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 VinFast Auto Ltd. (NASDAQ:VFS) 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 modern electric vehicle charging at an electric car station.
VinFast Auto Ltd. (NASDAQ:VFS)
Average Upside Potential as of November 21: 77.89%
VinFast Auto Ltd. (NASDAQ:VFS) is an EV manufacturer based in Vietnam and is a subsidiary of Vingroup, one of Vietnam’s largest private enterprises. It focuses on designing and producing electric cars, e-scooters, and e-buses, targeting domestic and international markets. It operates through 3 main segments: Automobiles, E-scooters, and Spare Parts & Aftermarket Services.
The company has made significant strides in its global expansion and sales. In H1 2024, it delivered 21,747 vehicles, a 92% increase year-over-year. In Q2 alone, it delivered over 12,000 vehicles, intending to deliver a total of ~80,000 EVs in the full year 2024. Revenue generated in the second quarter of 2024 totaled $358.56 million, which was lower than Street estimates. Still, the positive momentum continued into Q3, with 21,912 EVs delivered, marking a 66% increase from the previous quarter and a 116% increase year-over-year.
VinFast Auto Ltd. (NASDAQ:VFS) is very active in Southeast Asia, particularly Indonesia and Thailand. In Indonesia, it established partnerships with 5 dealerships and opened its first store in April 2024. By late summer, it had launched 15 additional dealer stores and introduced 2 new EV models. In Thailand, it signed a letter of intent with 15 initial dealers. It’s also expanding in the Middle East, focusing on Oman and Qatar, with plans to open its first showroom in Doha in Q3 2024. In the US, it aims to establish 125 sales points and currently operates 18 dealerships across 7 states.
With strong sales growth, aggressive expansion into key markets, and a focus on innovation, the company is well-positioned to capitalize on the growing demand for electric vehicles.
Overall VFS ranks 10th on our list of the NASDAQ stocks with biggest upside potential according to analysts. While we acknowledge the potential of VFS 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 VFS 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.
