Many growth stocks have dropped sharply this year, reflecting fears that red-hot inflation and rising interest rates could trigger a recession. For instance, Datadog (NASDAQ: DDOG) and Zscaler (NASDAQ: ZS) have seen their share prices fall 64% and 67%, respectively, leaving both stocks near 52-week lows.
However, some analysts on Wall Street see that sell-off as a buying opportunity. Goldman Sachs analyst Kash Rangan has a price target of $162 per share on Datadog, which implies 144% upside from its 52-week low. And Credit Suisse analyst Phil Winslow has a price target of $275 per share on Zscaler, which implies 141% from its 52-week low.
As a caveat, investors should never rely too much on short-term price targets. They are little more than glorified guesses, and they can change at the drop of a dime. That said, Datadog and Zscaler are backed by compelling long-term investment theses. Here's what investors should know.
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2 Unstoppable Growth Stocks That Could Soar 141% and 144% From Their 52-Week Lows, According to Wall Street