 Now that 2025 is around the corner, investors should align their portfolios with the best risk-to-reward setups in the market.. ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ |
| | Written by Gabriel Osorio-Mazilli 
Now that 2024 has come to an end, investors may be looking for the best opportunities to place their bets on 2025. That is why aligning portfolios with stocks that carry double-digit upside is so important in today’s market. However, there is a big difference between picking a stock only because of its upside and choosing one that has said upside but also offers very little downside risk. In today’s list of winning stocks, that is exactly what investors will be taking away for the new year, stocks with double-digit upside potential, but that, due to their low prices right now, also offer very little risk to the downside. Loading up a portfolio with these risk-to-reward profiles is the foundation everyone would need for a winning year. With that strategy in mind, here are the stocks investors should watch for 2025. Starting with what some could call a titan on its knees, there is Intel Co. (NASDAQ: INTC), a technology stock that now trades at only 40% of its 52-week high to offer the low downside aspect that investors should carry. Then, there is the consumer discretionary giant and one of China’s best propositions for 2025, Alibaba Group (NYSE: BABA), trading at 72% of its 52-week high. Finally, to cover the consumer staples sector at 45% of its 52-week high, Dollar General Co. (NYSE: DG) takes the podium. Institutions Bought The Bottom of Intel Stock Based on a volume analysis, there are reasons to believe that Intel stock has attracted many new buyers within its recent $18.50 to $20.0 a share range. Investors can reiterate their suspicions of new buyers when they examine the recent institutional buying activity for Intel stock. Leading the pack, as of November 2024, were those from State Street, who decided to boost their holdings in Intel stock by as much as 2.8%. While this may not sound like much in percentage terms, it did bring the group’s net holdings to a high of $4.6 billion today, or 4.6% ownership in the company. One reason to buy this much Intel stock is the future upside potential. Wall Street analysts forecast up to $0.29 earnings per share (EPS) in the next 12 months, a significant jump from today’s net loss of $0.46 a share. To justify this swing into profitability, investors can consider the fact that the government has granted Intel most of the capital within the CHIPS and Science Act. With institutions and the government betting on Intel to guard and build the domestic semiconductor production supply chain, it shouldn’t come as a surprise for investors to see price targets from Wall Street analysts land on a consensus $30 a share, which translates to a net 48% upside potential from today’s low price. Mega Investors Like Alibaba for 2025 Some names from the fund management world made headlines in 2024 and will likely continue to do so in 2025. Michael Burry, David Tepper, Ray Dalio, and even George Soros are all bullish on Chinese stocks. Not only were their opinions bullish on China, but their actions also spoke for themselves. Both Tepper and Burry have now made Alibaba stock the largest stock position in their respective portfolios, and it makes all the sense in the world. The Chinese government is loading up a bazooka of stimulus measures to rescue not only China’s economy but also its stock market, an effect that will bring major rallies once it trickles down. This is why bearish traders have been running out of Alibaba and their short positions, something investors can note from the 12.8% collapse in the company’s short interest over the past month alone. That might have led some analysts on Wall Street to start boosting the company’s valuation in recent weeks. Particularly those from Barclays, who now see Alibaba as an overweight-rated stock and want to see it at a $130 a share valuation based on these ratings. To prove them right, Alibaba would have to rally by as much as 52.8% from where it trades today, offering minimal downside risk considering how close to its 52-week low it trades right now. Why Dollar General Stock Attracted Buyers As of November 2024, those at State Street also justified buying stock in Dollar General on top of their Intel stock purchase. For Dollar General, an 8.3% boost would mean a net position of $842.2 million today, or 4.5% ownership in this stock as well. Because of the way that the United States economy is going today, a risk of inflation coming back could get investors chasing the value proposition in the way that Dollar General makes everyday shopping affordable for its consumer base. Knowing this, it would make sense to see analysts from Goldman Sachs boost the stock the way they did recently. As of December 2024, a buy rating came alongside a price target of up to $104 a share for Dollar General stock, implying a potential rally of 37% from where it trades today. Moreover, even if the rally takes a bit longer than expected, investors have an added bonus to this trade. A payout of $2.36 a share would offer a dividend yield of up to 3.1% today, outpacing inflation rates and keeping the stock position attractive while this double-digit upside is realized in 2025.  Read This Story Online | $2 trillion has disappeared from the US government's books.
