7 Stocks Analysts Say Could Double (One Could 4X)

One of these stocks could almost 4X

0:00 Wall Street analysts get paid a lot of money to essentially make an educated guess about where they think stocks are going. And right now, I think that one stock mentioned in this video could actually almost quadruple from where it trades today. And no, this is not some penny stock where the company is run out of some guy's garage. 17 analysts cover it, and even the lowest price target is double where the stock trades today. And here's the catch that nobody tells you.

Cheap stock or stale price target?

0:23 When a stock falls hard, analysts are usually slow to cut their targets. So, a huge gap between the price and the target can mean two very different things. Either the stock is genuinely cheap or the target is stale and just hasn't caught up to reality yet. So, for every stock in this video, I'm going to ask one question. Is it cheap or is the target stale? Let's start with Planet Labs, ticker symbol PL, which runs a fleet of satellites to photograph basically the entire planet every single day.

Planet Labs (PL)

0:47 Governments, farmers, and insurance companies pay for those pictures, and over the past year, sales grew about 44%. We really um we're launching better and better satellites that can enable us to understand the earth better and better. We already have 200 satellites in space, but we keep on upgrading them. just launched a new satellite and picked up a new order from NASA. Yet, the stock is down about 74% from its high, and the average analyst target implies roughly 120% upside.

1:09 The catch is that Planet is still losing money. Analysts have been cutting their targets. And space stocks swing wildly with the mood of the market. Cheap or stale? I'd call this one a little bit of both since the targets are coming down, but even after the cuts, they're still about double the price. Next is going to be Riot Platforms, ticker symbol RIOT, which most people know as a Bitcoin miner.

Riot Platforms (RIOT) and the $9.1B AI lease

1:31 Except, Riot just signed a 20-year $9.1 billion deal to host AI computers for a Frontier AI lab, and Bloomberg reported that lab is Anthropic. And the campus where this is happening is in Rockdale, Texas. And as someone who lives in Texas, I can confirm we have two things in abundance: cheap land and people who will tell you about their land. And I would know. I used to work for Piney Creek Renewables, a bankrupt solar developer whose business involved finding landowners willing to lease to them so So, set up large utility-scale solar farms on them.

2:00 So, how does this actually work? Well, Riot builds the building, brings in the power and the cooling, and the AI company brings the computers. Said another way, Riot becomes a landlord for the most power-hungry roommate on the planet. And that roommate signed a 20-year lease. This allows us to continue that growth engine while minimizing equity issuance as much as possible and keeping dilution down as much as we possibly can. The stock is down about 58% from its high.

2:26 And the average analyst target implies roughly 141% upside. Now, the caveat. Riot is still losing money. Building this out takes a lot of cash. Bitcoin can still drag the stock around. An executive sold about $9.5 million of stock earlier this year. But these were through pre-scheduled trading plans, which basically just means the sales were set up in advance. Is the price target cheap or stale? In my opinion, this one leans cheap because analysts actually raised their targets after the deal instead of leaving old ones sitting around.

2:51 Next up is a company you've probably never heard of, but you definitely use its products.

TTM Technologies (TTMI): insiders buying

2:55 TTM Technologies, ticker TTMI. TTM makes circuit boards, which are those flat green boards inside basically every electronic thing you own. And AI servers need way more complex boards than your microwave does, which is why sales are up about 60%. So, you think the stock would be on fire, but it's actually down around 64% from its high. And here's the part that I really like. In late August, the CEO bought about $1.1 million of stock with his own money, and a director bought over half a million dollars more.

3:24 Peter Lynch has a famous line about this. Insiders sell for all kinds of reasons, but they only buy for one. They think the price is going up. The average analyst target implies more than 160% upside. The risk is that TTM is spending heavily on new factories and acquisitions. Its latest guidance was only in line with expectations, and this whole industry is cyclical, which means when AI spending slows down, orders slow down with it. So, is the price target cheap or stale?

3:46 Some of those targets were set closer to the highs, so a little bit of both. But insiders putting real money in tells me they think that it leans cheap. Stock number four is SoundHound AI, ticker symbol S-O-U-N, which you you have already talked to without knowing it.

SoundHound AI (SOUN) and dilution

4:01 SoundHound makes voice AI, so if you've ever ordered at a drive-thru and the voice taking your order was suspiciously polite and probably kind of robotic sounding, there's a decent chance it was SoundHound. In its most recent quarter, revenue came in at $61.9 million, up 45% from a year ago, and it beat estimates. Yet, the stock is around $4.61, which is down roughly 76% from its high. The average analyst target implies more than 170% upside. Now, the honest, slightly negative, and less fun part.

4:28 SoundHound is not profitable. It's burning cash and it keeps issuing new shares, which is called dilution. And all that I mean when I say dilution is that the pizza gets cut into more slices, so your slice is going to be smaller. There's also a law firm investigation hanging over it, which doesn't prove anything, but it's not nothing either. So, is the SoundHound price target cheaper still? Analysts have already been cutting. The average target went from a little over $17 down to around $12.70 over the past year.

