Now that 2024 has come to an end, investors may be looking for better opportunities to bet on 2025. That’s why in today’s market it’s so important to align portfolios with stocks that have double-digit growth potential. However, there is a big difference between choosing a stock just because of its growth potential and choosing a stock that has growth potential but also offers very little downside risk.
In today’s list of winning stocks, this is exactly what investors will be picking up in the new year: stocks with double-digit upside potential, but due to their low prices at the moment, also offer very little downside risk. Filling your portfolio with these risk-reward profiles is the foundation everyone will need for a successful year. With that strategy in mind, here are the stocks investors should watch in 2025.
Starting with what some might call a kneeling titan Intel Company NASDAQ: INTKtech stocks currently trading at just 40% of their 52-week high, providing low downside potential that investors should consider. Then there’s the consumer giant and one of China’s best deals for 2025. Alibaba Group New York Stock Exchange: BABYtrading at 72% of its 52-week high. Finally, to capture the Consumer Staples sector at 45% of its 52-week high, Dollar General Co. New York Stock Exchange: DG takes the podium.
Institutions bought up the bottom half of Intel shares
Intel today
(As of 12:57 pm ET)
- 52 week range
- US$18.51
▼
$50.30
- Dividend yield
- 2.51%
- Target price
- $30.04
Based on volume analysis, there is reason to believe that Intel stock has attracted many new buyers within the recent range of $18.50 to $20.0 per share. Investors can confirm their suspicions about new buyers when they examine recent institutional buying activity in Intel shares.
State Street led the way as of November 2024, increasing its Intel stock holdings by as much as 2.8%. While this may not seem like much in percentage terms, it has in fact resulted in the group’s net assets today peaking at $4.6 billion, or 4.6% ownership in the company.
One reason to buy so much Intel stock is the future growth potential. Wall Street analysts are forecasting earnings per share (EPS) of up to $0.29 over the next 12 months, which would be a significant jump from today’s net loss of $0.46 per share. To justify this jump in profitability, investors can consider the fact that the government provided Intel with most of the capital as part of the Chips and Science Act.
With institutions and the government betting on Intel to protect and build the domestic semiconductor manufacturing supply chain, it shouldn’t come as a surprise to investors that Wall Street analysts have a consensus price target of $30 per share, which is in line with net earnings. Upside potential of 48% from today’s low price.
Mega investors love Alibaba in 2025
Alibaba group today
(As of 12:58 pm ET)
- 52 week range
- $66.63
▼
$117.82
- Dividend yield
- 1.17%
- P/E ratio
- 17.05
- Target price
- $114.07
Some names from the world of fund management made headlines in 2024 and are likely to continue to do so in 2025. Michael Burry, David Tepper, Ray Dalio and even George Soros are bullish on Chinese stocks. Not only were their views optimistic about China, but their actions spoke for themselves.
Both Tepper and Burry have now made Alibaba stock the largest position in their portfolios, which makes sense. The Chinese government is preparing a package of stimulus measures to save not only China’s economy but also its stock market, and this effect will lead to a major rally once it subsides.
That’s why bearish traders have run out of Alibaba shares and their short positions, as investors can see from the company’s short stock falling 12.8% in the past month alone. That may have prompted some analysts on Wall Street to begin raising their valuation of the company in recent weeks.
Especially those at Barclays who now view Alibaba as an overrated stock and want to see it at $130 per share based on those ratings. To prove its case, Alibaba would need to rise as much as 52.8% from the level it is trading at today, offering minimal downside risk considering how close to its 52-week low it is trading right now.
Why dollar stocks attracted buyers
Dollar General today
Dollar General
(As of 12:58 pm ET)
- 52 week range
- $72.12
▼
$168.07
- Dividend yield
- 3.13%
- P/E ratio
- 12.43
- Target price
- $98.27
As of November 2024, State Street officials were also justifying the purchase of Dollar General shares in addition to the purchase of Intel shares. For Dollar General, an 8.3% rise would mean a net position of $842.2 million today, or a 4.5% ownership of those shares.
Because of the way the United States economy is performing today, the risk of inflation returning could have investors chasing a value proposition like Dollar General making everyday shopping affordable for its consumer base. Knowing this, it would be reasonable to see Goldman Sachs analysts upgrade the stock, as they did recently.
As of December 2024, the buy rating was consistent with a price target of up to $104 per Dollar General share, implying a potential rally of 37% from the level at which they are trading today. Moreover, even if the rally takes a little longer than expected, investors will receive an additional bonus from this trade.
The $2.36 per share payout would deliver a dividend yield of up to 3.1% today, outpacing inflation and keeping the stock attractive, while this double-digit growth potential is realized in 2025.
Before you consider Dollar General, you should hear this.
MarketBeat tracks Wall Street’s top-rated and best-performing analysts daily and the stocks they recommend to their clients. MarketBeat identified five stocks that top analysts are quietly whispering to their clients to buy now, before the broader market takes hold… and Dollar General wasn’t on the list.
While analysts currently rate Dollar General stock a Hold, the top-rated analysts rate these five stocks as Strong Buys.
View five stocks here
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