Now that 2024 is over, investors may be looking for better opportunities to place their bets on 2025. That’s why aligning portfolios with stocks that hold double-digit upside is so important in today’s market. However, there is a big difference between choosing a stock solely because of its uptrend and choosing a stock that says uptrend but also offers very little downside risk.
On today’s list of winning stocks, this is exactly what investors will be taking for the new year, stocks that have double-digit upside potential, but that, given their currently low prices, also offer very little downside risk. Loading a portfolio with these risk-to-reward profiles is the foundation everyone needs to have a successful year. With this strategy in mind, here are the stocks investors should watch for 2025.
Starting with what some might call a giant on its knees, there it is Intel Corporation NASDAQ:INTECa technology stock that is now trading just 40% off its 52-week high to offer low downside that investors must bear. Then, there’s the consumer discretionary giant and one of China’s best proposals for 2025, Alibaba Group New York Stock Exchange: babyand is trading at 72% of its 52-week high. Finally, to cover the consumer staples sector by 45% from its 52-week high, Dollar General Company New York Stock Exchange: General Directorate He takes the podium.
Institutions bought the bottom of Intel shares
Intel today
(As of 03:46 PM ET)
- 52 week range
- $18.51
▼
$50.30
- Dividend yield
- 2.52%
- Price target
- $30.04
Based on volume analysis, there are reasons to believe that Intel stock has attracted many new buyers within the stock’s recent range of $18.50 to $20.0. Investors can reiterate their suspicions about recent buyers when examining recent institutional buying activity for Intel shares.
In the lead, as of November 2024, were those from State Street, who decided to boost their holdings in Intel shares by up to 2.8%. While this may not sound like much in percentage terms, it brings the group’s net holdings to a high of $4.6 billion today, or 4.6% ownership in the company.
One reason to buy so much Intel stock is the potential for future upside. Wall Street analysts expect up to $0.29 in earnings per share (EPS) in the next 12 months, a big jump from today’s net loss of $0.46 per share. To justify this shift to profitability, investors can take into account the fact that the government granted Intel most of the capital within the company Chips Law and Science.
With institutions and the government betting on Intel to protect and build its domestic semiconductor production supply chain, it should come as no surprise to investors to see price targets from Wall Street analysts reach a consensus of $30 per share, which translates to a net upside potential of 48% from the low price. today.
Big investors love Alibaba for 2025
Alibaba Group today
(As of 03:46 PM ET)
- 52 week range
- $66.63
▼
$117.82
- Dividend yield
- 1.16%
- P/E ratio
- 17.10
- Price target
- $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 all bullish on Chinese stocks. Not only were their views optimistic about China, but their actions spoke for themselves as well.
Both Tepper and Burry have now made Alibaba stock the largest stock position in their portfolios, which makes all the sense in the world. The Chinese government is loading up on a package of stimulus measures to save not only the Chinese economy, but also the stock market, an effect that will lead to significant spikes once it trickles down.
This is why bearish traders are running out of Alibaba and their short positions, something investors can see from the 12.8% collapse in short interest in the company over the past month alone. That may have prompted some Wall Street analysts to start boosting the company’s valuation in recent weeks.
Especially those from Barclays, who now see Alibaba as an overweight stock and want to see it at $130 a share based on these ratings. To prove their case, Alibaba would have to rise as much as 52.8% from where it is trading today, providing minimal downside risk given how close to the 52-week low it is trading now.
Why did Dollar General shares attract buyers?
Dollar General Today
Dollar General
(As of 03:46 PM ET)
- 52 week range
- $72.12
▼
$168.07
- Dividend yield
- 3.11%
- P/E ratio
- 12.51
- Price target
- $98.27
As of November 2024, State Street insiders also justified general dollar stock purchases in addition to the Intel stock purchase. For Dollar General, an 8.3% increase would mean a net position of $842.2 million today, or a 4.5% ownership in that stock as well.
Given the way the U.S. economy is going today, the risk of a return of inflation could prompt investors to chase a value proposition in the way Dollar General makes everyday shopping more accessible to its consumer base. Knowing this, it would make sense to see Goldman Sachs analysts boosting the stock the way they have recently.
As of December 2024, the Buy rating comes in tandem with a $104 per share price target for Dollar General stock, implying a potential upside of 37% from where it trades today. Furthermore, even if the rally takes a little longer than expected, investors have an added bonus to the trade.
A payout of $2.36 per share would provide a dividend yield of 3.1% today, which exceeds inflation and keeps the stock’s position attractive while that double-digit upside is achieved in 2025.
Before you consider Dollar General, you’ll want to hear this.
MarketBeat tracks the highest-rated and best-performing research analysts on Wall Street and the stocks they recommend to their clients on a daily basis. MarketBeat identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches up… and Dollar General wasn’t on the list.
While Dollar General currently has a “Hold” rating among analysts, top-rated analysts believe these five stocks are better buys.
View the five stocks here
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