MarketBeat Week in Review – 12/30 - 1/03

Key Points

• Markets rallied to end the week, but 2024 will be known as the year without a Santa Claus rally.  
• Despite the volatile start to the year, analysts remain optimistic about the outlook for stocks in 2025.    
• Next week’s Jobs report could be the catalyst for a market-moving event.  

Stocks closed the week in the green, with technology stocks leading the rally. Industrials were down on news that the Biden administration was blocking the sale of United States Steel Corp. NYSE: X to Japan’s Nippon Steel. Alcohol stocks were also lower on news that booze may soon need a warning label advising about the risk of cancer due to alcohol consumption.

Lighter holiday volume makes it too early to tell if this is the start of a longer rally. Investors will get a better sense of the market when institutional investors return next week.

The general sentiment among analysts is that earnings growth will remain strong as many of the catalysts that have been in place for the last two years are still in place. However, that thesis may be tested when the December Jobs report is released on Friday. Investors will want evidence that consumer spending will remain steady, and a healthy jobs market is a key component to that confidence.

Articles by Jea Yu

Every investor loves a good comeback story. In this shortened holiday week, Jea Yu looked at two stocks that he believes could be comeback kids in 2025. For Starbucks Corp. NASDAQ: SBUX, the slide has been moving lower with the broad negative market sentiment. The slide gained momentum with the five-day strike at locations throughout the country. However, Yu explained why the new CEO’s turnaround plan is one of four reasons that SBUX stock is a Buy.

The outlook for The Boeing Co. NYSE: BA has been negative for much of 2024, and the company will take time to work through the issues. However, Yu offered his analysis of why Boeing could be the comeback stock of 2025.

Turning to the technology sector, Yu looked at SAP SE NYSE: SAP, which is trading near all-time highs. The enterprise software giant got an AI tailwind in 2024, and Yu explained why that setup will likely remain in place and push SAP stock higher in 2025.

Articles by Thomas Hughes

Insider buying is often a predictor of bullish sentiment for a stock. This week, Thomas Hughes looked at three stocks with significant insider buying activity and explained the pros and cons that investors should consider before chasing the stocks higher.

The data breach in the U.S. Treasury is a reminder that cybersecurity stocks will continue to be a strong sector in 2025. Hughes wrote about three cybersecurity stocks that analysts believe will post the biggest gains in the coming year.

We all know that AI will continue to be a solid growth sector in 2025, but which stocks will be among the top names? This week, Hughes offered his suggestions for three AI stocks poised to lead the market higher in 2025.

Articles by Sam Quirke

Sometimes, successful investing comes down to riding the hot hand. In the case of stocks to buy in 2025, that means sticking with the mega-cap technology stocks even after the December sell-off. But which ones? This week, Sam Quirke reminded you to look at the stocks that are getting noticed by analysts. In the case of tech stocks, Quirke analyzed three tech giants whose price targets were raised by analysts.

After a strong year in 2024, can Tesla Inc. NASDAQ: TSLA still be a Buy in 2025? Quirke said yes and explained why, despite some concerns, all signs point to another stellar year for TSLA stock.

On the other end of the spectrum, Quirke looked at the recent price action in Micron Technology Inc. NASDAQ: MU. The stock ended in 2024 with a sell-off of approximately 25%, but Quirke explained why the sell-off is overdone, presenting a buying opportunity for risk-tolerant investors.

Articles by Chris Markoch

Artificial intelligence will be disruptive to many sectors, including healthcare. This week, Chris Markoch highlighted three stocks that are helping bring AI into healthcare and why each may have catalysts to push them higher in 2025.

Markoch also gave a stock market outlook that explained why 2024 was an unexpectedly great year for stocks and why the gains may continue into 2025.

One of the stocks likely to continue defying expectations in 2025 is Costco Wholesale Corporation NASDAQ: COST. The retailer recently increased its membership fee with no impact on membership retention. But that’s just one of several reasons why Markoch believes COST stock has room to move higher in 2025.

Articles by Gabriel Osorio-Mazilli

Many analysts are projecting that stocks will have a strong year in 2025. But as Gabriel Osorio-Mazilli reminded investors, finding stocks with double-digit growth may require you to make some reallocations. This week, Osorio-Mazilli offered investors three must-hold stocks that analysts believe will have double-digit upside in the coming year.

The price action in bonds has been attracting dividend stock investors' attention. That's because as the yield of bonds goes down, the dividend from some high-yield dividend stocks looks more attractive. This week, Osorio-Mazilli offered up some top dividend stocks to consider if the bond rally continues.

Osorio-Mazilli also weighed in on Palantir Technologies Inc. NASDAQ: PLTR, one of 2024’s biggest winners. The stock is trading at levels that make it objectively overvalued. At the same time, its recent inclusion in the Nasdaq-100 makes it likely that more institutional dollars will flow into PLTR stock and could mean that an $80 price target is too low.

Articles by Leo Miller

Shareholders love them; lawmakers love to hate them, but stock buybacks are typically a bullish sign for stocks. This week, Leo Miller highlighted three stocks that announced large stock buyback programs to close out 2024. And with two of these stocks becoming dividend payers for the first time, these are names that investors will want to watch.

The demise of Alphabet Inc. NASDAQ: GOOGL has not only been exaggerated, it’s been non-existent. With the company’s positioning in the AI and quantum computing space, Miller explained why 2025 is setting up as a year when Alphabet stock may be the best big tech stock to own.

It was a tough year for many retail stocks, but several exceptions existed. This week, Miller highlighted three retail stocks that are likely to build off their strength in 2024 and outperform the sector again in 2025.

Articles by Nathan Reiff

One of the biggest stories moving markets this week was the news that the activist short-seller Hindenburg Research published a report on Carvana Co. NYSE: CVNA, calling it a “grift for the ages.” Carvana was one of the strongest market performers in 2024, and investors will want to read Reiff’s article to help determine whether the short seller’s report has merit.

Recent data shows that inflation is still a risk to investors in 2025. This week, Reiff analyzed three ETFs that investors can use to hedge against inflation.

While ETFs can be a solid option for many investors, many still prefer investing in individual stocks. And at times of market volatility, dividend stocks are a good option. This week, Reiff pointed investors to three dividend stocks that have just received Buy ratings from analysts.