While anybody can come up with stocks to buy that may rise over a period of time, predicting which ones will rise imminently represents a whole new ballgame. Allow me to be blunt here: I have zero – absolutely zero – clue as to whether the enterprises below will swing higher soon or even at all. When you introduce the time element into your speculation, the risk factor naturally multiplies.
On the other hand, I’m not just going to give you a bunch of random stocks to buy. Instead, I figured that securities with significant bearish pressures but which also court bullish ratings from Wall Street analysts will likely drive higher. Basically, the tug of wear between the bulls and bears may favor the former as the latter panics out of their positions.
Of course, it’s one heckuva means to gamble in the market. Still, if you’ve got the speculative fever coursing through your veins, these stocks to buy might intrigue you.
| SAIA | Saia | $259.37 |
| WGO | Winnebago | $57.72 |
| TGTX | TG Therapeutics | $20.43 |
| LIND | Lindblad Expeditions | $8.92 |
| RLAY | Relay Therapeutics | $18.18 |
| SWTX | SpringWorks Therapeutics | $25.51 |
| VERU | Veru | $1.08 |
Stocks to Buy: Saia (SAIA)
An American less-than-truckload (LTL) trucking company, Saia (NASDAQ:SAIA) is one of the top enterprises in its carrier category. Since the beginning of this year, SAIA gained almost 31% of equity value. Further, it’s up more than 30% in the past 365 days. Despite the already-robust momentum, SAIA could be posed to swing higher, making it one of the stocks to buy.
That might seem a strange proposition until you consider that it represents one of the most-shorted securities right now. According to data from Benzinga, SAIA’s short interest is 23.79% of its float. Further, its short interest ratio is 9.8 days to cover. Both stats are relatively elevated compared to normal levels.
However, the bears probably shouldn’t be targeting the LTL carrier. About the only drawback to SAIA financially may be that it’s a bit overvalued. Otherwise, the company benefits from a healthy balance sheet, strong revenue growth and high profit margins.
Plus, Wall Street analysts peg SAIA as a consensus moderate buy. Their average price target stands at $299.80, implying 10% upside potential.
Stocks to Buy: Winnebago Industries (WGO)
An American manufacturer of motorhomes – a type of recreational vehicle – Winnebago Industries (NYSE:WGO) benefitted from strong demand during the immediate post-pandemic new normal. However, even with fears of Covid-19 fading, WGO surprisingly held its own. For example, since the Jan. opener, WGO gained more than 10% of equity value. In the trailing one-year period, it’s up a hair over 4%.
Even with the outperformance, WGO could be a speculative name among stocks to buy. Perhaps not surprisingly, bearish traders have targeted Winnebago. Currently, WGO’s short interest pings at 24.11% while its short interest ratio comes out to 11 days to cover.
Fundamentally, I appreciate what the short traders must be thinking: RV demand should wane as society fully normalizes from the pandemic. However, unsavory incidents such as a post-pandemic spike in air rage should keep sales high for Winnebago.
Plus, covering analysts peg WGO as a consensus moderate buy. Their average price target stands at $70, implying nearly 21% upside potential.
Stocks to Buy: TG Therapeutics (TGTX)
A speculative pharmaceutical company, TG Therapeutics (NASDAQ:TGTX) may be best known for its drug Briumvi. Per the company’s website, Briumvi represents a treatment for relapsing forms of multiple sclerosis. Because of its massive potential, TGTX attracted plenty of attention. Since the Jan. opener, TGTX jumped over 73%. In the trailing year, shares more than doubled.
However, TGTX also slipped more than 8% during the April 12 session. Sure enough, bears began targeting TG for “negative” profits. Presently, TGTX’s short interest is 23.39% of its float. Further, its short interest ratio comes out to 6.1 days to cover.
Admittedly, TGTX represents one of the riskiest stocks to buy on this list. Financially, the company basically features an all-or-nothing profile. If it continues to achieve clinical success, TGTX should fly higher. If not, shares will probably tumble.
Notably, analysts peg TGTX as a consensus moderate buy. Their average price target stands at $24.43, implying nearly 22% upside potential. Thus, it could be one of the stocks to buy on any significant dips.
