The stock market is focusing on the potential impacts of the new US administration on the financial and business landscape. For good reason, investors should start looking at potential actions that can be taken in the coming months to improve the performance of their investment portfolio through 2025. To align their portfolios with this kind of upside, a few things need to be in place.
First of all, given the currently high valuations of the index in the S&P 500 according to Goldman Sachs and its bank. Macro Forecast Report 2025a more favorable risk versus reward setting must exist in the individual stocks that investors choose going forward. Aside from proper preparation, these companies need to show fundamental strength behind them to justify higher prices soon.
Today’s list fits both of these conditions, with stock prices trading low enough to give investors a decent risk-reward setup as well as plenty of tailwinds behind the bullish cases present today. Stocks like Nike company New York Stock Exchange: OF, Advanced Micro Devices Company Nasdaq: AMDAnd even Alibaba Group New York Stock Exchange: Beebe They can strengthen portfolios in 2025 while also diversifying across different sectors of the economy.
Nike Discount: Seizing an Opportunity for Wall Street
Now that Nike shares are trading at just 67% of their 52-week high, they have recently been the subject of a lot of attention from the value investing community. The markets certainly have a reason to push this stock to such low levels, and that can be linked to the premium in the dollar index today.
Nike stock forecast today
$89.96
21.46% upModerate purchase
Based on 30 analyst ratings
| High expectations | $120.00 |
|---|---|
| Average expectations | $89.96 |
| Low expectations | $70.00 |
NIKE stock forecast details
Given that Nike is an important international brand, it is expected that overseas sales will take a break and continue to decline as long as the dollar is as strong as it is today. This is because foreign currencies and buyers have relatively less purchasing power to purchase US goods such as Nike products.
With this in mind, the company has to rely more and more on domestic consumption, which has not been that strong recently as consumer credit tightens due to rising costs of living. However, there is a shift by Morgan Stanley analysts that may turn this story on its head.
These analysts now see a decline in the value of the dollar, which would significantly boost Nike’s international sales while dampening the domestic downturn. This may be why Bill Ackman decided to do this Buying a stake for more than $230 million Nike stock value in recent quarters.
With a recent price target increase to $90 per share on Nike stock, along with an Overweight rating, Piper Sandler analysts see a 25% upside in the company as of January 2025. This name clearly fits the preferred risk-to-reward criteria that investors need today. .
Advanced microdevices: extreme semiconductors
days Nvidia company Nasdaq: NVDA Being the king of the technology sector is fading. Now markets may look deeper into fundamental settings in the peer group to see which stocks are worth trading at premium valuations.
Advanced Micro Devices stock forecast today
$177.71
43.61% upModerate purchase
Based on 31 analyst ratings
| High expectations | $250.00 |
|---|---|
| Average expectations | $177.71 |
| Low expectations | $110.00 |
Advanced Micro Devices stock forecast details
With a 54% discount from its 52-week high, Advanced Micro Devices stock offers an attractive gap to fill next to NVIDIA stock at 91% from its 52-week high. Wall Street analyst forecasts act as a catalyst to close this gap at up to $4.88 in earnings per share (EPS) for 2025, implying a 62.6% increase from 2024 levels.
On the other hand, NVIDIA analysts expect EPS of $2.94 for 2025, which means a growth rate of just 12.2% would fall significantly below Advanced Micro Devices’ expectations. Since earnings per share typically drive stock valuations, investors have a relatively attractive setup to take advantage of this stock today.
Knowing this, the analysts also set a consensus price target of $177.7 for the Advanced Micro Devices stock, calling for an upside of up to 45.5% off today’s discount.
Chinese stocks will rise in 2025
Following the same premise behind Nike’s potential rise, a lower dollar will also boost emerging markets and other offshore stocks. As China becomes the center of negative media today, value-seeking investors are likely to bluff this pessimism.
Alibaba Group stock forecasts today
$115.13
33.12% upModerate purchase
Based on 15 analyst ratings
| High expectations | $145.00 |
|---|---|
| Average expectations | $115.13 |
| Low expectations | $85.00 |
Details of Alibaba Group stock forecasts
Some already have it, e.g David Tepper and Michael Burryhaving made Alibaba shares the largest holding in their funds. It wouldn’t be a surprise to investors to see Citigroup analysts boost Alibaba shares to a buy rating along with a $138 price target on the stock, calling for a net upside of up to 62% from where it’s trading today.
Today, that price looks closer to 72% of the stock’s 52-week high, so potential downside may already be priced into the price today. This would, of course, leave investors with the kind of risk-reward settings that will likely boost their portfolios in 2025.
Before you consider Alibaba Group, you’ll want to hear this.
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While Alibaba Group currently has a “Moderate Buy” rating among analysts, top-rated analysts believe these five stocks are better buys.
View the five stocks here
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