2 Must-Buy Stocks with Strong Long-Term Upside Potential

Investor Insights: Advanced Micro Devices and Deckers Brands show potential for over 30% upside despite recent market struggles. Explore the growth prospects and financial outlook of these two companies.

Date: 15-02-2025

AI Rating: 6

Investment Perspective
Both Advanced Micro Devices (AMD) and Deckers Brands (DECK) have shown significant challenges in their recent stock performance but still display attributes that could entice investors. AMD's recent struggles stem from disappointing Q4 data center revenue and unclear guidance, though its revenue has grown impressively over the past several years. On the other hand, Deckers has faced a drop following its latest earnings release but continues to project healthy growth.

Earnings Per Share (EPS)
AMD is expected to boost its EPS by 39% and 31% for FY25 and FY26, progressing from $3.31 in FY24 to $6.00 by 2026. This substantial increase suggests a focus on recovery and prowess in expanding its profitability despite recent setbacks.

Revenue Growth
AMD's revenue has shown resilience, climbing from $6.7 billion in 2019 to $25.8 billion in 2024, with an anticipated growth rate of 24% this year and 18% the following year. This is a promising outlook, indicating the company's capability to leverage its robust position in technology. Similarly, Deckers is projected to achieve revenue growth of 15% in FY25 and 10% in FY26, reaching $5.45 billion, a sign of competency in maintaining its market position.

Profit Margins
Deckers has recently reported an increase in gross margins, rising to 60.3% from 58.7% year-over-year. This enhancement reflects effective cost management and potentially strengthened pricing power. Maintaining or improving profit margins will be crucial for both companies as they navigate through current economic challenges.

Stocks: AMD DECK NKE NVDA