Looking for growth stocks that can deliver big gains? If so, you might want to take a look at Upstart Holdings (UPST 9.21%), Global-E Online (GLBE -2.57%), and Marathon Digital Holdings (MARA 2.04%).
These three companies sport very different business models, but they have one thing in common: The average analyst on Wall Street thinks they're worth at least 100% more than their recent prices.
Upstart shares are down a frightening 75% from the peak they reached last October. Investment bank analysts who follow this up-and-coming fintech think it can make a significant recovery though. The consensus price target for Upstart represents a 102% premium over recent prices.
Lenders hire Upstart to evaluate individual credit risk. Upstart's algorithm tracks a lot more credit-related information than the three-digit FICO scores Americans are familiar with. Upstart is increasingly popular among banks that want to find credit-worthy borrowers they would have ignored due to subpar FICO scores.
The loans Upstart helped banks originate years ago are performing well, but analysts are nervous about loans originated in 2021. Specifically, they're worried about net losses on loans the company originated a little less than a year ago because they're generating more losses than predicted.
Upstart reported fourth-quarter revenue that shot up 252% year over year to $305 million because lenders felt confident about Upstart's business model. Hopefully, the signs of weakness seen among recently originated loans are just temporary and not indicative of more trouble ahead.
Shares of Global-E Online have been on the rise in recent weeks, but it still sits around 57% below the all-time high set last September. Investment bank analysts on Wall Street think it can bounce right back. The average price target on Global-E represents a 114% premium over its price at the moment.
Global-E is one of many e-commerce stocks that soared during the pandemic's early days only to tumble once it became easier to shop in stores. Unlike some of its peers, though, this company issued forward-looking guidance for 2022 that exceeded analyst expectations during its latest earnings call.
As its name implies, Global-E helps brands and retailers around the world market their goods on an international stage. Apparently, there's a lot of pent-up demand for its services. In 2021, the gross value of merchandise (GMV) sold by Global-E's clients rose 87%, and this is going to be another big year. Management expects GMV to climb 70% in 2022 as it expands operations into a slate of new territories.
Direct-to-consumer brands around the world that want to sell to the U.S. will probably beat a path to Global-E's door this year. This January, the company extended a partnership with Shopify that could be an enormous source of growth in the years ahead.
Marathon Digital Holdings
Shares of this Bitcoin miner fell hard in late 2021 and early 2022 along with the cryptocurrency it mines. More recently, the stock has drifted upwards in step with Bitcoin prices, and Wall Street expects it to climb even further. The consensus target for Marathon Digital represents a 134% premium over recent prices.
Wall Street is bullish for Marathon Digital due in part to increasing production. In the first quarter of 2022, Marathon produced a record 1,259 Bitcoins. That was 556% more than the company reported in the previous year's period.
At recent prices, you can buy shares of Marathon for just 24 times trailing earnings. That's an extremely low price for a company growing this quickly, but there are some downsides to the Bitcoin mining business to consider.
Rising energy costs and low barriers to entry for competing Bitcoin miners are two problems that aren't going away. Once you factor in general Bitcoin volatility, it's clear that this is still a highly speculative stock for investors with nerves of steel.