There are many ways to describe the valuation of the stock market at the moment. The raging bull from the last decade and the huge rebound from the covid-fueled market downfall last year has boosted stock prices to sky-high levels.

But that does not mean there aren’t stocks that are still set to go much higher. Here are two growth stocks to buy that Wall Street believes might soar 30% or even more.

Pinterest

Pinterest’s shares are lower by almost 40% from their peak earlier this year. Analysts believe that the stock might regain much of this room. The consensus price for Pinterest means a 37% premium above its current price.

Investors soured on the company after it reported a fall in monthly active users (MAUs) in its Q2 update. That is concerning since advertisers pay depending on how many possible consumers they’re getting to.

However, I believe Wall Street’s optimism about Pinterest is based on solid footing. The company’s CEO, Ben Silbermann, stressed during the company’s Q2 conference call, “In the second quarter, monthly active users on our mobile apps increased in the United States y/y and internationally by over 20%.” The decline was seen from web users. That makes sense given the reopening of the economy.

In the long term, Pinterest should have better growth prospects. The company is attracting users more with newer features including interactive videos. They are also expanding their international reach.

Teladoc Health

Teladoc Health took an even worse downfall than Pinterest. The healthcare stock has lowered by over 50% from its Q1 highs. Analysts, though, think that Teladoc is a bargain with the average target over 40% higher than the current share price.

Like Pinterest, the top issue for Teladoc is that the user boom they had during the pandemic will go away. The company has already watched its membership growth slow down significantly.

But Teladoc keeps performing very well on many fronts. Its revenue per member per month has increased 142% y/y in the second quarter and boosted 10.3% quarter over quarter. The company’s utilization rate is also going up, along with their visit volume.

I am bullish on Teladoc’s long-term future. The company is just scratching the surface of the possible virtual care market in the United States.

Author: Scott Dowdy

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