Wall Street Analysts Believe Verastem (VSTM) Could Rally 100.94%: Here's is How to Trade

Core Viewpoint - Verastem (VSTM) has shown significant price appreciation recently, closing at $6.40 with an 18.3% gain over the past four weeks, and analysts suggest there is substantial upside potential with a mean price target of $12.86, indicating a 100.9% upside [1]. Price Targets - The average price target consists of seven short-term estimates ranging from a low of $9 to a high of $20, with a standard deviation of $3.93, suggesting variability in analyst opinions. The lowest estimate indicates a 40.6% increase, while the highest suggests a 212.5% upside [2]. - A low standard deviation among price targets indicates a high degree of agreement among analysts regarding the stock's price movement direction, which can serve as a starting point for further research [9]. Earnings Estimates - Analysts are optimistic about VSTM's earnings prospects, as indicated by a strong consensus in revising EPS estimates higher, which has historically correlated with near-term stock price movements [11]. - Over the last 30 days, two earnings estimates for VSTM have been revised upward, resulting in a 23.9% increase in the Zacks Consensus Estimate [12]. Zacks Rank - VSTM currently holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate factors, which provides a more conclusive indication of the stock's potential upside in the near term [13].