As we approach a new year, investors are reflecting on the considerable gains made by stocks throughout 2024. With the technology-dominated Nasdaq Composite leading the way with a staggering rise of over 33%, and the S&P 500 and Dow Jones Industrial Average also experiencing significant appreciation, the outlook for the stock market remains bullish. In light of these trends, financial institutions like Citi are keen to share their updated forecasts and identify specific stocks that could offer substantial growth in the coming year.
Citi has recently revised its focus list with the aim of highlighting the most promising investment opportunities for North American investors. Their latest reports reveal that over three months, their handpicked stocks have yielded an impressive absolute return of 26%, and a staggering 37.5% over six months. As they look ahead to 2025, Citi has not only included notable newcomers but also excluded some stocks from their list, indicating a shift in potential market dynamics. Analysts within the firm, such as Scott Chronert, emphasize the idea of “earnings growth rate convergence,” suggesting that companies across various sectors may achieve similar growth trajectories, which can shift investor interests towards smaller-cap stocks.
One standout among the newly added stocks is AT&T, which, despite a recent decline in December, has shown remarkable performance throughout the year, boasting gains close to 37%. Citi maintains a “buy” rating on the telecommunications giant, projecting a price target of $28, which translates to a potential upside of approximately 22% from recent trading levels. Analyst Michael Rollins asserts that the market has underestimated AT&T’s capabilities in both its mobility segment and its consumer wireline division.
Key to the company’s strategy is its dual focus on mobile and broadband services, allowing it to navigate and capitalize on evolving consumer demands effectively. Rollins predicts service revenue growth to reach 2.4% year on year, with even stronger financial results expected in the fiscal years of 2026 and 2027. The anticipation of multiple catalysts, including robust service growth and shareholder returns, underlines a transformative phase for the company, signaling a bright future ahead.
Boston Scientific also finds its place on Citi’s revised list. The medical device manufacturer has seen a surge in its stock, with a remarkable increase of over 58% this year. Analysts are optimistic about Boston Scientific’s trajectory, projecting a target price of $107, which suggests a further 17% upside potential. Analyst Joanne Wuensch attributes this optimism to the success of several product launches, particularly the innovative pulsed-field ablation solutions, which are reshaping treatment paradigms in the medical field.
This dual benefit of rapid revenue growth along with significant earnings growth illustrates how Boston Scientific is positioned not only as a market leader but also as a prime investment opportunity as new technologies continue to drive profitability.
In the world of entertainment, Take-Two Interactive is another name on the radar for future growth. Following the announcement of anticipated releases, most notably the much-anticipated Grand Theft Auto VI, analysts predict the company’s stock will gained momentum. After climbing more than 16% in 2024, with a target price set at $225, there exists a compelling narrative for investors eager to capitalize on the upcoming game releases that promise to uplift revenues significantly.
As we gear up for 2025, investors should remain vigilant and informed about evolving market conditions. The outlook from Citi provides valuable insights into stocks that not only performed well in 2024 but also show potential for continued growth. By closely monitoring these companies and their strategic initiatives, investors can position themselves to benefit from the anticipated shifts within the stock market. The opportunity for earnings convergence, coupled with innovative growth strategies in telecom, medical devices, and digital entertainment, could herald a dynamic year for equity investors looking to optimize their portfolios.