The outlook for stocks this year looks uncertain, with one market strategist describing the new year as “stepping into a house of cards.” Michele Schneider, chief market strategist at Marketgauge.com, noted: “Stock markets are likely to be volatile in 2025, but there will be significant opportunities for those focused on individual stock selection.” She added in the outlook report: “December The sell-off may weigh on near-term sentiment, but patience may be the key to seizing opportunities when the market reopens in January. From beauty brands to electric vehicle companies, Schneider predicts four stocks that will beat the market this year. Ulta Beauty One of Schneider’s top picks is Ulta Beauty, an American retailer specializing in beauty and cosmetic products. The company operates an e-commerce platform and has more than 1,000 stores in the United States, making it one of the largest beauty retailers in the country, the strategist said. She also likes its artificial intelligence capabilities, such as the recently launched Ulta Beauty Virtual Artist, which allows consumers to virtually try on makeup. Ulta Beauty shares have fallen about 9.4% in the past 12 months. Analysts’ average price target for the stock is $429.16, which implies room for 3.6% upside, according to FactSet data. AbbVie Elsewhere in beauty and healthcare, Schneider is betting on pharmaceutical giant AbbVie, which has interests in aesthetics, immunology, oncology and neuroscience. The strategist is particularly keen on its beauty unit because the company owns Botox maker Allergan. “Botox is one of the best-known and most widely used beauty treatments worldwide, primarily known for its cosmetic use in reducing wrinkles and fine lines,” she explains, meaning it’s suitable for a “vanity trade.” AbbVie shares have gained about 11.8% over the past 12 months. FactSet data shows that more than 60% of analysts have given the stock a buy or overweight rating. Their average price target is $179.44, giving it an upside potential of 13.7%. Rivian Automotive In the field of electric vehicles that has attracted much attention, Schneider is betting on Rivian Automotive. The strategist noted that the company, known for its R1T pickup truck and R1S SUV, is now looking to “disrupt the auto industry with sustainable high-performance vehicles.” She also observed that the company “is ramping up production at its Normal, Ill., manufacturing facility to meet growing demand.” Rivian shares are down nearly 35% in the past 12 months after a tough 2024 %. Analysts are mixed on the stock, with just 39% giving it a buy or overweight rating. Their average price target is $14.83, representing a potential upside of 11.9%, according to FactSet data. Chewy Inc Schneider also identified online retailer Chewy as a stock to watch this year. The company operates one of the largest e-commerce platforms for pet products such as food, toys and medicines. The strategist said the company is “known for its customer service” and is currently expanding its product portfolio to include prescription drugs and pet insurance. She also likes that the company hopes to improve the customer experience on its platform through the use of artificial intelligence and machine learning. Chewy’s shares are up more than 60% in the past 12 months. FactSet data shows that about 55% of analysts give it a buy or overweight rating. Their average price target is $36.57, representing an 8% upside potential.
Strategists name four stocks to buy in 2025 | Real Time Headlines
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