Prediction: These 3 phenomenal stocks are set to rise

No one knows for sure how any stock will perform over the next 12 months. There are simply too many variables that can come into play.

However, that doesn’t mean analysts and investors can’t have pretty good hunches about what certain stocks will do in the near term. And they can certainly have a reasonable idea of ​​how some stocks will perform in the long run. With these two premises in mind, I’ll make a prediction: these three phenomenal stocks are set to grow.

1. DR Horton

Dr. Horton (DHI 3.17%) the stock is already a big winner in 2024. I think the homebuilder’s stock will rise even higher for three key reasons.

Most importantly, the US still faces a major housing shortage. Zillow recently estimated that the country has a deficit of 4.5 million homes. As the largest US homebuilder for more than two decades, DR Horton is uniquely positioned to benefit as this shortage is addressed.

While the housing shortage should provide a long-term tailwind for DR Horton, the stock could rise in the short term if the Federal Reserve cuts interest rates. Many observers expect the Fed to cut rates by at least 0.25% later this month and potentially follow through with further cuts. Lower interest rates typically lead to lower mortgage rates, which should boost home sales.

The third reason I am bullish on DR Horton is its valuation. The stock currently trades below 12 times forward earnings, with a five-year price-earnings-growth (PEG) ratio of just 0.62. Simply put, DR Horton is very cheap given its strong growth prospects.

2. Nvidia

If you see a glass of water half full, you will probably focus on the fact that of Nvidia (NVDA -0.03%) the share price has skyrocketed this year. If you see a half-empty glass of water, you might correctly point out that the stock has retreated quite a bit from its peak. My guess, however, is that more water will soon be poured into Nvidia’s cup.

I’m referring to the upcoming commercial release of Nvidia’s graphics processing units (GPUs) based on the Blackwell architecture. This GPU platform supports costs and power consumption up to 25 times lower than the company’s market-leading chips using its Hopper architecture.

Sure, Nvidia delayed shipping Blackwell chips. However, CEO Jensen Huang expects the new GPUs to make “billions of dollars” in 2024. He also believes that Blackwell could be the “most successful” product in Nvidia’s history, and possibly the entire computer industry.

Perhaps Huang is too optimistic; maybe it isn’t. Either way, I suspect Blackwell’s release will allow Nvidia to set new all-time highs in the not-too-distant future. And with the company now in a year-long new product release cycle, Blackwell should be just the beginning.

3. Vertex Pharmaceuticals

Vertex Pharmaceuticals (VRTX 1.40%) has racked up the smallest gains of these three phenomenal stocks so far this year, but is still up double-digit percentage. I think the biotech stock will soon move into a higher gear.

The commercial launch of Casgevy, the first CRISPR gene-editing therapy to win regulatory approval, is only in the early stages of growth. William Blair analyst Myles Minter estimates Casgevy will achieve annual sales of at least $3 billion.

There is, however, even better news for Vertex. The company expects to obtain regulatory approvals for suzetrigin in the treatment of acute pain and its triple drug combination with vanzacaftor in the treatment of cystic fibrosis by early 2025. Suzetrigin should have huge market potential as a non -opioid that is safe and effective in relieving pain. I predict the vanzacaftor triple will become Vertex’s best-selling CF therapy to date.

Vertex’s pipeline features two other promising drugs in advanced development. Inaxaplin targets APOL1-mediated kidney disease, which affects more patients worldwide than CF. Povetacicept is in phase 3 testing to treat IgA nephropathy, an inflammatory disease of the kidneys. I think both could become blockbuster drugs for Vertex if approved.