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5 stocks to consider for over 20% returns in the next 12 months

5 stocks to consider for over 20% returns in the next 12 months
Jordan
Major
1 month ago
7 mins read

Over the next 12 months, the stock market is projected to witness increases of more than 20 percent in five different companies, according to analysts. 

We have selected these five businesses on our list in particular because of their solid technicals and the views of experienced stock trading experts who have evaluated them.

Alibaba (BABA)

Alibaba Group Holding Ltd. (NYSE: BABA) closed trading on Wednesday at $177.18, + 0.17% (0.10) over the last 24 hours and +8.92 (5.30%) in the last five trading sessions, BABA’s Hong Kong shares surged as much as 9% on Wednesday, after reports that founder Jack Ma traveled to Europe and following the release of a new chip from the Chinese technology giant.

Currently, BABA has been trading in a broad range of $138.43 – $182.09 over the last month, which is quite wide; presently, it is trading at the upper end of this range.

BABA 20-50-200 SMA lines chart. Source. Finviz.com data. See more stocks here.

In addition, 25 Wall Street trading experts issued 12-month price forecasts for Alibaba based on its performance in the last three months. The average price objective for the stock is $244.87, with a high projection of $330.00 and a low estimate of $190.00. The median price forecast also reflects a 38.20% shift from the previous price of $117.18.

BABA analysts’ price target. Source: TipRanks.com

Notably, one TipRanks expert has suggested that BABA be held, while twenty-three analysts have renewed their “Buy” recommendations in the past three months. It’s worth noting that only one analyst advocates to “Sell.” Accordingly, most experts think Alibaba is a “Strong Buy”, with an average price target rise of 38.20% from the current price of $177.18.

Disney (NYSE: DIS)

Disney (NYSE: DIS) closed Wednesday’s trading at $170.55, down -3.52 (-2.02%) in the previous five trading days. 

After recovering from the pandemic and resuming normal operations, shareholders should be satisfied for some time, especially given Disney’s success in growing its streaming service with recent launches like Star Plus in Latin America.

Indeed, Disney exhibits a reasonable setup pattern since prices have been stabilizing and volatility has decreased recently. Below the current price of $170.55, there is a support zone; a stop order may be put below this zone.

DIS 20-50-200 SMA lines chart. Source. Finviz.com data. See more stocks here.

It’s worth mentioning that 19 Wall Street analysts have provided 12-month price estimates for Walt Disney in the past three months. In general, a median price goal of $215.06 is expected, with a high prediction of $263.00 and a low projection of $175.00 forecasted. The average price objective indicates a 26.10% increase over the stock’s most recent trading price of $175.00.

DIS analysts’ price target. Source: TipRanks.com

Based on the last three months, fifteen TipRanks experts have repeated their “Buy” recommendations for Disney, while four have advised “Hold.” It’s worth noting that none of the analysts recommend to “Sell” the stock. 

As a result, most experts believe that Walt Disney is a “Strong Buy” with a rise of 26.10% from the most recent price of $263.00 projected for the average price target.

Amazon (NASDAQ: AMZN) 

Amazon (NASDAQ: AMZN) began the year slowly but gained momentum in the weeks leading up to the e-commerce giant’s quarterly report. Thereafter, the stock had a brief dip before regaining its present bullish trend.

The stock is currently up over the last five trading days at $3,415.06. Besides that, the short term trend is positive, while the long term trend is neutral, as AMZN shares are trading above their 20 and 200-day simple moving averages (SMA), which is a positive sign for those looking to purchase the stock as it indicates it is moving in the right direction.

Although the price movement has been a little volatile to find a solid entry and exit point, therefore, it is wise to wait for some consolidation first owing to the fact that in the last month, Amazon has been trading in the $3176.25 – $3462.86 range, which is quite wide and it is currently trading near the high of this range.

AMZN 20-50-200 SMA lines chart. Source. Finviz.com data. See more stocks here.

