2 stocks that analysts say have a chance for a big comeback

Investing in the stock market is not easy, but one of the key elements of success is the right stock selection. Whether you prefer stable blue-chip companies, riskier investments with high potential or dividend stocks, each strategy has its advocates.

Finding hidden opportunities

The popular "buy low, sell high" investment strategy has long been popular among investors. We focus on stocks that have fallen more than 50% in recent months but still have solid fundamentals and strong upside potential. According to Wall Street analysts, the most interesting options include First Solar and Denny's.

First Solar $FSLR

First Solar is a key player in the U.S. solar energy space. The company has been in operation since 1999 and specializes in manufacturing eco-efficient solar modules with thin film photovoltaic cells that represent the next generation of solar technology.

The company reported mixed financial results in Q4 2024. Revenues reached $1.51 billion, up more than 30% year-over-year and beating expectations by $30 million. However, earnings per share were $3.65, missing analysts' expectations by $1.04. The company's shares have fallen 58% from their June high, mainly due to unfavorable international market conditions and changes in U.S. energy policy.

Still, analysts believe in First Solar's long-term potential. For example, Mizuho's Maheep Mandloi gave the stock an Outperform recommendation with a target price of $252, representing a potential upside of 97.5%.

Denny's $DENN

Denny's is a well-known restaurant chain with a breakfast menu available throughout the day. Founded in 1954, the company operates 1,568 restaurants under the Denny's and Keke's brands, most of which are franchised. Denny's is also expanding outside the U.S., particularly into Canada, Mexico, the Philippines and other countries.

In 2023, the company announced plans to close approximately 150 Denny's restaurants and replace them with an equal number of Keke's locations to strengthen its position in the breakfast restaurant market. Despite the move, Denny's stock has fallen 51% over the past year, due to inflation and declining consumer confidence, among other factors.

Financial results for the fourth quarter of 2024 showed sales of $114.7 million, which was $1.34 million less than analysts expected. Earnings per share came in at $0.14, a penny below forecasts. However, Wedbush analyst Nick Setyan believes in the company's potential and credits its ownership of real estate and development of the Keke's brand. He gave the stock an "Outperform" recommendation with a target price of $8.50, suggesting a potential upside of 87%.

Disclaimer: There is a lot of inspiration to be found on Bulios, but stock selection and portfolio construction is up to you, so always conduct a thorough analysis of your own.

Source: Yahoo Finance