With 2025 on the horizon, investors are sharpening their focus on the year ahead and selecting portfolio additions aimed at delivering solid returns.
“There is reason to be optimistic,” said Jordan Jackson, a JPMorgan strategist who covers the markets. He highlights positive trends in inflation and interest rates, noting that consumer spending is likely to respond in kind. “I think over the course of next year we should continue to see consumers become a little more confident in their wallets and what they can spend,” Jackson added.
Meanwhile, JPMorgan’s stock analysts are starting to reveal their top picks for 2025 — stocks that the bank’s experts expect to perform well in the coming year.
We checked the TipRanks database to get the details on two of their picks and found that Wall Street shares a bullish view, giving both names Strong Buy consensus ratings. Let’s take a closer look.
Vistra energy(VST)
First up is a utility-scale energy company, Vistra. This Texas-based electricity provider is the largest competitive power generation company currently operating in the U.S. market, with approximately 5 million customers and 41,000 megawatts of electricity generation capacity. Vistra has a market capitalization of more than $48 billion, a workforce of 6,800 employees and a broad range of energy facilities, including gas, coal, nuclear and solar power generation capabilities. Furthermore, Vistra is strongly committed to the production of carbon-free energy; its nuclear power generation capacity is the second largest in the country.
That nuclear energy capacity is impressive, and Vistra has been working to expand it. In March this year, Vistra completed a major acquisition, adding 4 gigawatts of Energy Harbor nuclear power to its portfolio, along with approximately 1 million customers. In addition, in July the company received approval from the Nuclear Regulatory Commission to operate its Comanche Peak nuclear power plant for another 20 years, through 2053.
Vistra is not just resting on its nuclear laurels. The company is also expanding its natural gas electricity production capabilities. Earlier this year, the intention was announced to increase ‘dispatchable, natural gas-fired electricity capacity’ by more than 2,000 megawatts. The company has already added more than 200 megawatts of upgrades in the second quarter of the year. The expansion of gas-powered capacity is intended to improve the reliability of the Vistra network.
On the financial side, Vistra posted revenues of $6.28 billion in Q3 24, a figure that rose 54% year-over-year and exceeded forecasts by an impressive $1.27 billion. Ultimately, the company achieved a net profit of $1.84 billion. The company has a strong cash position and generated $1.7 billion in cash from operations in the quarter.
Writing for JPM for Vistra, 5-star analyst Jeremy Tonet sees a lot of potential in the company based on its strong production capacity. He says: “Top choice VST offers, in our opinion, the optimal mix from all angles. We see very attractive upside potential from current levels, with healthy upside in a blue sky scenario. In addition to the upside from nuclear, we see meaningful gas energy leverage for VST, especially as island gas in West TX (with the gas bottleneck wall moving east through Texas) and Appalachia should support spark spreads, especially given the growth of the demand for electrification in the Permian and the high demand for electricity. on gas as a result of the tightening of the PJM.”
Tonet quantifies this view and gives the stock an Overweight (i.e. Buy) rating, with a $178 price target that implies a 28.5% upside in the coming year. (To view Tonet’s track record, click here)
The Strong Buy consensus rating on Vistra is unanimous, based on 10 recent positive analyst reviews. Shares are trading for $138.46, and the average price target of $156 suggests the stock could post a gain of almost 12.5% in a year. (To see VST stock forecast)
The second stock we’ll look at is EverQuote, an online insurance marketplace. EverQuote’s platform connects the players in the insurance industry, allowing agents and agencies to publish their offers and buyers to browse, contact and choose. The company’s umbrella covers most aspects of the insurance industry, including major products such as life insurance, auto and auto insurance, and home and renters insurance.
The platform is designed to be intuitive and easy to use. Agents can post policies along with prices, and buyers can use search functions to find insurance products and specific price points. These services are offered free of charge; Everquote charges its own fees after the policies are purchased, in the form of fees paid by the issuers of the insurance policies.
EverQuote is based in Cambridge, Massachusetts, where it was founded in 2011. Since then, the company has built a market capitalization of $713 million. Last year, EverQuote generated total revenue of $287.92 million – and the company has already surpassed that total by a wide margin this year.
This was clearly evident from the third quarter financial results. EverQuote saw quarterly revenue of $144.54 million, beating forecasts by $4.19 million and an impressive 162.8% growth over the same period last year. The company achieved a net figure of 31 cents per share, or 10 cents per share better than expected. Looking ahead, EverQuote published fourth-quarter revenue guidance ranging from $131 million to $136 million, which would mean year-over-year growth of 140% at the midpoint.
This stock is covered by JPM’s Cody Carpenter, who notes both the strong third-quarter results and solid future prospects, writing: “EVER achieving record third-quarter revenue and profits, but expect healthy growth from auto carriers will continue into 2025 as more states open up and carrier spending increases. EVER shares are down 28% since Q2 earnings (vs. RTY +9%) due to investor concerns that the motor carrier recovery has largely played out and uncertainty surrounding the upcoming 1×1 consent rule , but we think the insurance cycle still has more to offer. space to work with the impact of the 1×1 consent change manageable.”
Carpenter further outlines where he thinks this stock will go, adding: “We expect another year of outsized sector growth in 2025, and while the magnitude of beats/raises is likely to decline going forward, we are increasing our turnover for 2025/26 still at a healthy ~5% and our adj. EBITDA by 8%/13%, with our estimates above Street estimates. We reiterate our Overweight rating and EVER remains a top choice.”
The indicated Overweight rating (i.e. Buy) is accompanied by a $28 price target, which indicates a one-year upside potential of 49%. (To view Carpenter’s track record, click here)
Overall, it’s clear that Wall Street agrees with Carpenter’s call on this. The stock has six recent analyst ratings, five Buys and one Hold, making the consensus rating a Strong Buy. With an average price target of $31 and a current trading price of $18.81, this stock shows a one-year upside of 65%. (To see EverQuote Stock Prediction)
To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a tool that unites all of TipRanks’ equity insights.
Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is for informational purposes only. It is very important to do your own analysis before making an investment.