Lindblad Expeditions (LIND)
On paper, Lindblad Expeditions (NASDAQ:LIND) seems like a terribly risky idea and not one of the stocks to buy. Specializing in exotic travel experiences, Lindblad arranges trips you can’t find anywhere else, such as the ability to explore Antarctica. However, Lindblad doesn’t offer its expeditions for cheap. Therefore, while LIND stock may be up almost 9% this year, in the trailing year, it’s down more than 42%.
It gets worse in the financials. Alarmingly, aside from its negative margins, Lindblad’s Altman Z-Score pings at 0.11 below breakeven. This score implies significant distress and possible bankruptcy risk over the next two years.
Therefore, the bears targeted LIND, which incurs a short interest of 23.49% of its float. Also, its short interest ratio is 20.2 days to cover. Nevertheless, the expanding wealth gap suggests that those who got rich off the pandemic got very rich indeed. Therefore, Lindblad possibly enjoys a bigger total addressable market.
Currently, analysts peg LIND as a consensus strong buy. Their average price target stands at $13.25, implying over 51% upside potential.
Relay Therapeutics (RLAY)
Based in Massachusetts, Relay Therapeutics (NASDAQ:RLAY) focuses on transforming drug discovery per its website. Notably, Relay aims to “drug the undruggable,” advancing a pipeline of promising therapeutic candidates with an initial focus on precision oncology and genetic diseases. Its compelling scientific profile helped yield a more than 6% gain in the year so far.
However, the bears take a pessimistic approach. In the trailing one-year period, RLAY gave up over 50% of equity value. Therefore, short traders reacted to the blood in the water. Presently, RLAY’s short interest pings at 24.06%. Also, its short interest ratio hit 15.1 days to cover.
Financially, it’s not difficult to see why Relay attracted the bears. Basically, the company represents an aspirational initiative. Still, the right clinical developments could spark significant upside.
Interestingly, analysts peg RLAY as a unanimous strong buy. Their average price target stands at $36.17, implying nearly 126% upside potential. Therefore, it could be a tempting prospect among speculative stocks to buy.
SpringWorks Therapeutics (SWTX)
Headquartered in Stamford, Connecticut, SpringWorks Therapeutics (NASDAQ:SWTX) is an advanced oncology firm. Specifically, its website states that SpringWorks focuses on late-stage rare oncology programs that have the potential to be best-in-class treatments for patients with two devastating diseases: desmoid tumors and neurofibromatosis type 1-associated plexiform neurofibromas.
Despite the relevancies, the bears aren’t having it. Since the Jan. opener, SWTX slipped nearly 9%. In the past 365 days, it’s down over 55%. Currently, SWTX’s short interest pings at 24.06% while its short interest ratio comes out to 17.8 days to cover.
Financially, the biotechnology firm features an aspirational profile. Notably, it hasn’t generated revenue since 2020. However, the company benefits from a solid balance sheet with a healthy cash balance relative to debt. Therefore, it’s not a completely speculative bet among stocks to buy with potential imminent upside.
Also, analysts peg SWTX as a unanimous strong buy. Their average price target stands at $65.50, implying over 173% upside potential.
Veru (VERU)
Appropriate only for those with ice in their veins, Veru (NASDAQ:VERU) focuses on developing and commercializing treatments for infectious diseases and oncology. On its website, the biotech firm states that it seeks novel medicines for Covid-19, which might be a problem. Basically, the fear of the underlying SARS-CoV-2 virus isn’t what it used to be.
Unsurprisingly, the market punished VERU stock. Since the January opener, it hemorrhaged an almost-unbelievable 80.5%. For the morbidly curious, shares gave up 93% of equity value in the trailing one-year period. Therefore, the bears saw a cynical opportunity. Presently, VERU’s short interest is 23.49%. Moreover, its short interest ratio is 5.8 days to cover.
To be fair, the financials present an ugly picture to correspond with the crimson chart pattern. Basically, the company suffers from a weak balance sheet, negative three-year sales growth and profit margins that fell below zero. Still, one shouldn’t underestimate the power of speculation. Enticingly, analysts peg VERU as a unanimous strong buy. Their average price target stands at $10, implying 900% upside potential.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.