Even though the growth may not seem impressive enough, the stock is currently available at a forward PE of just below 25, down considerably from its historic average PE of 40. Much like the products it sells, the stock demands a premium when the economy is going good. At current levels, there is little doubt that the gains will be immense once the economy stabilizes.

Stock Upside Potential: 22.52%

Citadel Investment Group’s Stake: $331,412,267

DexCom, Inc. operates as a medical device company. The company specializes in the development, design, and marketing of continuous glucose monitoring (CGM) systems. It offers Dexcom Share, Dexcom G6 and Dexcom G7, Dexcom ONE, Dexcom Real-Time API, and Stelo.

The firm recently received FDA clearance for the Dexcom G7 15-Day continuous glucose monitoring system. This system is for diabetic patients aged 18 and above. According to the company, G7 15 Days’ launch in the US is anticipated in the latter half of 2025. Management boasts that this system is the longest-lasting continuous glucose monitoring system available on the market. With a Mean Absolute Relative Difference (MARD) of 8.0%, it is also the most accurate system. After getting FDA clearance, the company’s share price jumped about 8.8%, reflecting the opportunity the product brings for the company.

DXCM also recently confirmed its fiscal 2025 guidance, indicating a 14% revenue growth. It also reiterated its adjusted EBITDA margin and operating margin outlook. As per the guidance, the firm expects the adjusted EBITDA margin to be at approximately 30% and the operating margin to be at approximately 21%. However, the non-GAAP gross margin outlook was lowered to 62% because of inflationary pressures and increased freight costs. Improvements are anticipated later in the year with inventory normalization.

Stock Upside Potential: 22.86%

Citadel Investment Group’s Stake: $548,207,180

United Airlines Holdings, Inc. is an air transportation services provider. It transports cargo and people through the regional fleet and its mainline. The company also provides maintenance, ground handling, frequent flyer award non-travel redemptions, and flight academy services. The firm was among the weekly top 5 industrial gainers last week as it saw a 5.66% surge by week’s end.

As per recent news, UAL is in talks with JetBlue Airways to partner up. The partnership is expected to focus on improving loyalty programs and customer connectivity. However, the details of this collaboration have not been disclosed yet. The company has already experienced rejection from a federal judge regarding its collaboration with American Airlines. So it's no surprise that the airline is taking its time this time around to avoid any regulatory hurdles..

The firm also reaffirmed its FY 2025 guidance last month. Based on stable current booking trends, the company anticipates EPS to be in a range of $11.50 to $13.50 for the year. As part of capacity adjustments, UAL is planning to decrease 4% domestic capacity in Q3 to align with softer demand. However, on the back of strong demand in the Atlantic and Pacific regions, management is confident about profitability in the international markets.

Stock Upside Potential:   33.59%

Citadel Investment Group’s Stake: $367,530,374

Devon Energy Corporation operates as an independent energy company. It focuses on the development, exploration, and production of natural gas, oil, and natural gas liquids. The company’s share price has been declining since late 2022, but the business continues to perform strongly, making it an attractive investment.

DVN ended 2024 in a strong position. The company generated $738 million in free cash flows, $444 million of which was returned to shareholders. Out of the $444 million, it allocated $300 million for share buybacks. Aided by the integration of Grayson Mill assets and Eagle Ford well productivity, DNV’s oil production also set a new record of 398,000 barrels per day.

Based on strong earnings, the firm updated its 2025 guidance. It is targeting 815,000 Barrels of Oil Equivalent (BOE) per day. Capital spending was lowered by $200 million from the previous outlook. Clay Gaspar pointed out improved operational momentum and capital efficiency from multiple zone projects. The firm highlighted plans to improve annual free cash flows by $1 billion, and analysts are loving it.

Capital One Securities' Phillips Johnston mentioned:

The plan itself doesn't come as a surprise, but we think the size is probably a bit larger than the Street has been expecting. Meaningful (free cash flow) uplift potential, so this looks to be more than just window dressing.

Stock Upside Potential:   36.8%

Citadel Investment Group’s Stake: $364,856,219

Align Technology, Inc. operates as a manufacturer, designer, and marketer of Vivera retainers, Invisalign clear aligners, and iTero intraoral scanners and services. The company generates its revenues through Clear Aligner and Imaging Systems, and CAD/CAM Services segments.

Since its 2023 highs, Align’s stock has significantly declined. It fell by over 50% in the last year alone. The reason behind the massive drop in share price was missed EPS and revenue targets. In the last 12 quarters, the company has missed revenue in seven quarters and EPS in five quarters. Resultantly, the stock hasn’t gone anywhere.

According to the provided fiscal 2025 outlook, ALGN expects revenues between $1.05 billion to $1.07 billion. For 2025, Clear Aligner volume growth is anticipated to be mid-single digits YoY.  However, due to growth in emerging markets and product mix shift, ASPs are projected to decrease. Management predicts the GAAP operating margin to increase by approximately 2 percentage points compared to the previous year. Due to the company’s long history and market leadership, investors see the current stock price drop as an attractive buying opportunity, though concerns about the management’s ability to deliver remain.

Stock Upside Potential:  37.05%

Citadel Investment Group’s Stake: $650,409,480

Reddit, Inc. is a digital community operator. Its platform allows users to research new hobbies, engage in conversations, exchange goods and services, explore passions, share laughs, create new communities and experiences, and find belonging.

Analysts at research firm Oppenheimer started coverage on the company with an Outperform rating and assigned it a price target of $125. The research firm expects Reddit to utilize its user data for impactful ad products. Oppenheimer believes that RDDT targeted advertisement capabilities and strong user data will boost revenue growth and advertiser demand.

