Yes, I know that saying we have 3 stocks to double this year is a fairly bold claim.
That’s because these kinds of exceptional stocks don’t grow on trees.
Yet as you read on below there is some sound logic behind our claim that greatly increases the odds of owning stocks with big upside potential.
This is really a 2 step dance.
First, is using our proven AI driven quant model, the Zen Ratings, to have a daily review of stocks based on 115 different factors. Everything from growth to value to momentum and more.
In the past this model has pinpointed 407 stocks that have doubled. So this makes for a great starting point for our exploration. (Learn all about the Zen Ratings here).
Second, is having a seasoned investor with a proven track record of success hand-select the very best ones given current market conditions.
That is where I come in to play with my 45 years of investing experience.
Over those years I have seen 8 bull markets…7 bears…and just about everything between. This gives me ample perspective to pick the best stocks for any market environment.
With this background in place you can better appreciate why the 3 stocks shared in the following pages are truly special.
Wishing you a world of investment success!
Steve Reitmeister…but everyone calls me Reity (pronounced “Righty”)
Editor-in-Chief of WallStreetZen
As part of my original 2025 Stock Market Outlook I said that financials will be outperformers in the years ahead as the Fed lowers rates. That rate cut trend has been on pause but soon should yield to more cuts in the months ahead.
Another reason to like financials is that the Trump administration has been very vocal about reducing regulation that constrains business. Few industries have as much red tape as the financial industry.
These are 2 very good reasons to buy BGC Group (BGC) for the year ahead. And here are some more good reasons to like this company focused on financial brokerage and technology solutions…
Not only does BGC enjoy a Zen Rating of A (Strong Buy) it actually has a percentile grade of 98.58. This means it’s basically in the top 1.5% of all stocks across the 115 factor review.
As you know with the Zen Ratings we also drill down into 7 component grades to appreciate the full appeal of the stock. In this case it really has no weakness across a broad array of what makes a stock appealing:
Top 21% Financials
Top 15% Value
Top 3% Growth
Top 2% AI Factors (read more about those AI factors here)
That is a lot of fundamental goodness packed inside the stock which points to strong odds of future outperformance.
On the value front it shocks me how long shares have stayed pinned to only $10 per share. Yet with another strong earnings report in hand analysts are pounding the table on much more upside ahead.
Most fair value targets are around $14-15. Yet with earnings estimates of $1.38 per share and 20% year over year earnings growth on the horizon, then not crazy for shares to trade for 18-20X earnings (especially when the average large cap stands at 22X earnings).
This view of value says shares could easily make it to $25 next year…that is more than double the current price and why I really like the odds for BGC shares to excel in the year ahead.
No doubt you already appreciate why cybersecurity is one of the best long term growth trends. That’s because the more our lives are connected online…and the more AI expands…the greater the demand will be for cybersecurity.
This concept gets turbo charged whenever there is concern about major military conflicts around the globe given that cyber attacks are a big part of the modern arsenal to defeat opponents. This helps explain the 12% gain for Radware (RDWR) shares in late June after Israel launched attacks on Iran.
Since peaking around $30 per share in June, RDWR has seen an overripe round of profit taking making it a great time to load up on shares that could rightfully double in the year ahead.
Now let’s take a step back and review what is so special about these shares. The best place to start that journey is with the 115 factor analysis undertaken by the Zen Ratings.
Yes it is an A Rated (Strong Buy) stock. On top of that it scores incredibly well in the following crucial areas:
Top 25% Value
Top 18% Momentum
Top 17% Growth
Top 9% Sentiment (learn more about our Sentiment ratings here)
Top 8% AI factors
These sparkling credentials are not a fluke. That’s because they are riding the wave of 8 straight beat and raise earnings reports putting investors on notice of some serious earnings momentum at play.
As a cherry on top, RDWR is a company with a strong balance sheet that includes over $7 in cash per share.
Putting the growth, value and cash on hand together, I can easily make a case for shares to rally to $50 by the end of 2026. Even if it comes up short of the 2X mark, there is plenty of reason to appreciate that shares should outperform nicely in the months ahead.
On the surface Udemy (UDMY) sounds like a boring company that provides online education and training materials.
Yet digging into the specifics they are riding a Tsunami like wave of people wanting to improve their knowledge and usage of AI to be more attractive to employers. This last part explains the attractiveness of their recently announced deal with the online jobs site; Indeed.
This stock has been working off the excesses from its overhyped IPO back in late 2021 when it sprung to over $30 per share. Since then, UDMY has produced 14 impressive beat and raise earnings reports and yet still shares have slunk down to under $7 today.
It is time for a turnaround in the share price. That is why it sprang up in our new Stocks Under $10 strategy as one of the top 7 stocks under $10. Digging in further with the Zen Ratings will easily explain why:
Top 19% Value
Top 11% Financials
Top 11% Sentiment
Top 9% Growth
Top 7% AI
As you can see there is virtually no weakness across these wide ranging qualities of the company. This explains why the overall rating is in the top 1.3% of all stocks analyzed.
With next year’s earnings estimates at 55 cents + 35% average earnings beat the past three quarters + robust $2.61 cents in cash per share…then it’s very easy to make a case that these shares double to $14 or more in the year ahead.
That’s why it’s time to “educate” your portfolio about the upside potential of these Honor Roll education shares of UDMY.
BGC, RDWR and UDMY are just a few of the top 20 stocks currently found in my Zen Investor portfolio.
Each of these 20 stocks was selected based on this same stringent research process that helps pinpoint those special shares with 100%+ upside potential.
To learn more about my investment process…and to see my current top 20 stock recommendations…then just click the link below:
