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2 Great Stocks to Buy Now for at Least 30% Upside: AMD, DECK
AMDAMD(AMD) ZACKS·2025-02-13 14:01

Market Overview - The recent inflation data did not significantly impact the market, with Wall Street maintaining stability around the 50-day moving average [1] - The start of 2025 has cooled an overheated stock market, but uncertainty remains regarding future market movements and potential selling [1] Advanced Micro Devices (AMD) - AMD's stock has decreased by 45% from its highs, following disappointing Q4 data center revenue and guidance [2][3] - Despite the recent decline, AMD has outperformed the tech sector over the past decade, with a 3,400% increase compared to the tech sector's 320% [4][9] - AMD's revenue grew from 6.7billionin2019to6.7 billion in 2019 to 25.8 billion in 2024, with a 14% year-over-year increase in 2024, driven by a 94% expansion in the data center segment [5] - The company is projected to grow its revenue by 24% in FY25 and 18% in FY26, reaching 37.66billion[7]AMDsearningspershare(EPS)isexpectedtoincreaseby3937.66 billion [7] - AMD's earnings per share (EPS) is expected to increase by 39% and 31% in FY25 and FY26, respectively, from 3.31 in FY24 to 6.00inFY26[8]AMDiscurrentlytradingata336.00 in FY26 [8] - AMD is currently trading at a 33% discount to its five-year median and 65% below its highs, with a Zacks price target indicating a 34% upside potential [13][8] Deckers Brands (DECK) - Deckers Brands, known for its footwear and apparel, has seen significant growth, averaging 19% sales and 32% earnings growth over the past four years [14] - The stock has increased by 6,700% over the past 20 years, outperforming Nike and its sector [15] - Following a 30% drop after its Q3 FY25 earnings release, Deckers presents a more attractive buying opportunity [16] - Deckers reported a 19% revenue growth and a 17% earnings growth in Q3 FY25, with a gross margin increase to 60.3% [20] - The company is projected to grow its revenue by 15% in FY25 and 10% in FY26, reaching 5.45 billion [21] - Deckers has a strong balance sheet with 2.2billionincashandequivalentsagainst2.2 billion in cash and equivalents against 1.3 billion in total liabilities and zero debt [25]