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 Wheels Up Experience Inc. (NYSE:UP) 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.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
An aerial shot of a busy airport, showcasing the private aviation services of the company.
Wheels Up Experience Inc. (NYSE:UP)
Average Upside Potential as of November 11: 1512.09%
Wheels Up Experience Inc. (NYSE:UP) provides private aviation services, offering membership programs for individuals and businesses in the US, and is one of the largest private aviation companies in the world. It offers a complete global aviation solution with a large, modern, and diverse fleet, backed by an uncompromising commitment to safety and service.
The company reported stable third-quarter results, with revenue of $194 million, which was sequentially flat. It’s actively modernizing its fleet with newer, more efficient aircraft like the Phenom and Challenger, which will reduce operating costs and improve operational reliability.
To accelerate the transition process, the company acquired a fleet of 17 Phenom jets from GrandView Aviation. This acquisition will make Wheels Up Experience Inc. (NYSE:UP) the largest provider of on-demand Phenom aircraft globally. It plans to gradually phase out its older jets and replace them with the new Phenom and Challenger aircraft over the next three years.
This includes transitioning to Embraer Phenom 300 and 300E jets. This move will consolidate three different fleets into one, simplifying operations and reducing costs. Additionally, they plan to replace their Citation X fleet with Bombardier Challenger 300 and 350 aircraft while keeping their King Air fleet.
With a strong financial position and a focus on operational excellence, Wheels Up Experience Inc. (NYSE:UP) is well-positioned to capitalize on the growing demand for private aviation and achieve sustainable growth in the future.
Overall UP ranks 1st on our list of the Redditor-approved stocks with biggest upside potential. While we acknowledge the potential of UP as an investment, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than UP but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.
Disclosure: None. This article is originally published at Insider Monkey.
Hedge Fund Resource Center