3 stocks to buy in October that could soar more than 40%

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3 stocks to buy in October that could soar more than 40%

Is the stock market going to run out of steam in 2023? That appears to be the case. The S&P 500 has reverted from the lofty levels of just a couple of months ago.

But there are stocks that should still have plenty of room to run. Here are three stocks to buy in October that could soar more than 40 percent over the next 12 months, according to Wall Street.

So far this year, BioNTech has failed miserably. The biotech stock is down more than 30 percent, mainly because of declining sales of the COVID-19 vaccine it co-markets with Pfizer.

Wall Street hasn't given up on BioNTech. The average analyst's price target is 56%, which represents an upside potential of 56%. Even a few analysts aren't bullish about BioNTech. Seven of the 17 analysts surveyed by Refinitiv in August rate the stock as a buy, with four others recommending it as a strong buy.

It's possible that a resurgence of COVID-19 could boost BioNTech's vaccine sales this fall and winter. CFO Jens Holstein said in the second quarter that there's'some uncertainty' about revenue.

Although it's possible to invest in the stock now, it's a crucial reason to buy the stock now. BioNTech is analyzing BNT316 in a late-stage study that aims to cure non-small-cell lung cancer. The company has teamed up with Pfizer again to develop a seasonal flu vaccine, which is also in late-stage testing. The pipeline also includes a diverse array of promising pharmacological candidates in phase 1 and phase 2 clinical trials.

Any momentum that PayPal Holdings had earlier in 2023 is now completely gone. The stock has been down more than 20 percent since early August. The drop comes on the heels of a 62% drop in 2022.

Wall Street sees PayPal's potential to rebound in a major way. The stock's market consensus price is 48% above the current share price. Of the 44 analysts surveyed in September, 18 of them view PayPal as a buy, with 14 indicating the stock as a strong buy. There are no recommendations for selling the beaten-down stock.

After its huge sell-off, PayPal appears to be dirt cheap. Shares were trading at just under 10.1 times the expected earnings. The valuation is also more attractive, with a very low price-to-earnings-to-growth ratio of 0.48.

You might think PayPal would be struggling financially, with its dismal stock performance and bargain-basement valuation, but it isn't. In Q2, the company's revenue rose 8% year-on-year. The company's non-GAAP earnings per share jumped 24% from a year earlier. PayPal's guidance projects full-year nonGAAP earnings-per-share growth of around 20%.

Brookfield Infrastructure was riding high in the early 2000s when it was riding high. By mid-July, units of Intel's limited partnership were up more than 20 percent year-on-year. Investors didn't like Brookfield Infrastructure's Q2 results, which led to their gains being halved.

There's still a lot of excitement about Brookfield Infrastructure on Wall Street. The LP's 12 month price target for 2017 is more than 40% higher than the current price. Although the most pessimistic analyst thinks Brookfield's infrastructure could increase by 17%, he said.

I'm pretty much on board with Wall Street. Brookfield Infrastructure is a diverse portfolio of infrastructure assets, including cell towers, data centers, pipelines, rail, and toll roads. By utilizing earnings to reinvest in new assets, the company can continue to produce high-quality long-term returns.

Income investors are likely to gravitate towards the stock. Brookfield Infrastructures has increased its distribution for 14 consecutive years. With the company's reasonable pay ratio of 68%, more hikes are likely on the way. The infrastructure leader's distribution yield is currently at 5.2%.