to buy that Wall Street thinks will soar more than 35% over the next 12 months.
Brookfield Renewable Partners (NYSE: BEP) is a limited partnership (LP) that, as its name hints, provides renewable power. The company operates hydroelectric, wind, and solar facilities with a generating capacity of around 37 gigawatts.
The Trump administration’s energy policies aren’t viewed as very friendly for renewable energy stocks. Unsurprisingly, Brookfield Renewable Partners’ unit price has plunged nearly 30% below its high set before the U.S. elections in November 2024.
Analysts remain upbeat about Brookfield Renewable’s prospects, though. The average 12-month price target is 46% higher than the current unit price. Analysts are nearly as bullish about Brookfield Renewable Corporation (NYSE: BEPC), a sibling stock created a few years ago for investors who didn’t want the tax hassles associated with LPs. The average price target for Brookfield Renewable Corporation is around 35% above its current share price.
Granted, the political climate in the U.S. might not be as favorable for Brookfield Renewable now as in the past. However, the growing demand for electricity due to the surging adoption of artificial intelligence (AI) should serve as a strong tailwind for the company both in the U.S. and in other countries. Importantly, over 90% of Brookfield Renewable’s development pipeline is in the world’s top 10 data center markets.
Novo Nordisk (NYSE: NVO) has ranked among the biggest pharmaceutical companies for a long time. However, it enjoyed unprecedented success in recent years thanks to overwhelming demand for Ozempic and Wegovy. Both products share the same underlying drug — semaglutide.
The big pharma stock has fallen significantly since July 2024. Lower-than-anticipated sales for Ozempic were a big factor behind this decline. Medicare’s recent inclusion of Ozempic, Wegovy, and Rybelsus (another semaglutide product) on its 2027 list for drug price negotiation caused worries, too.
However, some on Wall Street believe a rebound could be on the way. The average analysts’ 12-month price target for Novo Nordisk reflects an upside potential of 39%.
Why is there still so much optimism about Novo Nordisk? Analysts know that Ozempic and Wegovy should continue to enjoy strong demand. They also are looking ahead at the potential for Novo’s pipeline. The company has 13 late-stage programs, including CagriSema and an oral version of semaglutide, both of which are promising candidates targeting obesity and type 2 diabetes.
Unlike Novo Nordisk, Summit Therapeutics (NASDAQ: SMMT) doesn’t have any approved products on the market yet. However, the last word in the previous sentence is important: Summit might not be too far away from leaving the ranks of clinical-stage drugmakers.
The company has high hopes for its lead pipeline candidate, ivonescimab. Summit’s partner, Chinese drugmaker Akeso, reported results from a late-stage clinical study last year that showed ivonescimab clobbered Merck‘s Keytruda in improving progression-free survival among patients with non-small cell lung cancer (NSCLC).
Summit’s share price understandably skyrocketed after Akesobio’s news because the company owns the commercialization rights for ivonescimab in the U.S., Canada, Europe, Japan, Latin America, the Middle East, and Africa. Wall Street thinks the biotech stock can move much higher, with the average price target 50% above Summit’s current share price.
To be sure, Summit must first announce positive results for ivonescimab in its own clinical trials and win U.S. regulatory approval for the drug. If it does, though, this stock could be an even bigger winner over the long run than Wall Street’s price target indicates.
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Keith Speights has positions in Brookfield Renewable and Brookfield Renewable Partners. The Motley Fool has positions in and recommends Merck and Summit Therapeutics. The Motley Fool recommends Brookfield Renewable, Brookfield Renewable Partners, and Novo Nordisk. The Motley Fool has a disclosure policy.
3 Unstoppable Stocks to Buy That Wall Street Thinks Will Soar More Than 35% was originally published by The Motley Fool