12 Stocks to Buy with Exponential Growth in 2025

6. Block, Inc. (NYSE:XYZ)

Average Upside Potential: ~66.0%

Number of Hedge Fund Holders: 81

Block, Inc. (NYSE:XYZ) is engaged in building ecosystems focused on commerce and financial products and services. BMO Capital upped the company’s stock to “Outperform” from “Market Perform” with a price objective of $89. The firm sees an attractive entry point after the recent sell-off. Notably, Block, Inc. (NYSE:XYZ)’s stock has seen a decline of ~32% over the past month. As per the analyst, the Street estimates have lower downside risk, while investor sentiment and positioning remain more balanced. The firm expects potential for sentiment to witness improvement through 2025 as Cash App accelerates profit growth.

Elsewhere, BTIG analyst Andrew Harte kept a “Buy” rating on the company’s stock with the price objective of $110. Block, Inc. (NYSE:XYZ) announced that its industrial bank, Square Financial Services, Inc., got approval from the FDIC to begin offering the consumer loan product Cash App Borrow.  As per the analyst, Block, Inc. (NYSE:XYZ) is expected to improve its gross profit over the upcoming 2 years while expanding its operating margins as it has been deepening relationships with Cash App users and Square merchants. At the time of Q4 2024 results, Block, Inc. (NYSE:XYZ) highlighted that it scaled Cash App Borrow to ~$9 billion in originations over the past year, implying robust customer demand for easy-to-repay small loans.