HomeMarket NewsThe Security Blanket of Stability: Delving into 7 Stocks with Promising Returns

The Security Blanket of Stability: Delving into 7 Stocks with Promising Returns

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The following seven stocks represent a pathway to potentially doubling one’s investments by 2025, based on the projections of market analysts. On top of that appealing potential, these equities are characterized by their relative stability, with none displaying a beta higher than 1.4. In fact, most of them hold a beta around 1 or lower. The term “beta” refers to the measure of volatility in relation to the broader stock market, where 1 signifies average unpredictability. Given the sub-1.4 beta range, these stocks convey a sense of steadiness, much akin to a well-crafted ship amidst turbulent waters.

Often hidden beneath the surface, these companies are akin to buried treasures, less renowned but boasting ‘buy’ to ‘strong buy’ ratings from discerning analysts. The potential for 100% or more upside makes these stocks all the more alluring for those seeking financial growth alongside reliability.

Now, let’s delve into these stalwart stocks, teeming with promise.

Exact Sciences (EXAS)

EXACT Sciences Corporation office exterior. EXAS stock.

Source: Tada Images / Shutterstock

Exact Sciences (NASDAQ:EXAS) shines bright in the realm of well-known stable stocks, largely due to its flagship product, Cologuard. The non-invasive colorectal screening test has not only garnered commercial success but has also placed the company in a favorable position. With shares currently priced at $61, analysts’ forecasts range from a low of $73 to a high of $130. Such optimistic projections indicate that EXAS shares hold the potential to yield returns exceeding 100% for investors.

Despite a beta of 1.27, signifying slightly more volatility compared to the general market, Exact Sciences retains its allure. The company’s recent challenges in 2024 notwithstanding, early signs of market resilience are apparent. Ripples of strength were echoed in the preliminary Q4 results revealed in early January, hinting at an anticipated 17% revenue increase in Q4 and a projected 31% growth in screening test revenue for 2023. Anchored by a robust product line, the company seems poised for a stable voyage ahead.

Alibaba (BABA)

baba value stocks

Source: BigTunaOnline / Shutterstock.com

In the realm of stable stocks ripe for acquisition, Alibaba (NYSE:BABA) stands out as a promising contender. Currently trading approximately $12 below the lowest analyst target price, and with top targets soaring as high as $220, the potential for over 200% upside beckons. Noteworthy endorsements further fuel the enthusiasm, with renowned investor Michael Burry marking Alibaba as a significant holding in Scion Asset Management, signaling a compelling opportunity amidst the competitive e-commerce landscape.

While facing fierce competition from players such as PDD Holdings (NASDAQ:PDD), Alibaba’s stronghold in cloud services remains unrivaled in China. With a meager beta of 0.47 underscoring its high stability, Alibaba presents an enticing prospect for investors navigating the vast market waters.

Sociedad Quimica y Minera (SQM)

Sociedad Quimica y Minera logo displayed on a mobile phone with the company's web page on it. SQM stock

Source: madamF / Shutterstock.com

Embarking on a narrative reminiscent of many contemporary lithium miners, Sociedad Quimica y Minera (NYSE:SQM) finds itself in a landscape of record volumes and plummeting lithium prices. Priced at $43 currently, with target prices reaching heights of $90.50, SQM projects an average volatility level with a beta of 1.05, emphasizing an overall sense of stability.

Despite short-term setbacks triggered by a supply glut and dwindling revenues, the allure of an imminent industry rebound beckons to savvy investors. Fueled by the irrepressible progress of the electric vehicle sector, companies like Sociedad Quimica y Minera embody a near-certain path to profitability, requiring naught but a touch of patience amidst the storm.

Darling Ingredients (DAR)

Darling Ingredients (DAR) logo seen displayed on a smartphone

Source: rafapress / Shutterstock.com

Seekers of value in the stock market await eagerly for Darling Ingredients (NYSE:DAR) to unveil its fourth-quarter performance, slated for release on Feb 27. Preliminary indicators hint at a robust quarter, marking the company’s sixth consecutive year of record earnings. With a core ingredients business poised for strong growth, investors are poised for a potential windfall.

