Stocks to buy

7 Stocks With More Upside as Current Rally Gains

With the Federal Reserve committed to containing previously skyrocketing inflation, a sense of urgency and direction may benefit certain stocks with more upside potential. True, this year has already witnessed a solid performance in the market. Under common investing tactics, now may be a time to unwind certain hot players before they grow cold.

Nevertheless, some companies that have already enjoyed upside success this year may still have more room to run. Some of this may come down to the reality that few investors appreciate underlying relevancies. Or in other cases, significant upside catalysts may be lying on the horizon. Either way, investors shouldn’t give up on all ideas just because they outperformed expectations. Below are stocks with more upside potential remaining.

AN AutoNation $143.38
MUSA Murphy USA $270.65
FVRR Fiverr $37.77
MAN ManpowerGroup $85.99
MCD McDonald’s $268.55
OLLI Ollie’s Bargain Outlet $58.17
GFS Globalfoundries $63.11

AutoNation (AN)

Source: Shutterstock

Let’s just get to the most controversial idea first on this list of stocks with more upside potential: car dealership AutoNation (NYSE:AN). Following a solid performance for its fourth-quarter earnings report, AutoNation shares jumped to an all-time high. Indeed, on the Feb. 17 session, AN popped up more than 11% of equity value. Understandably, though, many investors are hesitant about jumping aboard.

Fundamentally, interest rates remain elevated compared to historical norms. Naturally, this dynamic translates to higher borrowing costs. And because the overwhelming majority of new car buyers finance their vehicles, the relatively exorbitant interest rates crimp demand for high-ticket items. Therefore, AN seems a risky bet.

Nevertheless, it’s really one of the stocks with more upside remaining because the consumer doesn’t decide when to buy; the car does. According to the Wall Street Journal, the average age of vehicles on U.S. roadways hit a record 12.2 years. Invariably, anything mechanical will eventually break down. Thus, AN remains surprisingly relevant despite its massive upswing.

Murphy USA (MUSA)

Source: Shutterstock

Fundamentally, Murphy USA (NYSE:MUSA) represents an easy idea for stocks with more upside remaining. To be fair, it’s been up only slightly since the Jan. opener. However, in the trailing year, MUSA enjoyed a blistering performance, gaining nearly 50% of equity value. Therefore, the common assumption may be to trim some exposure. In my opinion, though, it still has legs.

Primarily, social normalization trends should bolster MUSA stock. More than a few major enterprises have called an end to remote operations. Naturally, employees who previously benefitted from work-from-home arrangements have cried foul. Aside from the utter foolishness of drawing attention to one’s self during a sensitive economic cycle, employers no longer have to play ball. Thus, the return of the morning commute should cynically bolster MUSA. Also, keep in mind that Wall Street analysts peg MUSA as a consensus moderate buy. Further, their average price target stands at $314.25, implying nearly 15% upside potential.

Fiverr (FVRR)

Source: NicoElNino /

On a related note to the bullish thesis for Murphy USA above, Fiverr (NYSE:FVRR) should be an intriguing idea. Basically, Fiverr may see an influx of independent professionals from two categories: the first involves those who got laid off. The second may stem from those who voluntarily quit because their employers asked them to come back to the office.

Even if Fiverr doesn’t directly benefit from the rumblings in the workforce, it plies its trade in an incredibly relevant sector. According to Business Research Insights, the global gig economy reached a valuation of $355 billion in 2021. According to experts of the research firm, the segment may jump to $873 billion by 2028. This would represent a compound annual growth rate (CAGR) from 2022 to the forecasted period of 16.18%.

Presently, Wall Street analysts peg FVRR as a consensus moderate buy. To be fair, their average price target is $41.40, implying only 5.21% upside potential. Still, because workers really want the gig lifestyle, FVRR may jump even higher, making it one of the stocks with more upside potential.

ManpowerGroup (MAN)

Source: Halfpoint/

While the gig economy should attract a significant amount of interested participants because of workplace normalization trends, the majority of worker bees will probably end up towing the corporate line. Thus, their means of resistance may equate to seeking another job. If so, ManpowerGroup (NYSE:MAN) may be one of the stocks with more upside potential.

