The stock market is still finding its footing after the January 27 sell-off, triggered by fears over the possible drop in artificial intelligence (AI) hardware spending.
This capital outflow emerged after Chinese AI startup DeepSeek claimed it had trained its model using far fewer resources than entities like ChatGPT.
Amid this chaos, the stock market remains a lucrative place that can turn a modest investment of $100 into ten-fold returns.
Picks for you
To this end, Finbold has identified two equities to buy now as the market recovers, as they present the potential to turn $100 into $1,000 by the end of 2025.
Occidental Petroleum (NYSE: OXY)
The American hydrocarbon exploration company has had a rough past year, with the stock mainly trading below the crucial $50 mark.
Specifically, Occidental Petroleum (NYSE: OXY), valued at $49 as of the last trading session, the stock has dropped over 15% in the past year, but it has attempted to recover in the last month, gaining by 1.1%.
The short-term positive returns signal the possibility of the equity gaining further in 2025, given the backing from strong fundamentals.
For instance, the company’s presence in the Permian Basin is a strategic aspect that has strengthened its assets. Notably, this positioning is expected to enhance Occidental Petroleum’s production potential while making operations cost-efficient, a key aspect of elevating Occidental to dominate U.S. oil production.
While the global push for green energy continues, oil remains a critical resource, and OXY stands to benefit, mainly if supply constraints drive prices higher.
Moreover, with expected deregulations by the second Donald Trump administration, there is a chance the government is likely to focus on encouraging increased oil drilling, with Occidental Petroleum well-positioned to capitalize on these developments.
At the same time, Occidental’s investment in direct-air-capture (DAC) technology positions it as a leader in carbon reduction, enabling the removal of CO2 for storage or clean fuel production. Microsoft’s (NASDAQ: MSFT) agreement to purchase 500,000 metric tons of removal credits highlights a strong demand for this technology.
Interestingly, one major vote of confidence comes from Warren Buffett‘s investment. The Oracle of Omaha has continued to pump money into the company, a bet that signals a strong sign of confidence, considering the recent stock volatility.
CrowdStrike (NASDAQ: CRWD)
The cybersecurity firm’s stock is among those barely impacted by the DeepSeek sell-off, maintaining its valuation above key support zones.
CrowdStrike’s (NASDAQ: CRWD) shares surged 10% in the last trading session, reaching $408.68, a new all-time high. Interestingly, in the wake of the market downturn, CRWD has claimed the elusive $400 mark, reflecting gains of 35% in the last year.
Indeed, this bounce is a testament to the company’s potential to rally in the future, considering it experienced a massive sell-off in July 2024 following a global IT outage.
One of Crowdstrike’s key potentials is its ability to meet client needs with a touch of AI. As a key player in endpoint protection. The company’s AI-powered security platform is likely to garner more interest amid the growing global cyber threats.
From a financial point of view, the technology firm is showing strength despite the impact of the last outage, with its latest earnings report recording a 29% year-over-year revenue increase to $1.01 billion. Subscription services comprise 96% of total revenue and boast an impressive 78% gross margin. Despite higher operating expenses, adjusted net income rose 17.6% to $234.3 million.
In summary, when looking at the potential of OXY and CRWD, they point to equities that exhibit growth and adaptation to changing market narratives in their respective fields, making them resilient to setbacks.
Most importantly, past performance does not guarantee future results, but based on the two companies’ future outlooks, they stand a chance of converting $100 into $1,000 in 2025.
Featured image via Shutterstock