Priced at $42 presently, with target prices soaring to $120, DAR carries a beta of 1.31, placing it among the higher volatility levels covered in this discourse. Nevertheless, the sustainability theme underpinning Darling Ingredients’ operations bears considerable charm. The company’s commitment to repurposing edible meat industry byproducts into sustainable offerings, spanning renewable diesel production, novelties investors seeking ethical value propositions.

Evotec SE (EVO)

Dollar bill and doctors prescription are on doctors table in clinic closeup. Drug corruption and fraud.

Source: H_Ko / Shutterstock.com

Evotec SE (NASDAQ:EVO) emerges as a potent entity in the drug discovery realm, boasting partnerships with numerous global biopharmaceutical stalwarts. Trading around $7, the stock presents a compelling case for doubling in value.

Fundamentally robust, the company’s November earnings report showcased a notable 14% sales uptick to €580.1 million, while also reaffirming all guidance elements. Fresh collaborations with French entity Owkin in January herald an enticing future for forward-looking investors. This foray into the biopharma landscape paints EVO as a flag bearer of innovation, poised to navigate choppy waters with aplomb.

Exploring AI in Drug Discovery: Evotec, Triple Flag Precious Metals, and MGP Ingredients

Evotec: Innovating with AI in Drug Target Discovery

Evotec is at the forefront of utilizing AI for drug target discovery, a critical application in the pharmaceutical field. The integration of AI technologies allows scientists to identify potential disease treatment molecules at an unprecedented pace, surpassing human capabilities. This significant advancement positions Evotec as a frontrunner, attracting potential partners eager to witness its groundbreaking contributions in the realm of drug discovery.

Triple Flag Precious Metals: A Sterling Contrarian Investment

A pile of shining gold bars. Gold stocks

Triple Flag Precious Metals (NYSE:TFPM) stands out in the market as a gold streaming and royalty firm with a fascinating trait – a negative beta, a characteristic shared by numerous precious metals companies. This distinctive attribute indicates that it typically moves against the tide of the stock market.

Gold, often seen as a contrarian investment, attracts investors seeking refuge in times of economic uncertainty, believing that gold’s intrinsic value remains unaffected by central banks. As the economy falters, the allure of gold rises, paving the way for TFPM shares to shine. Currently, with the stock market exuding strength, investing in Triple Flag Precious Metals poses as a contrarian stance. While investment in gold stocks can be volatile and unpredictable, the established nature of Triple Flag Precious Metals, coupled with robust target prices, makes it a compelling consideration for investors looking to diversify their portfolios in anticipation of future market downturns.

MGP Ingredients: A Beacon of Stability Amidst Uncertainty

a row of glass alcohol bottles to represent sin stocks

MGP Ingredients (NASDAQ:MGPI) emerges as a stalwart in the stock market landscape, specializing in the production of a diverse range of distilled alcohol products, spanning spirits to industrial-grade alcohol. The stock boasts a solid standing, currently priced at $90, and exuding remarkable stability with a beta below 0.8. While target prices foresee an upside below 100%, investors are urged to recognize the price stability and recent accolades showered upon the company.

Wedbush recently bestowed MGP Ingredients with an outperform rating, slotting it into their esteemed best ideas list, reserved for entities showcasing the potential to yield significant returns. This endorsement signals a continuation of previous positive expectations laid forth by Wedbush.

Established in 1941, MGP Ingredients has cemented its position by delivering food-grade alcohols like whiskey, rye, vodka, and gin, alongside industrial-grade alcohol for diverse applications in personal care and pharmaceutical industries. The company also boasts a wide array of commercial spirits, encompassing a multitude of brands, underscoring its enduring presence and stability in serving the US alcohol sector.

On the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Alex Sirois is a freelance contributor to InvestorPlace whose personal stock investing style is focused on long-term, buy-and-hold, wealth-building stock picks. Having worked in several industries from e-commerce to translation to education and utilizing his MBA from George Washington University, he brings a diverse set of skills through which he filters his writing.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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