Saturday, January 18, 2025

🌎 The Weekly Wrap-Up for 1/18/2025

The sell-off in stocks reversed abruptly this week after the consumer price index (CPI) reading on inflation hinted that the soft landing scenario may still be on the table in 2025. If so, you should expect to see a strong earnings season. You’ll have to wait a few weeks for the big technology stocks to report, but if the earnings reports from the big banks are any indication, you won&rsquText "MarketBeat" to  68285  to get SMS breaking news alerts for stocks on your watchlist and other special reports.  Learn More.

January 18th, 2025

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The Weekly Wrapup

The sell-off in stocks reversed abruptly this week after the consumer price index (CPI) reading on inflation hinted that the soft landing scenario may still be on the table in 2025. If so, you should expect to see a strong earnings season. You’ll have to wait a few weeks for the big technology stocks to report, but if the earnings reports from the big banks are any indication, you won’t be disappointed.

However, the strong bank earnings didn’t come without some cautionary signals that reminded investors of the wealth gap between lower- and higher-income consumers. That was confirmed by Target Corp. (NYSE: TGT), which warned of weaker margins despite better-than-expected revenue.

The stock market will be closed on Monday in observance of the Martin Luther King Jr. Holiday in the United States. However, as the transition of power takes place in Washington, investors will keep a close eye on changes to government policy. You can count on the MarketBeat team of analysts to keep you in touch with the stocks and stories moving the market. Here are some of our most popular stories from this week. 

Articles by Jea Yu

Jea Yu was one of several MarketBeat analysts who wrote about the opportunities that investors have with the rise in the price of natural gas. Yu pointed out that many catalysts are in place to sustain the bullish momentum. He highlighted two exchange-traded funds (ETFs) to help swing traders capitalize on the volatility in natural gas futures.

Next week’s inauguration of Donald Trump will bring tariff concerns to a fevered pitch. This week, Yu wrote about two stocks that stand to gain if the incoming administration makes good on its proposal to institute universal tariffs on critical imports.

Ford Motor Co. (NYSE: F) severely lagged automotive stocks in 2024. Part of that was due to the company’s focus on electric vehicles (EVs). While EV sales are increasing, it will be years before they overtake sales of internal combustion engine (ICE) vehicles. However, as Yu noted, Ford is not wavering from its EV-forward focus, as he provided his analysis of F stock.

Articles by Thomas Hughes

Before the market turned bullish this week, the outlook for 2025 was looking grim. This week, Thomas Hughes explained why sticky inflation makes higher-for-longer interest rates a near certainty and why an increase in rates is more likely if the Federal Reserve’s mandates remain out of balance.

Quantum computing stocks have been surging in 2025, and Rigetti Computing Inc. (NASDAQ: RGTI) has been one of the names leading that charge. This week, Hughes highlighted the great strides the company is making but also explained the risks involved in investing in Rigetti or any of the stocks in a sector that is still years away from having practical solutions available.

Bank stocks got earnings season off to a hot start. This week, Hughes gave investors an overview of which banks are doing the best and if the growth in finance stocks is likely to continue. In a separate article, Hughes made a case for JPMorgan Chase & Co. (NYSE: JPM) stock to hit $300 by the end of the year.

Articles by Sam Quirke

Nike Inc. (NYSE: NKE) rose to prominence with the slogan “Just Do It,” but the only thing NKE stock has been doing for the last few years is dropping in price. However, with the stock trading near 2018 levels, Sam Quirke made his case for why 2025 may be the beginning of a comeback story for the beleaguered stock.

Another stock that’s been in a slump recently is McDonald’s Corp. (NYSE: MCD). Despite this, analysts are becoming bullish on MCD stock, and Quirke explained why that makes a $300 price or higher for MCD stock possible.

The comeback in Snowflake Inc. (NYSE: SNOW) stock started at the end of 2024. But with the stock still down from its lofty highs, Quirke looked at the good and the bad with SNOW stock and how much weight you should give to recent analyst upgrades.

