Despite a slight decline this week, the S&P 500 is up 8% this year. However, investors wonder: Can this momentum continue?
According to Goldman's senior US stock strategist David Kostin, investors have four options: “In a ‘catch up,’ the S&P 500 would end the year at 5800 (+12% from today), in a ‘catch-down,’ it would fall to 4500 (-14%), continued mega-cap exceptionalism would lift it to 6000 (+15%), and recession fears would push it down to 4500 (-14%).”
Which scenario will unfold is unknown. However, Goldman Sachs analyst Richard Law has recommended two stocks with over 120% upside. Analysts rate both companies Strong Buy in the TipRanks database, sharing Law's optimism. Let's investigate.
OLMA Pharmaceuticals Our first Goldman option is Olema Pharma, a clinical-stage medical research startup that discovers, develops, and commercializes innovative women's cancer treatments. Olema's flagship medication candidate, OP-1250 (palazestrant), is being studied in six research tracks. Five are in clinical trials.
These five clinical tracks evaluate OP-1250 as a monotherapy and in combination with many additional anti-cancer medications for ER+/HER2 metastatic breast cancer. The most advanced track, studying the medication as a monotherapy, is led by Olema, while several others involve partnerships with major drug companies. The Phase 3 pivotal monotherapy trial of OP-1250 is the company's most advanced. Top-line findings are expected in 2026 from this 4Q23 research.
Several milestones are predicted this year. The ESMO Breast Cancer Annual Congress in Berlin will feature interim data from the Phase 2 clinical study of OP-1250 and ribociclib in May. The business plans to start a Phase 1b/2 investigation of its leading candidate with everolimus in Q3. Finally, Olema plans to submit its OP-3136 Investigational New Drug application to the FDA late this year. This biopharma has a full plate, which has Goldman Sachs' Richard Law interested.
“OLMA's Ph. 2 late line mono data showed efficacy even in the rare ESR1-WT population. Although mESR1 data are comparable, ESR1-WT data are likely the best. Statistical adjustments on Ph. 2 data utilizing EMERALD learnings for Ph. 3 OPERA-1 in 2-3L revealed palazestrant could get approval in both mESR1 and ESR1-WT,
although we are not sure why it succeeded in ESR1-WT while others with comparable MOA failed. Pala's best-in-class potential in a huge ER+/HER2- breast cancer market and OLMA's possible biopharma collaboration arrangement (OLMA announced as priority in 2024) might boost the stock's valuation, Law said.
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