4:54 And even after those cuts, it's still more than double today's price.

Bitdeer (BTDR): the CFO is underwater

4:57 Stock number five is Bit Deer Technologies. Ticker symbol BTDR. Another Bitcoin miner trying to turn itself into an AI landlord. Bit Deer has hundreds of megawatts of capacity set aside for AI. And here's what caught my eye. Back in August, its CFO and another top executive bought nearly half a million dollars of the stock at around $9 a share. At the time of recording this, the stock is around $8.06, which means the CFO is currently underwater on his own purchase.

5:23 [gasps] And if you're a regular investor, you could get in cheaper than the guy who sees the books. The stock is down about 68% from its high. The average analyst target implies roughly 175% upside. The risks are that Bit Deer is losing money, it's spending heavily to build all this, and it's still tied to the price of Bitcoin. And it may need to sell more shares to pay for it. So, is that price target cheap or stale? With insider buying near today's price, I'd say it leans cheap, but the execution risk here is real.

5:54 Stock number six is USA Rare Earth, ticker symbol USAR.

USA Rare Earth (USAR)

5:59 Rare earth magnets are in electric vehicle motors, wind turbines, phones, and fighter jets. And right now, China controls most of the world's supply. So, the bull case here is pretty simple. America would really like to make these magnets at home. And USA Rare Earth is building a plant to do exactly that with about $1.5 billion of cash to fund it. When I was a kid, the only magnets I cared about were the ones holding report cards on the fridge. And in my house, those magnets did not always have a lot of work to do.

6:25 The stock is down about 72% from its high, and the average analyst target implies roughly 277% upside. So, we know one of the weakest links has been processing. We are now piloting at our hydromet demonstration facility the separation of these critical rare earths. This is the power of the work of the entire value chain. But this is where I have to be straight with you. The company has very little revenue right now. Plants like this get delayed all the time.

6:51 It's been 84 years. And more share sales are a real possibility. So, are these price targets cheap or stale? Honestly, I think that this one leans a little stale. A lot of these targets were set when the stock was trading way higher, so I'd take that upside number with a big grain of salt.

Pony AI (PONY): the almost-4X target

7:10 And now ladies and gentlemen, loyal viewers, or viewers that just skipped ahead using the timestamps, here's the one that I talked about at the beginning of the video. Pony.ai, ticker symbol P O N Y. Pony runs robot taxis in China, so we're talking cars with nobody in the driver's seat. Already giving rides in cities like Guangzhou, Shenzhen, and parts of Shanghai. Revenue is up 46% yet the stock sits around $4.98 cents, roughly 78% below its high and near its lows for the year.

7:35 17 analysts have an average target of about $19.86, which is almost four times today's price, or roughly 299% upside. And the part that really jumped out to me is that the lowest target on the street from Barclays is $10, which is still about double where the stock trades. And the highest target is more than six times today's price. Now the risks, and they're real ones. Pony is still losing money. It's competing with WeRide, Baidu, and eventually Tesla.

7:59 And as a Chinese company listed in the US, it carries the risk that politics between the two countries gets in the way. They were making from us a trillion dollars a year. They were ripping us off like nobody's ever ripped us off. The two countries should be partners rather than rivals, helping each other succeed and to prosper together. So, is this price target cheap or stale? Some targets were set when the stock was higher, but when even the most cautious analyst thinks it doubles, that leans cheap to me, as long as you're okay with the China risk, and that's a big if, especially for me.

8:35 So, what would I actually do with the stocks on this list?

Which 2 I'd research first

8:38 My thought is that these are not all the same kind of bet. TTM is a profitable company with insiders buying, and Riot has a signed contract. So, those are the first two that I would do a deeper dive on. The rest are more like high risk, but also high reward type of bets. And if I were to actually buy any of these, I would probably keep the positions relatively small, so that way I could still sleep at night and not be too worried if the stock gets cut in half.

9:06 I don't own any of these, but I plan on doing deeper dives on all of them, so subscribe if these stocks interest you, cuz I can't wait to cover them and share my research with you all. And remember, I'm a CPA, a certified public accountant.

Cheap or stale? Your turn

9:17 I'm not a chartered financial analyst. I analyze stocks literally for fun. I enjoy doing it. So, don't take this as financial advice. Please, please do your own research. And uh just remember that nobody can predict the future. Analysts get it wrong all the time. That's kind of the whole point of asking whether the price target is cheap or just stale. So, now I would really like to hear from you. Which one of these stocks do you think is actually cheap at the current trading prices, and which ones do you think are just a stale price target?

9:44 Let me know in the comments. The video on your screen right now is the one that YouTube thinks that you would enjoy.