3 Small-Cap Stocks with Significant Upside Potential: Plug Power, Petco Health and Wellness, and Novavax

Instead of focusing on Nvidia, which has a high market cap and potentially limited upside due to competition and a high price target, select Wall Street analysts see significant upside potential for three small-cap stocks: Plug Power, Petco Health and Wellness, and Novavax. Plug Power, a hydrogen fuel-cell solutions company, has a price target of $18 per share from analyst Amit Dayal of H.C. Wainwright, implying upside of 557%. However, the company has struggled to control expenses and secure funding, which raises concerns. Petco Health and Wellness, a pet retail chain, has a price target of $5 per share from analyst Anna Andreeva of Needham, implying upside of 223%. The company has promoted higher-margin services but is burdened by variable-rate debt and declining share prices due to debt-servicing expenses. Novavax, a biotech company with a promising COVID-19 vaccine, has a price target of $19 per share from analyst Vernon Bernardino of H.C. Wainwright, implying upside of 30%. The company missed out on most COVID-19 vaccine sales due to delays in filing an EUA application and struggles related to increasing vaccine production, but its vaccine is differentiated and the company aims to become profitable on an operating basis by as early as next year, after a settlement with the global vaccine alliance Gavi. While these stocks offer significant upside potential, investors should evaluate their risks and potential rewards carefully before making any decisions.