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.
Credo Technology (NASDAQ: CRDO) Riding the AI Wave with High-Speed Connectivity
Credo Technology has emerged as a standout player in the rapidly growing market for AI infrastructure. The company, which specializes in high-speed connectivity cables, is uniquely positioned to benefit from the increasing demand for power-efficient AI clusters—a trend expected to fuel a multi-year adoption cycle.
Credo recently delivered fiscal Q2 results that exceeded expectations, with both sales and earnings surpassing consensus estimates. The company also raised its forward revenue guidance for Q3, further solidifying confidence in its growth trajectory. Revenue projections for 2025 have been bumped up significantly, from $320.2 million to $387.5 million, with earnings estimates climbing to $0.50 per share from a previous $0.34. This reflects both robust demand and the company’s ability to capitalize on operating leverage, which could accelerate earnings growth faster than sales over the next few years.
With shares already up 250% in 2024, it’s clear that investors are paying attention, but there’s reason to believe the momentum isn’t over. Credo’s leadership in the active electrical cable market and its alignment with the booming AI sector make it an exciting prospect for continued growth. For those seeking exposure to the AI revolution through a niche but critical infrastructure provider, Credo Technology is worth considering.
BYD Company (OTC: BYDDY) Dominating the World’s Largest EV Market
BYD Company has taken the crown as the world’s largest EV manufacturer, surpassing even Tesla in unit production. Its dominance stems from its stronghold in China, the world’s biggest EV market. BYD shares have already climbed 35% year-to-date, and the company’s momentum could continue as China’s economy shows signs of recovery.
For U.S. investors, it’s worth noting that BYD shares trade over-the-counter (OTC) under the ticker BYDDY. Unlike stocks listed on major exchanges, OTC stocks are traded through a decentralized network of dealers rather than on a centralized exchange like the NYSE or Nasdaq. This often allows investors to access international companies like BYD more easily. You can typically purchase OTC stocks through most online brokerage accounts.
While China’s economic challenges, including a weak real estate sector, have created headwinds, there are positive signals. Retail sales have grown steadily since late 2023, with October seeing a 4.8% year-over-year increase. Industrial output also rose 5.3%, and Goldman Sachs forecasts 4.5% GDP growth for China in 2025. These indicators point to improving consumer confidence, which bodes well for BYD’s vehicle sales. Analysts expect the company’s revenue to grow by over 20% next year, making BYD a strong play on the global EV boom.
Block Inc. (NYSE: SQ) Positioned for Growth Across Crypto, Payments, and Profitability
Block Inc., the fintech powerhouse behind Square, Cash App, and Afterpay, is making a strong case as a top stock to watch in 2025. Shares are up nearly 27% in 2024, tracking the broader market, but analysts see considerable upside ahead. With catalysts ranging from its expanding role in cryptocurrency to recovery in payment processing growth, Block is well-positioned to outperform.
One area of significant opportunity is Block’s bitcoin mining hardware business. The company is leveraging advanced 3nm chips in partnership with Core Scientific, giving it a unique foothold in the market. Bitcoin currently accounts for just 3% of Block’s gross profits, but the firm’s initiatives to grow this segment could unlock billions in revenue. If the ongoing crypto rally continues under the incoming administration’s favorable policies, this could become a meaningful driver of growth.
Square, Block’s flagship payment platform, is showing renewed strength. After a challenging period of slower growth, transaction volumes began accelerating in October, and analysts believe this momentum will carry through 2025. Management’s focus on improving merchant onboarding, retention, and product offerings, such as the orders platform, is expected to enhance Square’s performance further. Similarly, Cash App continues to play a key role in driving gross profits higher, with product enhancements and an increasing user base contributing to sustained growth.
The integration of Afterpay, Block’s buy-now-pay-later solution, is another important catalyst. Analysts expect this acquisition to boost monthly active users and deepen customer engagement, translating into greater profitability. Block’s gross profit growth is projected to reach mid-teens in 2025, with adjusted earnings forecasted to climb 49% to $5.59 per share.
Beyond its core business segments, Block’s growing market value of $63 billion makes it a strong candidate for inclusion in the S&P 500. Such a move would enhance its visibility and attract additional institutional investment, adding another layer of potential upside for shareholders. With price targets ranging from $120 to $150, analysts see a path for the stock to gain between 22% and 53% from current levels.
For investors looking to tap into the future of fintech and crypto, Block offers a compelling mix of innovation, profitability, and growth potential. It’s a stock that’s worth watching closely in the new year.