Is Vaxcyte, Inc. (PCVX) The Best Stock That Will Bounce Back?

We recently compiled a list of the 11 Stocks That Will Bounce Back According To Analysts. In this article, we are going to take a look at where Vaxcyte, Inc. (NASDAQ:PCVX) stands against the other stocks that will bounce back.

Major US indexes finished in the green on Wednesday, May 7, after a volatile session as investors reacted to updates from the Federal Reserve and new trade developments. The S&P 500 rose by 0.43%, while the tech-heavy Nasdaq added 0.27%. The blue-chip Dow Jones Industrial Average increased by 0.7%

READ ALSO: 11 Best Stocks Under $15 to Buy According to Hedge Funds and 10 Most Profitable Cheap Stocks to Buy Now.

As anticipated, the Federal Open Market Committee decided to keep its benchmark overnight borrowing rate unchanged in a range between 4.25% to 4.5%, where it has been since December.

In its post-meeting statement, the Fed pointed out that the risks of both higher unemployment and higher inflation have risen. The Fed also said that uncertainty about the economic outlook has grown and that it will keep watching new data closely before making any changes. This announcement coincides with growing concerns about a global trade war that could send prices higher. This could make it difficult for the central bank to achieve its goal of bringing inflation down to 2%.

During the post-decision press conference, Fed Chair Jerome Powell stated that if the recently announced large increases in tariffs remain in place, they could slow economic growth, push inflation up in the long run, and increase unemployment.

Bloomberg reported on Wednesday that the Trump administration aims to end trade restrictions on AI. This helped boost some AI and tech stocks. However, earlier on Wednesday, President Trump told reporters that he is not ready to lower tariffs on China as a condition to start trade talks. This statement by the US President came ahead of meetings set to take place this weekend between US and Chinese officials in Switzerland to discuss trade issues.

Methodology

To compile our list of the 11 stocks that will bounce back according to analysts, we looked for stocks that have lost at least 30% year-to-date as of May 5, 2025. Next, we focused on the top stocks that analysts believe have the most potential for growth. To find stocks that will bounce back, we narrowed down our selection by looking for stocks that analysts believe will gain at least twice as much as they have lost year-to-date. Finally, we ranked the 11 stocks that will bounce back based on their average price target upside potential according to analysts as of May 5, 2025.

Additionally, we mentioned the hedge fund sentiment surrounding each stock, which was taken from Insider Monkey’s Q4 2024 database of more than 1,000 elite hedge funds.

Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

Vaxcyte, Inc. (NASDAQ:PCVX)

Year-to-Date Performance: -58.85%

Average Price Target Upside Potential According to Analysts: 304.03%

Number of Hedge Fund Holders: 50

Vaxcyte, Inc. (NASDAQ:PCVX) is a clinical-stage vaccine innovation that engineers, optimizes, and manufactures superior, high-fidelity vaccines. The company develops vaccines to prevent or treat bacterial infections like invasive pneumococcal disease, Group A Strep, periodontitis, and Shigella. Vaxcyte, Inc. (NASDAQ:PCVX) is one of the top stocks that will bounce back according to analysts.

On April 22, Cantor Fitzgerald initiated coverage of Vaxcyte, Inc. (NASDAQ:PCVX) with an “Overweight” rating after the company showcased promising VAX-31 pneumococcal conjugate vaccine (PCV) data in adults last fall. Despite the fact that Vaxcyte, Inc. (NASDAQ:PCVX) is facing challenges, like mixed results from its VAX-24 pediatric vaccine and shifts in US vaccine policy, Cantor Fitzgerald still is optimistic about the company’s long-term prospects. The firm’s analysis noted that the company’s programs are still years away from regulatory review. The adult VAX-31 is expected in 2027 while the pediatric strategy is expected in 2029. Cantor Fitzgerald suggests that by the time the company’s products come under review, the current leadership and policy environment could change and help the company’s trajectory. Vaxcyte, Inc. (NASDAQ:PCVX) has a strong position in the pneumococcal conjugate vaccine market, which is valued at over $8 billion, thanks to strong data from the adult VAX-31 trials. Additionally, Cantor Fitzgerald pointed out that the company has two ways to move forward with its pediatric vaccines with VAX-31 and a dose-optimized VAX-24. The firm’s commentary suggests that the stock’s current low price and market capitalization could bounce back if there are changes in the Health and Human Services (HHS), Food and Drug Administration (FDA), or Centers for Disease Control and Prevention (CDC) leadership and vaccine policy.

Overall, PCVX ranks 1st on our list of stocks that will bounce back according to analysts. While we acknowledge the potential of PCVX as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than PCVX but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.