Nike, AMD, and Alibaba stocks offer huge upside potential

The stock market is focused on the potential impact of a new United States administration on the financial and business landscape. For good reason, investors should start looking at potential plays in the coming months to supercharge their portfolio performance through 2025. In order to align your portfolio with such an undertaking, a few things need to be in place.

First, given the current high index values ​​in Goldman Sachs and the corresponding S&P 500 2025 Macro Outlook ReportA more favorable risk-to-reward setting is required in individual stocks selected by forward-thinking investors. Apart from an optimal setup, these companies need to show a fundamental tailwind behind them to justify higher prices soon.

Today’s list fits both of these requirements, as stock prices trade low enough to give investors a favorable risk-to-reward setup and there are plenty of tailwinds behind today’s bullish cases. Like stock Nike Inc. NYSE: NKE, Advanced Micro Devices Inc. NASDAQ: AMDAnd also Alibaba Group NYSE: BABA This can serve to supercharge the portfolio in 2025 along with diversifying into different sectors of the economy.

Nike discount: Get a chance for Wall Street

Now Nike only trades on 67% of its 52-week high Price, this has recently become the focus of much of the value investing community. Markets certainly have a reason to bear this stock so low, and it can be attributed to the premium in the dollar index today.

Considering that Nike is an important international brand, overseas sales are expected to 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 American goods such as Nike products.

With this in mind, the company has to rely more and more on domestic consumption, which has not been strong recently as consumer credit has become tight due to rising living costs. However, A Shift from analysts at Morgan Stanley Who can turn this story on its head.

These analysts now see a decline in the dollar, which will significantly increase Nike’s international sales while exacerbating the domestic down cycle. This is why Bill Ackman decided Buy shares worth more than $230 million Nike stock price in recent quarters.

With recent The price target rises to $90 per share On Nike stock, with an overweight rating, Piper Sandler analysts see 25% upside for the company through January 2025. The name clearly fits the optimal risk-to-reward criteria investors need today.

Advanced Micro Devices: Semiconductor Outliers

day of NVIDIA Co. NASDAQ: NVDA to be the king of Technology field are fading Now markets can look deeper into peer group fundamental setups to determine which stocks actually deserve to trade at premium valuations.

Operated by discounts of up to 54% of its 52-week highAdvanced Micro Devices stock offers an attractive gap to fill ahead of NVIDIA stock 91% of its 52-week high. Acting as a catalyst to fill this gap is the prediction of Wall Street analysts $4.88 in earnings per share (EPS) for 2025, i.e. a growth of 62.6% from 2024 levels.

On the other hand, NVIDIA analyzer EPS forecast for 2025 of $2.94Advanced Micro Devices showed growth of just 12.2%, falling well below forecasts. Since EPS generally drives stock values, investors have a relatively attractive setup to profit in this stock today.

Knowing this, the analysts also A Consensus price target of $177.7 Advanced Micro Devices is calling for an upside of up to 45.5% from today’s discount, on the stock.

Chinese stocks to rally in 2025

Following the same thesis behind Nike’s potential rally, a lower dollar would also boost emerging markets and other foreign stocks. With China the focus of negative media today, value investors will likely call this pessimism a bluff.

Some already are, viz David Tepper and Michael BurryWhen they made Alibaba stock the largest holding in their respective funds. It won’t come as a surprise to investors to see Citigroup analysts give Alibaba stock a boost with a buy rating. $138 a share price targetWhere it trades today calls for a net rally of up to 62%.

Today, that price looks more like this 72% of the stock’s 52-week highSo the potential downside may be priced into today’s quote. This, of course, will leave investors with risk-to-reward setups that will likely serve to supercharge their portfolios this 2025.

Before you consider Alibaba Group, you may want to hear this.

MarketBeat keeps track of Wall Street’s top-rated and best-performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified Five stocks That top analysts are quietly telling their clients to buy now before the broader market hits… and Alibaba Group was not on the list.

Although Alibaba Group currently has a “medium buy” rating among analysts, top analysts believe these five stocks are better buys.

Check out five stocks here

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