We recently compiled a list of the 12 NASDAQ Stocks with Biggest Upside Potential According to Analysts. In this article, we are going to take a look at where Sunrun Inc. (NASDAQ:RUN) stands against the other NASDAQ stocks.
Potomac Wealth Advisors president Mark Avallone joined CNBC’s ‘The Exchange’ on November 16 to discuss where he sees investing opportunities following Trump’s election. He believes investing in the tech sector makes the most sense given the implications of the 2024 election results for the financial markets. He noted that the election has shifted the underlying dynamics affecting businesses, particularly regarding regulation and taxation. The new administration has changed the previous climate of heightened regulation and discussions around increasing capital gains and corporate taxes. Avallone believes that the potential for reduced regulation and lower taxes on corporations could create a more favorable environment for business growth.
He emphasized that corporate America’s ability to deliver earnings will be crucial, relying on continued efficiencies and advancements in technology. This perspective supports his thesis that investing in technology remains a sound strategy for investors. When discussing specific stocks, Avallone highlighted major tech companies from the MAG7 as particularly attractive. He expressed confidence that the current administration would foster a more supportive environment for these companies, allowing them to thrive.
Avallone also touched on the defense sector, which has historically benefited from global conflicts. He pointed out that defense companies have shown resilience and believes that ongoing global tensions will sustain demand for defense stocks, providing a hedge against market volatility.
However, Avallone expressed caution regarding the healthcare sector, which has been lagging due to heavy regulation and political scrutiny. He noted that despite an aging population driving demand for medical equipment, regulatory pressures have hindered growth in this area. Overall, his analysis underscores a cautious optimism about investing in technology and defense while highlighting potential challenges within healthcare as businesses navigate the post-election landscape.
Methodology
We sifted through Finviz to compile a list of 30 NASDAQ stocks with high upside potentials. We then selected the 12 stocks with the biggest upside potential according to analysts. The stocks are ranked in ascending order of their analysts’ upside potential.
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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A field of solar panels glistening in the afternoon sun, symbolizing the company’s renewable energy ambitions.
Sunrun Inc. (NASDAQ:RUN)
Average Upside Potential as of November 21: 83.40%
Sunrun Inc. (NASDAQ:RUN) provides photovoltaic systems and battery energy storage products, primarily for residential customers. It specializes in solar energy systems for homeowners, offering services that allow customers to adopt solar power with little to no upfront costs.
In the third quarter of 2024, the company recorded a 4.62% decline in its year-over-year revenue, generating an amount of $537.17 million, which was lower than analyst expectations. Yet, Q3 marked the installation of over 135,000 solar and storage systems, with storage attachment rates reaching 60% of installations during the quarter.
The company has activated New York’s largest residential virtual power plant, leveraging over 300 solar-plus-storage systems. This innovative program enhances grid reliability by synchronizing home batteries to discharge 20% of their stored solar energy during peak demand periods. Participants receive free or discounted batteries and bill credits, while also benefiting from backup power for their homes.
Sunrun Inc. (NASDAQ:RUN) is well-positioned for growth. Investments in infrastructure and technology are enhancing margins and positioning it for long-term success.
Overall RUN ranks 9th on our list of the NASDAQ stocks with biggest upside potential according to analysts. While we acknowledge the potential of RUN as an investment, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than RUN 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.