The reason why is a new, secretive move being carried out by the Fed that has nothing to do with lowering or raising interest rates... but could soon have an enormous impact on your wealth. Click here to see his new research now. |
| Written by Sam Quirke 
Micron Technology Inc (NASDAQ: MU) shares have been struggling to catch their breath after a sharp 25% drop over the past week. The selloff followed a tough earnings report and broader market jitters as the Fed dampened expectations for a rate cut. Stocks, in general, have had a rough end to the year, but Micron's drop stands out. The stock is now trading near a solid line of support, back at levels not seen since early 2021. For those of us on the sidelines, it's tempting to see this as a golden entry opportunity. But before jumping in, let's take a closer look at where Micron stands today. With a $95 billion market cap, it's a key player in memory and storage solutions—both of which are critical for AI's ongoing development. And while the stock looks far removed from its June highs, there are several reasons investors should be getting excited. Fundamental Performance To start with, let's take a look at Micron's latest earnings report. The company easily beat expectations last week for both the top and bottom lines. However, a weak outlook for the next quarter spooked investors. Specifically, Micron is forecasting adjusted earnings between $1.33 and $1.53 per share, well below the $1.92 consensus estimate. Similarly, its revenue guidance of $7.7 billion to $8.1 billion came in below Wall Street's $8.99 billion target. Still, there's reason for optimism. CEO Sanjay Mehrotra noted that "while consumer-oriented markets are weaker in the near term, we anticipate a return to growth in the second half of our fiscal year." Mehrotra also highlighted Micron's market share gains in high-margin segments and its strategic positioning to capitalize on AI-driven growth. Investors should look for the stock to continue recovering once the broader market digests the recent news. Bullish Analyst Updates In a note to clients, the team over at Barclays leaned into this likelihood as they reiterated their Buy rating on Micron, and they weren't the only ones. Multiple bullish updates from the analysts suggest confidence in the stock's long-term potential despite the wobble in the company's forward guidance. Piper Sandler and Cantor Fitzgerald also came out with Buy ratings, pointing to Micron's strong fundamentals and AI exposure. Perhaps the most compelling update came from JPMorgan Chase. Their team set a price target of $145, which, from where the stock was trading on Monday morning, points to an incredible upside of 70%. The fact that analysts are sticking to their Buy ratings despite the near-term turbulence underscores their belief that this is a stock that's worth watching closely. Potential Concerns Still, it's unlikely to be all plain sailing for Micron, and investors should be aware of some lingering risks. While most analysts maintained their Buy ratings, most also reduced their price targets in light of the company's dimmed near-term outlook. There's also the fact that not all of them have the stock rated a Buy, with Morgan Stanley maintaining their Equal Weight rating. Even so, its reduced price target of $98 still sits above Micron's last close at $85, suggesting the stock may be oversold. Getting Involved The final piece of the puzzle supporting the bullish play is the technical setup, which adds another layer of excitement. One key indicator, the Relative Strength Index (RSI), shows that Micron is entering oversold territory as it has fallen to 34. For context, an RSI below 30 typically signals a stock is extremely oversold and due for a rebound. While Micron hasn't hit that threshold just yet, it's within touching distance, and this, when considered along with the other factors mentioned above, only lends itself further to the comeback rally narrative. Investors should be looking at some bounceback gains heading into the start of 2025, supported by strong endorsements from analysts. With AI remaining a central growth driver, Micron's long-term outlook is hard to ignore. For those willing to be brave, the combination of a beaten-down price and solid technical support could make 2025 a standout year for this stock. Read This Story Online | |
| Written by Thomas Hughes 
