The stock market can trick old buyers into selling their profitable holdings at the first sign of a dip or slowdown. This effect is further amplified for new buyers who are anxious to know whether their ideas were right or wrong. Often, their profit and loss statements give them the answer. As the S&P 500 trades at the lower end of its recent bracket, these questions could keep investors up at night.
However, the answer doesn’t have to be that hard. Some stocks could use trimming as they’ve run their course, but some show the potential to keep moving higher. Driven from both fundamental – and technical – reasons, there are three stocks today that deserve a second look from investors going into the next quarter, as they propose more upside potential.
Stocks like HSBC Holdings Inc. (NYSE: HSBC) are making the list of potential runners, a financial sector play riding off of China’s new stimulus. Then, investors can consider the effects today’s economy will have on shares of Uber Technologies Inc. (NYSE: UBER) as more people need to supplement their income, and car repossessions drive the need for Uber. Finally, a precious metal super cycle is not done bringing Hecla Mining (NYSE: HL) stock to its full potential today.
HSBC: Asia’s Banking Giant Has More Room to Run Higher
Regional banks in China are considered safe enough for some investors. Still, the majority would be under the belief that most of those banks are too risky and illiquid to invest in. This is where HSBC comes into play; its international reach and $167 billion in market capitalization make it a safer choice for investors to consider.
Now that the stock trades at its 52-week high, some may wonder whether it has what it takes to push another leg higher. According to analysts at DBS Bank, HSBC stock earned a Strong Buy rating, though there aren't too many price targets to speak of.
Investors can use the stock's $1.98 dividend payout as a gauge, however, which translates into an annual yield of 4.38% today. High dividend yields are not synonymous with expensive stocks, which means HSBC could have more room to move higher based on this, but there's more.
Bears know that China's new stimulus and interest rate cuts will have a positive effect on all of Asia's economies, so HSBC is at the forefront of the profit and bull center. Because of this, HSBC stock's short interest declined by 6.1% in the past month, showing signs of bearish capitulation.
Finally, to drive the bank's growth, Wall Street analysts now forecast up to 19.9% earnings per share (EPS) growth forecasts, above most other names in the banking industry, all because of its exposure to China and the rest of Asia.
Uber Stock Still Holds Double-Digit Upside Potential
Even though the stock now trades at 92% of its 52-week high, the odds of making a new high before the year is over become slim, at least for those scared of buying near a top. Despite this trend, analysts at Citigroup decided to reiterate their Buy target on Uber stock, with a $98 share price target to go with it.
To prove these analysts right, Uber stock would need to rally by as much as 34.3% from where it trades today and definitely set up to hit a new annual high to put those buying the top fears to rest. To drive this double-digit upside, investors can lean on Wall Street’s EPS growth forecasts for $0.60 a share next year.
Compared to today’s $0.47 EPS, this represents a growth rate of 28% over the next 12 months, justifying the price targets set so far. The bullish sentiment doesn’t stop there, however, as some institutional capital also recently made its way into the stock.
Leading the way in institutional buying were those from the Czech National Bank, who pushed their Uber stock holdings higher by 7.5% as of October 2024, bringing their net investment up to $32.2 million today. Investors can also consider this factor for their potential buy decision into the next run higher.
Silver's Catch-Up to Gold Fuels Hecla Mining Stock's Rally to a New High
As gold prices reached a new all-time high, a potential arbitrage opportunity may be found in silver, as the precious metal (historically correlated to gold) has yet to catch up in price action. This is where Hecla Mining stock comes into play for this catch-up, meaning it could reach a new high despite trading at 92% of its 52-week high level.
This could be one reason why analysts at HC Wainwright landed on a Buy target for the stock along with a $10.25 price target, calling for a net upside of up to 55.3% from today’s already high price. That’s also a reason to justify those at Van Eck Associates boosting their holdings in Hecla Mining stock by 6.8% over the past two quarters.
The new addition brought the group’s net investment to $291 million today, or 9.8% ownership in the company. Being a $4.2 billion company also gives Hecla Mining the benefit of growing more aggressively than other comparable peers, leaving investors with the potential to ride another wave higher.