2 Nasdaq stocks to buy before it surges 102%, according to select Wall Street analysts

The Nasdaq Compositewhich tracks the performance of more than 3,000 stocks listed on its exchange, it’s been a wild ride so far this year. After climbing as much as 24 percent in early July, the widely watched index fell into correction territory earlier this month, down 13 percent from its peak before paring losses last week.

This downturn has some investors wondering if the market’s bull run is over. However, many on Wall Street believe this is a temporary situation. US Bank Wealth Management chief investment officer Eric Freedman isn’t fazed and thinks there’s an added upside ahead. “We still think it’s a great time to be investing,” he wrote. The analyst went on to point out that “drawbacks of 5% to 10% or more in a given year are not unusual.”

With that as a backdrop, there are some top Nasdaq stocks that still have plenty of room to run and could rise as much as 114%, according to select Wall Street analysts.

Image source: Getty Images.

CrowdStrike Holdings: Implied Up 71%

Cyber ​​security specialist CrowdStrike Holdings (CRWD 0.79%) made headlines this year, but not in a good way. The company released a software update that was stopped Microsoft Windows, the first domino to fall in a global technology outage that hit banks, hospitals, and airlines, among many others.

The fallout that followed was embarrassing, to say the least. During the DEF CON hacker convention earlier this month, CrowdStrike received the Pwnie award for “most epic fail” for causing worldwide IT disruption. The company’s president, Michael Sentonas, personally accepted the award, acknowledging the company’s mistake. The move was called “a public relations victory and a master class in crisis management” by Jeremy Foo, CEO of public relations firm Elliot & Co.

CrowdStrike also has a long history of growth, as evidenced by recent results. In the first quarter of fiscal 2025 (ended April 30), revenue rose 33% year-over-year to $921 million, driven by strong annual recurring revenue (ARR). That suggests CrowdStrike still has gas in the tank, though we’ll have to wait until the company reports its second-quarter results later this month for confirmation.

CrowdStrike’s very public faux pas aside, a surprising number of investment banks are still bullish on the stock, with Oppenheimer leading the way. While acknowledging near-term pressure on the stock, analysts “remain positive on the longer-term opportunity.” As such, they maintained their Outperform rating and $450 price target. This represents a potential upside of 71% from Friday’s closing price.

Moreover, DA Davidson analyst Rudy Kessinger recently noted, “(CrowdStrike) will quickly regain their position and momentum given their still-strong reputation and best-in-class cybersecurity platform.”

According to IT news site CRN, the vast majority of CrowdStrike’s existing users plan to stay. Industry observers cite the company’s world-class cybersecurity solutions and its subsequent response to the outage. Wall Street clearly agrees. Of the 52 analysts who issued an opinion on the stock in July, 49 (or 94%) rate the stock a buy or strong buy and none recommend for sale.

Finally, CrowdStrike’s forward price-to-earnings-growth (PEG) ratio, which takes into account the company’s impressive growth trajectory, is 1.88, according to S&P Global Market Intelligence. Any number below 1 indicates an undervalued stock, but for a company like CrowdStrike, which is still young and growing explosively, this leaves plenty of room for pleasant earnings surprises.

Baidu: 102% Implied Growth

Another Nasdaq stock with a big upside, according to Wall Street, is Baidu (BIDU 3.23%). The company is a tech titan in China and the search leader, often called the “Google of China.” According to internet statistics aggregator StatCounter, Baidu dominates the internet search landscape in its home country and controls more than 52% of the market.

What gives Baidu an advantage is the seemingly endless supply of consumer information provided by its search business. This, in turn, provides the data needed to effectively target its digital advertising, the cash cow of its business.

However, Baidu’s biggest opportunity is arguably generative artificial intelligence (AI). Ernie Bot 4.0, which CEO Robin Li describes as “China’s most powerful large language model,” rivals OpenAI’s GPT-4 capabilities.

The company has invested heavily in AI despite a weak economy that has hurt recent results — and therein lies the opportunity. In the first quarter, Baidu’s total revenue rose just 1 percent year-on-year to $4.4 billion, although its earnings per share (EPS) fell 6 percent to $2.07. While Baidu notes that online marketing will remain the company’s “bread and butter” for a while, management believes that AI will drive the company’s top and bottom line growth well into the future.

One Wall Street analyst believes Baidu’s future will come sooner rather than later. Reference analyst Fawne Jiang maintains a $180 price target and a buy rating on the stock. This represents a potential upside of 102% from Friday’s closing price. The analyst notes that the first quarter is historically Baidu’s weakest in terms of digital ad revenue, but the company’s AI cloud business is helping to pick up the slack.

There is a growing chorus on Wall Street that shares this view. Of the 35 analysts who provided an opinion on the stock in July, 29 (or 83%) rated it a buy or strong buy, and none recommended a sell.

Finally, Baidu’s stock is selling for a song at just 12 times earnings, with very little leverage for future growth. Even a slight pick-up in China’s economy could spark digital ad spending, sending the stock higher.