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Yahoo
11 minutes ago
- Yahoo
Oppenheimer Predicts Up to 590% Rally for These 2 ‘Strong Buy' Stocks
There's a lot to say about the economy and markets today. Earnings season is well underway, with 317 S&P 500 companies having reported so far, and the results have been broadly encouraging – 83% have topped profit forecasts. That strength has helped drive both the S&P 500 and NASDAQ toward record highs, although August began with a pullback as investors reacted to a weaker-than-expected jobs report and the rollout of new tariffs from President Trump. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Even with those headwinds, Oppenheimer's chief investment strategist John Stoltzfus remains optimistic about the path ahead. 'This year reminds us of the classic Charles Dickens quote, 'It was the best of times, it was the worst of times.' Although much uncertainty and worry prevailed for some time both with trade policy and geopolitical events, and given the multitude of potential outcomes, we'd note that cooler heads prevailed – leading to positive outcomes at least for now. Monetary policy by the Fed has brought down the pace of inflation (if not yet to its 2% target level) without thus far causing a recession. This in our view is a substantial achievement… We are revising our year-end price target for the S&P 500 to 7,100 from 5,950,' Stoltzfus noted. That S&P target implies a gain of ~14% from current levels, a solid gain by any standard. But some stocks are going to outperform, even substantially – and Oppenheimer analysts are predicting much stronger rallies for 2 names in particular, including one with a potential upside as high as 590%. Using the TipRanks database, we've looked at the big-picture view on both of these picks, and it seems the broader Street agrees with Oppenheimer's bullish stance – both stocks hold Strong Buy consensus ratings, with forecasts pointing to potential triple-digit gains. Let's dig into what makes these high-upside picks so compelling. Climb Bio (CLYM) We'll start with Climb Bio, a biotech research firm focused on developing new treatments for immune-mediated diseases. These conditions – affecting an estimated 1 in 7 people worldwide – often stem from malfunctioning B cells, which can mistakenly attack the body's own tissues. Climb is developing therapies that target this root cause, aiming to address a range of serious and underserved diseases. The company's pipeline includes two drug candidates: its lead program, budoprutug, is currently being tested in three clinical trials and one preclinical study, while its second candidate, CLYM116, remains in preclinical development. Budoprutug is an anti-CD19 monoclonal antibody designed to deplete B cells. The drug has shown encouraging early clinical data and is now being evaluated in clinical trials across three distinct indications: primary membranous nephropathy (pMN), immune thrombocytopenia (ITP), and systemic lupus erythematosus (SLE). In pMN, a rare autoimmune kidney disorder that causes damaging protein leakage into the urine, budoprutug is entering a Phase 2 open-label, dose-ranging trial to assess safety and efficacy. This follows positive data from a small Phase 1b study, in which 3 of 5 patients who completed all four doses achieved complete remission of proteinuria. All five patients in that study experienced rapid and sustained B-cell depletion, even at the lowest tested dose of 100 mg, and no serious drug-related adverse events were reported. Meanwhile, in ITP, Climb has received FDA clearance to begin a Phase 1b/2a study, with the trial now advancing. ITP is an autoimmune disorder in which B cells produce antibodies that target and destroy platelets. Budoprutug is being tested in this setting based on its CD19-targeting mechanism, which may offer an advantage over CD20-based therapies by depleting a broader range of B-cell populations, including plasma cells that drive the underlying disease process. The drug is also being explored in SLE, a chronic autoimmune disease that can cause widespread inflammation and tissue damage across multiple organs. A Phase 1b trial has been cleared by the FDA and is set to run at ex-U.S. sites. This open-label study is designed to assess safety, tolerability, pharmacokinetics, pharmacodynamics, and early signs of clinical efficacy. Climb's B-cell-targeted approach is supported by the well-established role these cells play in driving lupus pathogenesis. To further expand its reach, Climb is also developing a subcutaneous formulation of budoprutug, with a Phase 1 trial in healthy volunteers expected to begin by year-end. Beyond budoprutug, Climb is advancing its second candidate, CLYM116, an Fc-engineered anti-APRIL monoclonal antibody with a novel pH-dependent mechanism. Currently in preclinical development, CLYM116 is being explored as a treatment for IgA nephropathy (IgAN), a serious kidney disorder also known as Berger's disease. Climb expects to report preclinical data and submit an Investigational New Drug (IND) application or Clinical Trial Application (CTA) by year-end. With CLYM trading at $1.45, Oppenheimer analyst Leland Gershell views the stock as a high-potential opportunity, pointing to the company's advancing clinical pipeline and the therapeutic promise of budoprutug. 