With the holiday-shortened week taking place, many equity investors have been very thankful for another tremendous year in the stock market. Still, one can only wonder what sort of upside the bulls are hoping for through the end of 2014 and into 2015 and beyond. 24/7 Wall St. has decided to comb through our recent analyst research records looking for some of the top stocks that analysts around Wall Street think can roughly double in price.
As a reminder, most stocks that are called on to double are far more speculative than traditional DJIA and S&P 500 stocks — although sometimes analysts get excessively ambitious in some of those companies as well. As we often say in our analyst calls in stocks under $10, some of the riskier stocks could even ultimately fail!
Here are five stocks which different Wall Street analysts in our research universe think could potentially double based upon their official price targets.
Penn Virginia Corporation (NYSE: PVA) could be a home run if Canaccord’s analysts are right on this call. The company is an independent oil and gas company that primarily focuses on developing the Eagle Ford Shale play in south Texas. Legendary hedge fund manager George Soros owns a sizable position in the stock and has pushed hard for the company to sell itself. Some analysts have confidence that Eagle Ford well results given Penn Virginia’s step-out development drilling plan in previous highly successful regions will prove to be very successful. The Canaccord price target for the stock, which is rated a Buy, is posted at $18. The Thomson/First Call consensus is at $16.07. Shares were recently trading at $8.00.
Hercules Offshore, Inc. (NASDAQ: HERO) is another energy related name that could bring investors some very happy returns. The company expects slow-going in the Gulf of Mexico until the end of this year, but opportunities look much brighter in 2015. Despite the soft jackup demand in U.S. and the gulf, the Howard Weil analysts expect rates to hang tough due to Hercules dominant market position and ability to control supply. The Howard Weil price target is a gigantic $5.50, and the consensus for the stock is at $2.40. Shares were trading Tuesday at $1.50.
Glu Mobile Inc. (NASDAQ: GLUU) is a top mobile gaming stock to buy at Cowen and remains one of the firms top investment ideas. An earnings miss knocked the stock down, and investors may have a perfect entry point. The company is now reaping the success of the moves that it made in its past product cycle to monetize its games in a better and more efficient manner. Its strategy of focusing on leveraging platform strength and creating long-term gaming franchises has proved profitable. The acquisition of Cie Games has added new product to the line-up like Racing Rivals, to go along with the fantastic success of the Kim Kardashian: Hollywood game, which was a summer blockbuster. The Cowen price target for the stock is a gigantic $10. The consensus target is also lofty $6.49. Shares were trading Tuesday at $3.80.
Seabridge Gold, Inc. (NYSE: SA) holds a 100% interest in several North American gold resource projects. The Company’s principal assets are the KSM property located near Stewart, British Columbia, Canada and the Courageous Lake gold project located in Canada’s Northwest Territories. With huge reserves and long-term production in place, they are a very solid possibility to be acquired. Upon completion, the company’s Seabridge KSM project is expected to produce 508,000 ounces of gold and 1.47 million pounds of copper per year for +50 years. The analyst at Cowen expects a project of this size to be of interest not only to gold miners, but copper producers as well. With the reserves of this company being valued at a tiny $9 an ounce, despite the drop in the price of gold, they could draw some serious interest. Cowen’s price target for Seabridge Gold, which is rated Buy at the firm, is an incredible $64.67. The consensus target is at $39.34. Shares were trading on Tuesday at $$8.33.
Ocera Therapeutics, Inc. (NASDAQ: OCRX) is a clinical stage biopharmaceutical company focused on acute and chronic orphan liver diseases. The company’s lead product OCR-002 is an ammonia scavenger and has been granted orphan drug designation and Fast Track status by the U.S. Food and Drug Administration (FDA) for the treatment of hyperammonemia and resultant hepatic encephalopathy in patients with acute liver failure and acute-on-chronic liver disease. The Stifel analysts continue to believe that Ocera’s current valuation is vastly underestimating the $500-600 million new market opportunity in the acute care space that the product addresses. Stifel’s price objective for Ocera is $17. The consensus is at $17 as well. Shares were trading on Tuesday at $6.66. Trading to the target would be an incredible 155% gain.
Again, these stocks are much more volatile than traditional DJIA and S&P 500 stocks. They are certainly not for the more timid investor.