US stocks enjoyed a fantastic 2024, but some names failed to capitalize on this positive sentiment last year.
Analysts at Jefferies say that a few of these companies are well positioned to make a return this year.
Align Technology Inc. and Valvoline Inc. are two companies that have been given a buy rating and already show signs of improvement.
What these two companies have planned for 2025?
Align Technology Inc. (NASDAQ: ALGN).
Align Technology’s fourth quarter earnings missed Wall Street expectations.
The medical device manufacturer provided guidance on full-year revenues, indicating a cautious outlook. They expect only a low-single-digit increase.
Align Technology shares rose 1.0% after the release of the results, suggesting that the stock has bottomed out.
Analysts at Jefferies are bullish about ALGN, not only because a financial report that appeared to be disappointing actually contained “signs of a possible stabilisation in the global case volume.”
Investment firm Align Technology sees a potential upside of about 30% from the current level.
Analysts recommend that you be patient, as the Nasdaq listed firm has an impressive innovation pipeline.
In a recent research note, Align told their clients that the new Invisalign Palatal Expander and next-generation Lumina Scanner will help to drive growth for F25.
International Dental Show, IDS (late March) is the place where this company based in Tempe, AZ will be presenting its latest innovations.
Hedgeye, which included Align Technology Inc on its short list in June, was partly responsible for some of ALGN’s weaknesses last year.
Valvoline Inc (NYSE: VVV)
Jefferies believes that Valvoline, a Lexington-based automotive service company, will be one of the 2024 laggards to make a return this year.
The New York listed firm has already outperformed the benchmark S&P 500 Index in 2025.
Jefferies names VVV as a top choice for 2019 “supported by steadily growing PARC and vehicle miles traveled (VMT) in the industry.”
Valvoline’s stock has been given a buy rating by the firm, and a target price of $49. This suggests a possible increase of 30% over current prices.
Jefferies believes that VVV will improve its share of the market in quick-lubricant industry by 2025 as long as it keeps opening new stores.
Analysts told their clients that the firm’s investment in customer service would also assist with customer acquisition.
The investment firm said that “further tailwinds” from the continued momentum of higher margin service mixes may also drive Valvoline stocks up in the coming months.
Valvoline announced earlier this week that it had purchased Breeze Autocare, formerly owned by Greenbriar. VVV does not pay dividends at the moment, but Align Technologies shares are no different.
The post Two 2024 losers are poised for a comeback could be updated as new information becomes available
