World Stock Watch

Top Picks for 2025: Expert Insights and Opportunities

As we enter a new year, our team of analysts has identified top picks across various sectors, highlighting companies with strong growth potential, innovative strategies, and competitive advantages.

Communication Services

• Netflix Inc. (NFLX): With a target price of $1040, Netflix continues to dominate the long-form streaming video market, driven by its robust content release slate, algorithmic content recommendation features, and expansion into new markets.

Consumer Discretionary

• Cava Group Inc. (CAVA): With a target price of $158, CAVA shares have outperformed the broader market, driven by strong new store openings, higher-priced menu items, and a loyal customer base.
• Chipotle Mexican Grill Inc. (CMG): With a target price of $75, Chipotle plans to open 315-345 new restaurants in 2025, leveraging its strong loyalty program, expeditors, and Chipotlane drive-thrus.

Consumer Staples

• J.M. Smucker Co. (SJM): With a target price of $135, Smucker is driving growth through its key brands, including Uncrustables, Cafe Bustelo, and Milk-Bone, while focusing on convenience food and divesting slower-growing pet food brands.
• Target Corp. (TGT): With a target price of $175, Target is poised to benefit from improving consumer sentiment, with more than 30% upside potential, driven by its relevance to customers and strong dividend yield.

Energy

• ConocoPhillips (COP): With a target price of $150, ConocoPhillips boasts superior capital efficiency, with low-single-digit production growth in 2025, driven by drilling and completion efficiency tailwinds and synergies from the MRO acquisition.

Financial

• Blackstone Inc. (BX): With a target price of $202, Blackstone has strong long-term earnings potential, driven by growth in fee-based AUM, dry powder, and stable to lower interest rates.
• Intercontinental Exchange Inc. (ICE): With a target price of $171, ICE is benefiting from positive trends in its core data business, including increased demand for real-time data and analytics, and a better balance between recurring and transaction revenues.

Healthcare

• Eli Lilly and Co. (LLY): With a target price of $980, Eli Lilly will continue to benefit from sales of its GLP-1 franchise, including Mounjaro and Zepbound, with additional approvals for other indications and a newly approved treatment for mild cognitive impairment.
• GE Healthcare Technologies Inc. (GEHC): With a target price of $110, GE Healthcare delivered strong operating results, demonstrating solid execution in expanding market share and launching new products, with a focus on developing new products and digital solutions.

Industrial

• Delta Airlines Inc. (DAL): With a target price of $70, Delta has been spending on its lounge network and onboard entertainment systems, maintaining its strong brand loyalty and frequent flyer repurchase rate.
• L3Harris Technologies Inc. (LHX): With a target price of $300, L3Harris is benefiting from a favorable geopolitical backdrop, record backlog, and existing government contracts, with a more-efficient cost structure and AI tools.

Information Technology

• Apple Inc. (AAPL): With a target price of $280, Apple has entered the generative AI space with its new iPhones, driving a robust new upgrade cycle, and solid EPS growth in the next two years.
• Nvidia Corp. (NVDA): With a target price of $175, Nvidia provides CPU-based computing architecture enabling generative AI, with revenue and profit soaring, and a strong position as the top global semiconductor company by revenue.