Nasdaq Sell-Off: 2 Stocks With 49% to 128% Upside, According to Select Wall Street Analysts

Ladies and gentlemen, buckle up! The Nasdaq is in a tailspin, and it's time to separate the winners from the losers. The tech-heavy index has officially entered correction territory, down 10% from its December high. But don't panic! This is an opportunity to scoop up some incredible stocks at a discount. Let's dive into two stocks that Wall Street analysts are raving about, with potential upside of 49% to 128%!



First up, we have chewy (CHWY), the leading online brand for pet supplies. This stock has been on a rollercoaster ride, but analysts are seeing green shoots. evercore ISI analyst Mark Mahaney upgraded Chewy to an outperform (buy) rating with a $47 price target, implying a 49% upside from the recent $31.50 share price. Why the optimism? Chewy's sales growth has stabilized, and the company is showing potential to improve margins. In the October-ending fiscal third quarter, sales grew 5% year over year. Mahaney sees free cash flow doubling in the next three years, which could be a strong catalyst for the stock. But beware, there are risks! A significant portion of Chewy's suppliers are in China, so tariffs could negatively affect sales. And let's not forget, Chewy shares don't measure up well to other e-commerce stocks on growth and valuation. So, do your homework, but this could be a golden opportunity!

Next, let's talk about Peloton Interactive (PTON). This stock has given investors a wild ride, but Argus analyst John Staszak sees more upside. He upgraded the stock to "buy" with a $15 price target, implying a 128% upside from the recent $6.58 share price. Peloton is starting to report improving financial results. In the December-ending second quarter, revenue was down 9% year over year but grew 15% over the previous quarter. The main catalyst that could drive the stock higher is improving margins, where its gross profit margin is trending up. The company reported a whopping 385% year-over-year improvement in free cash flow. New CEO Peter Stern is clearly bringing better cost discipline. But Peloton is not out of the woods yet. A business can only improve margins so far before more top-line growth is needed to create sustainable shareholder returns. While Peloton still holds a large member base of more than 6 million, it is not growing. Memberships fell 4% year over year and decreased by 1% over the previous quarter. The stock trades at a price-to-free cash flow multiple of 16, so there could be some upside if Peloton continues to grow free cash flow. But it's unclear how much more free cash flow it can produce to justify sending the stock to $15, or double the current share price.



So, what's the bottom line? The Nasdaq sell-off is a buying opportunity for savvy investors. Chewy and Peloton Interactive are two stocks with massive upside potential, according to Wall Street analysts. But remember, do your own research and stay disciplined. This market is volatile, and you need to be ready to act fast. Don't miss out on these incredible opportunities!

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