The Nasdaq Composite is a technology-focused index that tracks the performance of more than 3,000 stocks listed on the exchange. Just this week, the Nasdaq, the S&P500and the Dow Jones Industrial Averageall climbed to record highs, the latest in a long line of all-time highs this year. The ongoing rally has many stocks at or near new all-time highs, leaving some investors wondering if upside potential still lies ahead.
These concerns are unfounded, according to Wall Street, which remains remarkably optimistic. As we close out the year, forecasts for 2025 remain higher. While these targets focus on the broader S&P 500, they can be educational.
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Analysts at Goldman Sachs predict the S&P 500 will reach 6,500 in December 2025, representing a gain of about 7% from Thursday’s close. Not to be left behind, Bank of America issued a 2025 year-end price target of 6,666, up 10% from current levels. Only this week, Wells Fargo issued its most bullish forecast yet, calling for the benchmark index to hit 7,007 next year, meaning a potential gain of around 15%.
Despite the recent run-up, there are plenty of opportunities. Let’s take a look at two Nasdaq stocks with an additional increase of up to 115%, according to certain Wall Street analysts.
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The first Nasdaq stock with significant upside potential is Sirius XM Holdings(NASDAQ: SIRI). The company dominates satellite radio services in North America, with 34 million paying subscribers. Its customer base rises to 150 million if you include ad-supported music streaming service Pandora, so its audience is unparalleled.
However, the recent economic downturn and a complicated merger took their toll. Decades of high inflation forced cash-strapped consumers to make difficult choices with their limited disposable income. Some understandably chose to let their SiriusXM subscription expire.
There was also a fundamental misunderstanding about the recent merger, reverse stock split and resulting complex accounting transactions, which weighed on results. These have combined to send the shares down 51% so far this year, but things aren’t as bad as they seem at first glance.
In the third quarter, Sirius’ revenue fell 4% year over year to $2.17 billion, while reporting a loss per share of $8.74, compared to diluted earnings per share of $0.82 in the quarter from last year – but that needs context. The company took a one-time, non-cash impairment charge of $3.36 billion on goodwill related to the acquisition of Liberty Sirius XM tracking shares. Without these one-time costs, Sirius would have delivered earnings per share of about $1.17, an increase of 43%.
At the same time, paid subscribers increased by 14,000, due to lower customer churn. The number of paid promotional subscribers, which fell by 114,000 as automakers switched to shorter or unpaid subscriptions, further weighed on the results.
Some on Wall Street believe the selling has simply gone too far. Their ranks also include Benchmark analyst Matthew Harrigan. He maintains a buy rating on Sirius XM, with a price target of $43. That represents an upside potential of 59% compared to Thursday’s closing price. The analyst points to the division among investors surrounding the recent merger. He also believes that management’s “strategic initiatives” will hold up.
Furthermore, the lower share price represents an attractive opportunity for savvy investors, including Warren Buffett, who has piled into the stock. Sirius
I believe that given steadily improving economic conditions, churn will continue to slow and subscriber growth will gradually return, which would be exactly the spark needed to send Sirius XM stock higher.
One consequence of the rise of online retail is the rush to bring warehouse automation into the 21st century. That’s true Symbotic(NASDAQ: SYM) comes in.
The company created artificial intelligence (AI) solutions to automate the handling of individual boxes and full pallets, utilizing every inch of available warehouse space. Symbotic has developed advanced algorithms that control a legion of smart robots that work together to stock pallets, load and unload trucks, and isolate and handle individual crates. By doing this, the company can squeeze more inventory into less space, saving customers money.
By increasing efficiency, reducing labor costs and lowering operating and delivery costs, Symbotic systems pay for themselves in a short time. The company estimates that each “module” can pay for itself several times over over its lifetime, saving companies tens or even hundreds of millions of dollars.
The results speak for themselves. In the fourth quarter of 2024 (ended September 28), Symbotic generated revenue that grew 47% year over year to $577 million, while delivering earnings per share of $0.05, following a significant loss in the prior year quarter . After announcing a restatement of previous 2024 quarterly financial reports, management noted that these were due to timing differences with “no impact on full-year 2024 results.” On Thursday, Symbotic filed its annual report without further changes, removing the last overhang from its stock.
In the wake of the company’s quarterly results, Cantor Fitzgerald analyst Derek Soderberg reiterated his overweight (buy) rating and $60 price target on the stock, which represents a potential upside of 115% from Thursday’s closing price. The optimistic view came after the analyst questioned management about the recent international expansion deal with Walmex and the state of play of its Warehouse-as-a-Service joint venture.
Like many early-stage, fast-growth stocks, Symbotic stock comes with a little extra risk, so any position should be sized accordingly. On the plus side, after the recent sell-off, Symbotic is selling a song for just 1.5 times sales. I would suggest that this is an attractive price to pay for a leader in an emerging AI-powered industry.
Before you buy shares in Sirius XM, consider the following:
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Bank of America is an advertising partner of Motley Fool Money. Danny Vena has no positions in any of the stocks mentioned. The Motley Fool holds positions in and recommends Bank of America and Goldman Sachs Group. The Motley Fool has a disclosure policy.
Two Nasdaq Stocks We Need to Buy Before They Surge As Much as 115% in 2025, According to Select Wall Street Analysts, originally published by The Motley Fool
