According to analysts at Openheimer, these 2 stocks have the potential to rise as much as 30% this year.
Oppenheimer's chief analyst sees positive factors in the economy that could keep stock markets afloat. Based on this, Oppenhiemer analysts dove into the stock markets, and picked 2 companies they expect to see decent growth this year.
The labor market is currently robust and inflation is cooling, but there are recessionary concerns and an uncertain geopolitical situation. Still, Oppenheimer's chief investment strategist, John Stoltzfus, sees potential for improvement in the stock market.
From our radar screen of the market, there is potential for things to improve, even if uncertainty and risk remain in the landscape. The resilience reflected in the economy, from our perspective, points to the potential for stocks to keep climbing the proverbial 'wall of worry', if not straight up.
Oppenheimer analysts highlighted two stocks with upside potential of 30% or more. In the following article, we'll look at these two companies, their products, services, and pros and cons.
RxSight, Inc. $RXST+0.0%
RxSight, Inc.
RXSTRxSight is an innovative healthcare company that developed the world's first adjustable intraocular lens (IOL). This product allows patients with cataracts or presbyopia to achieve optimal vision without the need for additional corrections with glasses or contacts.
Founded in 2006, RxSightbyla is considered a pioneer in optical medical technology.
In addition to their groundbreaking new discovery, their other main product, the Light Adjustable Lens (LAL), is unique in that it allows ophthalmologists to adjust lenses after implantation, ensuring a higher level of accuracy and results. This lens adjustment process is non-invasive and is performed using a special ultraviolet light. In this way, significantly better vision can be achieved compared to traditional lenses. In addition to innovative products and technologies, the company also focuses on training and educating ophthalmologists so that they can better take advantage of LAL and other technologies. In this way, RxSight not only brings improvements for patients, but also strengthens the entire ophthalmology field.
The company is also investing in research and development of new products and solutions in ophthalmology. This includes the development of systems for monitoring and diagnosing eye diseases, as well as research in the ever-expanding field of biocompatible materials.
The company's strengths lie in its innovative product, which has the potential to change the way intraocular lenses are used and help improve the quality of life for millions of people. The technology can also deliver savings in healthcare costs by reducing the need for additional corrections.
On the other hand, RxSight faces competition in the ophthalmology industry and will need to invest in research and development to maintain its market position. Moreover, although sales are growing, the company has not yet posted a profit.
The new technology the company has developed has caught the eye of Oppenheimer analyst Steven Lichtman, who sees room for further growth.
Of the approximately 4.5 million cataract procedures in the U.S., premium IOLs like LAL RXST account for +/-20%. We expect continued expansion of the premium IOL market over the next few years as technology improves and patients seek independence from glasses. While there are risks to LAL adoption (high out-of-pocket costs, need for follow-up visits for adjustments), our research shows growing interest in the technology and its use by both current users and those looking to adopt it in the near future. We see a path to meaningful gross margin expansion.
Along with this comment, Lichtman set a target price for the year of $23. A total of 5 analysts have recently looked at the company and have agreed on an average target price of $20.
Advanced Drainage Systems $WMS+0.6%
Advanced Drainage Systems was founded in 1966 and has since become one of the largest manufacturers and suppliers of drainage and water management systems in the world. Their products are used in many industries such as transportation, commercial and residential construction, agriculture and infrastructure projects.
Their products include pipes, fittings, geosynthetics and other innovative solutions that help improve infrastructure and environmental sustainability. The company emphasizes innovation and sustainability in its products. For example, their patented N-12® system is a double-walled, high-grade polyethylene pipe that is impact and corrosion resistant. Due to its lightweight and ease of installation, it provides savings in cost and time during installation.
The company also provides project design and planning services, enabling customers to maximize the efficiency and sustainability of their projects. The company creates customized solutions for each project, taking into account the specific requirements and expectations of customers. In this way, ADS actively promotes the implementation of best practices in water management and drainage.
Advanced Drainage Systems also works with government agencies and NGOs to develop new water management standards and policies. This collaboration helps the company maintain a competitive advantage while contributing to a better and more sustainable environment. In addition, ADS focuses on recycling and waste reduction. Most of their pipes and other products are made from recycled materials, reducing their environmental impact and promoting a circular economy.
The benefits of Advanced Drainage Systems lie in its broad portfolio of products and services that help customers reduce costs, improve efficiency and minimize environmental impact. In addition, with the growing emphasis on sustainability and increasingly stringent regulations in water management, demand for the company's products and services is likely to continue to grow.
On the other hand, Advanced Drainage Systems faces strong competition in the construction and agriculture sectors. To maintain its market position, the company will need to continually innovate and adapt to changing customer needs and regulatory requirements.
This company, in turn, has endeared itself to analyst Bryan Blair, who is quite optimistic about the company.
The team's comprehensive product portfolio, unparalleled scale and resource support (including an extensive sales network, technical staff, and company fleet of 700 trucks and 1,250 trailers), and continued material conversion (favoring plastics) of stormwater and septic systems all bode well for continued above-average performance. Although construction-driven stocks remain generally out of favor (especially those with non-residual concentrations), we view the near-term estimate risk as well understood with solid, likely underappreciated upside potential.
Along with this comment, Blair has set a target price for this year at $108. A total of 6 analysts recently looked at this company and agreed on an average target price of $114.
WARNING: I am not a financial advisor, and this material does not serve as a financial or investment recommendation. The content of this material is purely informational.