Stock prices are heading into 2025 in a somewhat unstable situation.
After hitting a series of all-time highs in response to Donald Trump’s victory in the presidential election, U.S. stocks tumbled wildly in early December and fell further after the Federal Reserve revised down its outlook for interest rate cuts. . The Dow Jones Industrial Average had its worst monthly performance in more than two years in December, and the S&P 500 suffered its biggest loss since April. The Nasdaq Composite was able to register a small increase for the month.
Wall Street is generally optimistic about the outlook for stock prices in 2025, but there are many uncertainties, from the future direction of interest rates to the impact of President Trump’s policy agenda on the economic outlook.
Here are some stocks we think investors would be wise to pay attention to in January.
Nvidia
NVDA CEO Jensen Huang will open the annual Consumer Electronics Show (CES) in Las Vegas with a keynote address on January 6th.
Huang will highlight how Nvidia’s semiconductors are powering some of the cutting-edge products that will be unveiled at the conference. Huang may also have a chance to talk about Nvidia’s Rubin chips, scheduled for release in 2026, and the demand for Blackwell systems, which are the most advanced systems available today.
Huang said Blackwell is in full production and Nvidia will likely deliver more units than expected in 2024. Still, the company is struggling to meet what Huang calls “insane” demand.
No matter what Huang says at CES, NVIDIA will remain a major stock to watch throughout the year. After nearly tripling in 2023, the stock price rose 170% in 2024. Analysts from Morgan Stanley, Bank of America and Bernstein named the company a “Top Pick,” expressing confidence that demand for Blackwell will fuel further explosive growth.
tesla
Tesla (TSLA) stock has soared in the wake of the U.S. presidential election, with investors optimistic that CEO Elon Musk’s close relationship with President-elect Trump will benefit the EV maker. It has fallen sharply since then. Although the stock price rose 60% after the election, the company ended the year with four consecutive losing terms.
The stock, which trades at one of the highest P/E ratios in the S&P 500, could be tested when Tesla releases full-year delivery results in early January and fourth-quarter earnings near the end of the month. .
Tesla’s EV business has been weighed down by higher-than-expected interest rates and weaker demand throughout the year, and the situation is unlikely to change much last quarter. Additionally, several policies proposed by Mr. Trump and supported by Mr. Musk, such as eliminating the $7,500 EV tax credit, add uncertainty to Tesla’s outlook.
Analysts attending the company’s earnings call are likely to ask Musk questions about the outlook for Tesla’s robotaxi service and Trump’s new role as an efficiency adviser. Granted, you may not have a chance to ask them questions. During his last earnings call, Musk answered a few selected questions from investors and only took time to field questions from two analysts.
intel
Intel (INTC) has had such a tough year that Bernstein analysts recently advised investors to “stay away” from it. Stocks lost 60% of their value in 2024.
When Intel reports its earnings in late January, executives will no doubt try to strike a more upbeat tone, marking the company’s first earnings report since the departure of CEO Pat Gelsinger. .
Mr. Gelsinger began his four-year term with a turnaround plan that included major investments in manufacturing equipment and the launch of a dedicated foundry business. The plan proved slow and expensive to implement, and was a source of tension between Mr. Gelsinger and the board. Directors were also upset that the company was making little progress in developing artificial intelligence (AI) chips to compete with market leader Nvidia.
Analysts have speculated that Gelsinger’s departure will prompt the company to split its chip design and manufacturing operations, but interim co-CEO David Zinsner said , said that decision would be left to Intel’s next leader.
The company is unlikely to update investors and analysts on its search for a new CEO, but its quarterly report in January will still be important as it seeks to reassure investors that a turnaround is near. Probably.
playing cards trade
Stocks rose broadly following Donald Trump’s victory in the November election, as Wall Street predicted a pro-business administration that would deregulate and cut taxes. But some industries are being further boosted by certain policy priorities, and investors would be wise to keep an eye on these stocks as Mr. Trump returns to the White House.
Cryptocurrency stocks such as crypto exchange Coinbase (COIN) and bitcoin agency MicroStrategy (MSTR) have soared since November, boosted by President Trump’s pledge to make the United States a crypto haven.
Similarly, the stock prices of prison and detention center operators GEO Group (GEO) and CoreCivic (CXW) have soared on expectations for a crackdown on illegal immigration. According to a document provided by AlphaSense, GEO Group Executive Chairman George Zory said during the company’s recent earnings call that Trump’s reelection represents “potentially significant change” for the company. GEO Group is the largest contractor for U.S. Immigration and Customs Enforcement (ICE).
The first few days after President Trump’s inauguration on January 20th could be a test of both his commitment to the campaign promises that drove these stocks higher and how much is priced into the “Trump trade.” There is.
delta airlines
Delta Air Lines (DAL) is scheduled to become the first major U.S. airline to announce its full-year results on January 10th.
Travel demand has slowed from its post-pandemic surge but has remained surprisingly resilient despite high inflation and economic uncertainty. Airline stocks have soared in recent months. The U.S. Global Jets ETF (JETS) is up more than 50% since early August, and Delta stock is up more than 60% over the same period.
Delta Air Lines’ fourth-quarter results could test that bull market. The company’s earnings and outlook have fallen short of Wall Street expectations in each of the past two quarters, dealing two short-term hits to the stock.
Nevertheless, analysts are bullish. All 13 Delta analysts tracked by Visible Alpha have a Buy rating or equivalent rating on the stock.
