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Markets hate uncertainty, which has been the norm in 2025. Tariffs, interest rates, and inflation are driving analysts’ expectations. However, that can become an opportunity for nimble investors with some cash on the sidelines.
With earnings season wrapping up, some analysts have discovered they were too bearish on a company. That causes them to upgrade the stock, which usually comes with a higher price target.
But some analysts don’t stop with one upgrade. They sometimes upgrade a stock by two rating levels, though not often.
If one upgrade is good, two must be better. That’s not necessarily true, but it does signal that analysts are trying to catch up to a stock. That’s the case with these three stocks that have received a double upgrade from analysts since their most recent earnings reports.
Advance Auto Parts Inc. (NYSE: AAP) has been a laggard compared to sector leaders like AutoZone Inc. (NYSE: AZO) and O’Reilly Auto Parts Inc. (NASDAQ: ORLY). However, analysts appear to be warming up to the idea that at a time when high interest rates may suppress new car purchases, there’s room for many companies at this table.
That was the sentiment of Redburn Partners, which raised AAP stock from Sell to Neutral. It also raised its price target from $28 to $45.
The reasons have to do with strengthening fundamentals. Advance Auto Parts is in the middle of a multi-year turnaround plan that is moving beyond cost-cutting and raising optimism of an increase in gross margins as it finds efficiency in its supply chain and with private label brands.
Adding interest for investors is that AZO and ORLY are trading at valuations that make them expensive compared to their history. That could make AAP the asymmetric play for investors looking to catch a stock that may have strong upside if institutions follow the analysts’ lead.
BioLineRx Ltd. (NASDAQ: BLRX) is a commercial stage biopharmaceutical company that develops and commercializes therapeutics for oncology and rare diseases. The company’s mulitiple myeloma drug, APHEXDA, was approved in late 2023. That marked a three-year high for BLRX stock which has fallen back to near penny stock levels since.
However, Jones Trading recently upgraded the stock from a Hold to a Strong Buy. There could be a couple of reasons for the bullish sentiment.
First, the company completed the transfer of its U.S. commercial rights to APHEXDA to Ayrmid Bio in the fourth quarter of 2024. This allows BioLineRx to focus on its stage oncology pipeline and its lead candidate, motixafortid, for pancreatic cancer.
Second, BioLine’s equity stake in the partnership with Ayrmid de-risks the company from the cash burn associated with commercial production of APHEXDA while allowing it to receive milestone payments and royalties.
Consumer staples stocks have been under pressure as consumers absorb the double whammy of sticky inflation and higher interest rates. Normally, stocks such as Anheuser-Busch InBev Inc. (NYSE: BUD) perform well in these times due to their defensive nature.
But this isn’t an ordinary time. Alcohol consumption is under pressure due to the GLP-1 movement. Also, many U.S. consumers are rethinking their relationship with alcohol. A 2025 study by NCSolutions cites 49% of Americans plan to drink less in 2025. That’s up from 41% in 2024. The reasons are both financial and an increased focus on wellness associated with sobriety.
However, the recent earnings from Anheuser-Busch is a reminder of a timeless truth. It pays to have best-in-class brands. In addition to having the number one and two volume share gainers, as well as a group of beers that capitalized on the premiumization trend, the company also has a growing non-alcoholic beer category that is helping boost sales.
That was on display in the company’s first quarter 2025 earnings report. Revenue missed estimates slightly on falling volume, but the company beat earnings per share (EPS) estimates by more than 10%. Since the earnings report BNP Paribas raised its rating on BUD stock from a Hold to a Strong Buy.
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High volatility has plagued markets throughout much of 2025. While many consider this a bad thing, particularly when trends point downward, it can also create opportunities for momentum investors to capture gains when target stocks are up. Of course, timing a momentum play can be easier said than done.
Regarding momentum investing, traders may have an advantage if they can identify targets early in a sustained rally and, potentially, if those stocks are relatively unknown by the broader investing community.
Three such companies, two small-cap firms and one slightly larger in a niche segment of a popular industry, have trended upward recently and may be worth closer consideration by investors seeking the next momentum target.
First up is EyePoint Pharmaceuticals Inc. (NASDAQ: EYPT), a clinical-stage biopharma firm developing treatments for patients with retinal diseases. In May, EyePoint reported results for the first quarter of the year, including top-line performance that shattered analyst expectations.
While forecasts had called for revenue of just under $9 million, EyePoint generated nearly $25 million in the first months of the year. The company posted losses per share in line with analyst predictions; like many clinical-stage pharmaceutical firms, sustained profitability remains elusive pending the success of one or more commercially viable drug candidates.
The company is getting closer to that milestone all the time. Its lead drug candidate, DURAVYU, recently exceeded enrollment for a critical Phase 3 clinical trial, and EyePoint expects top-line data from the trial in 2026. DURAVYU is a candidate for treatment of wet age-related macular degeneration, but EyePoint also sees potential for its use in diabetic macular edema. EyePoint ended the first quarter with more than $318 million in cash and investments, sufficient to sustain operations through 2027.
EYPT shares are up more than 19% in the last month, and based on a consensus price estimate of $25.38, analysts expect growth is just beginning; this estimate would suggest the price of EYPT stock could more than triple from current levels.
