We recently compiled a list of the 11 Reddit Stocks with Biggest Upside Potential. In this article, we are going to take a look at where Luminar Technologies Inc. (NASDAQ:LAZR) stands against the other Redditor-approved stocks.
Paul Hickey, Bespoke co-founder, together with Dana D’Auria, Envestnet co-chief Investment Officer, joined CNBC’s ‘Closing Bell: Overtime’ on November 12 to discuss the market’s reaction to the election results and earnings. Paul Hickey believes that the AI bull market is likely to continue now.
This recent conversation centered around the key forces to watch in the current political and economic landscape, particularly in light of potential energy impacts from Ukraine, shifts in Middle Eastern policies, and possible market effects from trade policies with China. Hickey thinks that as President-elect Donald Trump’s cabinet begins to take shape, it will provide clearer insights into future expectations. He emphasized that while election results can lower barriers to the market and reduce speed bumps, their impact is often overstated. He notes that over the past 16 years, the market has shown strong performance under different administrations, with annualized returns of 16.3% during both Barack Obama’s and Donald Trump’s first terms, and 14% under Joe Biden. This consistency, according to Hickey, suggests that market returns have remained relatively stable despite varying political landscapes.
The conversation also highlighted the ongoing AI bull market, which has been broadening since the summer and is expected to continue. The S&P 500 recently closed above 6,000, reflecting positive momentum in the markets, including gains in the NASDAQ. There was a discussion about how a sweeping victory for one party could have been perceived as detrimental to equities; however, Republicans achieved this outcome and equities responded positively. To maintain this momentum, D’Auria suggested that Republicans might need to exercise more fiscal responsibility. The implication is that a single party cannot implement all its plans without consideration of fiscal implications.
D’Auria thinks that as tax cuts from 2017 are likely to be extended under Republican leadership, inflation concerns may arise due to higher tariffs and increased government spending. The Republican stance thus far has been viewed as pro-business, which is reflected in current market performance. However, a potential challenge lies ahead; she is of the idea that stocks are now being priced with expectations of a low regulatory environment. This regulatory landscape will be crucial for sustaining market growth moving forward.
As the market continues to react positively to political developments and the ongoing AI bull market, investors should consider focusing on stocks with significant upside potential.
Methodology
We sifted through threads to compile a list of 30 trending stocks with high upside potentials. We then selected the 11 stocks with the biggest upside potential according to analysts. The stocks are ranked in ascending order of their analysts’ upside potential.
A factory worker using an ultra-sensitive pixel-based sensor while working on an automobile.
Luminar Technologies Inc. (NASDAQ:LAZR)
Average Upside Potential as of November 11: 85.19%
Luminar Technologies Inc. (NASDAQ:LAZR) is a technology company that develops vision-based LiDAR and machine perception technologies, primarily for self-driving cars. It also develops advanced technologies like specialized chips and lasers.
The company has a strong focus on growing partnerships with global automakers. Volvo Cars recently deepened its relationship with Luminar Technologies Inc. (NASDAQ:LAZR). Building on the successful launch of the Volvo EX90 equipped with this company’s LiDAR, Volvo has chosen it as standard equipment for an additional vehicle model. In Q3 2024, it successfully delivered a significant amount of product for the Volvo EX90, exceeding the combined shipments of the previous 3 quarters. Additionally, with global deliveries underway, Volvo is expanding the EX90’s reach beyond the US market.
It also secured a new advanced development contract with a prominent Japanese automaker. This collaboration focuses on integrating the company’s LiDAR technology and developing new software capabilities for the automaker’s next-generation advanced driver-assistance system. It further underscores its position as a key player in enabling future ADAS and autonomous driving systems.
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Disclosure: None. This article is originally published at Insider Monkey.
