Analysts expect these Nasdaq stocks to rally in 2023, with some forecast to double
Though the Nasdaq Composite has been beaten down in 2022, there are some stocks that could rally in the new year. The technology-heavy index has lost 33% this year — the worst of the three major averages — as investors rotated out of growth for value names as fears of incoming recession increased. Big Tech, which has come to define the composite, has seen its earnings flounder with few exceptions as online advertising revenue cools. But a bear market creates opportunities for stock pickers. With this in mind, CNBC Pro screened for Nasdaq Composite stocks with a market cap of at least $5 billion and at least 15 analysts covering them to find those with the biggest gains expected over the next 12 months. The chart below includes the 15 names with the highest potential upside. Retail investor favorite Tesla has been among the most talked about stocks with CEO Elon Musk’s purchase of Twitter. Nearly half, or 48.8%, of analysts rate the stock a buy, with the average price target implying the stock could rally 115.2% over the next year. The stock has lost 64.4% in 2022. Coinbase is another tech name that has made headlines in recent weeks, as the collapse of crypto exchange FTX and owner Sam Bankman-Fried’s arrest has cast doubt on the digital currency more broadly. Bankman-Fried has denied allegations of fraud . Leadership at Coinbase, a different exchange, has said it does not have “any material exposure” to FTX as investors grew increasingly concerned about the form of trading. Despite the concern over crypto’s health, 36.7% of analysts still rate the stock a buy. The average price target shows an upside of 110.7%. But that rebound would be making up for its 86.3% plummet this year. United Airlines also made the list, with 47.6% of analysts rating it a buy and its average price target showing the potential for a 38.3% upside. The stock has lost 12.6% this year — outperforming the broader index — amid a year of resurgence in travel coming out of multiple years overshadowed by the Covid pandemic. Further down the list, Advanced Micro Devices could rally 37.6%, based on the average analyst price target. The chip maker surpassed Intel by market cap for the first time ever this year . But the stock has still fallen 55.6% this year as global supply challenges continued weighing on chip production and demand concerns grew with consumer spending shifting to services from goods. About two-thirds, or 66.7%, of analysts rate the stock a buy. Pandemic darling Zoom also made the list, as the video conferencing platform has an average price target showing it could gain 31.2%. After two years of rapid growth as the pandemic shifted meetings to virtual venues, the stock has plunged 64.2% this year. The company said it expects weaker-than-anticipated revenue for the full fiscal year on its third-quarter earnings call last month. Just above one-fifth, or 21.6%, of analysts rate the stock a buy.