FX.co ★ Top 3 US stocks with 90% upside potential by Morgan Stanley

Safehold

The number one on the list is Safehold, a company that specializes in long-term land leases for up to 99 years. This strategy allows long-term tenants to build on and make improvements to land holdings. The company has a $4.5 billion portfolio of such leasing projects. Besides, Safehold has properties all over the US. In the third quarter of 2021, the revenue of the company came in at $47 million, up by 24% from the previous year. Earnings per share went up by 35% compared to the previous quarter. The growth potential of Safehold shares is estimated to be 132% in the next 12 months.

New Relic

New Relic ranks second in our rating. This is a tech company located in Silicon Valley,US, that specializes in cloud-based software solutions for monitoring and improving mobile apps. In the ever-changing digital world, New Relic’s products are in high demand, especially its data analytics and optimization of equipment. For over two years, the company has been posting increasing quarterly revenues. For Q3 2022, New Relic reported $203.6 million in revenue, which is 22% higher compared to the previous reporting period. Analysts at Morgan Stanley see high upside potential for the company’s shares, saying that “New Relic’s business is getting better.” So, experts recommend buying the shares with a price target of $138, which suggests 91% growth.

Affirm Holdings

The third place in the rating of companies with high profit potential is taken by Affirm Holdings, a fintech firm working on the next generation of digital and mobile apps. Affirm’s customers can access loans and installment payments when they need them and at the rates they can afford. The services of Affirm Holdings are used in online retail. Among its business partners is the largest retail chain Walmart. The company went public last year, and since then, it has posted gains for every reported quarter. Thus, in the second quarter of 2022, its total revenue was $361 million. Such impressive growth was driven by three major factors: a rapid increase in the number of active merchants, a 150% rise in active consumers to 11.2 million, and more additional transactions. Among the most important success factors, Morgan Stanley names customer acquisition, increasing frequency of application usage, and smart navigation through economic and credit cycles. Experts set $140 as the next price target for the stock which implies 212% upside potential for the year ahead.