These stocks gave investors ample gains throughout the year depending on particular market entry and exit points. Now that they are relatively suppressed, is it time to plunge? Even the highly-performing MicroStrategy stock could still be viewed as a major profit-maker, provided that they make strategic moves on time.
Stratasys, Ltd.
Based in Minnesota and Israel, Stratasys Ltd (NASDAQ:) has been leading the 3D printing push for industrial applications, both for prototyping and manufacturing purposes. Local, on-demand manufacturing via 3D printing has great potential to circumvent global supply chain fragility as no new tooling is needed.
This is likely to become helpful if the incoming Trump admin follows through on tariff-based policies to drive federal revenue and boost domestic reindustrialization. For the same reason, Stratasys is highly involved with Israel’s corporate and military sector. Israel is a nation known for many tech startups that need rapid retooling and manufacturing capabilities.
After the reflaming of the Middle East conflict on October 7th, 2023, SSYS stock got a temporary 40% boost by the end of the year. However, the prolonged uncertainty and international backlash took its toll, leaving SYSS stock with a negative 34% yield year-to-date.
Nonetheless, not only would Stratasys benefit from domestic protectionist policies, but the Trump admin is widely expected to offer unconditional military and diplomatic support for Israel. In Q3’s earnings reported on November 13th, the company suffered a $26.6 million net loss amid restructuring efforts to cut annual costs by $40 million.
For fiscal year 2024, Stratasys expects a total net loss within the $90 – $105 million range. At the current price of $9.31, SSYS stock is likely undervalued, taking into account shifting domestic and international policies. If SSYS shares revisit their 52-week high of $14.93, investors could look forward to 60% gains in 2025.
Presently, the median SSYS price target is $11.5 per share, according to 7 analyst inputs. The bottom forecast is higher than the current price at $11, while the high estimate is $12 per share.
UiPath
Since the UiPath coverage in November 2023, UiPath Inc (NYSE:) stock is down from $17.19 to $14.44 per share. Nonetheless, this disruptive automation stock had major ups and downs throughout the year, reaching a 52-week peak of $27.87 per share in February. A return to that level would bring 93% stock gains.
The UiPath valuation conundrum is the following. In an AI hype cycle, investors hurried to stake early positions for fear of missing out (FOMO). However, it takes time for businesses to shift from human-centric to AI-centric solutions. Therefore, investor expectations should adapt to practical adoption timelines.
UiPath’s cloud-based Software-as-a-Service (SaaS) model offers pre-built automation solutions and add-ons designed to streamline that shift. Given that the current PATH stock price is below the 52-week average of $17.14, it seems this is a good re-entry exposure.
In the latest Q3 FY25 earnings report on December 5th, UiPath generated a 9% year-over-year revenue increase to $355 million with a subscription net retention rate (dollar-based) of 113%. Although still suffering a net loss of $10.6 million, it is a 3x improvement over the year-ago quarter.
Having beaten the earnings per share consensus of $0.073 at $0.11 reported, it appears that UiPath is on a path to reclaim its disruptive stock status hype. Based on 17 analyst inputs, the median PATH stock target is $16.2 per share. The bottom forecast of $13 is close to current price level while the top estimate is $19 per share.
In the long run, considering that UiPath offers ready-to-go, automation-based cost-saving solutions, it is likely that this underlying pressure will see PATH stock revisit its February high point of $27.87 per share.
MicroStrategy
In May’s coverage of MicroStrategy Incorporated (NASDAQ:), the company was presented as a likely candidate to hit the $1 trillion market cap milestone in the next three years. The thesis is simple. The USD will suffer continuous devaluation in a central banking system because the Federal Reserve monetizes the government’s excess spending. This is transferred to citizens as inflation, an informal tax to inflate away the unpayable national debt.
A traditional hedge against this process is gold, but gold is neither digital nor offers true scarcity. After all, hardly a month goes by without a newly discovered gold vein. In contrast, offers mathematically precise scarcity while also providing self-custody. And even though it is digital, Bitcoin anchors itself to the physical world via the proof-of-work algorithm that requires energy and hardware assets for computing.
Seeing this dynamic, Michael Saylor’s MicroStrategy leverages USD-denominated debt to accumulate such an appreciating asset. This may be reminiscent of Hugo Stinnes’ gambit, but Saylor is doing exactly the opposite when it comes to asset diversification.
Given that MicroStrategy stock is up 550% in 2024, currently priced at $390.84 per share, the strategy has been highly successful as the stock market’s main leveraged proxy for Bitcoin. Nonetheless, as with every previous cycle, investors should expect massive BTC price corrections ahead. It is at these periods that staking MSTR stock is preferable.
But in the long run, Bitcoin should carry MicroStrategy stock to far greater highs.
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Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our website policy prior to making financial decisions.
