Five High-Risk Stocks That Could Soar by 2025

A Note From Eric: As you may be aware, Tom Yeung joins me weekly here at Smart Money to provide insight on markets and investment trends. If you’re a paying subscriber, you might also recognize his contributions to Fry’s Investment Report, where he delivers our Tuesday updates.

What you might not realize is that Tom also writes every Sunday for InvestorPlace Digest… a daily summary from my publisher featuring our team’s insights.

In the spirit of Thanksgiving, I’d like to share one of Tom’s Digest pieces with you. He discusses five speculative investments that offer turnaround potential for 2025. Take it away, Tom…

Many of you will know that I am a relatively conservative investor.

Focusing on long-term profitability, I believe cash flow is essential. There’s nothing wrong with earning 10% dividends from a quality stock.

However, at times, the growth potential becomes too compelling to ignore. Back in February, I mentioned that Nvidia Corp. (NVDA) could be valued at a split-adjusted $160 by 2027. Since then, its stock has surged from $72 to $144.

Similarly, the hype around Dogecoin (DOGE-USD) in 2021 led me to suggest investing $500 to speculate on its rise from $0.10, which eventually peaked at $0.64.

Several investors have built careers by making high-volatility investments.

Take Jonathan Rose, our options expert at Masters in trading. He has helped followers achieve returns of 16%, 48%, 156%, 545%, and even 1,306% in under seven hours.

His approach involves trading options that expire today, rather than those scheduled for months or years ahead. These “zero-day options” are among the fastest-growing segments of the financial market.

Remarkably, he executes these high-risk trades while minimizing potential losses.

Recently, Jonathan hosted a One-Day Winners Live Summit, offering a free masterclass. Attendees learned his five-step strategy to find one-day winning trades. It’s still possible to catch the recording of this session.

To watch, just click here.

Now, allow me to share my five speculative stocks for 2025. These investments carry significant risks, and you could potentially lose your entire investment.

Yet, for those willing to chase extraordinary returns, these stocks represent some of the best risk-adjusted opportunities for the upcoming year.

The Debt-Heavy Equity Stub

Some companies are deemed risky due to their low equity relative to their substantial debt. For instance, if a firm has only $1 in equity for every $4 in debt, a mere 10% rise in enterprise value could lead to a 50% increase in stock prices.

This describes Sabre Corp. (SABR) today.

Sabre is among the top three operators of the Global Distribution System (GDS), the computerized network that connects airline and hotel reservations. It allows travel websites like Google Flights and Kayak to display real-time flight availability.

On the upside, there are no viable competitors to the GDS system. The International Air Transport Association (IATA) attempted to launch a rival product a decade ago. However, its decentralized structure proved too slow, requiring contact with every airline for bookings. As a result, GDS companies enjoy high profit margins without any substantial competition.

During the mid-2000s, private equity firms heavily leveraged companies like Sabre, expecting to generate high returns while managing low-interest repayments. Initially, this model worked well until the Covid-19 pandemic struck.

Overnight, Sabre’s share price plummeted from the $20-$30 range to single digits, currently trading at $3.60. With profits dwindling, large interest payments have further strained its financial health.

However, travel demand is rebounding. According to IATA, air traffic surpassed pre-pandemic levels earlier this year and is projected to increase by another 8% in 2025. Sabre reported booking revenues rising nearly threefold since 2020.

The company is now on track to manage its $500 million in annual interest payments. Analysts predict Sabre will generate $86 million in net income next year, a sharp contrast to a $57 million loss in 2024.

This newfound profitability could enable Sabre to pay off maturing debts and refinance others at better rates. Historically, transitioning from losses to profits tends to signal positive trends, and Sabre is positioned to achieve this.

Three Promising Turnarounds

Additionally, there are others that present turnaround potential for 2025. Here are three companies to watch closely…

1. Stratasys Ltd. (SSYS) operates as a leader in 3D printing out of Minnesota. Over the last five years, it has acquired key players like RPS for stereolithography and XAAR for powder-based printing, expanding its technological edge.

Stratasys’s F3300 printer is one of the fastest in its price category, and while 2024 is expected to be sluggish, analysts forecast a major growth comeback. The company’s net profits are projected to soar tenfold to $26 million next year.

If President Trump were to impose 20% tariffs, American manufacturers might be compelled to turn to domestic suppliers, potentially further boosting Stratasys’s profits. Compared to competitors like 3D Systems Corp. (DDD), Stratasys shows better profitability, reinforcing the case for investment during its turnaround phase.

2. Evolv Technologies Holdings Inc. (EVLV) recently took a hit, with shares falling 50% after announcing an internal investigation into its accounting practices. High-profile managers recorded $4 million to $6 million in revenue prematurely.

This situation now creates a unique chance to invest in a promising tech firm.

Evolv develops AI-powered scanning gates capable of detecting concealed weapons. Appearing in hundreds of venues like stadiums and schools, these gates allow individuals to walk through without removing metal items, drastically speeding up the process compared to traditional detectors. Their technology mirrors that used in airports today.

The possible introduction of new regulations regarding concealed weapons may further increase demand for Evolv’s products.

The unique challenges and the urgent need for security solutions suggest that opportunities in this sector are ripe for investment.