While the broader market struggled through a brutal correction in early 2025, the tech-heavy Nasdaq took an especially nasty beating. The index plunged 8.4% year-to-date, tumbling into correction territory with a stomach-churning 13.7% drop between February 19 and March 13.
Talk about a rough start to the year.
But amid the carnage, some Wall Street analysts are spotting opportunities. They’re particularly bullish on two beaten-down Nasdaq names: Chewy and Peloton Interactive. Yes, the same Peloton that had everyone pedaling nowhere during lockdown. Peloton’s total membership fell 4% compared to the previous year.
Major tech giants like Apple, Alphabet, and Nvidia experienced steep 5% declines during the market selloff.
Evercore ISI has slapped a $47 price target on Chewy, suggesting a 49% upside for the online pet retailer. The company’s sales growth has stabilized at 5% year-over-year, and analysts expect free cash flow to double over the next three years. Experts recommend using stop-loss orders to protect against potential downside risks in volatile stocks like these.
Despite market turbulence, Chewy’s steady growth and projected cash flow gains have analysts wagging their tails with a bullish $47 target.
Not too shabby for a company selling fancy feast and chew toys.
Peloton, meanwhile, is getting even more love from analysts. Argus upgraded the stock to “buy” with a $15 price target – implying a whopping 128% potential gain. The company’s latest results showed 15% revenue growth over the previous quarter and an impressive 385% year-over-year improvement in free cash flow.
Looks like those expensive exercise bikes are finally paying off.
Of course, this optimism comes against a backdrop of broader market turmoil. Trade disputes, geopolitical tensions, and inflation fears have sent investors running for the hills. Global fund managers are dumping U.S. stocks at record rates, preferring cash, gold, and European investments instead.
The market remains historically expensive, even after the correction. Both the S&P 500 and Nasdaq sport price-to-earnings ratios above their historical averages.
But for these two stocks, at least, analysts see significant upside potential – assuming their rosy forecasts pan out. And in this market, that’s about as good as it gets.
