Two Stocks to Consider Buying Before They Soar: Toast and Applied Digital

Are you looking for investment opportunities with significant growth potential? Look no further. In this article, we will explore two stocks that Wall Street analysts believe have the potential to soar in the coming year. Toast, a digital technology provider for restaurants, and Applied Digital, a company specializing in AI and data centers, have caught the attention of investors. Let's delve into the reasons behind their projected upside and why you should consider adding them to your portfolio.

Toast: A Digital Technology Provider for Restaurants

Discover the potential of investing in Toast and its implications for the restaurant industry.

Toast, a digital technology provider for restaurants, has caught the attention of investors and Wall Street analysts alike. Despite facing challenges during the recent economic downturn, Toast has continued to generate strong double-digit growth, showcasing its resilience and potential.

In the third quarter, Toast experienced a 37% year-over-year revenue growth, driven by a 40% increase in annualized recurring revenue. The company's focus on the bottom line has paid off, with a significant reduction in losses and the prospect of profitability on the horizon.

Wall Street analysts, including Jefferies analyst Samad Samana, believe that Toast's growth potential is being overlooked. With its platform currently serving less than 12% of the restaurants in the U.S., Toast has ample room for expansion. The stock's recent correction has made it an attractive investment opportunity, with a low valuation and the endorsement of Wall Street.

Applied Digital: Embracing AI and High-Performance Computing

Explore the growth prospects of Applied Digital and its pivot towards AI and high-performance computing.

Applied Digital, formerly focused on blockchain and cryptocurrency mining, has shifted its focus to embrace AI and high-performance computing. This strategic move has positioned the company for significant growth in the coming years.

In its fiscal 2024 first quarter, Applied Digital achieved a remarkable 425% year-over-year revenue growth, driven by the increasing demand for its services. While the company remains in the red, its adjusted operating income shows promise, and analysts are optimistic about its future prospects.

Lake Street analyst Robert Brown predicts hypergrowth for Applied Digital, with a projected revenue run rate of $675 million in the next year. The company's forward price-to-sales ratio suggests that it is currently undervalued, making it an enticing investment opportunity.