© Reuters. 3 Popular Stocks Analysts Think Will Rally by More Than 45%
Some industries that emerged as “pandemic winners” experienced selloffs earlier this year as investors shifted to cyclical stocks to capitalize on an economic recovery. However, irrespective of the longevity of pandemic-driven trends, Wall Street analysts expect the following three companies from three different industries to witness solid upside over the next 12 months: Baidu (NASDAQ:), Peloton Interactive (NASDAQ:), and QuantumScape (QS). Let’s look closer as to why.Remote lifestyles and an increasing reliance on technology products and services helped many companies generate solid growth last year. And their stocks’ skyrocketing rally has in some instances made them overvalued. When the economy started recovering this year, investors opted to drop these stocks in favor of quality bargains that are well positioned to gain with the economic recovery.
While the sector rotation led to a sell-off of overvalued pandemic winners, many of those companies still hold immense growth potential. That’s because many of the pandemic-driven trends, particularly remote working and shopping, are expected to continue in the post pandemic world. This, along with the increased scope of these businesses in a post-pandemic world and current easy monetary policy, is boosting analysts’ confidence in the upside some of these stocks can still deliver.
Wall Street analysts expect Baidu, Inc. (BIDU), Peloton Interactive, Inc. (PTON), and QuantumScape Corporation (QS) to rally by more than 45% in the near-term. This, coupled with their strong fundamentals, makes them worth adding to one’s watchlist.
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