2 Soaring Stocks With More Upside Potential to Buy and Hold
SoFi is finally showing that its business model can be profitable, and the stock still has plenty of upside.
10 stocks we like better than Summit Therapeutics ›
Is it worth it to buy a stock after it experiences significant market gains? The answer is, it depends. Some companies don't have much growth fuel left in the tank after a nice run, while others still boast significant upside potential after juicy gains. It's best to stay away from the former, but the investing wisdom according to which we should "buy low" still applies to the latter.
Let's consider two companies that have performed exceptionally well recently but still have excellent long-term prospects: Summit Therapeutics (NASDAQ: SMMT) and SoFi Technologies (NASDAQ: SOFI).
Summit Therapeutics has been on a tear over the past two years thanks to progress with its leading pipeline candidate, ivonescimab. The biotech licensed out this investigational cancer medicine from China-based Akeso Biopharma. Summit Therapeutics owns the rights to the medicine in most regions, including the most lucrative ones for biotech companies: North America and Europe.
Last year, ivonescimab produced excellent results in a phase 3 study in China (where it is approved) for patients with non-small cell lung cancer (NSCLC). The study pitted ivonescimab against the market leader, Merck's Keytruda. Since Keytruda is the world's best-selling drug and NSCLC is one of its most important markets, ivonescimab's potential looks massive.
Although Summit Therapeutics' shares have already soared as a result, the company's future still looks bright. Here are two reasons why. First, Summit Therapeutics is conducting late-stage studies for ivonescimab in the U.S. and is expected to release key data readouts in the next couple of years, which could significantly affect its stock price.
Second, even though NSCLC is going to be a crucial market for ivonescimab's success, the medicine looks like a potential pipeline in a drug. It is being tested across many different types of cancers. Ivonescimab could rack up approvals and label expansions for years to come.
Summit may encounter clinical or regulatory setbacks. It's good to keep that in mind before initiating a position. But the stock could deliver monster results in the next five years if its master plan comes to fruition.
Shares of SoFi -- an online bank -- have more than doubled over the trailing 12-month period. That's an impressive achievement, especially considering the somewhat challenging economic conditions we face. Many fear that President Donald Trump's trade agenda could lead to inflation or a recession. That would affect consumer behavior, resulting in slower loan demand and increased loan defaults, all of which would be detrimental to SoFi.
Despite the risk, the market has been impressed with SoFi's financial results. In the first quarter, the company's revenue increased by 20% year over year to $771.8 million. SoFi's net income dropped by 19% year over year to $71.1 million, but it was well above management's own guidance. SoFi's results were strong across the board, with the company's membership and products also moving in the right direction. That will remain the blueprint for long-term success for SoFi.
First, the number of members on its platform should continue growing. SoFi is an entirely online bank with no physical locations (which allows the company to save on overhead costs). Digital banking is the future, as evidenced by the fact that younger generations are more likely to engage in it than older ones. Legacy banking institutions have adapted, but SoFi is also popular -- it ended Q1 with a record 10.9 million members, up 34% compared to the year-ago period.
Second, SoFi could grow its revenue even without expanding its membership base, by cross-selling additional products to its existing users. The company recorded 15.9 million products in Q1. That means it had, on average, about 1.5 products per member, despite offering many more than that amount.
Third, SoFi has consistently expanded its pool of offerings, which provides other growth opportunities and makes its platform even more attractive to consumers. Although the stock could suffer in a recession, SoFi is well-positioned to perform well over the long run. So, even after its terrific performance in the past year, the stock remains a buy.
Before you buy stock in Summit Therapeutics, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Summit Therapeutics wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $692,914!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $963,866!*
Now, it's worth noting Stock Advisor's total average return is 1,049% — a market-crushing outperformance compared to 179% for the S&P 500. Don't miss out on the latest top 10 list, available when you join .
See the 10 stocks »
*Stock Advisor returns as of June 30, 2025
Prosper Junior Bakiny has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Merck and Summit Therapeutics. The Motley Fool has a disclosure policy.
