Adidas, Tonies, and Lahontan Gold: Three Promising Stocks with Strong Momentum

Lahontan Gold: Potential Double-Digit Gainer

At Lahontan Gold, strong momentum meets a classic re-rating story. Although the stock has already more than tripled to its current share price of around CAD 0.35 over the past year, it is far from reaching its peak. If, as expected, positive news from the revised PEA is released soon and new drilling successes are announced, the stock could break out upward again from a technical perspective. At its mid-March high, the price had already reached CAD 0.52. This price level could be reached again in the near term, and prices above CAD 1 appear justified in the medium term.

The Canadian explorer is developing four gold and silver projects in the US state of Nevada. The focus is on the former Santa Fe Mine. Between 1988 and 1995, approximately 359,000 ounces of gold and 702,000 ounces of silver were already extracted there via open-pit mining. Lahontan does not intend to discover the project from scratch, but rather to bring an existing mine with existing infrastructure back into production. The starting point is impressive. In total, the project amounts to approximately 2 million ounces of gold equivalent. A large portion of the mineralization lies near surface and in oxidized rock. The material could therefore be suitable for relatively low-cost extraction via heap leaching.

The latest drill results suggest that the current resource estimate may not yet be the limit. At Calvada, a drill hole originally intended for geotechnical investigations averaged a gold equivalent concentration of 0.93 g/t at 30.8 m. The mineralization lies near the lower edge of the existing resource pit and could expand its extent. Lahontan had previously intersected an average of 0.44 g/t gold equivalent over 90.8 m at Calvada. This included a 12.3-meter-wide interval grading 1.22 g/t. West of the Slab Pit, the company also encountered a previously unknown gold zone open in multiple directions. Particularly exciting are the latest results from a historic waste pile adjacent to the second leach pad. The material stored there had been classified by the former operator as low-grade. However, the first three Sonic drill holes averaged 2.3 g/t gold equivalent. The highest-grade interval yielded 2.40 g/t gold and 50.7 g/t silver over 9.9 m. This is significantly above initial expectations.

The advantage: This material has already been mined and lies directly at surface. It would not first have to be extracted from a new pit at great expense. If further testing confirms the quantity and metallurgical properties, the tailings pile could provide cost-effective material for restarting production. The Sonic program, comprising nearly 100 drill holes at the four historic leach pads, has now been completed. Further results are still pending. This increases the likelihood that Lahontan will not only increase the total resource but also improve the project's economic viability. Historic tailings piles and leach pads could provide readily available feedstock, limit capital requirements, and enable a faster production ramp-up.

The coming weeks will be decisive. The drilling data will be incorporated into an updated resource estimate and subsequently into a new preliminary economic study. This study is intended to show how large a future mine could be, what investments would be required, and at what costs gold and silver could be produced. At the same time, Lahontan is moving forward with the permitting process. The stated goal is to resume production in 2027.

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The stock's momentum is thus fundamentally underpinned. New gold zones, higher grades in previously mined material, and the prospect of a growing resource provide several points of leverage for a revaluation. Since Lahontan Gold is currently transitioning from an explorer to a developer, the stock is also considered a potential takeover candidate. This is because revitalizable projects like the Santa Fe Mine—with existing infrastructure and advanced development—are rare and highly sought after, and are on the radar of major mining conglomerates. Newmont and Barrick Mining are desperately searching for new projects, and Lahontan is located in one of the world's most attractive gold districts. This lends the penny stock additional upside potential.

Adidas: The Three Stripes Are Back

Adidas is also showing an upward trend again. The stock broke out of its downtrend in the spring and has since gained visible momentum. The next important date is just around the corner: on July 30, CEO Björn Gulden will present the first-half results.

The World Cup is providing a tailwind. With Spain and Argentina, two teams outfitted by Adidas made it to the final. The referees and the official match ball also bore the three stripes. The enormous media exposure is likely to not only boost sales of jerseys and fan merchandise but also strengthen the perception of the entire brand. Before the tournament, observers had estimated that Adidas would generate around EUR 1.2 billion in World Cup revenue. The company now apparently expects around EUR 1.5 billion.

However, the World Cup is only part of the story. Under Gulden, Adidas has become faster, more regionally focused, and closer to its respective markets. Products are no longer developed exclusively at headquarters and then rolled out globally. A larger portion of the collections is specifically tailored to local preferences. This is paying off. In the first quarter, revenue in China rose by 10%, and in Latin America by as much as 19%.

As a result, Adidas has so far weathered the challenging consumer environment better than its US rival Nike. At the same time, competition remains intense. Smaller brands are reaching their target audiences via social media and influencers much more easily than before. However, Adidas possesses something that cannot be copied in the short term: a globally recognized brand, a strong position in soccer, and a dense distribution network.

At a current price of EUR 175, the share is valued at about 16 times the net income expected for 2027. Given the improved market position, this does not appear excessive. The World Cup could boost the upswing far beyond the jersey business. If the half-year results confirm the operating trend, further price increases are possible. The analyst consensus sets the price target for the sporting goods manufacturer at EUR 221—upside potential of over 25%.

Tonies: The Box Sets the Pace

The trend is also clearly upward for Tonies. Since hitting a low in the spring of 2025, the share price has more than doubled and has recently been heading back toward its 52-week high. New momentum could follow soon. On August 20, the provider of digital audio systems for children will present its results for the second quarter and the first half of the year.

The focus is on the Toniebox 2, launched in September 2025. Because distribution partners had held back on orders in the same quarter of the previous year ahead of the model change, the basis for comparison is low. Analysts at mwb research, for example, therefore expect revenue from the boxes to surge by 75% in the second quarter. Sales of the higher-margin figures are also projected to grow by about 24%. Overall, quarterly revenue could rise by 34% to approximately EUR 106 million.

North America remains the key growth driver. Following a comparatively subdued start to the year, analysts there anticipate a 48% revenue increase in the second quarter. Even in the now-established DACH region, Tonies is expected to grow by another 25%. At first glance, earnings growth may appear less spectacular. Due to the high proportion of lower-margin boxes, the gross margin could decline by about four percentage points to 67% in the first half of the year. In terms of EBITDA, mwb expects a result only slightly above the break-even point. Free cash flow is also likely to remain significantly negative due to inventory buildup for new product lines such as Pokémon and Bluey. But that is precisely where the opportunity lies. Every additional box sold expands the installed base and drives further purchases of the more lucrative Tonie figures over the years.

The newly announced Toniebox Lite, unveiled earlier this week, could provide additional growth momentum. The more compact and affordable version will initially launch in North America, followed by the UK, Australia, and New Zealand, and is intended to attract new customer groups to the Tonies ecosystem. Coming just one year after the Toniebox 2, the launch underscores the accelerated pace of innovation and the platform's expansion into an ecosystem featuring multiple devices, figures, and accessories.

For the full year, Tonies is targeting currency-adjusted revenue growth of at least 20% and an adjusted EBITDA margin of 9% to 11%. By 2028, revenue could reach more than EUR 1 billion, and earnings per share could rise from an estimated EUR 0.36 this year to EUR 0.81. The key question regarding the half-year results will be less about the temporarily depressed margin. More important is whether Tonies confirms its strong growth and maintains its outlook. If it does, the growing number of boxes sold should lay the foundation for further revenue and profit growth—and the stock's momentum should remain intact.

The average price target of the eight banks and research firms covering the stock is just under EUR 17, about one-third above the current share price.