'We have a favorable outlook on budoprutug across its three indications in primary membranous nephropathy (pMN), immune thrombocytopenia (ITP), and systemic lupus erythematosus (SLE)… Each of these indications has clear IgG-driven pathophysiology and significant residual unmet need, despite existing first- and second-line therapies, where budoprutug has opportunity to shine above… We see $1B+ sales potential across these indications, and a subcutaneous, potentially use-at-home version offers upside optionality… With shares reflecting little credit for the company's opportunities and cash runway into 2027, we see favorable risk-reward and encourage investors to build a position. We would expect positive results in pMN to generate considerable stock upside potential,' Gershell opined. So how much upside does Gershell see overall? The analyst rates CLYM an Outperform (i.e., Buy), with a $10 price target – implying a substantial 590% surge over the next year. (To watch Gershell's track record, click here) Supporting this optimistic outlook, CLYM has 3 recent analyst reviews on record – all unanimously positive – earning the stock a Strong Buy consensus rating. With an average price target of $9, analysts expect shares to be changing hands at ~521% premium over the next 12 months. (See CLYM stock forecast) Wave Life Sciences (WVE) The next Oppenheimer pick is Wave Life Sciences, a biotech company developing a lineup of RNA medicines through its proprietary platform, dubbed PRISM. RNA therapeutics represent a fast-growing frontier in biotechnology, and Wave is harnessing innovations in chemistry and human genetics to create targeted treatments for serious, genetically driven diseases that have historically lacked effective solutions. This ambitious vision is translating into a diverse clinical pipeline. Wave is advancing four distinct programs, each built on a separate RNA modality: WVE-006 uses RNA editing, WVE-007 employs RNA interference (RNAi), WVE-N531 leverages exon skipping, and WVE-003 utilizes allele-selective silencing. By tackling different mechanisms and indications, the company is positioning itself to address multiple areas of high unmet medical need. WVE-006 is a GalNAc-conjugated, subcutaneously delivered RNA editing oligonucleotide (AIMer) designed to treat alpha-1 antitrypsin deficiency (AATD), a genetic disorder affecting the lungs and liver. The drug is currently in the Phase 1b/2a RestorAATion-2 trial, with key clinical data from both the 200 mg single and multidose cohorts expected in the third quarter of 2025. Additional results from the 400 mg single-dose cohort are anticipated later this fall. Progress is also accelerating with WVE-007, an RNAi therapy targeting obesity. This GalNAc-siRNA candidate works by silencing the INHBE gene and has shown strong preclinical efficacy in reducing weight while preserving muscle mass. Following promising initial safety and pharmacodynamic results in Cohort 1, Wave expanded enrollment in Cohort 2 and expects data from the first two cohorts in Q4 2025, with high-dose cohort results to follow in early 2026. The third program, WVE-N531, is an exon-skipping oligonucleotide developed for Duchenne muscular dystrophy (DMD), a severe and progressive neuromuscular disorder. In a Phase 2 open-label trial, the therapy showed statistically significant and clinically meaningful improvements in Time-to-Rise, a key measure of functional strength. Wave plans to submit a New Drug Application (NDA) in 2026 to pursue accelerated approval. Rounding out the clinical pipeline is WVE-003, an allele-selective oligonucleotide designed for Huntington's disease (HD). This first-in-class candidate has demonstrated selective reduction of mutant huntingtin protein (mHTT) while preserving healthy wild-type HTT – an approach believed to protect neuronal function. A Phase 2/3 trial is in planning, with Wave aiming to submit an IND in the second half of 2025. This pipeline, and its potential for success, has caught the attention of Oppenheimer analyst Cheng Li, who writes: 'We think RNA medicine is poised to become an important therapeutic modality for future medicine, leveraging its unique target engagement mechanism compared to other modalities. The PRISM platform further enhances the potency, durability, tissue distribution, and pharmacological properties of oligonucleotides in a multimodal fashion… We are optimistic about WVE's four clinical programs, each having its own merits and collectively providing validation to the platform technology that propels a next wave of programs for high-value targets with differentiated approaches… We anticipate multiple meaningful clinical catalysts from WVE-006 for alpha1 antitrypsin deficiency (AATD) and WVE-007 for obesity, with current valuation offering a favorable risk/reward setup.' Reflecting this conviction, Li assigns WVE an Outperform (i.e., Buy) rating, along with a $24 price target that suggests shares could surge 178% over the next year. (To watch Li's track record, click here) Li's bullish stance is echoed across the Street. The stock has picked up 12 recent analyst reviews, supporting a Strong Buy consensus rating, with an 11-to-1 split favoring Buys over Holds. Shares currently trade at $8.63, and the average price target of $18.18 points to a potential upside of ~111% over the next 12 months. (See WVE stock forecast) To find good ideas for stocks trading at attractive valuations, visit TipRanks' Best Stocks to Buy, a tool that unites all of TipRanks' equity insights. Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment. Disclaimer & DisclosureReport an Issue Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Insider
an hour ago
- Business Insider
The Week That Was, The Week Ahead: Macro & Markets, August 3, 2025
