Investors Eye Promising Stocks for Success in 2025
As 2025 begins, investors are eager to identify promising stocks to boost their portfolios. With upcoming growth opportunities, having liquidity and momentum is essential for chasing emerging plays in the market. Wells Fargo analysts are here to help with a list of upgraded stocks boasting solid fundamentals.
Spotify’s Bright Future
Despite being near its 52-week high, Spotify Technology (NYSE: SPOT) shows potential for further growth. While new trade tariffs may disrupt other businesses, Spotify’s subscription model provides stability.
This is why Wells Fargo analysts reiterated their overweight rating on Spotify as of February 2025, giving it a target price of $690 per share. Such a valuation would mark a new 52-week high, representing an upside of approximately 11% from its current trading level.
Over the past year, Spotify stock surged by 160%, showcasing strong upward momentum. This performance has attracted institutional buyers like Amundi, which increased its stake to $359.8 million as of February 2025. However, investors should also note that Spotify’s current price-to-earnings (P/E) ratio stands at 104.8x, significantly above the industry average of 35.8x. While some may perceive this as overpriced, experienced investors often pay a premium for high-potential stocks.
Buffett’s Strategy with Occidental Petroleum
Warren Buffett’s decision to acquire a 29% stake in Occidental Petroleum Co. (NYSE: OXY) reflects his belief in the need for oil prices to align with those of gold and other energy assets. Analysts at Goldman Sachs share this perspective, seeing oil as a likely outperformer in 2025. Like Spotify, Marathon Petroleum Co. (NYSE: MPC) has also gained traction, with Amundi increasing its holdings by 194.2% as of February 2025, totaling $398.4 million.
This optimistic outlook is echoed by Wells Fargo’s recent overweight rating on Marathon, which includes a target of $183 per share, suggesting up to a 22% increase from its current price.
Clorox Offers Stability with Dividends
Although Wells Fargo’s target for Clorox Co. (NYSE: CLX) sits at $161 per share—allowing for an 8.5% upside—its stable business model serves as a safety net. Clorox can maintain its dividend payout of $4.88 per share, yielding an annualized 3.3%, exceeding inflation rates.
With earnings per share (EPS) projected to rise from $1.55 to $1.91 in the next year, Clorox presents an opportunity amid current volatility. Amundi has also invested approximately $185.8 million in Clorox, recognizing the stock as a potential dip-buying opportunity after its recent decline to 87% of its 52-week high.
Before making your next investment decision, consider these insights into promising stocks from reputable analysts.
MarketBeat tracks top-performing research analysts and the stocks they recommend. Our team has identified five stocks that analysts believe are excellent buys, keeping in mind the potential future market shifts.
Explore the list of these five recommended stocks to find opportunities that may align with your investment strategy.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
