This has been a rough year to be a growth stock investor. The iShares S&P 500 Growth index has been beaten down by around 22% and many of its components have lost more than half their value in 2022.
When most people see trouble they tend to run first and ask questions later. On Wall Street, though, cool-headed analysts are still enthusiastic about some of the stocks they’ve been assigned to watch.
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Shares of Lovesac (LOVE 3.24%), Invitae (NVTA 14.86%), and Amyris (AMRS 17.62%) have lost a lot of ground, but analysts up and down Wall Street expect them to recover in big ways. The average target on these stocks is more than triple their recent prices.
Lovesac
Lovesac shares have lost 49% of their value this year even though the underlying business is succeeding in measurable ways. This is why the investment bank analysts who follow the company pinned a consensus price target on the stock that suggests a 230% gain over the next 12 months.
This company may be named after the giant beanbag chairs it sells, but most of its revenue these days comes from sales of modular sectional sofas called Sactionals. Seats, sides, and backs are interchangeable so a customer’s first loveseat can expand to accommodate growing needs. With hundreds of replaceable upholstery options, families can even change their appearance to match a new home or remodel.
Demand for premium seating hit a fever pitch amid the most stringent COVID-related lockdowns. Fear of declining sales now that Americans are spending less time at home has been pushing the stock down, even though sales growth is still incredibly strong. During Lovesac’s fiscal fourth quarter ended Jan. 30, 2022, sales jumped 51% year over year to $196 million.
Furniture’s generally a low-margin business, but not the way Lovesac does it. A Sactional large enough to be called a sofa costs a few thousand dollars, so a lot of that revenue reaches the bottom line. Net income during fiscal 2022 more than tripled year over year to reach $45.9 million. As Lovesac’s customers keep coming back to upgrade their Sactionals and replace worn-out upholstery, investors can look forward to steady earnings growth for many years to come.
Invitae
Shares of Invitae are down a stunning 74% this year, but Wall Street analysts think it can rebound. The consensus price target for this diagnostics industry stock represents a 283% premium over its price now.
Invitae is a highly innovative diagnostics provider that …….
Source: https://www.fool.com/investing/2022/05/31/3-stocks-wall-street-thinks-could-triple-your-mone/