Last year was a strong bull market, and so far this year stocks are continuing their winning streak. A quick look at the Nasdaq shows a 30% gain over the past 12 months, while the S&P 500 is up 25% over the same period. It’s an environment that has investors looking for solid options with more room to move.
The classic move is to buy low and sell high – but that’s not the only way to find a winning investment. There are plenty of sound investments to be found in stocks that have already given us the “show me” story, with strong outperformance in recent months. While these stocks are high in price, their outperformance doesn’t mean they’ve hit a wall, and they often still have room to grow.
Wall Street analysts look specifically at this theory, picking stocks that have shown triple-digit percentage gains in the past 12 months and are still going strong. We’ve opened up the database to Tip RanksLet’s take a look at the latest information on two such stocks, each of which has a strong buy rating from investors on the Street and positive comments from analysts. Here are the details.
Solino Therapeutics (SL. No)
We’ll start with Soleno Therapeutics, a biopharmaceutical company developing new drug candidates to treat rare genetic diseases. The company recently completed a series of clinical trials for its lead candidate, diazoxidecholine, or DCCR, and has filed a new drug application with the Food and Drug Administration. The agency is expected to announce by the end of August whether the drug has been accepted for review.
DCCR was developed as a treatment for Prader-Willi syndrome, a serious, life-changing genetic disorder that is usually diagnosed in early childhood. The drug, a proprietary, extended-release formulation of a crystalline salt of diazoxide, was tested in a once-daily oral tablet formulation and showed clinically significant positive results in clinical trials. DCCR has shown great potential as a treatment for the hyperphagia, or excessive hunger, commonly associated with Prader-Willi syndrome.
The company’s progress in developing DCCR, and in moving the drug through the clinical trial and regulatory filing process, has provided a strong foundation for the stock over the past year. In September of last year, after releasing positive data on 77 patients in the clinical program, the stock jumped from $4.43 to more than $26 — and it has continued to climb ever since. Over the past 12 months, SLNO stock is up a whopping 869%.
Baird analyst Brian Skorny is bullish on Soleno, based on the DCCR’s potential. He believes the drug, with a potential patient base of 8,000 to 10,000 in the U.S., is on track for approval — a good outlook for investors. He wrote of the company, “We believe regulatory approval of our lead drug candidate Soleno is more likely than the market currently prices. The FDA has publicly discussed the need to adjust for studies conducted during COVID (as was the case here) and flexibility when it comes to rare diseases (as was the case here). Ultimately, we see the DCCR fitting nicely into a recent crop of orphan drug approvals that have all yielded much greater potential (despite regulatory controversy) than Soleno’s valuation suggests.”
Skorny continues to give SLNO stock an “Outperform” (Buy) rating, and his $72 price target implies ~40% upside potential over the next 12 months. (To watch Skorny’s track record, see click here)
Although there are only 4 recent reviews for this stock, they are unanimously positive – giving the stock a Strong Buy rating. The stock has an average price target of $70.75, indicating a 37% upside from the current trading price of $51.55. (See SLNO Stock Forecast)
Money Lion (Ml)
Next on our list of top gainers is MoneyLion, a fintech company operating in the personal banking sector. The company offers a wide range of personal financial services, including advisory, lending, and investing options, with all services geared toward the consumer market. MoneyLion counted 14 million customers last year, and it targets the “average American,” the majority of the U.S. population who earn a living while living paycheck to paycheck. The company offers a range of simplified, high-quality financial options available to this customer base.
MoneyLion touts itself as a grassroots financial services company, using technology to enhance its product offerings. The company offers “access for all,” making it possible for low-income consumers to benefit from personal banking services and make informed financial decisions. MoneyLion handled about 205 million customer inquiries last year, averaging more than 50 million inquiries per quarter.
All of this makes for a popular service, one that has enabled the company to reach 15.5 million customers according to its Q1 2024 report — a 98% increase year-over-year. In financial results, the company reported $121 million in quarterly revenue, up 29% year-over-year and beating expectations by $4.69 million. The company reported earnings for the quarter of 60 cents per share on GAAP — a figure that was 68 cents per share better than expected. Additionally, total GAAP net income was $7 million, a quarterly record for the company.
The strong results have helped support the stock, which has risen a staggering 635% over the past 12 months.
For Lake Street’s Jacob Stefan, the combination of execution and potential for further growth is part of the appeal here. “We believe MoneyLion has executed well on diversifying its institutional segment revenue with adjacent product offerings,” the analyst said. “The revenue mix from personal loans now represents just 60% of revenue, down from 90% at the time of acquisition. Management has highlighted further diversifying its institutional revenue mix as a focus for 2024, and we expect to see more credit card, mortgage and insurance offerings coming to the platform. Ultimately, we believe more shots on goal (offers) will lead to more goals (offer redemptions) for MoneyLion.”
Stefan follows this up with a Buy rating on the stock, and a $109 price target, indicating a 25% upside potential over one year (to see Stefan’s track record, click here)
Again, we’re looking at a stock that has 4 unanimous positive reviews from analysts and a Strong Buy rating. The stock is trading at $87 and has an average price target of $114, suggesting a gain of ~31% over the one-year time frame. (See MoneyLion Stock Forecast)
To find good stock trading ideas with attractive valuations, visit TipRanks. Best Stocks to Buya tool that aggregates all of TipRanks’ stock insights.
Disclaimer: The opinions expressed in this article are solely those of the participating analysts. The content is intended for informational purposes only. It is very important that you conduct your own analysis before making any investment.
