3 Growth Stocks That Could Skyrocket 50% or More In 2023, According to Wall Street

Not much has gone right for growth stocks this year. A bear market has mauled the valuations of many once high-flying stocks.

However, a new year just might bring better news if analysts are right. Here are three growth stocks that could skyrocket 50% or more in 2023, according to Wall Street.

1. Amazon

Amazon (AMZN -1.65%) delivered its worst performance in more than a decade in 2022. Shares of the e-commerce and cloud giant plunged close to 50%. Amazon's slowing growth and heavy spending rattled investors.

But Wall Street analysts remain optimistic about Amazon. The consensus 12-month price target reflects an upside potential of nearly 70%. Of the 47 analysts surveyed by Refinitiv in December, 43 rated the stock as a buy or strong buy.

There are several reasons why Amazon stock could soar in 2023. If the U.S. avoids a recession or only experiences a mild one, the growth for Amazon Web Services should kick back into high gear. This would also help increase Amazon's digital advertising revenue. No matter what happens with the economy, the company's cost reductions should boost profitability next year. 

It's certainly possible that Amazon won't hit Wall Street's target. A severe recession and/or a prolonged bear market would delay any rebound for the stock. However, the next bull market will come sooner or later. When it does, Amazon should be a surefire winner.

2. CRISPR Therapeutics

Like Amazon, CRISPR Therapeutics (CRSP -3.45%) saw its share price sink by close to 50% in 2022. It was another bad year for most biotech stocks, but investors especially seemed to think that CRISPR Therapeutics' valuation got ahead of its near-term prospects.

Some on Wall Street don't agree with that sentiment, though. The average analysts' price target for CRISPR Therapeutics is more than 140% higher than the current share price. There is some disagreement about the stock, however: Of the six analysts covering CRISPR Therapeutics who were surveyed by Refinitiv in December, half recommended holding the stock while the other half rated it as a buy or strong buy.

CRISPR Therapeutics could have some good news on the way soon. The company and its big partner, Vertex Pharmaceuticals, could win U.S. and European regulatory approvals for exa-cel in treating sickle cell disease and beta-thalassemia in 2023. The gene-editing therapy could generate peak annual sales of more than $2 billion. 

There are also other promising candidates in CRISPR Therapeutics' pipeline. Experimental CAR-T therapy CTX110 is currently being evaluated in a phase 2 study in treating large B-cell lymphoma that could pave the way for a regulatory filing. The company is investigating another CAR-T therapy, CTX130, in two phase 1 studies targeting kidney cancer and several types of lymphoma.

3. PayPal Holdings

PayPal Holdings (PYPL -1.14%) was really beaten down in 2022. The fintech stock crashed more than 60%, mainly because of slowing growth.

Many on Wall Street think that a major rebound could be on the way for PayPal, though. The average price target for the stock reflects an upside potential of nearly 55%. Of the 44 analysts covering PayPal who were surveyed by Refinitiv in December, 32 rated it as a buy or strong buy. None recommend selling the stock. 

There's a lot to like about PayPal. Its shares trade at only 14.4 times expected earnings. That's cheaper than the stock has ever been. The company's cost-savings initiatives should boost earnings in 2023 and beyond. PayPal's transactions per active account increased by a record level in the third quarter of 2022. 

Some might believe that Apple could derail PayPal's return to growth, with its Apple Pay digital payment service gaining momentum. However, both PayPal and Venmo apps are included in Apple Pay. PayPal CEO Dan Schulman said in the company's Q3 call that this integration should accelerate its efforts to process payments in brick-and-mortar stores.