5 Stock Losers from 2024 Poised to Become 2025’s Stock Winners

Source: YouTube

As 2024 closes, investors are eyeing opportunities among this year’s stock market losers that could transform into stock winners in 2025. These underperformers, identified by Trivariate Research and Evercore ISI, boast potential turnarounds fueled by strategic changes and market conditions. Here’s a detailed look at five promising candidates poised to rebound next year.

1. First Solar: Powered by Renewable Energy Potential

First Solar struggled in 2024, gaining only 8%, significantly underperforming the broader market. Concerns over the Inflation Reduction Act's future under the next administration dented investor confidence, as renewable energy tax credits were put in question. Since the election outcome, the stock has fallen over 13%, raising doubts about its growth trajectory.

Despite these challenges, First Solar remains a strong contender for a comeback. With a forward price-to-earnings (P/E) ratio of 9 and an average price target suggesting a 47% upside, analysts are optimistic. Its expanding market share in solar technology and increasing demand for renewable energy worldwide are compelling reasons to consider this stock for 2025. Additionally, 34 of 41 analysts on Wall Street rate First Solar as a buy or strong buy, underscoring its potential.

2. Nike: Poised for a Turnaround

Nike faced a difficult 2024, with pressures on margins and mixed investor sentiment. Analysts described the company’s recent performance as being at a “critical crossroads,” with its earnings guidance falling short of expectations. This has resulted in the stock trading at one of its lowest valuation multiples in years.

However, there’s hope for a reversal. Evercore analysts highlight Nike’s strategic pivot to strengthen its core business and improve operational efficiency. They project that by mid-2025, the company’s fundamentals could bottom out, leading to normalized margins and a recovery in valuation. If these strategies bear fruit, Nike could see significant upside in the new year.

Beyond operational changes, Nike’s global brand strength remains unparalleled. Any improvements in consumer demand or cost structures would likely translate into a stock recovery. The company’s ability to adapt to changing market trends will be pivotal in determining its 2025 performance.

3. Expedia: Travel Trends Revive Growth

Expedia’s performance in 2024 has been a mix of progress and challenges. The stock gained 24% year to date, but many analysts adopted a neutral stance, reflecting uncertainty about the company’s long-term trajectory. Travel demand in the U.S. market has shown steady improvement, prompting Bank of America to upgrade Expedia from neutral to buy.

The company’s forward P/E ratio of 13.4 and its strategic focus on enhancing user experience are notable factors for its potential rebound. Additionally, the travel sector’s recovery is expected to gain momentum in 2025, further boosting Expedia’s prospects. The stock’s ability to maintain growth while navigating competition will likely play a key role in its turnaround.

Expedia’s recent performance, particularly its 31% rise over the past three months, indicates that it has the capacity to outperform broader markets. If this momentum continues, it could solidify its position as a top stock winner in the coming year.

4. ZoomInfo Technologies: Revitalizing Software Demand

ZoomInfo struggled in 2024 amid sector-wide slowdowns in software demand. The stock’s low momentum and high volatility created challenges for investors, yet these very traits could position it for a strong comeback. Analysts believe the company’s strategic realignment efforts and a likely recovery in tech spending could drive growth.

ZoomInfo’s focus on expanding its market share through innovation and efficiency improvements gives it a competitive edge. The company has invested heavily in refining its products to meet evolving customer needs, positioning it well for when demand picks up in 2025. Analysts consider it a high-risk, high-reward opportunity for investors willing to take calculated risks.

The broader software market’s recovery is anticipated to provide a supportive backdrop for ZoomInfo. With a forward-looking strategy and favorable industry trends, the company is well-placed to capitalize on growth opportunities.

5. Avis Budget: Driven by Fleet Optimizations

Avis Budget faced headwinds in 2024, but strategic fleet management and cost optimization measures have positioned it for a potential turnaround. As travel demand continues to recover, the car rental giant is expected to benefit from increased bookings and improved operational efficiency.

Avis Budget’s ability to adapt to changing travel patterns has been a key factor in its resilience. The company’s forward P/E ratio and consistent investments in technology to streamline operations signal a positive outlook. Additionally, inflationary pressures are expected to ease in 2025, further supporting the company’s growth trajectory.

The stock’s performance in 2025 will largely depend on the travel sector’s overall recovery and Avis Budget’s ability to maintain competitive pricing. If these factors align, the stock could see significant gains, making it a compelling pick for investors.

Why 2025 Could Be A Year for Turnarounds

The potential stock winners share common traits: undervalued metrics, strong fundamentals, and strategic pivots tailored to address market challenges. These factors, combined with broader economic stabilization, set the stage for a promising rebound. Investors looking for high-upside opportunities should keep an eye on these stocks as the new year unfolds.

Which of these potential stock winners for 2025 do you believe offers the most promising turnaround? Let us know which company can emerge the biggest among projected stock winners for 2025!

 Loading ...