We recently published a list of the 12 Best Up and Coming Stocks to Buy According to Wall Street Analysts. In this article, we are going to take a look at where Core Scientific, Inc. (NASDAQ:CORZ) stands against other up and coming stocks to buy according to Wall Street Analysts.
Tom Lee, Fundstrat managing partner, joined CNBC’s ‘Closing Bell’ on March 22 to discuss the current market sentiment. When asked about the recent report on tariffs, which oscillates between an iron fist and an olive branch, Lee expressed optimism. He suggested that markets should interpret the situation positively because many clients view tariffs as punitive and potentially recession-inducing. However, a mutually agreed or reciprocal tariff deal could create a favorable scenario for businesses, potentially setting the stage for a significant recovery rally. Addressing the immediate challenge of volatility leading up to April 2, Lee acknowledged the dilemma investors face during this period of uncertainty. He noted that many are overwhelmed by market fluctuations and tempted to give up. Drawing a parallel to the Cuban Missile Crisis in 1962, which lasted 12 days, Lee pointed out that markets historically bottom before crises are resolved. For instance, during that crisis, the stock market reached its lowest point seven days in and recovered two-thirds of its losses before the resolution. He suggested this historical pattern could serve as a template for today’s market behavior.
When asked about the economy, Lee remarked on how quickly sentiment has deteriorated. He attributed part of this decline to divisive political leadership that affected consumer confidence and noted that CEO confidence has also dropped unexpectedly. CEOs have become hesitant to make decisions, which is contributing to what he described as a growth shock. However, he remained hopeful that this slowdown would be temporary if it does not persist for months. The conversation shifted to concerns about a potential recession, with Jeffrey Gundlach recently estimating a 50% to 60% chance of one occurring in the next few quarters. Lee countered this by stating that while a 10% drawdown in the S&P 500 already prices in a 40% chance of recession, markets do not fully align with Gundlach’s pessimistic view. He highlighted that economies like China, Europe, Canada, and Mexico have been outperforming the US since February 18. If punitive tariffs were truly driving global recessions, these economies would also be struggling. Instead, Lee described markets as more paralyzed than outright pessimistic.
Our Methodology
We used the Finviz stock screener to compile an initial list of the top stocks that went public in the last 5 years. We then selected the 12 stocks with high analysts’ upside potential as of March 21 that were also the most popular among elite hedge funds. The stocks are ranked in ascending order of their upside potential. We have also added the hedge fund sentiment for each stock, as of Q4 2024, which was sourced from Insider Monkey’s database.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A financial analyst in a suit examining investment grade debt securities on a screen.
Core Scientific, Inc. (NASDAQ:CORZ)
Average Upside Potential as of March 21: 121.19%
Number of Hedge Fund Holders: 66
Core Scientific, Inc. (NASDAQ:CORZ) provides digital asset mining services in the US. It operates in self-mining, hosted mining, and HPC hosting, and offers infrastructure, software, and data center solutions. It deploys and operates mining equipment, provides hosting services, and delivers essential support for blockchain transaction processing.
The company is transitioning its primary revenue source from Bitcoin mining to High-Performance Computing (HPC). This is highlighted by an $8.7 billion, 12-year contract with CoreWeave, which is a GPU-accelerated cloud provider. It surpassed its $500 million in 2024 revenue. By the end of 2024, the company secured contracts for over 1,300 megawatts of power, with plans to expand its Denton facility by 70 megawatts and add $1.2 billion to the CoreWeave contract. It aims for 250 megawatts online by the end of 2024 and 590 megawatts by early 2027.
To diversify its HPC customer base, Core Scientific, Inc. (NASDAQ:CORZ) aims to reduce CoreWeave’s contribution to less than 50% of its business by 2028. It intends to add 300 megawatts of capacity at existing sites and 400 megawatts at new sites by 2027. In Q4 2024, the company generated $8.5 million from HPC hosting, which showcased the beginning of its shift towards becoming a major player in the HPC market.
Overall, CORZ ranks 2nd on our list of the best up and coming stocks to buy according to Wall Street Analysts. While we acknowledge the growth potential of CORZ, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CORZ but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