Everything to Know about Macro and Markets The S&P 500 (SPX) fell 2.4% last week, snapping a multi-week winning streak and logging its worst weekly drop since late May. Also, the Dow Jones Industrial Average (DJIA) lost 2.9% and the Nasdaq-100 (NDX) slid 2.2%. Weak jobs data, new U.S. tariffs on dozens of trading partners, and Amazon's (AMZN) unimpressive earnings weighed on investor sentiment. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Markets Stumble on Weak Jobs Report, Tariffs The July nonfarm payrolls report showed just 73,000 jobs added, far below the expected 110,000. Also, the unemployment rate rose from 4.1% to 4.2%. In response, Trump fired Bureau of Labor Statistics Commissioner Erika McEntarfer, accusing her of manipulating the data. Meanwhile, Trump rolled out new 'reciprocal' tariffs through executive order. While the U.S. secured trade agreements with the UK and the EU, other nations saw steep new rates, ranging from 10% to 41%. Switzerland, for example, was hit with a 39% tariff, while India and Japan saw rates of 25% and 15%, respectively. The new tariffs are set to begin on August 7. As a result, markets pulled back after a strong run, with investors now facing growing concerns over global trade tensions and a slowing labor market. Still, expectations for Fed rate cuts in September and the prospect of a pending tax bill may offer some relief ahead. A Big Week Ahead Trade tensions are back in the spotlight this week as the U.S. moves ahead with import duties set to take effect August 7. Meanwhile, trade talks with China have resumed ahead of a key review on August 12, when a pause in tariffs is set to expire. Any progress or failure could spark sharp market reactions. Next, all eyes will be on the ISM Services PMI due Tuesday. This report will show how service-sector activity and consumer demand held up in July. The report follows last week's weak jobs data and may offer further signs of an economic slowdown. Later in the week, Fed Chair Jerome Powell will speak at the Kansas City Fed's annual policy forum. Investors will be watching closely for any signals on the timing of future rate cuts. Meanwhile, corporate earnings remain a key market driver. With over half of S&P 500 companies having reported Q2 results, strong results, especially from big tech, have helped keep stocks near record highs. Reports due next week from Disney (DIS), McDonald's (MCD), Palantir (PLTR), and AMD could set the tone for the days ahead. Stocks That Made the News ▣ SoFi Technologies (SOFI) impressed investors with its market-beating second-quarter revenue and earnings. The company raised its outlook for 2025. It now expects net revenue of about $3.375 billion for the full year, above the previous high-end estimate of $3.310 billion. ▣ PayPal (PYPL) stock fell even after delivering better-than-expected second-quarter results. PayPal President and CEO Alex Chriss attributed this to 'continued strength across many of our strategic initiatives ranging from PayPal and Venmo branded experiences to PSP and value-added services.' ▣ Microsoft (MSFT) stock soared after the tech giant reported its fiscal fourth-quarter earnings results. The earnings were fueled by rising demand for cloud and AI services. Meanwhile, Meta Platforms (META) also reported strong second-quarter financial results that blew past Wall Street forecasts. ▣ Amazon stock declined even after delivering better-than-expected second-quarter results. The selloff was due to the subdued outlook and lofty expectations from Amazon Web Services (AWS) cloud division, which failed to impress to the extent rival Microsoft (MSFT) Azure did with its June quarter performance. ▣ Exxon Mobil (XOM) gained after the oil giant posted better-than-expected second-quarter earnings. Strong fuel margins and cost controls helped offset lower crude prices. ▣ Chevron (CVX) reported mixed Q2 results, beating on earnings but missing revenue estimates. The company saw weaker oil and gas production but reaffirmed its full-year guidance, pointing to strength in downstream operations. Upcoming Earnings and Dividend Announcements The Q2 2025 earnings season is past its peak, but many earnings releases are scheduled for the next few days. Reports in focus this week are coming from Palantir Technologies (PLTR), Hims & Hers Health (HIMS), Advanced Micro Devices (AMD), Lucid Group (LCID), Super Micro Computer (SMCI), Rivian Automotive (RIVN), Energy Transfer (ET), Uber Technologies (UBER), Walt Disney (DIS), and SoundHound AI (SOUN), among others.
Wall Street Journal
9 hours ago
- Wall Street Journal
Treasury Yields Start Month With Jobs-Driven Decline
1542 ET – 1541 – Treasury yields plunge amid dismal U.S. jobs numbers and increasing pressure on the Fed to cut interest rates. Job creation in July is lower-than-expected while previous monthly readings are drastically trimmed by the BLS. Trump threatens to fire the agency's head, Erika McEntarfer, a Biden appointee the president accuses of doctoring the data. Next week will be relatively light on data points and Fedspeak. The 10-year falls 0.142 percentage point to 4.218%, its biggest daily decline since April. It's down 0.167 p.p. for the week. The two-year loses 0.250 p.p. to 3.702%, largest one-day fall in a year, and is down 0.214 p.p. this week. ( @ptrevisani) 0843 ET – U.S. labor data supports calls for monetary easing and Treasury yields fall, along with the dollar. Employers add just 73,000 jobs in July. Economists surveyed by WSJ expected 100,000. Unemployment ticks higher to 4.2% from 4.1%. Previous figures are revised sharply down: May's to 19,000 from 144,000 and June's to 14,000 from 147,000. Before the jobs report, Fed's dissenting governors Waller and Bowman said labor markets showed signs of weakening. Treasury yields had been rising since yesterday's tariffs blitz and tumbled on the jobs data. The 10-year is at 4.295% and the two-year at 3.801%. The WSJ Dollar Index falls 0.7%. ( @ptrevisani)