Articles by Chris Markoch

SoundHound AI Inc. (NASDAQ: SOUN) is one of the hottest stories in AI and the stock market. But this week, Chris Markoch considered whether the company’s recent deal to provide a proprietary voice assistant for Lucid Group Inc. (NASDAQ: LCID) will show that an association with AI can be enough to get Lucid to profitability in a competitive EV environment.

Markoch also wrote about the multi-week drop in Palantir Technologies Inc. (NASDAQ: PLTR) stock. Markoch provided a perspective on the sell-off, including a look at the company’s valuation that might explain why analysts are turning bullish and why the company’s upcoming earnings may be the next catalyst.

Johnson & Johnson (NYSE: JNJ stock has been moving higher since the company announced its latest acquisition. However, after the company’s $14.6 billion acquisition of Intra-Cellular Therapeutics Inc. (NASDAQ: ITCI), Markoch explained why long-term investors might start seeing a return on the multiple investments JNJ has made in the last three years.

Articles by Ryan Hasson

Prior to this week, the sell-off in technology stocks was part of a broader market downturn. Ryan Hasson made a case for three high-yielding dividend stocks trading near their fair value as safe and profitable options for your money in times of volatility. 

Hasson also looked at VistraCorp. (NYSE: VST), as the utility giant is in the midst of a transition to renewable energy. VST soared approximately 260% in 2024, and the company’s positioning to help meet AI-fueled energy demand is one reason a leading investment firm has made VST a high-conviction stock for 2025.

Space stocks had a big year in 2024, and many investors wonder if these stocks can rocket higher or if it’s time to cancel the bullish mission and wait for a better price. Hasson looked at three of the most popular space stocks from 2024 and highlighted the good and bad for investors to consider.

Articles by Gabriel Osorio-Mazilli

One of the most significant news stories for investors was the decision by the U.S. Supreme Court that will allow the ban on the social media app TikTok to go into place this weekend. If you’re interested in investing in this event, Gabriel Osorio-Mazilli analyzed four social media stocks to buy as the future of TikTok is debated.

If you’re still looking to reposition your portfolio in 2025, you’ll want to read Osorio-Mazilli's article about this week’s earnings report from The Goldman Sachs Group Inc. (NYSE: GS). He explained how to interpret Goldman’s results and why they hint at higher bond prices and lower yields in the coming year.

Osorio-Mazilli also looked at dividend stocks this week and offered investors three dividend stocks in sectors that make them solid choices to deliver stock price growth in 2025, in addition to a proven and reliable dividend.

Articles by Leo Miller

Investors can’t seem to get enough of AI stocks, particularly low-priced names that may offer significant upside potential. This week, Leo Miller analyzed two names for investors to consider. Cerence Inc. (NASDAQ: CRNC) makes AI-powered voice assistants for automobiles, which makes it one of the leading competitors to SoundHound. However, Miller explained that Cerence still has to prove itself, even after announcing an expanded partnership with NVIDIA Corp. (NASDAQ: NVDA).

Then there’s BigBear.ai Holdings Inc. (NYSE: BBAI), the AI-driven analytics firm that saw its stock jump after a bullish analyst upgrade, which gives the stock 2x potential. The company competes in the same areas as Palantir Technologies. However, Miller cautions investors that the similarities end when you look at revenue with BigBear.ai, finding sustained revenue growth to be elusive.

The market sell-off in the first few weeks of the year has many investors looking at defensive stocks that tend to perform well even when the market trends lower. This week, Miller highlighted three well-known defensive stocks that have received analyst upgrades.

Articles by Nathan Reiff

Great minds think alike. So it was Nathan Reiff who also looked at defensive stocks this week. Investors looking for reliable growth after two years of strong gains will want to look at Reiff’s article on these three stable defensive stocks.

Volatility is likely to be a significant story for stocks in 2025. In fact, some analysts believe that nimble investors who can move in and out of positions will do better than buy-and-hold investors. That pertains to fund investors as well. This week, Reiff analyzed three exchange-traded funds (ETFs) that play on the Volatility Index (VIX).

Sticking with the theme of making volatility your friend in 2025, Reiff gave investors three high-risk, high-reward stocks that are still flying under the radar but may have significant upside based on a change in regulatory and tax policy.

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