Bank of America analysts have unveiled their “Top 10 U.S. Ideas” for Q1 2025, offering a comprehensive list of stocks that are poised to benefit from market and business catalysts. The list includes nine stocks with Buy ratings and one with an Underperform rating.
Top Picks for Q1 2025:
Ametek (NYSE: AME)
Ametek is expected to exceed Q4 earnings projections, with strong 2025 guidance. The company’s pricing power and exposure to positive demand indicators, such as rising US manufacturing PMI, are major catalysts.
Target Price: N/A (Analysts expect continued organic revenue growth).
Chevron (NYSE: CVX)
Chevron’s growth is anticipated to be driven by key factors, including Namibia well results and cost-cutting measures. Analysts expect an inflection point in free cash flow and a potential multiple re-rating.
Target Price: $180.
Chewy (NYSE: CHWY)
Analysts foresee Chewy’s continued growth, supported by stabilizing pet adoption rates and higher margin sales. The stock is considered one of BofA’s top picks in the SMID Cap Internet space for 2025.
Target Price: $40.
Dexcom (NASDAQ: DXCM)
The company’s new product launches, such as the G7 15-day monitor, are expected to accelerate revenue growth.
Target Price: $90.
HubSpot (NYSE: HUBS)
As a leader in small- and medium-sized business CRM, HubSpot is well-positioned for growth due to AI-driven innovations.
Target Price: $850.
PayPal (NASDAQ: PYPL)
PayPal’s turnaround efforts, particularly ahead of its February Investor Day, could drive improved sentiment and strong free cash flow growth.
Target Price: $103.
Progressive Corp (NYSE: PGR)
Progressive’s ad spending and policy growth are key drivers, with analysts projecting sustained growth and strong underwriting margins.
Target Price: $339.
The Trade Desk (NASDAQ: TTD)
Analysts highlight the strong growth in digital and connected TV advertising, positioning The Trade Desk for continued success.
Target Price: $155.
Wells Fargo (NYSE: WFC)
Wells Fargo is benefiting from operational improvements and potential regulatory relief, setting it up for continued growth.
Target Price: $84.
Illumina (NASDAQ: ILMN) (Underperform)
Illumina faces challenges such as potential slow revenue growth and risks tied to government budget cuts.
Target Price: $120.
For more details, you can explore the full list of BofA’s stock picks for Q1 2025 on Investing.com.
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