Navigating the stock market can be a high-stakes game. Choose incorrectly, and your portfolio might suffer. But the right choices? They could be your ticket to financial triumph. With thousands of stocks to choose from, pinpointing those poised for success is no small feat. It’s a daunting task, requiring hours of market analysis and company research – time that many people simply don’t have.
That’s where we come in. Each week, we delve deep into the market’s vast array of options, sifting through countless possibilities to bring you a select few. These are not just any stocks; they are carefully chosen based on solid research, current market trends, and potential for noteworthy growth.
This week, we’ve honed in on three stocks that stand out from the crowd. Our picks go beyond the mainstream; they’re strategic selections, crafted for significant impact in both the immediate future and over the long haul.
Click here to discover the full watchlist and unveil these exceptional stock picks.
Expedia Group (EXPE)
Expedia Group has emerged as one of the most undervalued stocks in the tourism sector. Despite rallying 41% in the last six months, it still trades at an attractive forward price-earnings ratio of just 11. Given its solid performance and the likelihood of strong quarterly results continuing, I am bullish on EXPE’s potential to double by the end of 2025.
Operating as a leading online travel company, Expedia Group has a significant global presence. The company experienced its highest ever fourth-quarter revenue in Q4 2023, underscoring a robust post-pandemic recovery. For the full year, revenue climbed by 10% to $12.8 billion, while adjusted EBITDA rose by 14% to $2.7 billion, indicating strong operational leverage and potential for further EBITDA margin expansion this year.
Expedia has also been proactive in expanding its global travel ecosystem, adding new partners and enhancing its service offerings. These strategic moves, combined with favorable industry trends, position Expedia to accelerate its growth in the near future. This backdrop makes EXPE a compelling investment opportunity for those looking to benefit from the ongoing recovery and growth in the travel industry.
Recursion Pharmaceuticals (RXRX)
Recursion Pharmaceuticals distinguishes itself within the biotech landscape not only through its drug development but also through its innovative integration of technology. At the heart of its operations is the Recursion Operating System, a platform that leverages advanced data analytics and artificial intelligence to streamline the drug discovery and development process.
This technology-centric approach allows Recursion to accelerate the production and testing of therapies, reducing costs and enhancing efficiency—key advantages in the competitive biotech field. Additionally, the company capitalizes on its technological prowess by selling its software, providing a diversified revenue stream alongside its pharmaceutical ventures.
Currently, Recursion is making significant strides with REC-4881, a promising candidate in Phase 2 trials for treating Familial Adenomatous Polyposis and cancer, with the trial set to conclude in 2027. While still navigating its path to profitability, Recursion’s innovative model and revenue growth from its software sales position it uniquely for potential explosive growth, especially if its clinical trials yield positive outcomes and its software continues to gain traction in mainstream drug development. For investors open to embracing a tech-forward approach in biotech, Recursion offers an intriguing opportunity.
Sociedad Química y Minera de Chile SA (SQM)
Copper prices have recently soared, reaching $10,000 per ton last week, underscoring a robust demand driven significantly by global shifts toward carbon neutrality and net zero objectives. Given copper’s essential role in technologies such as data centers, wind turbines, and electric vehicles, its importance is set to increase parallel to population and industrial growth. This surge aligns copper as not just a commodity but a crucial component of modern infrastructure, making it an attractive long-term asset for any investment portfolio.
Among the notable companies set to benefit from these trends is Sociedad Química y Minera de Chile SA (SQM). This NYSE-listed firm stands out not only as a major lithium producer but also for its significant copper outputs. The ongoing push towards battery technology and vehicle electrification predicts a sharp rise in demand for these materials, positioning SQM advantageously in the market.
Despite SQM’s stock experiencing a 31.2% decline over the past year, the outlook remains highly favorable. The market’s current valuation of SQM presents a potential buying opportunity, with analysts predicting approximately 34.9% upside, reflected in an average price target of $64.07. With broad analyst support—12 ratings favoring ‘buy’ or ‘overweight’, four at ‘hold’, and only one ‘underweight’—the consensus points towards a strong recovery and growth potential.
Investing in SQM could be a strategic move, not just for those looking to capitalize on the increasing demand for copper and lithium but also for those aiming to diversify their portfolios with a resilient and forward-looking asset.
