Bank of America says many stocks are poised to rise in 2025. The company says companies like Amazon are now too attractive to ignore. CNBC Pro compiled research from Bank of America to find Buy-rated stocks worth holding in January and beyond. In addition to the e-commerce giant, these brands include Henry Schein, Crocs, Chewy and Wells Fargo. Analyst Christopher Nardone said shares of the footwear company Crocs have risen more than 4% in the past year and there is still a lot of room to rise. In a note to clients earlier this week, the analyst said he expected a turning point in margin growth. “We expect margins to improve sequentially starting in the second quarter and even more so in the second half as CROX begins investing heavily in HD (Hey Dude),” Nardone wrote. Crocs completed its acquisition of casual shoe brand Hey Dude in 2022 acquisition. “We expect the main growth markets in 25 years to be India, China and Western Europe,” he said. Nardone lowered his price target on the stock to $144 per share from $147, but said the risk/reward is compelling and investors should take advantage of the opportunity. Nardone said: “Given our expectation of 10% EPS growth for F26, we think the stock is too cheap.” Amazon, the e-commerce giant, is going all out. Analyst Justin Post ranks the company as his top idea for 2025, saying the stock will move higher. Post wrote: “We see the potential for accelerated cloud revenue growth, further improvement in retail margins, and expect strong growth in Prime Video advertising in 2025.” The analyst believes that Amazon can withstand the tightening of consumer spending and the upcoming Any tariffs imposed by the incoming Trump administration. In particular, Post said Amazon has a range of tools it can use to reduce the impact of tariffs, including “moving operations to lower-priced countries, increasing 1P (first-party) supply in the United States, and Chinese suppliers absorbing some costs… …Artificial intelligence will also play an important role, “with new AI automation implementations and consumer AI shopping capabilities,” Post said. The company’s shares have risen 42% in the past 12 months. Chewy analyst Curtis Nagle said the online pet supplies retailer is a top pick. Chewy has strong profit potential, but investors are ignoring it, he said. “Combined with a shift to higher gross margin sales, Chewy should see significant earnings leverage on its scale expense basis, which in turn should drive EBITDA,” Nagel wrote. ) growth. The analyst also said Chewy is growing its market share online and is making the right investments to grow its business, leveraging private brands, pet health and stronger advertising. The company said Chewy shares have grown over the past year. is up 82% and has the potential for further upside, Nagel said: “The pet industry appears to have bottomed out as pet adoption volumes stabilize and spending improves, which coupled with share gains should drive Chewy’s growth.” Revenue trends are accelerating. ” Crocs “At 9x P/E, the risk/reward is attractive. … We think the stock is too cheap given our expectations for F26 EPS growth of 10%. … We expect margins to be in the Sequential improvement begins in Q2, even more so in Q2 Henry Schein “Best-in-class dental assets are poised to win long-term… We believe HSIC stands out as a best-in-class dental asset strategically positioned to compound earnings per share at a healthy pace, The company has achieved this goal throughout the previous decade and is celebrating last year’s cybersecurity incidents, which should improve overall numbers as incremental share losses look manageable. Wells Fargo said. Top pick in 40+ bank coverage. We think Wells Fargo (WFC) is our top pick in 40+ bank coverage. Additionally, its franchise is well-positioned to benefit from a rebound in customer activity (investment banking). , loans), we see significant room for self-help in terms of revenue growth, efficiency gains, and capital returns. Chewy “With pet adoptions stabilizing and spending improving, the pet industry appears to have hit a bottom, coupled with gains in stocks, That should drive CHWY’s revenue trends to accelerating growth. Coupled with the shift toward higher gross margin sales, CHWY should see significant profitability leveraging its scaled expense base, which in turn drives EBITDA growth for Amazon.com. New AI automated fulfillment and AI shopping capabilities. …We see potential for further acceleration in cloud revenue growth, improved retail margins, and expect strong growth in Prime Video advertising in 2025. …Higher prices may impact volume. , but we look at what Amazon can do to mitigate the impact, including shifting risks to countries with lower prices, increasing 1P supply in the United States, and Chinese suppliers absorbing some costs given the fierce competition on the 3P platform.
Bank of America’s best stock ideas for January and beyond | Real Time Headlines
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