The S&P 500‘s been flying higher over the past couple of years. Yet despite some companies mirroring the index in hitting all-time highs, it doesn’t mean that everything’s overvalued. In fact, some firms have analysts’ forecasts anticipating large moves in the coming year. Here are two I’ve spotted.
The comeback king
The first is The Trade Desk (NASDAQ:TTD). The stock’s down a whopping 71% over the past year, but analysts are predicting a comeback.
For example, at a current price of $35, the average 12-month target price from analysts is $59. There are a dozen with a target price of $70 or higher, reflecting a 100% move from the current price. The highest is from BMO Capital Markets, with a call at $98, and the lowest is from Wedbush at $40.
Let’s address the share price fall first. It’s not really due to a single issue, and it’s important to note the company’s still growing. However, the pace of growth has slowed, prompting some investors to adjust their expectations. Further, it’s facing tougher competition from big tech firms that have deeper pockets to try to grab market share.This remains a risk going forward.
Finally, I’d argue the stock was overvalued in the past, and this adjustment’s healthy in making it a much fairer valuation.
Looking ahead, I think the company could do well as its sector’s growing rapidly. In short, it helps advertisers buy ads across the internet. It’s well-positioned in key areas, such as ads on streaming platforms, which are lucrative right now.
At a broader level, I’ve read that some expect the US economy to outperform this year. If that’s the case, advertising spend should increase, as it’s a very cyclical sector.
Chartering the course
Another idea is Charter Communications (NASDAQ:CHTR). Over the past year, the stock’s down 45%. The telecoms company has struggled due to intensifying competition from fibre builders and 5G providers. This has eroded its pricing power, with reports showing unexpected losses in high-margin broadband subscribers.
In terms of price targets, certain brokers are predicting as high as $450, while other major contributors, including Citi, target over $300. Given that the stock currently trades at $190, there’s potential for serious gains if the forecasts prove accurate. The lowest target I can see is $180 from Morgan Stanley.
Of course, no one has a crystal ball. The brokers and analysts are well-informed, but they can still make mistakes when forecasting a company’s performance.
One key reason being flagged as to why the stock could outperform is that it has heavily invested in upgrading its network. As of 2026, peak capital spending has passed. This should translate to better free cash flow, which can support dividends or debt reduction.
Overall, I think both companies are worth considering for investors as potential turnaround plays for the year ahead.
