With the S&P 500 sitting just a few points below setting a new all-time high, the bull market that began in 2022 is still snorting. Although a correction or even a bear market will eventually happen, the market is content to run higher. With the benchmark index up 11% year-to-date (YTD), it is 48% higher since the bull began charging in 2022.
There could be more to come. Much more. Bear markets tend to be short-term events lasting about 15 months on average. However, bull markets are measured in years. They typically run for around 36 months. Not that this bull market will last another year — it could end tomorrow. Or, it could go on for another 10 years. The last major bull market ran from the end of the financial crisis in 2009 to the start of the pandemic.
That’s why you don’t try to time the market. While market crashes can be painful, all vestiges of them are eventually wiped away by the next raging bull as the market goes on to new highs. Since we don’t know when a downturn will happen, stay invested and hold onto your stocks for the long term.
Here are three high-return stocks that Wall Street thinks will roar ahead by an average of 75% over the next year.
Exact Sciences (EXAS)
Healthcare stock Exact Sciences (NASDAQ:EXAS) might not look like a stock ready to run anywhere. Shares are down 33% in 2024 and are off 50% from their 52-week high. But, looks can be deceiving.
The stock got off to a rocky start this year after first-quarter results were weaker than expected. That was partially due to the seasonality of its business but also because it was going up against tough comparison from a year ago. The back half of the year is forecast to be much stronger in terms of sales and profitability.
Exact Sciences is a leader in colon cancer testing through its Colorguard stool-based test. A colonoscopy is the gold standard of testing and rival Guardant Health (NYSE:GH) is developing a blood test for colon cancer that a Food & Drug Administration’s (FDA) advisory committee recommended approving the test. However, there are concerns about its safety and ability to detect advanced cancers. While Exact Sciences is also developing a blood test, it says any approvals need to ensure they are at least as effective as existing methods.
There is no guarantee a blood test will lead to stealing any market share from Exact because a stool sample is so minimally invasive. Many people simply don’t like having blood drawn. That’s why Wall Street sees significant upside potential in Exact Sciences stock. Analysts have a consensus one-year price target of $95 per share, implying 91% growth.
RIOT Platforms (RIOT)
Also, Wall Street has been bullish about RIOT Platforms (NASDAQ:RIOT). In April, I noted JPMorgan Chase analysts gave the cryptocurrency miner a $16 per share price target implying 49% upside. But it has only gotten better since.
RIOT Platform stock still trades at about the same price it did back then, or around $10 a stub, Yet, there is now a consensus target price of $18 per share or 77% upside. As I noted last month about the Bitcoin (BTC-USD) halving event, analyst Reginald Smith said, “RIOT enjoyed lowest power costs per coin mined in 2023. Post-halving, we expect it to be [among] two lowest cost producers given its scale and attractive power contracts.”
Now it should be noted that if RIOT Platforms does attain the price target over the next 12 months, it will only bring RIOT stock back to its most recent high. Actually, it will be just below that since the 52-week peak is $20 a share. The crypto miner’s all-time high was around $38 a share in mid-2021. Therefore, it still has a way to go before achieving those lofty heights again.
Joby Aviation (JOBY)
I remain as bullish on Joby Aviation (NYSE:JOBY) as Wall Street. The electrical vertical takeoff and landing (eVTOL) aircraft manufacturer is speeding toward Federal Aviation Administration (FAA) certification for commercialization next year. The market, though, keeps dumping on the stock.
Shares of Joby Aviation stock remain depressed under $5 a share likely because investors worry about backing a leader in a non-existent industry. JOBY, Archer Aviation (NASDAQ:ACHR) and several other eVTOL companies are building this electric taxi industry from the ground up. While there are regular helicopter taxi services, all new infrastructure is needed to electrify the industry. Plus there are the challenges of creating the aircraft themselves.
Joby Aviation completed its test flight program using preproduction eVTOL aircraft. Now it is moving on to building production models and getting FAA certification to launch its business next year. The company is on track and just broke ground on expanding its manufacturing facility. It won’t cost JOBY much money because Toyota Motor (NYSE:TM) is helping to finance the project. The eVTOL stock also won a $10 million grant from California to assist with the cost.
Although JOBY’s income statement doesn’t look good, that’s not surprising from a pre-revenue company. However, its balance sheet looks excellent. It has $924 million in cash, equivalents and short-term investments and no long-term debt. Joby Aviation has nearly $1.2 billion in total assets and just $189 million in total liabilities.
The financial health of the company is the reason Wall Street has a $7.67 per share consensus price target on JOBY, implying 56% upside potential.
On the date of publication, Rich Duprey did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.