In 2022, the stock market had its worst year since the 2008 financial crisis. S&P 500 19.4% decline and many industries are affected due to inflation, supply chain and many other issues. But two stocks that managed to deliver positive, double-digit returns Jazz Pharmaceuticals (Jazz -0.12%) And T-Mobile US (TMUS 0.53%). The interesting thing about these two stocks is that analysts still think they will rise. Let’s find out a little more about these two stocks and why they still have upside potential.
1. Judge Pharmaceuticals
In 2022, Jazz Pharmaceuticals beat the market with a 25% return. The stock heated up in the final quarter of the year after the company posted strong quarterly results.
For the quarter ended Sept. 30, Jazz’s revenue of $940.7 million was up 12% from the year-ago period, and its net loss per share of $0.31 was a big improvement from the $0.86 net loss per share reported a year ago. And based on the strong results, the company slightly raised the midpoint of its guidance for the year to $3.65 billion (previously, it was $3.6 billion).
This represents an 18% growth rate from the nearly $3.1 billion in revenue that Jazz will post in 2021. And by 2025, the company is projecting that its sales could reach $5 billion. The epilepsy drug Epidiolex is rolling out to more countries, and Jazz expects its strong pipeline to result in at least five product approvals before the end of the decade.
Despite the optimism, the stock is trading at just 9 times its forward earnings. The consensus analyst price target for Jazz is $202, suggesting it could rise close to 30% from where it is today. For investors, this could be an underrated growth stock to buy as Jazz trades at a decent valuation and expects some strong financials in the years ahead.
Telecom giant T-Mobile is a business that is firing on all cylinders and running. The company’s focus on developing its 5G network gives it an edge over its competitors and helps it win over customers.
On Jan. 4, the company posted preliminary numbers for 2022, and T-Mobile expects the 6.4 million postpaid subscribers it added last year to be an industry best. The company, which likes to call itself an “un-carrier” because of its focus on customer satisfaction and trying to differentiate itself from its rivals, projects not only a record number of customer growth, but a churn of only 0.88%, which would be the lowest. In its history. A low churn rate means the company is doing well in retaining its customers, and loyalty is high.
For the first nine months of 2022, the company’s revenue was flat as T-Mobile promised not to raise plan prices despite inflation. Investors, however, are focused on the bigger picture (the stock is up 21% last year) and the potential for T-Mobile to perform better in the future with a larger customer base, especially now that it has largely shed the Sprint network and its merger-related costs in future quarters. should be reduced.
T-Mobile’s stock has not only outperformed its competitors over the past year, Verizon Communications 24% decline in 2022, and even AT&T Failed to achieve positive returns as its stock fell 1%. Analysts have set a price target of more than $177 for T-Mobile’s stock, up 26% from the $140 it closed last year.
David Zagielski has no position in any of the stocks mentioned. The Motley Fool recommends T-Mobile US and Verizon Communications. Motley Fool has a revealing policy.