The seven stable stocks discussed below each have the potential to double by 2025 based on analyst target prices. Each of the seven stocks is also relatively stable based on the fact that none have a beta higher than 1.4. Most of the shares have a beta around 1 with several below that level.
Beta measures volatility relative to the overall stock market with 1 meaning average volatility. All of the stocks listed below have a beta below 1.4 implying general stability.
Most investors would characterize these companies as hidden gems because they aren’t well known. Only one is a household name. Yet they also have ‘buy’ to ‘strong buy’ ratings from the analysts covering them and 100% or greater upside as well.
Exact Sciences (NASDAQ:EXAS) is one of the better-known stable stocks thanks to its leading product, Cologuard. Its non-invasive colorectal screening test has become very successful commercially. Shares currently trade for $61. Analyst forecasts range from a low target price of $73 to a high of $130. That expectation suggests EXAS shares can return more than 100% to investors.
Exact Sciences also carries a beta of 1.27 meaning that it is 27% more volatile than the overall stock market. Investors are going to have to take a bit of a contrarian position because EXAS shares have had trouble in early 2024. That said, the firm is projecting strength to the market at the moment.
Back in early January, the company submitted preliminary Q4 results. Those results suggest that the company should see revenues increase by approximately 17% in Q4. In addition, the company expects that screening test revenue will grow by 31% in 2023 when all is said and done. The company has a strong stable product anchoring its business.
Alibaba (BABA)
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Another one of the top stable stocks to buy and hold is Alibaba (NYSE:BABA).
At the moment, BABA is trading about $12 below the lowest analyst target price. Plus, some of the top target prices range as high as $220, equating to more than 200% upside. One reason to believe the hype is that the company is starting to gain positive traction with prominent stock pickers.
Michael Burry, made famous in The Big Short, is also big on Alibaba at the moment. Alibaba currently represents the largest holding at Scion Asset Management, Burry’s firm. Betting on Alibaba is a contrarian position at the moment. The firm is facing stiff competition from other Chinese e-commerce firms including PDD Holdings (NASDAQ:PDD). The owner of Temu continues to make waves in Chinese e-commerce and strengthen the competitive landscape.
Yet, Alibaba is no slouch and holds a particularly strong position in the cloud. It continues to be the dominant Cloud firm in China which is reason in and of itself to consider investing. It also carries a very low beta of 0.47 suggesting high stability.
Sociedad Quimica y Minera (SQM)
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The story of Sociedad Quimica y Minera (NYSE:SQM) is a lot like that of many other lithium miners at the moment. Its business continues to hum and the company is mining record volumes, yet the price collapse of lithium has pulled its shares much lower. Shares trade for $43 with target prices ranging as high as $90.50. A beta of 1.05 implies average volatility and overall stability.
In short, Sociedad Quimica y Minera is one of many contrarian lithium plays worth exploring at the moment. Investors are well aware that there will be a rebound in the future. It is an inevitability. The electric vehicle manufacturing industry has reached a critical mass and is established. There is no going back. That makes companies including Sociedad Quimica y Minera a near slam dunk with just a bit of patience.
The company’s operations are strong based on the fact that it mined record volumes of lithium in Q3.
Yet, even though volumes increased by 4% on a year over year basis, revenues declined by more than 45%. That’s what happens when a glut of supply floods the market. That glut, combined with slowing sales growth results in a short-term disaster. Investors with a bit of patience and the wisdom to look past those short-term issues can certainly benefit by investing in SQM stock.
Darling Ingredients (DAR)
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Investors will have to wait just a little longer to find out how Darling Ingredients (NYSE:DAR) did in the fourth quarter. The company will release those earnings results on Feb 27. Weeks earlier, Darling Ingredients noted that it anticipates the quarter to be strong with its 6th consecutive year of record earnings. Darling Ingredients anticipates that its core ingredients business will have performed very strongly during the quarter, providing strong growth.
That said, there’s plenty of upside left for investors to take advantage of. Shares trade for $42 currently. Yet, target prices run as high as $120. Those shares carry a beta of 1.31 which is among the higher levels for stocks discussed in this article. However, it’s still not a level that’s particularly high.
Investing in Darling Ingredients is also particularly compelling to those interested in sustainability. The company takes edible waste byproducts from the meat industry and repurposes them into sustainable products. The company repurposes roughly 15% of global meat byproducts at more than 260 facilities worldwide engaging in the production of renewable diesel among other products.
Evotec SE (EVO)
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Evotec SE (NASDAQ:EVO) is a drug discovery firm partnered with many leading biopharmaceutical firms globally. The stock trades for approximately $7 and is widely expected to double in price.
Let’s first take a look at its fundamental position which suggests strength. The company last released earnings in November which showed that sales increased by 14% to € 580.1 million. The firm also reiterated all previous elements of guidance.
The company released a spate of news in January that should further interest ever forward looking investors. The company is collaborating with French firm Owkin and utilizing AI for drug target discovery purposes. Target discovery is one of the primary AI applications in the pharmaceutical field. It allows scientists to identify molecules with potential disease treatment capability much faster than is humanly possible. Evotec will continue to receive attention from potetnial partners as it further proves itself in that regard.
Triple Flag Precious Metals (NYSE:TFPM) is a gold streaming and royalty firm which is interesting from the perspective of its beta. Like many other precious metals firms, Triple Flag Precious Metals carries a negative beta. All that really means is that it tends to move in the opposite direction of the stock market.
Gold is a contrarian investment that many make with the assumption that fiat money is troubled. When the economy weakens, those investors believe that gold will rise in value because its intrinsic value is not connected to a central bank. That is when TFPM shares will shine.
The stock market is very strong at the moment making an investment in Triple Flag Precious Metals a contrarian position. Investing in gold stocks is always risky and difficult to predict but Triple Flag Precious Metals is relatively established and bears strong target prices. Investors looking for a gold stock to diversify for future market downturn risk should consider it.
MGP Ingredients (MGPI)
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MGP Ingredients (NASDAQ:MGPI) is another one of the top stable stocks, which produces various distilled alcohol products including spirits and industrial-grade alcohol. The stock is well established with a price of $90 and very stable with a beta below 0.8. Target prices suggest an upside below 100% but investors should appreciate its price stability and recent upgrades.
The stock recently received an outperform rating from Wedbush. That firm placed MGP Ingredients on its best ideas list. That list includes names that the firm believes have a strong potential to provide notable returns. The rating was a continuation of a previous outperform expectation given by Wedbush.
The company produces various food-grade alcohols including whiskey and rye as well as vodka and gin. It also produces industrial-grade alcohol for applications In personal care and pharmaceuticals among others. The company also owns a wide variety of commercially available spirits covering dozens of brands.
The company was established in 1941 and has a long history of serving the US alcohol industry, further suggesting stability.
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.