Nova Ltd. (NASDAQ: NVMI) designs and builds process control systems used in the manufacturing of semiconductors, making it an essential part of a highly popular industry. Nova has also offered stellar earnings results this year, with quarterly revenue rising by more than 50% year-over-year (YOY) in the first months of the year, topping analyst predictions. Earnings per share (EPS) of $2.18 beat analyst estimates by 10 cents.
This momentum is expected to continue, as analysts suggest Nova’s earnings growth could be more than 7% in the future.
Nova also has noteworthy cash flow improvement; YOY cash flow growth is about 32%, helping to ensure it has ample room to scale up operations, expand its offerings, or buy back shares.
NVMI shares have climbed by more than 10% in the last month, and again, analysts expect this growth to continue. With a consensus price target of $277, NVMI could have upside potential of over 27%. Four out of five analysts rating NVMI shares have assigned it a Buy, signaling widespread optimism.
Ouster Inc. (NYSE: OUST) provides LiDAR technology for 3D mapping and imaging. This makes the company a vital partner for other companies in the robotics, automation, and automotive industries, among many others. The critical nature of Ouster’s technological offerings has led to numerous recent partnerships, including with construction and heavy machinery builder Komatsu, German manufacturing firm LASE PeCo, and others.
Ouster’s $33 million in revenue for the first quarter beat earnings estimates and climbed by 26% YOY, and GAAP gross margin of 41% improved significantly over 29% one year prior. Perhaps most importantly for future momentum, the company projects between $32 million and $35 million in second-quarter revenue, highlighting major upside potential. All seven analysts reviewing OUST shares have provided a Buy rating.
Ouster has experienced a more significant rally than either company above, climbing by more than 71% in the last year. Analysts still view the possibility of additional upside, although investors may need to act quickly. On the other hand, this firm may also be poised for long-term success given the increase in demand for robotics and automation services across multiple sectors.
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When it comes to the financial sector, understanding the underlying impact of bank balance sheets and key performance indicators (KPIs) can be a daunting task. However, one common indicator is always subject to directly affecting the way a bank makes money on the bottom line, and that is the capital requirement set by government regulators.
Investors need to understand that the more capital a bank must have on hand to comply with regulations, the more stringent the rules are regarding the amount of lending products, such as mortgages and credit cards, that the underlying bank can undertake. The opposite is true when these capital requirements are reduced; the bank can conduct more business with significantly less capital on hand, essentially a significant leveraging factor for shareholders to enjoy.
One bank in the industry has just gained momentum, driven by the potential for upside expansion in earnings per share (EPS). That bank is Wells Fargo & Co. (NYSE: WFC). After a government agency lifted the bank’s capital requirement, which had been capped at $1.95 trillion, Wells Fargo now has a relatively open field ahead of itself to keep churning out products that bring in interest income.
Perhaps some market agents knew about Wells Fargo’s upcoming news, as they had already been bidding for its shares in recent weeks. Looking at Wells Fargo in terms of price action, investors can see that the stock rose by 3.6% over the past month, which is always exciting for a “boring” banking stock like this one.
What’s more interesting is that Wells Fargo now trades at up to 92% of its 52-week high level, signaling an official bull market and leading some of its other peers in the industry. That being said, investors now need to determine their current position and, in particular, where their risk-to-reward ratio stands in terms of potential upside and downside.
Looking internally, Wells Fargo management had announced a stock buyback program worth up to $40 billion, indicating that insiders themselves thought the stock was cheap enough to start buying some for themselves as early as late April 2025. Now, the reasoning behind this massive buying is becoming a bit clearer for everyone else.
Now that the news is starting to hit the market, investors can also note where Wall Street analysts expect Wells Fargo’s EPS to go in the near future. As for the fourth quarter of 2025, analysts expect the bank to report EPS of up to $1.62, a significant jump from today’s $1.39 level, representing a nearly 17% increase.
As most investors know, where EPS growth goes, so does the stock price. This fundamentally driven growth forecast is sure to help Wells Fargo Deliver on upside potential, but just how much upside could there be in the bank’s stock?
Building on this theme, Bank of America analyst Erika Najarian reiterated her Buy rating for Wells Fargo stock as of early June 2025. Not only does this analyst see the stock as a Buy, but she also placed a valuation target of up to $90 per share on it.
Compared to where it trades today, this target would imply that Wells Fargo could rally by as much as 18% to closely match the expected EPS growth of these other analysts. With this in mind, investors can now look for further evidence to back up the belief that Wells Fargo can fulfill this upside expectation.
One way to gauge this sentiment is to examine how the market values Wells Fargo stock compared to its peers in the commercial banking sector. By trading at a forward P/E multiple of 11.5x today, Wells Fargo commands a premium over names like Bank of America Inc. (NYSE: BAC) and Citigroup Inc. (NYSE: C), which trade at a respective 9.0x and 8.5x each.
The market’s willingness to overpay for Wells Fargo’s future earnings should indicate confidence in its future upside potential, considering that there is now double-digit growth potential following the regulatory stance’s shift in favor of Wells Fargo’s business.
More than that, investors could argue that today’s consumer and credit cycle could be near a bottoming, delivering on the upside tailwinds that can be had when and if mortgage volumes and credit card issuance come back to their former high levels.
That would significantly boost Wells Fargo’s EPS beyond forecasts, especially since it has the green light to conduct more business than is currently projected. While this may take some time, the tailwinds are definitely present for the bank to continue delivering higher prices.
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