Top Rated Stock | Big Tech Earnings Are Eye-catching, But Don’t Let Those Big Names Distract You From Real Opportunities

Written byDaily Insight
Tuesday, Jul 22, 2025 10:44 am ET2min read
Aime RobotAime Summary

- Big Tech dominates headlines, but overlooked stocks like JPMorgan, Alaska Air, and NetApp offer strong fundamentals and growth potential.

- JPMorgan showcases 35.38% net profit margins, $1.48T cash reserves, and analyst-driven $277 median price target.

- Alaska Air recovers post-pandemic with 40.5% revenue growth, $939M free cash flow, and $62 median price target.

- NetApp leads cloud storage with 70.19% gross margins, $3.85B liquidity, and 10% upside potential amid hybrid cloud trends.

Big Techs are certainly the headlines this week; however, this does not mean they will be your only chance to capture big returns. In fact, our data shows that some “dark horses” are actually overlooked by most people: These under-the-radar players may not command the same media attention, but they offer something equally valuable -- solid fundamentals, long-term upside, as well as the potential to outperform others.

HERE ARE OUR PICKS FOR THIS WEEK!

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JPMorgan Chase & Co. (JPM): Banking Giant with Strong Profitability and Growth Potential

Median Price Target: $300.54  

Recommendation: Buy  

JPMorgan Chase holds a dominant position in the financial services sector, boasting diversified revenue streams, as evidenced by total revenue of $168.7 billion and an impressive operating margin of 43.34%. The bank's profitability is robust, with net profit margins reaching 35.38% and a return on equity of 17.35%, showcasing efficient capital deployment.

Earnings growth stands at 14.2%, reflecting steady expansion supported by strong market positioning and effective risk management. The bank also holds a massive cash reserve of $1.48 trillion, maintaining liquidity and supporting lending activities despite a significant total debt of $1.08 trillion. Analyst consensus leans bullish, with price targets ranging from $195 to $330 and a median near $300, implying potential upside near current prices but with solid long-term stability.

JPM remains an attractive buy for investors focused on a blend of income, capital appreciation, and resilience through economic cycles, anchored by strong fundamentals and leadership in the banking industry.

Alaska Air Group, Inc. (ALK): Airline Poised for Recovery Amid Strong Revenue Growth  

Median Price Target: $62.00  

Recommendation: Buy  

Alaska Air is navigating a strong recovery trajectory post-pandemic, with total revenue hitting $12.64 billion and an impressive revenue growth rate of 40.5%. While its operating margins remain slightly negative at -3.51%, this situation reflects ongoing operational adjustments in a post-COVID environment and capacity scaling.

The airline demonstrates solid liquidity, with $2.46 billion in cash and an operating cash flow of $1.63 billion, suggesting efficient cash management. Return on equity stands at 8.9%, and profit margins are modest at 2.86%, showing early profitability recovery. Debt-to-equity is elevated at 151.7%, typical in the sector, but Alaska Air’s free cash flow is nearing $939 million, signaling improving financial health.

Analysts generally favor the stock, with price targets spanning $49 to $83 and a median price near $62, indicating potential upside.

is suited for investors seeking exposure to the airline industry recovery, balancing risk and growth with improving fundamentals and a strategic market presence along the West Coast.

NetApp, Inc. (NTAP): Cloud Storage Innovator with Robust Financial Health

Median Price Target: $115.50  

Recommendation: Buy  

NetApp excels as a leading hybrid cloud data services and storage provider, capitalizing on the escalating global demand for cloud infrastructure. The company's latest financials reveal revenue of $6.57 billion with a solid growth rate of 3.8%. NetApp's gross margin is notably high at 70.19%, while its operating margin stands at 22.75%, underscoring efficient cost management and scalable operations.

Financial stability is further exemplified by an operating cash flow of $1.5 billion and free cash flow of $1.16 billion, enabling ongoing investments in innovation and shareholder returns. Return on equity is exceptionally strong at 108.5%, reflecting effective capital utilization. Although the debt-to-equity ratio is relatively high at 336%, the company holds $3.85 billion in cash and short-term investments, mitigating liquidity concerns. The current ratio is 1.25, indicating comfortable short-term financial health.

With analyst price targets averaging $115.50—suggesting roughly a 10% upside potential—NetApp remains well-positioned to benefit from the hybrid and multi-cloud adoption trends. Its solid margins, cash flow generation, and resilient business model make it a compelling buy for investors seeking exposure to enterprise data infrastructure growth.

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