Investors have gotten used to the idea that the stocks that make up the Nasdaq Composite (^IXIC 0.29%) seem almost destined to outpace the broader stock market. Indeed, that was again the case on Monday, as the Nasdaq was up about 0.3% at 2:15 p.m. EST even as other market benchmarks were flat to lower on the day.
Two Nasdaq stocks in particular have been doing exceptionally well lately, and on Monday, they both proceeded to hit new all-time record highs. Apple (AAPL 0.32%) and Tesla (TSLA 4.51%) have a lot going for them, and even after their recent success, the two companies both have promising futures ahead of them that could potentially bring even more stock-price gains for investors.
The sky's the limit for Apple
Shares of Apple rose more than 2% on Monday afternoon, bringing the iPhone maker's market capitalization to nearly $2.4 trillion. Yet if Wall Street analysts have their way, the rise to unprecedented heights could have a lot further to climb.
Analysts at Wedbush offered an extremely optimistic outlook on Apple on Monday. The analyst sees the mobile device giant's stock price climbing to $175 per share. That would be another 20% to 25% higher from current levels. But that could be just the beginning, as Wedbush's stretch forecast expressed the possibility that the share price could head up to $225 if trends continue higher throughout 2021.
The key in Wedbush's view is the iPhone 12. Stock analysts and customers alike have been waiting for the latest iPhone to hit the market, because it's the first to take advantage of the features made possible by the ongoing rollout of 5G wireless technology. Looking at the suppliers that provide Apple with key components that go into iPhone production, Wedbush thinks that sales for the holiday quarter could well be far better than it had previously expected.
You won't have to wait long for confirmation, because Apple reports earnings later this week. If it gives good news, the stock could make significant progress toward that $225 per share mark in short order.
Green light for Tesla
Elsewhere, Tesla kept up its recent move higher as well, with some pointing to analyst moves to justify the latest push. Yet as with so many things involving Tesla, Wall Street seems to have been left behind and is still struggling to catch up.
Analysts at Baird repeated an outperform rating on the electric vehicle maker's stock on Monday. However, even though the new price target of $728 per share was $240 higher than its previous prediction, it was more than $100 below where the stock started the day -- and even further below where shares traded after a 3% rise Monday afternoon.
Tesla has put the days of worrying about capital availability behind it, and it's moving ahead at full speed with massive building projects to boost production capacity. The resulting acceleration in growth will be important to demonstrate that Tesla deserves the high valuation that shareholders have put on it.
Baird was also willing to get more speculative, considering at least the possibility that Tesla could eventually bring other Musk-led companies like SpaceX and The Boring Company under the same corporate umbrella.
Tesla also reports earnings on Wednesday, and shareholders are hoping for the best. Although we already know key production and delivery numbers, Tesla could head still higher if it can establish a continuing trend toward greater profitability.