2 Soaring Stocks With More Upside Potential to Buy and Hold was originally published by The Motley Fool
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
29 minutes ago
- Yahoo
Do you need a 6-figure income to retire early? No — here are 5 money-growing moves for the under-$100K set
Think retiring early is out of reach because you don't make a six-figure salary? It takes careful planning and discipline, but it is still possible. About 60% of American retirees entered their golden years before they turned 65, with a median retirement age of 62, according to the 2025 EBRI/Greenwald Research Retirement Confidence Survey. I'm 49 years old and have nothing saved for retirement — what should I do? Don't panic. Here are 6 of the easiest ways you can catch up (and fast) Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan 'works every single time' to kill debt, get rich in America — and that 'anyone' can do it Still, only one in 10 American retirees retired before they were 55 and about a quarter before they were 60. If you want to join that cohort but don't have a high income, you'll need to make some smart money moves (and a few sacrifices). In general, retiring early means spending less, saving more, investing wisely and finding ways to reduce your living expenses in retirement. We all know this, but what are some practical steps you can take today to get on the road to retiring early? Industry studies have shown that professional financial advice can add up to 5.1% to portfolio returns. But advisors can also help you navigate complex topics such as tax efficiency, retirement withdrawal timing and choosing suitable investments for your goals and risk tolerance. And they can help you stay on track and adjust your plan if necessary. Budgeting may seem too boring to be 'savvy,' but it's a key financial tool. A budget can help you understand your current finances, rein in your spending and shape your financial plan. Tracking your expenditures against your budget can even reveal new possibilities for saving. But you'll need two budgets. After tracking your current budget for a few months, you can use it to estimate your retirement budget (what you'll need to live off once you're retired). This will help determine how much you'll need to save to retire early. You'll want to review this retirement budget periodically and make adjustments as needed. **Read more: No millions? No problem. With as little as $10, here's how you can access this $1B private real estate fund of diversified assets usually only available to major players To retire early, you may need to save more than the 15% that's often suggested. If you want to join the Financial Independence and Retire Early (FIRE) movement and retire in your 30s or 40s, you may need to save up to 75% of your income. Whichever retirement age you're aiming for, you'll need discipline to reach your savings goals — and one way to maintain that discipline is to automate your savings. An easy way to do this is to make 401(k) contributions directly from your paycheck, but you can also set up direct deposit into a high interest savings or investment account. There are several apps that can help you automate your savings, including some that will round up your purchases and put the difference in a savings or investment account. Remember to increase your automated amount if you get a raise. And if you cut out a regular expense such as a subscription or membership to save money, add this amount to your automated payments. It will be difficult to retire early if you're carrying a large balance on a credit card or other high-interest debt. The savviest move is to not carry a balance — but life happens, so if you do have a balance, paying it down should be your No. 1 financial priority (along with building an emergency fund). Paying down a credit card with a 20% interest rate delivers an immediate 20% return, so it might make it easier to do if you think of it as investing. While you want to pay off high-interest debt as quickly as possible, you might want to consult with your advisor before accelerating your mortgage payments. If your mortgage rate is lower than your expected investment return, you may want to invest the money instead, but this decision will depend on your circumstances and preferences. Your biggest asset is likely your stream of future earnings, so to retire early you'll want to maximize this asset. While you could consider a side hustle or second job, look first at your current job and evaluate whether your time and energy might be better spent on developing your career to increase your future income stream. Consider whether you could make more from extra sales, a raise or a promotion — or if it makes more sense to take on a side gig. Retiring early takes planning and dedication — but not necessarily a six-figure income. This tiny hot Costco item has skyrocketed 74% in price in under 2 years — but now the retail giant is restricting purchases. Here's how to buy the coveted asset in bulk Robert Kiyosaki warns of a 'Greater Depression' coming to the US — with millions of Americans going poor. But he says these 2 'easy-money' assets will bring in 'great wealth'. How to get in now Rich, young Americans are ditching the stormy stock market — here are the alternative assets they're banking on instead Here are 5 'must have' items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you? Money doesn't have to be complicated — sign up for the free Moneywise newsletter for actionable finance tips and news you can use. This article provides information only and should not be construed as advice. It is provided without warranty of any kind. Sign in to access your portfolio
Yahoo
an hour ago
- Yahoo
