The Nasdaq Composite is a tech-centric index that tracks the performance of more than 3,000 Nasdaq stocks listed on the exchange, here is an analysis of some of the Nasdaq potential stocks.

This week, the Nasdaq, S&P 500, and Dow Jones Industrial Average all reached new all-time highs, adding to a series of record peaks established this year. This ongoing rally has many stocks trading at or near their highest levels, prompting some investors to question whether there’s still room for further gains.

However, concerns about a market peak seem misplaced, as Wall Street remains notably optimistic. As we approach the end of the year, 2025 forecasts are being adjusted upward. Although these predictions primarily focus on the broader S&P 500, they offer valuable insights.

Goldman Sachs analysts project the S&P 500 will reach 6,500 by December 2025, reflecting an approximate 7% increase from Thursday's closing price. Meanwhile, Bank of America has set a year-end target of 6,666 for 2025, indicating a potential upside of 10% from current levels. Not to be outdone, Wells Fargo recently released the most optimistic forecast yet, predicting the benchmark index will hit 7,007 next year, which would represent potential gains of about 15%.
 

Sirius XM Holdings: Implied Upside of 59%

Sirius XM Holdings (SIRI 4.58%) stands out as a Nasdaq stock with significant potential upside. The company leads the satellite radio market in North America, boasting 34 million paying subscribers. When factoring in its ad-supported Pandora music streaming service, its audience expands to 150 million, making it a major player in the audio entertainment space.

However, recent economic challenges and a complex merger have impacted its performance. High inflation has pressured consumers, leading some to let their SiriusXM subscriptions lapse as they make tough decisions about their limited disposable income.

Additionally, there has been confusion surrounding its recent merger, the reverse stock split, and the resulting intricate accounting maneuvers, all of which have affected its stock price. As a result, the stock has fallen by 51% this year, but the outlook may not be as bleak as it appears.

In the third quarter, Sirius reported a 4% year-over-year decline in revenue, totaling $2.17 billion, along with a loss per share of $8.74, compared to a diluted EPS of $0.82 in the same quarter last year. However, it's important to note that this loss included a one-time, non-cash impairment charge of $3.36 billion related to goodwill from its acquisition of Liberty Sirius XM tracking stock. Excluding this charge, Sirius would have posted an EPS of approximately $1.17, reflecting a 43% increase.

On the positive side, the company added 14,000 paid subscribers, driven by lower churn rates. However, the loss of 114,000 paid promotional subscribers, as automakers shifted to shorter or unpaid plans, did weigh on overall results.
 

Symbotic: Implied Upside of 115%

The surge in online retail has accelerated the push for advanced warehouse automation, and Symbotic (SYM 0.14%) is at the forefront of this transformation.

Symbotic has developed artificial intelligence (AI) solutions designed to automate the processing of individual cases and full pallets, maximizing every inch of warehouse space. The company’s sophisticated algorithms command a fleet of smart robots that collaborate to stock pallets, load and unload trucks, and manage individual crates. This innovative approach allows customers to optimize inventory storage, ultimately reducing costs.

By enhancing efficiency, lowering labor expenses, and cutting operating and delivery costs, Symbotic's systems quickly pay for themselves. The company estimates that each "module" can achieve multiple returns on investment over its lifetime, potentially saving businesses tens or even hundreds of millions of dollars.

The financial results reflect this success. In the fourth quarter of fiscal 2024 (ending September 28), Symbotic reported a 47% year-over-year revenue increase to $577 million and achieved an EPS of $0.05, a turnaround from a significant loss in the previous year. Following the announcement of a restatement of earlier financial reports for 2024—attributed to timing differences without affecting the full-year results—Symbotic filed its annual report without further adjustments, alleviating lingering concerns about the stock.

Following these results, Cantor Fitzgerald analyst Derek Soderberg reaffirmed his overweight (buy) rating and set a $60 price target for the stock, indicating a potential upside of 115% from Thursday's closing price. This bullish outlook was bolstered by discussions with management regarding its recent international expansion with Walmex and developments in its warehouse-as-a-service joint venture.

Like many early-stage, high-growth stocks, Symbotic carries additional risks, so investors should size their positions accordingly. However, after recent sell-offs, Symbotic is trading at just 1.5 times sales—a compelling price for a leader in an emerging AI-driven industry.