TipRanks
8 min read
In This Article:
After a bruising spring that saw the stock market tumble under the weight of sweeping tariffs, stocks have mounted an impressive comeback. Since hitting a low on April 8, the S&P 500 has surged 17%, lifted by a temporary U.S.-China tariff truce and a powerful rally in mega-cap tech stocks, which have helped restore investor confidence.
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However, underlying risks remain. Elevated Treasury yields, concerns over the U.S. fiscal deficit, and the potential for renewed trade tensions could pose challenges to the sustainability of this rally.
Even so, Wells Fargo strategist Christopher Harvey is urging investors to stay the course. A consistent bull, Harvey hasn’t wavered on his bold outlook – he’s still targeting the S&P 500 at 7,007, a move that would add another 20% to today’s gains. “We felt [2H25] was always going to be much better,” Harvey said, referring to his prediction. “We thought that tariffs were a negotiating ploy, which turns out mainly to be true. We thought the underlying economy and the strength of the consumer, while not pristine or stellar, were still solid.”
The stock analysts at Wells Fargo are running with Harvey’s bullish theory, and are picking stocks to ride a market recovery.
We’ve used the TipRanks platform to pull up the broader Wall Street picture on two of the Wells Fargo picks; both have Buy ratings and double-digit upside potential. Here’s a closer look at them.
Blueprint Medicines (BPMC)
The first Wells Fargo pick we’ll look at is Blueprint Medicines, a biopharmaceutical company operating at both the commercial and clinical stages. Blueprint’s work focuses on the invention of new medicines with life-changing potential for patients suffering from severe diseases. The company’s medication portfolio is geared toward two fields – allergy/inflammation and oncology/hematology – each of which features large numbers of conditions with high unmet medical needs.
On the commercial side, Blueprint is the maker of avapritinib, which was approved by the FDA in 2020 for the treatment gastrointestinal stromal tumor (GIST) that is not suitable for surgical treatment and then in 2023 for the treatment of indolent systemic mastocytosis (ISM). Avapritinib is marketed under the brand names Ayvakit and Ayvakyt.
Currently, product sales of avapritinib make up Blueprint’s revenue stream. For the first quarter of this year, Blueprint’s product revenue came to $149.4 million, up 55% year-over-year – although it was $7.49 million below expectations. This figure included $129.4 million in US sales, and $20 million outside of the US. The company has raised its revenue guidance for this medication, and expects to bring in between $700 million and $720 million in global net product revenue from avapritinib (Ayvakit) in the full-year 2025. We should note that, along with the strong revenue growth, Blueprint saw a profit in 1Q25; the 1-cent EPS was 47 cents per share better than had been forecast.
