bluebird bio Stock preparing for explosive growth

It’s not often that you find the right story at the right time that gives you a good chance of multiplying your wealth; these so-called multi-bagger stocks get their name because their price sees an increase of more than 100%. Driven by a good story and other factors that help make the leap.

Investors need to be in almost the right place and at the right time; today the stars are aligning to bring you a beautiful story biography of the bluebird NASDAQ: BLUE. This title is quickly adopting the features that make a multi-bagger a game. This stock is already up more than 50% in February alone, and there are many reasons to believe it still has more to do.

While the rest of the market focuses on the hype surrounding tech stocks, and even more so on names like NVIDIA NASDAQ:NVDA that continues to deliver successful financial results and surpass its all-time high prices, there’s a new reason to start looking into this medical stock.

All the good reasons

Professional traders try to understand the economy to identify the right industries and sectors that promise the potential to produce some of these winning stocks; today, a leading indicator flashes green for the medical field.

According to the latest jobs report, the U.S. economy created 353,000 jobs in the past month, 70,300 of which came from the healthcare sector.

A hiring spree in a low beta industry like that Selected healthcare SPDR fund NYSEARCA: XLV it means that the institutions could come and snoop. Well, that’s just what investment houses like Vanguard Group and The Goldman Sachs Group NYSE:GS they did, and here are the actions they chose.

According to the latest 13-F filings (which track ownership of a stock), Vanguard added 56% to its stake in Bluebird stock, followed by Goldman’s addition of 68% in February alone; why are these giants looking at a small $340 million company?

Management recently released its outlook for the year 2024 in a press release, which included the expectation to begin reporting credits (to be translated into revenue and earnings potential) as soon as sickle cell treatments and LYFGENIA have received Food and Drug Administration (FDA) approval and are ready to welcome patients.

Now, even after taking a handful of patients (expected 85 to 105), this does not guarantee economies of scale and provides an affordable price for a diverse demographic to purchase Bluebird products. This is why US government aid is acting as a key catalyst for this medical stock to emerge in the coming months.

Knowing what you know now, it should come as no surprise that analysts are setting a price target of $6.7 per share for this stock, implying a massive 285% upside from today’s prices. Unfortunately for bearish short sellers, this cocktail of tailwinds could prove to be a potential short squeeze.

You can consult MarketBeat’s Short-Term Interest Tracker to see how Bluebird bears got carried away with up to 25% of available stocks. As the stock continues to move aggressively, these short sellers will take maximum pain and will have to close their positions, which results in buying the stock and further pushing the rally higher.

The game just changed

Remember the huge multi-bagger run that resulted Caravana NYSE:CVNA? The stock has gone from less than $5 to more than $70 in less than a year due to the same factors that could push Bluebird on a similar upward path.

So what’s behind all the buying and bidding of stocks higher and higher at double-digit clips for a week at a time? Well, investors are anxiously awaiting Bluebird’s upcoming quarterly earnings announcement, where the market expects to see credits accounted for as revenue, earnings, and much more.

Aside from the initial receivables number (which will likely boost the stock that day), investors also want to hear what outlook management has to provide regarding future patient volumes to further boost revenue and book potential earnings.

So far, management is targeting 85 patients on the low end and 105 patients on the high end for the first quarter of 2024, leaving anything outside of this range (whether on the upside or downside) as a potential catalyst for the stock to make a move. recovery. aggressive move.

Overall, patient numbers are not only expected to exceed initial guidance for the first quarter, but are also expected to be higher for the remainder of the year; Therein lies the caveat to this growth story, but the price action could suggest that there will be a big announcement in the coming weeks.

Before you consider Goldman Sachs Group, you’ll want to hear this.

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