Every investor knows that you can’t look to a stock’s past performance as predictor of future gains. It’s become axiom, even, one of the stock phrases that we all learn about in Econ 101: ‘Past performance does not guarantee future returns’ is common formulation. But that simple phrase, while true, raises a tough question: How should an investor judge a stock?
The truth is, past is prologue, not prophet, and investors can profit by taking past performance as one of many factors in evaluating a stock. There’s no one sure path to success here, and every stock should considered as a unique individual – which makes past performance a useful indicator, even if it’s not the only one.
Investors should also look for Wall Street’s view – are the analysts impressed by the stock? And in addition to that, how does the upside potential look like?
Now we have useful profile for monster growth stocks: gangbusters gains, Buy ratings from the Wall Street analyst corps, and considerable upside for the coming year. Two stocks in the TipRanks database are flagging all those signs of strong forward growth. Here are the details.
BELLUS Health (BLU)
The first stock we’ll look at is BELLUS Health, a clinical-stage biopharmaceutical firm with a research focus on an area that most of us probably never think about: hypersensitivity. This is a condition in which the patient is excessively sensitive to some stimulus – dust, or pollen, or chemicals – which can cause a range of symptoms, including chronic cough. BELLUS is working on a new treatment for just that, chronic cough. The company sees both an unmet medical need and a potentially significant addressable market.
BELLUS has one prime drug candidate in the clinical program, BLU-5937, a P2X3 receptor agonist, which has completed Phase 2 studies and has a Phase 3 trial planned to start in Q4 of this year. In July, BELLUS announced a positive result from meetings with the FDA regarding end-of-Phase-2. The FDA meetings included planning for the CALM Phase 3 pivotal trials, which will include two studies. The first,…