Markets Riding High: Top Analysts Recommend Value Stocks for 2025
As 2024 comes to a close, the markets are experiencing a remarkable surge, with the S&P 500 up over 25% for the year. According to JPM’s chief US equity strategist, Dubravko Lakos-Bujas, several factors are contributing to the US markets’ upward trend, including the expanding business cycle, exceptionalism in the AI cycle and earnings growth, and the wind-down of the Fed’s QT in 1Q.
Value Stocks Take Center Stage
Building on this logic, several of JPM’s top analysts are recommending that investors focus on traditional value stocks, which offer a compelling opportunity for growth. Two such value stocks, 3M and TransUnion, have caught the attention of analysts and investors alike.
3M: A Wall Street Stalwart
3M, a multinational conglomerate, has been a household name for decades, thanks to its iconic Post-It Notes. However, the company’s product range extends far beyond office supplies, encompassing industrial abrasives, adhesives, automotive parts, and more. With a dividend yield of 2.17%, 3M offers a reliable source of income for investors.
Analyst Stephen Tusa, rated in the top 4% of Wall Street’s stock experts, believes that 3M is poised for significant growth in 2025, driven by its restructuring efforts, productivity gains, and unique tailwinds. Tusa predicts that 3M will generate solid earnings growth, with an upside pathway approaching $11 per share in EPS.
TransUnion: A Leader in Credit Reporting
TransUnion, a leader in the credit reporting segment, has been modernizing its business with the development of the OneTru platform, a unified tech solution for managing credit insights. The company’s ability to meet its stated objectives while generating value for shareholders has caught the attention of analysts.
Andrew Steinerman, another 5-star analyst, views TransUnion as a compelling relative value stock, with a valuation below its peers. He believes that the company’s execution against its stated plans in 2024 will continue to drive growth, and that the OneTru platform will improve its position in the market.
What’s Next for These Value Stocks?
Both 3M and TransUnion have received Overweight (Buy) ratings from their respective analysts, with price targets indicating significant upside potential. As the markets continue to ride high, these value stocks offer a compelling opportunity for investors seeking growth and income.
Stay Ahead of the Curve
To find more stock ideas trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a tool that unites all of TipRanks’ equity insights. Remember to always do your own analysis before making any investment decisions.
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