Three Stocks That Should See Big Turnarounds in 2025
In the turbulent waters of the stock market, astute investors are always on the lookout for opportunities that promise robust returns. One of the standout success stories in my portfolio last year was Byrna Technologies Inc. (BYRN), a small-cap manufacturer of non-lethal weapons and ammunition. This small company saw a dramatic rise in its stock price, nearly quintupling in value throughout 2024. With a surge in revenue, Byrna transitioned to profitability, showcasing the vast potential that resides in the right investments. Today, I’ll spotlight a few other companies that have potential to turn around and thrive in 2025.
Bark, Inc. – A Pet Retailer on the Rise
First on the list is Bark, Inc. (BARK), a pet toy and food retailer that has chosen the direct-to-consumer (DTC) sales model while also maintaining a presence in 40,000 retail locations, including industry giants like Walmart and Petco. Bark focuses exclusively on its own branded products, eschewing third-party merchandise on its platforms.
Despite posting losses since its IPO in late 2020, Bark is laying down the groundwork for a comeback. The company is strategically consolidating its websites to enhance cross-selling opportunities, emphasizing e-commerce, and implementing top-funnel marketing strategies to bolster brand visibility. Recent indicators suggest that Bark is on a trajectory for improvement; it’s projected to achieve a positive adjusted EBITDA in its current fiscal year starting April 1, 2024, with hopes of breaking even in the following fiscal year. Notably, the firm has been engaging in stock buybacks and has witnessed increased insider buying, signaling confidence from those in the know. While the stock recently rallied, it still trades below its IPO levels from four years ago, presenting a compelling buying opportunity for investors who stand with American entrepreneurship and corporate resilience.
Viking Therapeutics – A Pharmaceutical Player
Next up is Viking Therapeutics (VKTX), which has faced a challenging market, seeing a staggering 40% drop from its highs last October. Nevertheless, the company’s strategic focus on developing VK2735, a dual GLP-1/GIP agonist, could be a game changer in the pharmaceutical space. This candidate shows significant promise over existing weight-loss therapies, recently showcasing encouraging Phase 2 results.
With a Phase 3 study slated to begin soon, and a promising oral version of VK2735 in the pipeline, Viking has the potential to disrupt the market dominated by injectable leaders like Wegovy and Zepbound. Another asset, VK2809, recently achieved its primary endpoints in a Phase 2b study, targeting the burgeoning non-alcoholic steatohepatitis (NASH) market, which is evolving under the pace of innovation. As Oppenheimer has identified it as one of the logical acquisition targets for 2025, the possibilities are immense. With a market cap under $5 billion, Viking presents a unique value proposition for larger players looking to enter the high-demand GLP-1 market.
Final Thoughts
Investors looking for stocks poised for significant turnarounds in 2025 would do well to consider both Bark, Inc. and Viking Therapeutics. Each company represents not only a potential rebound but also the enduring spirit of American innovation and resilience. By focusing on these key sectors – pet retail and biotechnology – investors can align themselves with companies that are actively adapting to market conditions and consumer demands. As we look forward, it is essential to back the organizations that embrace robust strategies and have the courage to pivot in the face of challenges. In a market susceptible to volatility, let us anchor ourselves to the fundamentals of strong financial principles and conservative investment strategies. Conservative investors who remain vigilant will find opportunities among the noise.
