2 Bargain Stocks That Could Soar in 2025

As the market continues to fluctuate, investors are always on the lookout for undervalued stocks with significant growth potential. Two companies that have caught the attention of analysts and investors alike are Micron Technology (MU) and Dollar General (DG). Both stocks have experienced recent setbacks, but their fundamentals and growth prospects suggest they could rebound in 2025.



Micron Technology (MU)
Micron, a leading manufacturer of memory and storage solutions, has faced headwinds in recent quarters due to a slowdown in demand for its products. However, the company's fundamentals remain strong, and analysts see significant upside potential in the stock. Micron's revenue from the data center and networking segment soared by 400% year-over-year and 40% sequentially in the fiscal 2025 first quarter, indicating strong growth potential. The AI boom is driving demand for memory chips, particularly in the data center and networking segment, which is a primary catalyst for Micron's growth. With a forward P/E of 16, Micron is trading at a discount to its historical average P/E of around 20 and the semiconductor industry average P/E of around 25. This undervalued status, combined with the strong growth prospects in the AI market, makes Micron an attractive investment opportunity for 2025.



Dollar General (DG)
Dollar General, a leading discount retailer, has faced challenges in recent years due to increased competition and a slowdown in consumer spending. However, the company's turnaround plan, which focuses on improving operational efficiency, reducing out-of-stock items, and enhancing the customer experience, has the potential to drive significant growth in 2025. The plan also includes expanding delivery options to compete with Walmart's e-commerce offerings. With a P/E ratio of 12, Dollar General is significantly undervalued compared to its historical average P/E of around 20 and the discount retail industry average P/E of around 18. Additionally, the company's dividend yield of 3% at the current share price provides an attractive income stream for investors. As consumer spending recovers and inflation cools, Dollar General's turnaround plan could drive significant upside in the stock price.



In conclusion, both Micron Technology and Dollar General appear to be undervalued compared to their historical averages and industry peers, which could imply significant upside potential in 2025. However, it is important to consider other factors, such as the company's fundamentals and the broader market conditions, when making investment decisions. As the market continues to evolve, investors should stay informed and adapt their portfolios accordingly.