3 Growth Stocks That Could Skyrocket 50% or More in 2023, According to Wall Street

It might seem too early to look ahead to the new year. However, many investors are no doubt already doing so after the dismal performance of the stock market in 2022. 

© Provided by The Motley Fool 3 Growth Stocks That Could Skyrocket 50% or More in 2023, According to Wall Street

Could better days be in store? Analysts think that will be the case for at least some previously high-flying stocks. Here are three growth stocks that could skyrocket 50% or more in 2023, according to Wall Street.

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1. MercadoLibre

The consensus 12-month price target for MercadoLibre (NASDAQ: MELI) among analysts surveyed by Refinitiv reflects a 62% upside potential. Such a rebound would certainly be welcomed by investors. Shares of the Latin American e-commerce and fintech company have plunged more than 50% below their 52-week high.

I think Wall Street’s optimism about MercadoLibre is warranted. Although its stock has fallen significantly, the company’s business continues to perform well. Net revenue in Q2 jumped 56.5% year over year on a constant currency basis. Earnings soared 80% to $123 million.

Probably the biggest obstacle for MercadoLibre in meeting analysts’ expectations is the threat of a severe recession in Latin America. The company noted in its Q2 update that it’s seeing some signs of slower online retail spending. 

However, even if MercadoLibre stock doesn’t skyrocket by 62% next year, its long-term prospects look very good. The e-commerce market penetration rate in Latin America remains low. The potential market for fintech solutions in the region is huge. Right now appears to be a once-in-a-decade buying opportunity for MercadoLibre.

2. Meta Platforms

Analysts also think that Meta Platforms (NASDAQ: META) is due for a major comeback in 2023. The average price target for the stock is 62% higher than Meta’s current share price. But even if that target is achieved, it won’t be enough to offset Meta’s steep decline over the past year.

I own shares of Meta. However, I’m not as confident about Wall Street’s 12-month price target for the stock as I am about the target for MercadoLibre. Meta’s revenue slipped 1% year over year in Q2 with its profits sinking 36% lower. The current weak advertising environment could extend into next year, in my opinion.

I’m bullish about Meta over the long term, though. The company’s social media apps (Facebook, Instagram, Messenger, and WhatsApp) still attract an average of 2.88 billion people on a daily basis. That’s a huge audience that advertisers will continue to want to reach.

But I’m most intrigued by Meta’s potential as a metaverse stock. The company is betting heavily on building hardware and software to support CEO Mark Zuckerberg’s metaverse vision. It’s possible that these efforts will ultimately fail. However, they could also succeed. If they do, Meta just might be one of the biggest winners for investors over the next 20 years — even if it doesn’t fulfill expectations for next year.

3. Zoetis

The consensus price target for Zoetis (NYSE: ZTS) reflects an upside potential of 51%. As was the case with Meta, achieving this target wouldn’t enable Zoetis to recapture its 52-week high. But investors would celebrate such a rebound regardless.

Can Zoetis deliver a gain of 51% or more next year? I think it’s possible. The company’s companion animal health business remains strong, with Q2 revenue increasing 13% year over year in the U.S. and 16% in international markets. The biggest question market, in my view, is how Zoetis’ livestock business will perform in 2023.

Zoetis currently faces several challenges for its livestock products, including generic competition and supply issues related to COVID-19. However, CFO Wetteny Joseph stated in the company’s Q2 conference call that Zoetis believes the livestock business could return to normal levels of growth “in the 2023-2024 time frame.” 

I have no doubt that Zoetis’ share price will rise by at least 51% in the future. What I’m not so sure about is whether or not it will happen in 2023. The timing shouldn’t matter for long-term investors, though. It’s not too early to look ahead beyond just the next year. 

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Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Keith Speights has positions in MercadoLibre and Meta Platforms, Inc. The Motley Fool has positions in and recommends MercadoLibre, Meta Platforms, Inc., and Zoetis. The Motley Fool has a disclosure policy.

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