The stock market is full of strategies, and it seems there's a new strategy coming out every day. Some may argue that they are self-fulfilling prophecies, especially with limited backtesting. That said, some strategies have actually improved chances of success. Investors can leverage knowledge by applying it to their future trade ideas. For example, the "January Effect" is a seasonal trading strategy that expects stocks to rise in January, thanks to historical data indicating a positive investment inflow. These early leaders also help set the market's dynamics on what sector and stocks will lead the pack.
So, how do you find these leaders? The simplest way is to consider YTD performance. Doing so lets you see which stocks are leading and have the potential to be the market darlings in the first quarter. Once we have a shortlist, we can screen for other indicators to create our trade ideas. In this case, we will use the Analyst Recommendation to complement our initial filter, allowing us to combine the market’s and professionals' bets via their recommendations.
Let’s look at high-performing stocks with stellar analyst recommendations from different sectors.
Adicet Bio Inc (ACET)
YTD return: 30.16%
Adicet Bio, Inc. is a clinical-stage biotech company specializing in discovering and developing allogeneic gamma delta T cell therapies for cancer treatment. The company is actively progressing with a lineup of off-the-shelf gamma delta T cells engineered with chimeric antigen receptors (CARs) and chimeric adaptors (CAds). This engineering enhances the precision of tumor targeting while facilitating innate and adaptive immune responses against tumors, resulting in sustained efficacy for patients.
One of Adicet Bio's most promising product candidates is ADI-001, an allogeneic gamma delta T cell therapy expressing a CAR that targets CD20. This therapy treats relapsed or refractory B-cell non-Hodgkin's lymphoma (NHL). The company's pipeline also features ADI-925, a novel engineered CAd gamma delta T cell product candidate that targets tumor stress ligands. Furthermore, Adicet Bio is actively involved in discovering and preclinical development of internal gamma delta T cell therapy programs for both hematological malignancies and solid tumors.
ACET Analyst Ratings
ACET currently has a “Moderate Buy” rating, with a mean target price of $16.12 and a high target price of $26.00. With ACET’s current levels, these target prices represent (a significant) 555.28% and 956.91% upside, respectively.
Flux Power Holdings, Inc. (FLUX)
YTD Performance: 14.84%
Flux Power Holdings, Inc. is a designer and developer of various lithium-ion storage solutions in various commercial and industrial applications. The company offers a scalable and modular design that allows its customers to use its products in multiple configurations and can be coupled with a proprietary wireless battery management system. Its battery packs can power forklifts and other industrial equipment and serve as robotic warehouse equipment and electric vehicle mobile charging stations with solar backup power.
The company highlighted several accomplishments in its recent shareholder letter, such as its secured UL certification for the G2 series battery platform, expanding product lines, and implementing AI to the SkyBMS Telematics Platform. The company is optimistic about its growth as its lithium-ion packs offer higher performance and cost efficiency, aligning with the global trend of companies shifting to electric fleets for emission reduction.
FLUX Analyst Ratings
Analysts rate FLUX as a “Strong Buy” based on three Strong buy recommendations. Its mean target is $11.33, and with a high target of $15.00 it represents an upside of 217.80%.
BTCS Inc. (BTCS)
YTD Performance: 33.74%
BTCS Inc. is a tech company that works in the blockchain field. It focuses on various operational validator nodes and provides its clients with blockchain infrastructure and StateSeeker, its digital asset platform. These nodes support proof-of-stake (PoS) and delegated proof-of-stake (DPoS) networks, including Cardano, Ethereum, and others.
The company reported better margins and a reduced net loss year-on-year despite declining income due to the decline in cryptocurrency prices. The company has been open to customer feedback to ensure that StakeSeeker, its cryptocurrency asset platform, can meet user needs and offer improved analytics. Given that significant cryptocurrencies like Bitcoin and Ethereum are still rising, investors are beginning to take an interest in companies that deal with cryptocurrencies.
BTCS Analyst Ratings
BTCS is currently covered by one analyst and is rated a “Strong Buy” for its potential. Its mean and high target price is $3.00, representing a 37.61% upside.
Final Thoughts
Like season plays, buying outperforming stocks is one of the most popular techniques in the stock market. However, everyone should still proceed with caution. Considering the reasons behind the market's preference for a particular stock is always a good idea. Always conduct due diligence before allocating your precious resources and always remember that investing is a journey, not a sprint.
On the date of publication, Rick Orford did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
