Nasdaq Sell-Off: 2 Stocks With 49% to 128% Upside, According to Select Wall Street Analysts

Group 1: Chewy - Chewy is the leading online brand for pet supplies, experiencing a rebound in stock price due to improving sales trends, with a recent upgrade to an outperform rating and a price target of $47, indicating a 49$31.50 [2] - Sales growth stabilized at 5% year-over-year in the fiscal third quarter, with potential for margin improvement through higher-margin offerings like pet pharmacy and private-label products [2] - Analysts predict free cash flow could double in the next three years, serving as a strong catalyst for the stock [2] - Risks include reliance on suppliers in China, which could be affected by tariffs, and Chewy's growth and valuation metrics compared unfavorably to competitors like Coupang [3][4] - For Chewy to reach the analyst's price target, it needs to demonstrate accelerating top-line momentum, which may be challenging in the current economic environment [5] Group 2: Peloton Interactive - Peloton has seen fluctuating demand, with a significant rebound from its 52-week low, and an analyst upgrade to a buy rating with a price target of $15, suggesting a 128$6.58 [6] - Financial results are improving, with a 15% quarter-over-quarter revenue growth despite a 9% year-over-year decline, and a notable 385% year-over-year increase in free cash flow [7] - The new CEO is implementing better cost discipline, focusing on premium products and reducing discounting, which is positively impacting financial performance [8] - Despite improvements, Peloton faces challenges as membership numbers are declining, with a 4% year-over-year drop, indicating a need for top-line growth to sustain shareholder returns [9] - The stock trades at a price-to-free cash flow multiple of 16, with potential upside if free cash flow continues to grow, but uncertainty remains regarding the sustainability of this growth [10] - Peloton's subscription business, which has higher gross margins than hardware sales, is crucial for profitable growth, but the recent decline in memberships suggests a limited market for its products [11]