As the calendar approaches a new year, investors often reassess their portfolios in search of promising stocks that hold future potential. Based on recent analyses from financial institutions like Citi, various stocks have emerged as strong candidates for outperforming the market in 2025. This insight comes after a year of robust stock market performance, where major indices have collectively gained significant value, particularly the Nasdaq Composite, which soared by over 33% year-to-date.
The year has unfolded favorably for investors, with the S&P 500 and the Dow Jones Industrial Average also experiencing substantial gains of more than 26% and approximately 15%, respectively. Given this context of rising stock values, Citi has refreshed its list of top equity picks, tailored to navigate the North American market. The firm has highlighted that its previously curated focus list yielded impressive returns, showcasing an absolute return of 26% over three months and 37.5% over six months. These statistics underpin the firm’s belief in a careful selection of stocks poised for continued growth.
As the investment landscape shifts, a notable trend has emerged—the convergence of earnings growth rates. Scott Chronert, Citi’s U.S. equity strategist, pointed out this theme, indicating that both broadening and strategic stock selection will become increasingly significant for investors. This situation suggests that looking toward smaller-cap stocks may present unique opportunities for incremental alpha—a term indicating returns that exceed benchmarks.
In light of this strategy, Citi has added two notable companies to its focus list for 2025: AT&T and Boston Scientific. Both companies have demonstrated market resilience and growth potential in various segments, making them worthy of investor consideration.
AT&T, despite some volatility in December, has displayed remarkable performance throughout 2024, with gains nearing 37% year-to-date. Citi maintains a bullish stance on the telecom giant, projecting further growth. The firm’s target price of $28 reveals a potential upside of approximately 22% based on recent closing figures. Analyst Michael Rollins emphasizes that AT&T’s prospects extend beyond its current strengths in the mobility sector, suggesting that improvements in its consumer wireline segment could also drive financial success.
Rollins predicts that AT&T’s service revenue growth will continue to rise, reaching an annual increase of 2.4%. Furthermore, he highlights a multi-year opportunity for AT&T, particularly in enhancing its mobile and broadband services. Positive catalysts for the company include the likelihood of sustained annual service revenue growth and the potential return of capital to shareholders at an accelerated pace, particularly in the second half of 2025.
Another company garnering attention is Boston Scientific, which has seen its stock price surge by over 58% in 2024. The medical device manufacturer’s success trajectory is attributed to multiple product launches, especially its innovative pulsed-field ablation solutions. Analysts foresee Boston Scientific benefiting from robust revenue and earnings growth in the coming months, with a target price of $107 indicating a 17% upside from current levels.
Analyst Joanne Wuensch notes that Boston Scientific’s strategic thrust on its product portfolio positions it well for both revenue and earnings growth. The company’s ongoing momentum supports the assertion that further expansion is not only achievable but likely.
In addition to these strong candidates, investors should also consider sectors like gaming. Take-Two Interactive, a prominent video game publisher, stands out with anticipated growth fueled by significant upcoming releases, including the much-awaited Grand Theft Auto VI. The company’s stock has gained upward of 16% in 2024, and analysts foresee a target price of $225, suggesting around a 20% upside based on current valuations.
As 2025 approaches, the investment environment is ripe with possibilities. With strong historical performance and a strategic re-evaluation of potential winners, stocks like AT&T, Boston Scientific, and Take-Two Interactive deserve close consideration from investors. By being mindful of market dynamics and identifying promising growth sectors, investors can position themselves advantageously for the forthcoming year. Keeping an eye on these stocks not only supports a diversified portfolio but also enhances the potential for an enriching investment journey ahead.