Insider activity is hot in names like Vestis (NYSE: VSTS), OPKO Health (NASDAQ: OPK), and Greif, Inc. (NYSE: GEF), and investors should take notice. From board members to CEOs, CFOs, and other corporate officers, insiders are buying these stocks en masse, signaling a higher-than-average conviction in the share price outlook. The question for investors is if these stocks are a good buy for 2025 and how high their share prices may go. In two cases the answer is quite high because the support of analysts, institutions, and retail investors is strong. In the other, investors may want to avoid the stock because the risk of dilution is great. Here’s why. Vestis Corporation on Track for a Takeover Vestis Corporation is the former uniform segment of Aramark spun off in late 2023. The company is equal in size to peer UniFirst but less than a third of the size of industry leader Cintas, which makes it a potential merger or buyout target. The uniform industry remains fractured despite years of consolidating. Cintas is a potential buyer who has yet to enter the mix. As it is, several buyout firms have expressed interest, but no firm offers are on the table. Insiders have been buying Vestis throughout 2024, making it the most bought stock by corporate executives. Nine insiders made 14 purchases during the year, bringing their total holding to over 13%. This is compounded by a high institutional ownership of nearly 98% in late December 2024. Institutions have also bought netting shares in CQ1, Q2, and Q3 this year. The largest shareholder is the activist hedge fund Corvex Management. Corvex made several purchases in 2024, owns more than 13% of the stock and may continue to buy in 2025. Insiders' and institutional interest in Vestis is linked to the business's cash flow potential. Cintas is an example of a company capable of sustaining dividend payments, distribution increases, share buybacks, and a fortress balance sheet while reinvesting and self-funding growth. Vestis pays a healthy dividend that is less than 25% of its earnings and has a solid balance sheet. It hasn’t yet repurchased significant shares but may begin to do so if it is not taken over or private. 
OPKO Health Has Numerous Catalysts Ahead OPKO Health has numerous catalysts that could send its share price rocketing in 2025. However, the company’s capital position is questionable, and it may not have the funds to continue without a positive development. Those could include approvals for its key therapy, acquisition, and normalization of the diagnostic business. Analysts are optimistic, so there is hope. MarktBeat.com tracks three analysts with current ratings; they peg the stock at Buy and see it advancing by 90% at the consensus. Risk includes shareholder dilution that insider buying is only partially offsetting. 2024 insider activity includes 24 purchases by seven insiders, making it the second most bought stock for the year. However, the company share-sales to raise capital increased the count by more than 32%. The company has since issued a share repurchase authorization, but the $100 million is insufficient to offset the damage, and more sales may come. 
Greif Insiders Put a Floor in the Market Greif, Inc. is an industrial services company specializing in packaging. Its share price has been volatile over the past two years but shows a solid bottom near $60. That bottom is reinforced by insider activity, which has been buying the stock in the range’s low end and selling at the high. Insiders buying include the CEO, CFO, and several directors. The insider selling is a senior VP; his transactions were early in the year and aligned with share-based compensation, so there is no red flag for investors. Insiders own about 3% of this industrial packaging company. Institutional activity adds to the volatility in 2024. Institutions own about 50% of the stock; their activity in 2024 aligns with buying in the low-end range and selling in the high. Activity in Q4 is bullish and ramping higher, confirming the floor and suggesting another rebound in the stock price will follow. Analysts also indicate a stock price rebound. Marketbeat tracks seven analysts who peg the stock at a consensus of Moderate Buy and view it as a deep value, trading below the lowest price target. A move to match the analyst's lowest target is worth about 10% of the upside with shares near their floor; a move to the consensus would add another 20%. A possible catalyst for this move is 2025 results, which are expected to include a wider margin. 
Read This Story Online | |
| More Stories |
| |
|
|
Tidak ada komentar:
Posting Komentar