2 Great Stocks to Buy Now for at Least 30% Upside: AMD, DECK

The somewhat hot inflation data on Wednesday didn’t move the market. Wall Street was content to hold its ground and chop around the 50-day moving average.The sideways start to 2025 has helped cool an overheated stock market. But it is unclear what will move the market next and if more selling is around the corner.That said, a handful of strong companies have been hit hard to start 2025 that investors might want to consider buying for big long-term upside. The two stocks we look at today (Advanced Micro Devices and Deckers Brands) are trading 45% and 30% below their respective highs.  AMD Is Down 45%: Is the Chip Stock and Nvidia Rival a Must Buy?Advanced Micro Devices AMD stock slipped after it posted soft Q4 data center revenue and offered disappointing guidance on February 4. The drop is part of a 47% tumble from the semiconductor company’s March 2024 records as Wall Street backed off its huge bet that AMD was ready to challenge its much larger rival Nvidia in the artificial intelligence chips business.Despite the dive, AMD has crushed the Tech sector over the last decade. More importantly, it reached heavily oversold RSI levels and is attempting to find support at a key long-term moving average.Let’s dive a little deeper into the details of why AMD looks a like a must-buy tech stock.Image Source: Zacks Investment ResearchAMD is a CPU and a GPU maker that grew its revenue from $6.7 billion in 2019 to $25.8 billion in 2024, benefitting from the expansion of data centers, gaming, PCs, and more. AMD remains far behind AI chip leader Nvidia NVDA. But being second best in the AI chips race is hardly a bad place to be considering the long-term upside. AMD grew its 2024 revenue by 14% YoY—boosted by 94% data center segment expansion—and its adjusted earnings by 25%.Image Source: Zacks Investment ResearchAMD provided ‘disappointing’ guidance on February 4, with its FY25 ESP estimate down 6% and FY26’s 4.5% lower. AMD lands a Zacks Rank #3 (Hold).Even with AMD’s downbeat outlook, the semiconductor company is projected to grow its revenue by 24% this year and 18% in FY26 to reach $37.66 billion. AMD is expected to boost its EPS by 39% and 31%, respectively to jump from $3.31 in FY24 to $6.00 in 2026. AMD is streamlining its business to cut costs where needed while “investing aggressively in AI and innovation” in 2025.The AI chip stock’s average Zacks price target has slipped as Wall Street recalibrates its outlook, but it still offers 34% upside from the roughly $112 a share it traded at on Wednesday. Better yet, AMD trades 47% below its March 2024 records even though it has skyrocketed 3,400% in the past 10 years to blow away Tech’s 320%.Image Source: Zacks Investment ResearchAMD stock is attempting to find support at its 200-week (and 50-month) moving average while trading at some of its most oversold RSI levels of the past decade. AMD trades at a 33% discount to its five-year median, 65% below its highs, and nearly in line with Tech at 27.2X forward earnings.Buy This Market-Crushing Growth Stock Down 30% from Its Highs?Deckers Brands DECK is the footwear and apparel firm behind UGG, HOKA, Teva, and others. The company’s growth has been staggering recently, averaging 19% sales and 32% earnings growth in the trailing four years.Deckers Brands is much smaller than Nike NKE and others, but the steady expansion of UGG, Teva, and more recently, HOKA, helped DECK stock skyrocketed 6,700% over the past 20 years vs. Nike’s 560% run and its Sector’s 560%. The company’s direction-to-consumer expansion has helped improve margins, sales, and earnings.  The success of HOKA and its disciplined expansion approach have helped DECK jump 205% in the past three years to crush the market and Nike. Investors who missed Deckers’ big run have a chance to buy it at a far more appealing price and valuation after it tumbled 30% following its Q3 FY25 earnings release on January 30.Image Source: Zacks Investment ResearchDeckers makes niche footwear and accessories for outdoor recreation and other lifestyle-related activities. Decker sells products under four categories—UGG, HOKA, Teva, and Other (Koolaburra and AHNU).UGG and Teva have been standout brands for decades. Neither UGG or Teva compete against many of the biggest companies such as Nike given their relatively unique offerings (rugged sandals and comfy, style-focused boots).Image Source: Zacks Investment ResearchDeckers bought little-known high-end running shoe HOKA in 2012. Since then, the running shoe brand has transformed into a heavyweight in the industry, eating away market share from Nike and many others. Deckers has slowly rolled out HOKA and been selective in its retail partnerships. Hoka, DECK’s second-largest brand, posted a compound annual growth rate of roughly 50% over the last four years. Deckers grew its Q3 FY25 revenue by 19% and earnings by 17%, with its gross margin up to 60.3% vs. 58.7% in the year-ago period. Despite posting another record quarter and beating on the bottom line, investors were disappointed by HOKA’s 24% sales growth. Deckers’ FY25 and FY26 earnings estimates have jumped since its Q3 release on January 30 to extend its massive run of upward earnings revisions and land DECK a Zacks Rank #1 (Strong Buy).Image Source: Zacks Investment ResearchDeckers is projected to grow its revenue by 15% in FY25 and 10% in FY26, adding $1.2 billion to the top-line vs. FY24 to reach $5.45 billion. Meanwhile, the footwear giant is projected to grow its earnings by 20% and 12%, respectively. DECK has topped our bottom-line estimates by an average of 37% in the trailing four quarters.DECK’s Nike and market-crushing run over the past 20 years includes a 1,000% climb in the past decade to 5X the S&P 500. Deckers is still up 120% in the last 24 month even though it tumbled 30% after its January 30 release. DECK slipped below its 50-week and to its most oversold RSI level since its drop during the last bear market in 2022.The stock might face more selling, but traders could step in as DECK closes in on its levels before its massive gap up in May 2024. Deckers also trades 42% below its average Zacks price target.Image Source: Zacks Investment ResearchThe selling, coupled with its earnings growth outlook, has Deckers trading at a discount to its sector at 24.4X 12-month earnings vs. 25.6X even though DECK is up 1,000% in the last 10 years vs. Retail-Wholesale’s 190%. DECK boasts a stellar balance sheet, with $2.2 billion in cash and equivalents vs. $1.3 billion in total liabilities and zero debt.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Advanced Micro Devices, Inc. (AMD): Free Stock Analysis Report NIKE, Inc. (NKE): Free Stock Analysis Report NVIDIA Corporation (NVDA): Free Stock Analysis Report Deckers Outdoor Corporation (DECK): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks