Lotus Technology Inc. (NASDAQ:LOT) is recognized as one of the most oversold penny stocks to buy according to analysts. Analysts believe there is a 148.45% upside potential for the luxury electric vehicle manufacturer. The company has shown strong operational performance in fiscal year 2024, with a 70% year-over-year growth in vehicle deliveries. Lotus Technology Inc. also launched Hyper Hybrid EV technology, offering a combined range of over 1,100 km. The company aims to increase global deliveries by 20% in 2025.
In the larger context of small-cap stocks, Wellington Management predicts a potential outperformance in 2025 for small-caps compared to large-caps. The trend is supported by factors such as increased narrowness and unsustainable valuations in large-cap stocks, creating a favorable entry point for small and mid-cap indices like Russell 2500 Value and Mid Cap Value. The reduced attention on micro-cap companies offers undervaluation opportunities, as investors shift towards larger equities. Small-cap growth stocks are projected to surpass large-cap earnings growth in 2025, with valuations near multiyear lows. The shift in market dynamics presents potential for accelerated earnings growth for small-caps.
Overall, LOT ranks 7th on the list of the most oversold penny stocks to buy, with analysts seeing significant potential for growth. While there is potential in LOT, the focus on AI stocks may offer even greater promise for higher returns in a shorter time frame.
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