We recently compiled a list of the 12 Best Multibagger Stocks to Buy Right Now.In this article, we are going to take a look at where VEON Ltd. (NASDAQ:VEON) stands against the other multibagger stocks.
The US equities continued their upward movement in 2024 and fueled the S&P 500 to record highs. Much of this optimism in the broader market was backed by the strong US economy and the Federal Reserve’s stance to cut interest rates. As per PBS News, 2024 saw several familiar winners, like big technology stocks. These stocks got even bigger due to continuous increases in their stock prices. Apart from certain tech giants, strong momentum was also seen in Bitcoin, gold, and other investments.
Performance of US Equity Markets in 2024- A Recap
Ameriprise Financial reported that 2024 had a strong start, with the S&P 500 Index concluding the Q1 on a high note due to a healthy US economic backdrop, moderating inflation, improvement in profit conditions, and anticipations of rate cuts from the US Fed.
The strong growth momentum continued in Q2 as the S&P 500 Index saw its strongest three-quarter run since mid-2021. Ameriprise Financial highlighted that an AI boom again drove healthy gains throughout IT and communication services. However, increased rates and a pause by the US Fed capped broader market gains. In September, the US Fed reduced its policy rate for the first time since 2020, concluding its aggressive rate-hiking cycle to control inflation. Therefore, it began a new monetary policy stance that supported economic growth and the labor market. Additionally, since the election, investors’ confidence has been further boosted towards risky assets, including equities.
For the S&P 500, J.P. Morgan Research projects a price target of 6,500 next year, with EPS of $270. The US is expected to remain a global growth engine with the expansionary business cycle, healthy labor market, broadening of AI-associated capital spending, and the prospect of strong capital markets and dealmaking activity.
Furthermore, BlackRock sees several factors expected to support stocks in 2025. The decisive election result removed key uncertainty hanging over the broader US market. The rally that was seen after the results might continue into the start of 2025 primarily because of prospects of tax cuts and deregulation throughout key industries. While the impact of some policies remains uncertain, history has a long-term record of positive returns in 1st year of a Presidential term. The firm also believes that earnings and valuations hint at healthy potential for a continued broadening of the market. Its analysis of the S&P 500 data reflects that earnings for Mag 7 stocks outperformed the broader market by 37% in 2023. This earnings gap was narrowed across 2024. Now, it expects it to decline to 7.5% in 2025.
Our Methodology
To list the 12 Best Multibagger Stocks to Buy Right Now, we used a screener to shortlist the stocks that have gained over 100% over the past year and have healthy average upside potential. Finally, the stocks are arranged in ascending order of their average upside potential, as of 30th December 2024. We also mentioned the hedge fund sentiment around each stock, as of Q3 2024.
At Insider Monkey we are obsessed with 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).
A businessperson in the boardroom discussing mobile internet plans.
VEON Ltd. (NASDAQ:VEON) is a digital operator, that offers connectivity and internet services to corporates and individuals in Pakistan, and other countries. The company’s digital services focus on developing and delivering digital products, including financial services, content streaming, and e-commerce platforms.
VEON Ltd. (NASDAQ:VEON)’s growth trajectory is expected to be aided by its focus on digital services expansion. Direct digital revenues are revenues garnered through digital financial services, entertainment services, health care services, advertising, super apps, and enterprise services. These have been fueling additional revenue streams like advertising revenues, in-app purchases, interest income, and also additional subscriber revenues.
While these revenues are not included in VEON Ltd. (NASDAQ:VEON)’s telecom business, they made up ~11% of the total revenues in the first nine months of 2024. Diversification into multiple digital verticals enables the company to serve unmet market demand and expand its customer base, reducing dependency on a single revenue stream. VEON Ltd. (NASDAQ:VEON)’s investments in enterprise digital services including AdTech, cloud services, and software development have been paying off, positioning the company to seize new market opportunities.
Moving forward, VEON Ltd. (NASDAQ:VEON) is committed to enhancing its digital offerings and expanding its presence in key verticals, fueling growth and delivering value to its shareholders. Analysts at Benchmark assumed coverage on the shares of VEON Ltd. (NASDAQ:VEON) on 12th November. They gave a “Buy” rating and a $48.00 target price.
Overall VEON ranks 8th on our list of the best multibagger stocks to buy right now. While we acknowledge the potential of VEON as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for a deeply undervalued AI stock that is more promising than VEON but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
