3 Stocks To Double Down On In 2022

Zinger Key Points
  • Goldman Sachs analysts are bullish on Arvinas, VTEX and Bath & Body Works in 2022, with significant upside potential in 2022.
  • Analysts say any significant weakness at the index level should be seen as a buying opportunity, anticipating "moderate upside" for the year.

The markets are entering somewhat uncertain territory, as the S&P 500 recently experienced its 39th correction since the beginning of 1950 due to a combination of the omicron fears, and the anticipation of the Fed raising rates to curb the surge of inflation. This has led to a growing concern about the possibility of a bear market this year.

However, Goldman Sachs chief global equity strategist Peter Oppenheimer believes it's time to buy. “Any further significant weakness at the index level should be seen as a buying opportunity, in our view, albeit with moderate upside through the year as a whole,” he recently wrote.

Analysts at Goldman have set their sights on three stocks they believe will tower 70% or more this year:

Arvinas Inc. ARVN: Arvinas is a clinical-stage biopharmaceutical company dedicated to improving the lives of patients suffering from debilitating and life-threatening diseases through the discovery, development, and commercialization of therapies that degrade disease-causing proteins.

Arvinas is on the radar of analyst Madhu Kumar, who's quoted saying, “We were impressed by initial results from interim Phase 1/2 study of ARV-110 in mCRPC and encouraged by the possibility of ARV-110 to unlock value in the mCRPC therapeutic landscape as well as validating ARVN’s PROTAC platform as we await additional clinical data.”

Kumar puts a Buy rating on ARVN, while his $157 price target indicates the possibility of a booming 138% one-year upside.

See also: 5 Best Digital Payment Stocks To Buy Right Now 

VTEX VTEX: VTEX combines commerce, marketplace and order management to unlock new revenue streams. Their website offers businesses the ability to “build or migrate your online store, integrate orders from all channels, or expand your product offering by adding third-party sellers.”

While VTEX has been running net losses since its IPO, Goldman analyst Diego Aragao believes now is the time to buy, saying, “We now see a more asymmetric risk-reward opportunity for VTEX... We believe that the recent months’ sell-off is unwarranted, creating a valuable entry opportunity into a leading player in LatAm e-commerce with fast-growing revenues, hard-currencies exposure, and attractive geographical-expansion optionalities.”

Aragao rates VTEX a Buy, and his $16 price target points to a one-year upside of 135%.

The specialty retailer Bath & Body Works BBWI introduced a loyalty rewards program last year, offering customers points for every dollar spent. Accumulated points can be traded in for free items at the stores. The loyalty program was introduced in select markets and will be expanding to the full chain later this year.

It was a key point in Goldman’s analyst Kate McShane, who noted, “We believe there is upside potential to current consensus estimates given the expected rollout of the company’s loyalty program to the entire chain in mid-2022... We reiterate the long-term opportunity in category expansion, including hair care and skin care, which we think remains underappreciated by investors based on our conversations, recognizing an earnings impact is not likely until 2024+.”

McShane rates the stock a Buy, and sets a price target of $93, implying an upside of 70% in 2022.

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Posted In: Analyst ColorLong IdeasMid CapNewsSmall CapAnalyst RatingsTrading IdeasDiego AragaoKate McShaneMadhu KumarPeter Oppenheimer
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