Is the worst for the stock market over? Maybe, maybe not. There's no way to be certain yet if last week's rebound will continue or grind to a screeching halt.
However, there are individual stocks that could be in store for much brighter days ahead if analysts are right. Here are three stocks down 50% or more that Wall Street thinks could double within the next 12 months.
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1. Sea Limited
Sea Limited (SE +2.51%) has lost roughly two-thirds of its market cap since October 2021. Wall Street expects a big comeback for the stock, though, with a 12-month price target reflecting an upside potential of around 95%.
The main reason for Sea Limited's huge decline is that Chinese conglomerate Tencent (TCEHY +0.59%) owns a significant stake in the company. India apparently banned Sea's top-selling mobile game Free Fire because of this connection with Tencent. There have also been concerns about the potential for the U.S. Securities and Exchange Commission to delist Chinese stocks from U.S. exchanges.
NYSE: SE
Key Data Points
In addition to these issues, investors are worried about Sea's slowing growth. The company's 2022 guidance projected significantly lower revenue growth than in the past three years.
So why is Wall Street still so bullish about Sea Limited? For one thing, analysts likely think the worries related to the company's connection with Tencent are overblown. More importantly, though, they probably think that Sea's Shopee e-commerce platform will continue to deliver strong growth for years to come.
2. 10x Genomics
10x Genomics (TXG +3.08%) is still down more than 60% from its peak set in early November 2021. But analysts really like this genomics stock. The consensus price target for 10x is nearly 85% higher than the current share price.
The shift away from growth stocks in recent months has probably been the biggest factor behind 10x Genomics' dismal stock performance. However, the company also disappointed investors with its full-year 2022 revenue guidance.
NASDAQ: TXG
Key Data Points
10x Genomics CEO Serge Saxonov said in the company's Q4 conference call that the prioritization of the development of the new Xenium platform for in situ (in the original tissue) analysis will delay the launches of other products. That's actually good news, though, because the decision to accelerate the plans for Xenium was due to heavy customer interest in the system.
Wall Street's optimism about 10x seems well-placed. The company could be trading short-term pain for long-term gain.
3. SoFi Technologies
SoFi Technologies (SOFI +0.66%) is the best-performing of these three stocks, down "only" 58% or so from its highs from less than five months ago. Analysts think that the fintech stock could bounce back in a big way, with the consensus 12-month price target reflecting an upside potential of around 78%.
Unlike Sea Limited and 10x Genomics, SoFi beat expectations with its 2022 revenue guidance. However, investors have been worried that the student loan moratorium could yet again be pushed back. Since SoFi makes a significant chunk of its revenue from student loans, this wouldn't be good news for the company.
NASDAQ: SOFI
Key Data Points
On the other hand, SoFi received a bank charter earlier this year. This charter opens new doors for growth that Wall Street is likely counting on materializing over the next year.
SoFi also recently announced plans to acquire Technisys for $1.1 billion. Technisys offers a digital banking platform that enables banks and fintech companies to quickly create tailored financial products. The deal could increase SoFi's competitive position in the fintech world -- and potentially boost its stock along the way.