Returns Are Gaining Momentum At Samudera Shipping Line (SGX:S56)
Did you know there are some financial metrics that can provide clues of a potential multi-bagger? Firstly, we'll want to see a proven return on capital employed (ROCE) that is increasing, and secondly, an expanding base of capital employed. This shows us that it's a compounding machine, able to continually reinvest its earnings back into the business and generate higher returns. Speaking of which, we noticed some great changes in Samudera Shipping Line's (SGX:S56) returns on capital, so let's have a look. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. For those that aren't sure what ROCE is, it measures the amount of pre-tax profits a company can generate from the capital employed in its business. To calculate this metric for Samudera Shipping Line, this is the formula: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.096 = US$79m ÷ (US$958m - US$131m) (Based on the trailing twelve months to December 2024). Thus, Samudera Shipping Line has an ROCE of 9.6%. In absolute terms, that's a low return but it's around the Shipping industry average of 8.2%. Check out our latest analysis for Samudera Shipping Line Historical performance is a great place to start when researching a stock so above you can see the gauge for Samudera Shipping Line's ROCE against it's prior returns. If you'd like to look at how Samudera Shipping Line has performed in the past in other metrics, you can view this free graph of Samudera Shipping Line's past earnings, revenue and cash flow. We're glad to see that ROCE is heading in the right direction, even if it is still low at the moment. Over the last five years, returns on capital employed have risen substantially to 9.6%. Basically the business is earning more per dollar of capital invested and in addition to that, 262% more capital is being employed now too. The increasing returns on a growing amount of capital is common amongst multi-baggers and that's why we're impressed. All in all, it's terrific to see that Samudera Shipping Line is reaping the rewards from prior investments and is growing its capital base. And a remarkable 1,191% total return over the last five years tells us that investors are expecting more good things to come in the future. In light of that, we think it's worth looking further into this stock because if Samudera Shipping Line can keep these trends up, it could have a bright future ahead. One more thing, we've spotted 1 warning sign facing Samudera Shipping Line that you might find interesting. While Samudera Shipping Line may not currently earn the highest returns, we've compiled a list of companies that currently earn more than 25% return on equity. Check out this free list here. — Investing narratives with Fair Values Suncorp's Next Chapter: Insurance-Only and Ready to Grow By Robbo – Community Contributor Fair Value Estimated: A$22.83 · 0.1% Overvalued Thyssenkrupp Nucera Will Achieve Double-Digit Profits by 2030 Boosted by Hydrogen Growth By Chris1 – Community Contributor Fair Value Estimated: €14.40 · 0.3% Overvalued Tesla's Nvidia Moment – The AI & Robotics Inflection Point By BlackGoat – Community Contributor Fair Value Estimated: $359.72 · 0.1% Overvalued View more featured narratives — Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
an hour ago
- Yahoo
Trump Admin Insider Blows Lid Off Tariffs: ‘It's All Fake'
A source deeply embedded in the Trump administration's ongoing trade talks accused the Republican president of waging a tariff war for TV ratings. '[Donald] Trump knows the most interesting part of his presidency is the tariff conversation,' the White House insider, who chose to remain anonymous out of fear of reprisal, told Politico. 'It's all fake. There's no deadline. It's a self-imposed landmark in this theatrical show, and that's where we are.' In April, the MAGA figurehead paused his sweeping 'Liberation Day' tariffs to announce a three-month window for the world to negotiate new trade agreements with the United States—or face the full fury of his levies. In a subsequent interview with Time magazine, Trump claimed to have in principle already 'made all the deals' with more than 200 foreign partners, before later suggesting the real number would likely be closer to just a few dozen. Yet ahead of a self-imposed July 9 deadline, only the UK and China have inked relatively limited arrangements, with less than four days now left to go. As global markets brace for the Wednesday deadline, Trump has lately appeared full of tough talk in his public appearances, telling reporters Friday he'd already signed more than 12 'take it or leave it' letters to various countries reminding them of the levies they'll face if a deal is not soon reached, Reuters reported. On other occasions, Truymp appeared to revel in the uncertainty that his tariff regime has created. 'We can do whatever we want,' he said of the deadline during a White House press conference Tuesday, CNBC reported. 'We could extend it, we could make it shorter. I'd like to make it shorter.' That ambivalence apparently has some of the president's allies questioning just how far he's willing to go to net new trade opportunities for the country. 'You have wins. Take them,' as the White House insider put it to Politico. 'You only have to assume he doesn't want to take them because he likes the game too much.' In a statement to the Daily Beast, White House spokesman Kush Desai said 'the hollowing out of American Main Streets and industries by unfair foreign trade practices is not a theatrical show.' Desai added, 'President Trump pledged to use tariffs to level the playing field and restore American Greatness, and the Administration is committed to delivering on this pledge.'