Oppenheimer noted:

User interactions give Reddit very specific signals about user interests, presenting a very compelling advertising opportunity. While early, we believe Reddit will be able to launch products for advertisers to target relevant communities at very high ROIs,

For Q2 2025, the company expects revenue between $410 million and $430 million, indicating year-over-year growth between 46% and 53%. Adjusted EBITDA is anticipated to be in the range of $110 million to $130 million. It expects a substantial adjusted EBITDA growth of over 230% year-over-year. Management highlighted product improvements, performance optimization, and international growth as major drivers of growth in the future.

Stock Upside Potential:   45.88%

Citadel Investment Group’s Stake: $346,451,879

Neurocrine Biosciences, Inc. operates as a developer, discoverer, and marketer of pharmaceuticals for neuroendocrine, neuropsychiatric, and neurological disorders. Its major product candidates include INGREZZA, Efmody capsules, Orilissa tablets, Oriahnn capsules, ALKINDI, and CRENESSITY.

The firm was upgraded by RBC Capital Markets from Sector Perform to Outperform, highlighting the recent market downturn as an attractive buying opportunity. However, the price target was adjusted by RBC analyst Brian Abrahams from $138 to $137, anticipating short-term fluctuations due to the latest quarter earnings and long-term uncertainty surrounding Medicare drug price talks.

RBC analysts think that the current share price is a good entry point for investors looking for a reliable biotech.

RBC Capital Markets’ analyst Brian Abrahams stated:

Broader sector selloff and market downside has brought the stock to levels well below fundamental fair value, given an Ingrezza commercial franchise that we expect to be relatively solid and durable long term.

The company also reaffirmed its 2025 guidance after beating top-line estimates in the most recent quarter. Aided by ongoing direct-to-consumer initiatives and an expanded sales force, Neurocrine anticipates INGREZZA sales to reach $2.5 billion to $2.6 billion for the full year. Regardless of potential competition, this guidance demonstrates continued growth. Due to clinical adoption factors and delays in reimbursement processes, the company expects CRENESSITY’s revenue to increase gradually. Moreover, Phase 3 trials for osavampator and NBI-568 are ongoing, with the firm setting aside $60 million to advance its product pipeline during 2025.

Stock Upside Potential:   48.29%

Citadel Investment Group’s Stake: $368,584,632

Block, Inc. operates as an ecosystem builder. It builds ecosystems focused on financial and commerce products. The company operates in the Cash App and Square segments. The stock has been declining since the start of this year, falling over 45%.

After the release of Block’s most recent quarter results, some analysts turned pessimistic. Piper Sandler analyst Arvind Ramnani believes an acceleration in the latter half may be overly optimistic because of pressured fundamentals. Wall Street's analysts are also concerned about weaker Cash App spending.

However, Mizuho's Dan Dolev maintained his Outperform rating on the stock, citing the firm’s improved network density and product innovation. He thinks XYZ’s robust product innovation and enhanced network density could mitigate the effects of a weaker macroeconomic environment.

Based on the guidance, the company expects gross profit growth of 12% for 2025. Adjusted operating income is anticipated to grow by 19%. Continuous GPV growth improvements are projected throughout the year. For Q2, Square's GPV growth is projected to achieve high single digits.

Stock Upside Potential:   53.21%

Citadel Investment Group’s Stake: $414,128,752

First Solar, Inc. operates as a solar technology company. The company provides photovoltaic (PV) solar energy solutions. It sells and manufactures photovoltaic solar modules with a thin film semiconductor technology.

FSLR has lost one-third of its value in the span of a year. The constant downtrend has meant that it trades at a PE of 10.77, considerably below the 5-year average PE of 28.62. The price-to-cash-flow ratio also stands at 7.79, way below the 5-year average of 20.04. Apart from a handful of solar stocks, the majority have lost considerable value this year so far, making the sector an attractive investment.

As per the company’s provided guidance, revenue is forecasted to be in the range of $4.5 billion to $5.5 billion for the full year. Anticipating tariff-related headwinds, EPS is expected to be between $12.50 to $17.50. Due to uncertain demand and high tariffs, the firm is planning to reduce international production. Increasing energy demand from data centers and AI will be a huge catalyst for solar energy.

Stock Upside Potential:   60.58%

Citadel Investment Group’s Stake: $334,578,325

DraftKings Inc. is a digital sports entertainment and gaming company. The company offers daily fantasy sports, digital lottery courier, sports betting, media, and other products. It also provides online casino products, including baccarat, blackjack, slot machines, and roulette.

CFRA Research upgraded the company from Hold to Buy, citing its strong position in the US mobile sports betting market. The firm anticipates DKNG to grow 30% in 2025 and sustain over 80% market leadership, becoming more profitable through cost-cutting. It set a price target of $52 for the company, given its attractive valuation and defensive profile.

Analyst Zachary Warring mentioned:

DKNG shares have fallen over 30% since it released its Q4 earnings, which we believe provides a great entry point for shares.

DraftKings came in second at the Jefferies’ ranking of sports betting and iGaming brands. According to Jefferies analyst David Katz, the firm’s market share and performance are strongly correlated. Jefferies has a Buy rating on the stock.

The company also earned an upgrade from BMO Capital Markets with an Outperform rating ahead of its Q1 earnings report. The firm named it a Top Pick, citing attractive valuation despite potential short-term earnings weakness. Analyst Brian Pitz thinks that DraftKings is well-positioned for long-term growth. Adjusted EBITDA growth rates are predicted to be 40% and 30% for the next 3 years and 5 years, respectively.

While we acknowledge the potential of DKNG as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than DKNG but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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