Since the start of the year, shares of the staffing agency gained nearly 5% of equity value. However, the rash of layoffs that began last year and continues this year should cynically bolster the enterprise. Further, as the layoffs pick up in intensity, workers will be more desperate to secure whatever’s available. In other words, the bravado will be gone as fewer opportunities in for instance the technology space materializes.

Further, MAN makes an intriguing idea from a fiscal perspective. Currently, the market prices MAN at a forward multiple of 11.96. As a discount to earnings, Manpower ranks better than 63.82% of the industry. In addition, shares trade at 0.24 times (trailing) sales. For this metric, Manpower ranks better than 90.71% of sector peers. Thus, it’s one of the stocks with more upside potential.

McDonald’s (MCD)

Source: Shutterstock

As a well-established enterprise, no one expects McDonald’s (NYSE:MCD) to deliver the blistering gains of a tech upstart. That said, it performed relatively well recently. In the trailing year, shares of the fast-food giant gained nearly 7%. In contrast, the benchmark S&P 500 index slipped more than 5% during the same period. Moreover, MCD gained over 2% since the January opener.

That might have some folks considering a trimming of exposure. However, MCD in my view easily ranks among the stocks with more upside potential. As stated earlier, major enterprises have begun recalling their employees. Further, with an uncertain economic backdrop – especially with the mass layoffs – McDonald’s offers an enticing opportunity.

Basically, the Golden Arches represents a beneficiary of the trade-down effect. For instance, rather than buying coffee at an overpriced coffee shop, people can go to McDonald’s instead: it’s the same caffeine, only cheaper. Also, Wall Street analysts peg MCD as a consensus strong buy. Their average price target stands at $294.17, implying 9% upside potential. Therefore, it’s one of the stocks with more upside remaining.

Ollie’s Bargain Outlet (OLLI)

Source: Champiofoto /

With skyrocketing inflation devastating the consumer in 2022, discount retailer Ollie’s Bargain Outlet (NASDAQ:OLLI) made plenty of sense for investors. Unlike discount-dollar stores, Ollie’s specializes in off-price name-brand products. It’s an attractive proposition for households looking for a deal. As a result, OLLI stock gained more than 41% in the trailing year.

Since the start of the year, OLLI also skyrocketed to the tune of 24%. Naturally, such a powerful performance has folks wondering if it’s time to sell. For instance, while OLLI garnered a moderate buy consensus view among covering analysts, their average price target of $55.62 implies 4% downside. Despite a less-than-encouraging take on OLLI, it may still be one of the stocks with more upside remaining.

Fundamentally, the rising number of layoffs suggests that people are beginning to hurt substantially. Therefore, OLLI should gain relevancy, not loses it. Moreover, while the Fed may be committed to killing inflation, it’s not going to do so overnight. Again, people are still hurting, which invariably lifts OLLI’s upside narrative.

GlobalFoundries (GFS)

Source: Shutterstock

If you’ve been following the latest geopolitical headlines, GlobalFoundries (NASDAQ:GFS) makes plenty of sense. A semiconductor contract manufacturing and design company, GlobalFoundries benefits from the push to promote domestic chip manufacturing. Obviously, the coronavirus pandemic exposed the poor decisions behind critical resource dependency in China. Logically, then, GFS ranks among the stocks with more upside remaining.

Recently, CNN reported that China would cross a political red line by providing lethal aid to Russia. If so, such an action could lead to a new cold war, this time between the U.S. and China. Further, this deteriorating relationship bodes poorly for tensions involving Taiwan. It’s an all-around ugly situation, which further emboldens the case for GlobalFoundries.

If geopolitics wasn’t convincing enough, then investors should turn to Wall Street. There, covering analysts peg GFS as a consensus strong buy. As well, their average price target stands at $78.83, implying over 17% upside potential. In many ways, GFS sells itself as one of the stocks with more upside potential.

On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare.