Finding the right stocks in today’s market isn’t easy. With so many options, it’s tough to know which ones are worth your attention. But when you get it right, the payoff can be huge. That’s why we do the heavy lifting for you, sorting through the noise to bring you stocks that are set to move.
Each week, we dig into the data, look at market trends, and identify stocks with real potential. Our focus is on opportunities that aren’t just good for a quick win but have the strength to deliver ongoing growth.
This week, we’ve highlighted three stocks that stand out from the pack. Backed by solid analysis, these picks are positioned for a strong run in both the short and long term.
United Airlines (NASDAQ: UAL) Potential for Strong Gains as Industry Dynamics Shift
United Airlines is one of the top picks for investors looking to capitalize on the ongoing recovery in the airline industry. United has already posted an impressive 35% gain in 2024, and analysts see more upside ahead, with a median price target of $70, representing a potential 17% gain from current levels.
There are several factors driving United’s strong position. First, domestic unit revenue growth is expected to rise in the third quarter, with United set to benefit from higher wallet share compared to pre-pandemic levels. In addition, the broader airline industry is experiencing reduced capacity growth from competing discount carriers, which creates a more favorable environment for established airlines like United to grow earnings.
The company’s future looks even brighter with the possibility of positive announcements around lower capital expenditures, share repurchases, or increased credit card revenue—all of which could serve as catalysts for further gains. Citi analysts have highlighted United’s strong position within this more rational industry landscape, with consolidation among other carriers further bolstering its potential to grow earnings.
For investors seeking a stock in the travel sector that has the potential to outperform in the near term, United Airlines offers a compelling combination of industry tailwinds, potential strategic moves, and solid growth prospects. Keep an eye on this stock as we move deeper into the fourth quarter.
Veeva Systems (VEEV) Steady Growth with a Strong Customer Base
Veeva Systems (VEEV) has carved out its place as a leading provider of cloud software solutions for the life sciences industry. At the time of writing, Veeva’s stock is up about 10% year-to-date, a slower rise compared to the broader market, but that’s no reflection of any negative business developments. In fact, the company has been steadily growing its revenue and is showing robust profitability, making it an attractive option for long-term investors.
Veeva’s client list reads like a who’s who of the pharmaceutical and healthcare world, including industry giants like Sanofi, GSK, Novo Nordisk, and Eli Lilly. The company’s products help these clients streamline everything from research and development to regulatory compliance, commercialization, and clinical trial management. For example, its Veeva Development Cloud platform is crucial in managing clinical trials, while the Veeva Commercial Cloud suite assists sales reps in optimizing healthcare provider engagement.
In its most recent quarterly report (Q2 fiscal 2025), Veeva posted impressive numbers: $676.2 million in total revenue, up 15% year-over-year. Of that, $561.3 million came from subscription services, which increased by 19%. Perhaps most impressive, GAAP profits surged 53% year-over-year to $171 million. The company also boasts a strong cash position, with $1.2 billion in cash and equivalents as of the end of the quarter.
Despite trading at a price-to-earnings ratio of 54.5, the company’s price-to-sales ratio of 13 is more modest, suggesting room for growth. With the life sciences industry reliant on Veeva’s cloud solutions, investors with a long-term view might want to give this stock serious consideration. Given its solid financials and established customer base, Veeva Systems could be well-positioned for continued success in the years ahead.
Digital Realty Trust (NYSE: DLR) Riding the AI Data Center Wave with Strong Upside Potential
Digital Realty Trust is emerging as a key play in the AI-driven data center space, making it a standout stock as we enter the fourth quarter. The company’s robust fundamentals are being fueled by strong demand from hyperscalers—large tech firms like Amazon, Google, and Microsoft—that rely on cutting-edge data centers to power their AI and cloud operations. With tight power supply and high barriers to entry in new data center projects, Digital Realty is well-positioned to capture this demand.
The stock has already climbed 22% this year, reflecting market confidence in its growth trajectory. Analysts are also taking notice, with Goldman Sachs recently reaffirming its bullish stance. Analyst James Schneider raised his price target for Digital Realty by $10 to $185, indicating more than 13% upside from current levels. Schneider highlights that investors are particularly optimistic about the company’s leasing and pricing metrics heading into the third quarter earnings report.
Key drivers for Digital Realty include the sustainability of strong AI-related demand and favorable pricing trends. The company’s ability to meet high investor expectations in upcoming earnings could provide further upside, especially if management offers positive guidance on future joint ventures or additional capital expenditures. While the broader data center group benefits from ongoing investments by hyperscalers, Digital Realty’s strong positioning and continued momentum make it a top pick for investors looking to capitalize on the AI data center boom.
With robust market fundamentals and a clear growth path ahead, Digital Realty Trust is a compelling choice for those seeking exposure to the rapidly expanding AI infrastructure space.