4 Stocks You Shouldn’t Buy Until After the New Year, According to Experts
Written by
Heather Altamirano
Edited by
Angela Corry
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With 2024 coming to a close, now is a good time to look ahead to the new year and evaluate which stocks to buy for 2025. The last couple of years have been rocky for investors partly due to high interest rates, which were raised above 5%. However, last month, the Federal Reserve cut the interest rate a half of a percentage point for the first time since 2020, signaling inflation is cooling, which is good for the economy and investors.
And there could be even more good news. Interest rates are expected to fall another half percentage point by the end of 2024. By the end of 2025, rates could drop another percentage point, according to ABC News.
With the market heading in the right direction, here are four stocks to consider investing in next year.
Nvidia (NVDA)
Nvidia, the company leading the AI revolution, is a watch since lower interest rates typically fuel tech stocks.
“Nvidia remains a compelling investment for 2024, driven by its AI market dominance and strong financials,” Dr. James Thorne, Chief Market Strategist at Wellington-Altus, told GOBankingRates. “The belief that the AI bubble has popped will be proven to be incorrect. Momentum in the stock should last until early 2025 — a market leader. “
Thorne points out the following reasons for considering buying Nvidia stock.
Key Factors
- AI Leadership: Powering the AI boom with high-performance chips. A large moat with a leading position.
- Analyst Sentiment: Bullish consensus with $152.44 average price target
- Product Pipeline: Upcoming Blackwell platform to drive growth
- Strategic Partnerships: Expanding into autonomous driving and EVs
Price Projections
- Analyst Target: 24.09% upside to $152.44
- Options Market: Positioning for $200 by February
- Technical Analysis: $190 target once $140 is broken
Valuation Metrics
- Strong revenue growth.
- PEG Ratio: forward Peg ratio below 1.
- Nvidia’s strong position in the expanding AI market supports its attractiveness for 2024, with the potential to approach $200 if current trends continue.
PulteGroup (PHM)
The PulteGroup is based in Atlanta and is one of the largest American residential homebuilding companies. It’s been recognized four times in Fortune’s 100 Best Companies to Work For list in 2024 and is a great option for buying stocks next year, according to Jon Knotts, CIO at Expressive Wealth, who notes the following benefits to buying PulteGroup stock in 2025.
Housing Market Strength
- Benefits from strong U.S. housing demand, particularly due to inventory shortages and stabilizing interest rates.
- As one of the largest homebuilders, PulteGroup is well-positioned to meet this demand.
Growth Projections
- Revenue for 2024 is projected to grow by 9.4%, with further growth expected in 2025.
- EPS is anticipated to rise by 15.48%, highlighting PulteGroup’s ability to manage costs efficiently.
PayPal (PYPL)
There’s been a lot of talk around PayPal stocks lately due to a lengthy, underwhelming performance, but the fintech company is now rated second on the Zacks Rank, indicating an upward trend in earnings. Knotts explained why PayPal is a solid choice for investment next year.
Earnings Growth
- EPS is expected to grow by 17.66% in 2024, with continued growth into 2025, indicating a solid path to profitability.
Revenue Growth
- Revenue is projected to increase steadily in both 2024 and 2025, driven by expansions in buy-now-pay-later services and cryptocurrency integration.
Innovation
- PayPal continues to expand its e-commerce and digital payment services, maintaining its competitive edge.
Boston Scientific (BSX)
- Medical tech company Boston Scientific continues to increase in earnings and is another stock Knotts suggested keeping an eye on for two main reasons.
Global Expansion and Innovation
- Boston Scientific is growing its international presence and making strategic acquisitions, including in emerging markets.
Growth Projections
- Earnings are expected to grow by 35.1% in 2024, exceeding the industry average.
- Revenue growth is forecasted at 9.06%, reflecting continued strength in the medical device industry.
If you’re on the fence about investing now, waiting until 2025 for these four stocks will still be worthwhile.
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