According to 32 Wall Street analysts’ 12-month price predictions for Amazon in the previous three months, the average price goal is $4,196.90, with a high estimate of $5,000 and a low of $3,775 expected. The average price forecast reflects a 22.89% increase over the previous price of $3,415.06.

AMZN analysts’ price target. Source: TipRanks.com

Furthermore, based on the price projections of 32 TipRanks experts’ stock recommendations for AMZN over the previous three months, notably, all 32 advise ‘Buy,’ while none favor ‘Hold,’ or ‘Sell.’ On the basis of their recommendations, the consensus rating for Amazon stock is a “Strong Buy,” with a 22.89% upside, making it an attractive buy for both traders and investors.

Cardlytics Inc. (NASDAQ: CDLX)

Digital advertising platform Cardlytics Inc. (NASDAQ: CDLX) revealed in early August that it had missed profit estimates by 11%; nevertheless, the stock gained $1.07 (1.28%), finishing at $85.00 on Wednesday, October 20. 

Despite a more than double-year rise in sales from $28.2 million in the second quarter of 2020, revenue increased 109% year over year to $58.9 million. Nonetheless, the company’s Q3 sales estimate fell short of expectations.

CDLX has been trading in a broad range in the past month, from $77.77 to $97.34. At the moment, it’s trading in the center of this range, which means that some resistance may be found above it.

CDLX 20-50-200 SMA lines chart. Source. Finviz.com data. See more stocks here.

It does, however, display a set-up pattern with prices having recently been consolidating as a result of decreased volatility. There is a resistance area beginning around $85.01, slightly above the present price. A possible entrance may be made just above this area of resistance.

Assessments by 3 Wall Street analysts that have issued 12-month price forecasts for Cardlytics within the past three months interestingly have given CDLX stock a median price objective of $120, with a high estimate of $120 and a low prognosis of $120.

CDLX analysts’ price target. Source: TipRanks.com

Based on the performance over the last three months, all three TipRanks experts have reaffirmed their “Buy” recommendations for Cardlytics, while no analysts have advised to “Hold” or to “Sell” the stock. 

Most experts believe CDLX to be a solid investment, with an average price target of $120 and a 41.18% gain from the current price of $85.

Carvana (NYSE: CVNA)

Carvana Co. (NYSE: CVNA) stock has gained 4.24% over the past week. The automobile e-commerce business based in the United States sells, delivers, and finances all through a single platform that is completely integrated.

Notably, the stock is now trading at three times this year’s sales and 700 times profits before interest, taxes, depreciation, and amortization (EBITDA) for the same period. In addition, Carvana’s sales volumes almost doubled for its June quarter

However, CVNA does provide an opportunity for a decent setup at the moment. Price consolidation has occurred recently, and volatility has decreased as a result. 

Interestingly, immediately above the present price, beginning at $289.04, there is a resistance zone; traders may find an entry point just above this resistance zone, while a stop order could be set below the current price of $286.74 since there is a support zone below this level.

CVNA 20-50-200 SMA lines chart. Source. Finviz.com data. See more stocks here.

Within the last three months, 14 Wall Street analysts have provided 12-month price predictions for CVNA, with a consensus target price of $403.13, a high of $470, and a low of $320.

CVNA analysts’ price target. Source: TipRanks.com

Based on the performance over the last three months, fourteen TipRanks experts have advocated to “Buy” CVNA, while two analysts have advised to “Hold” and notable none have recommended to “Sell” the stock. 

Most experts believe CDLX to be a “Strong Buy”, with an average price target of $403.13 and a 39.18% gain from the current price of $289.03.

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

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Jordan Major
Author

Jordan is an investor and market analyst. He's passionate about stocks, ETFs, blockchain, and digital assets. At Finbold.com, he delves into the technicalities to obtain future trends for new market traders and gives insights into user-friendly platforms for beginners.

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