As 2024 draws to a close, what could be more natural than identifying the top stocks for the rest of the year?
This kind of stock selection is an essential skill for any investor, and luckily Smart Score makes it easier. This data collection and sorting tool from TipRanks uses a combination of AI technology and natural language algorithms to collect and sift through the stock market’s aggregate data – data drawn from thousands of traders trading thousands of stocks for tens of millions of dollars every day. transactions – and it uses that data to give each stock a simple score, on a scale of 1 to 10 and based on the stock’s position against a range of factors known to correspond to future outperformance.
We opened the TipRanks databases to find two of these top-grossing stocks that investors should consider for the remainder of 2024. These are ‘Perfect 10’ stocks, stocks that have earned the highest possible Smart Score.
Boot Barn Holdings (BOOT)
We start in the retail world, with Boot Barn. This company operates in the lifestyle niche and offers customers a range of western-themed clothing, shoes and accessories. The company is best known for its high-quality western boots and cold-weather outdoor gear. Boot Barn also deals in hiking boots and work boots, cool work clothes, western fashion and even cowboy hats. The company’s clothing is marketed to men, women and children and is complemented by a range of decorations and gifts.
The Boot Barn company was founded in 1978 and has since grown into the largest Western-themed lifestyle store. The company operates through a network of brick-and-mortar stores, of which more than 420 are located across 46 states, and through an e-commerce operation that includes three websites: bootbarn.com, sheplers.com and countryoutfitter.com.
BOOT shares fell 16% after its Oct. 28 second-quarter report. Revenue showed year-over-year growth and profits were in line with expectations, but investors reacted to the unexpected announcement that CEO Jim Conroy will step down on November 22.
Baird analyst Jonathan Komp sees the share price drop as an opportunity and writes about the stock: “We were surprised by the significant share decline following the news that CEO Jim Conroy plans to leave for Ross Stores in November, as there is a strong there is continuity within the remaining BOOT team. reduces the short-term disruption risk. Taking into account BOOT’s +5% increase to F2025E EPS guidance, the >25% correction in BOOT’s NTM P/E appears overdone given strong competitive momentum and near-term visibility . We also view the reduction of BOOT’s ending inventory as weak, given the limited write-down risk.”
Looking ahead, Komp quantifies the opportunities here as follows: “We remain confident in BOOT’s ability to deliver attractive relative earnings growth, supported by attractive unit expansion opportunities. The valuation is back below the peer sector median, and we see a 12+ month bull case approaching +50% upside, with a further decline of ~10-15% justifying our move.”
These factors underlie Komp’s Outperform (i.e. Buy) rating on BOOT stock, with a $167 price target suggesting a one-year upside potential of ~24%. (To view Komp’s track record, click here)
Boot Barn has collected 13 recent analyst ratings, and these are divided into 10 Buys and 3 Holds to support the Strong Buy consensus rating. The shares are priced at $135.14 and have an average price target of $176.67, suggesting a potential for ~31% upside in the coming months. (To see BOOT stock forecast)
Summit Therapeutics (SMMT)
Next on the list is Summit Therapeutics, a clinical-stage biopharmaceutical company that has advanced a leading drug candidate, ivonescimab, into the late stages of the clinical testing process. The company developed this candidate as a novel medicinal therapy with the potential to treat a wide variety of cancers.
Ivonescimab is an advanced bispecific PD-1/VEGF antibody, a novel tetravalent molecule that combines two validated mechanisms in oncology and targets them to target disease. To this end, Summit has multiple clinical trials underway for ivonescimab in the US, China and Australia. The most common disease target of these clinical trials is non-small cell lung cancer, or NSCLC, the most common type of lung cancer. In all clinical trials to date, approximately 1,800 people have been treated with ivonescimab.
The most important recent news for Summit and for ivonescimab came in early September. At the time, the company announced that ivonescimab had surpassed the results of Keytruda, Merck’s anti-cancer drug. Summit’s drug was tested in a Phase 3 trial, HARMONi-2, conducted in China, and showed it could reduce the risk of disease progression or death by 49% compared to the Merck drug. Summit’s shares jumped on the news, from $12.27 on September 6 to nearly $32 on September 13. Although shares have since fallen again, the stock remains up nearly 63% from its September 6 value.
Summit has several other catalysts in store that have piqued analyst interest. The global Phase 3 HARMONi is expected to release topline data by the middle of next year, the global Phase 3 HARMONi-3 trial is planned for expansion and the company expects to initiate the HARMONi-7 trial in early 2025.
This biotech company caught the attention of JMP analyst Reni Benjamin, who likes the company’s strong performance in clinical trials and large cash reserves.
“Leading asset Ivonescimab (Ivo) generated impressive data (doubling of PFS compared to pembrolizumab (pembro)) in a large randomized Phase 3 NSCLC trial in China, while multiple Phase 3 US/Global NSCLC trials are ongoing, of which with one already subscribed, and a strong cash position of $487 million, we believe Summit shares represent a unique investment opportunity… We believe Summit has the potential for commercialization achieve in the smaller EGFRm and 1L NSCLC patient population, reaching $17.9 billion in global peak revenue upon potential commercialization in 1L NSCLC by 2034,” Benjamin opined.
Therefore, the analyst rates SMMT shares Outperform (Buy), while his $32 price target implies a 50% upside for the next twelve months. (To view Benjamin’s track record, click here)
A total of four recent analyst reviews have been recorded for this stock, with a 3-to-1 split favoring Buy over Hold, contributing to a Strong Buy consensus rating. With the stock currently trading at $21.41 and an average price target of $34.75, there is 62% upside potential for the year ahead. (To see SMMT stock forecast)
To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a tool that unites all of TipRanks’ equity insights.
Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is for informational purposes only. It is very important to do your own analysis before making an investment.
