10 of the Best Stocks to Buy for 2025
After back-to-back years of 20%-plus gains in 2023 and 2024, the S&P 500 is off to another strong start to 2025. However, the S&P 500’s forward earnings multiple of 22 was also above its five-year average of 19.8, raising concerns about potentially bloated stock prices.
In other words, stock selection may be critical for investors in 2025. The following stocks are all recommended by Argus analysts and have a “positive” Thomson Reuters consensus rating and a “long” Market Edge rating:
| Stock | Upside Potential From Feb. 11 Close |
| State Street Corp. (ticker: STT) | 16.6% |
| Cisco Systems Inc. (CSCO) | 12.1% |
| JPMorgan Chase & Co. (JPM) | 0% |
| Cencora Inc. (COR) | 9.4% |
| Costco Wholesale Corp. (COST) | 3.9% |
| Netflix Inc. (NFLX) | 11.1% |
| Alphabet Inc. (GOOG, GOOGL) | 7.9% |
| Visa Inc. (V) | 12.6% |
| Walmart Inc. (WMT) | -2.4% |
| Rithm Capital Corp. (RITM) | 9.7% |
State Street Corp. (STT)
State Street is one of the world’s largest custody banks, specializing in asset management and investment research and services. President Donald Trump’s election victory has boosted many financial sector stocks thanks to Trump’s pro-business, anti-regulation platform. Analyst Stephen Biggar says State Street is attractively valued and is successfully managing the market’s ongoing transition from active to passive money management, which is benefiting the company’s exchange-traded fund family. Biggar says State Street will likely continue to focus on controlling costs and leveraging its scale advantages in 2025. Argus has a “buy” rating and $115 price target for STT stock, which closed at $98.61.
Cisco Systems Inc. (CSCO)
Cisco Systems provides networking, cloud and cybersecurity hardware and software solutions. Analyst Jim Kelleher says the outlook for network spending is improving, and Cisco’s acquisition of network security specialist Splunk has helped improve the company’s industry-leading security solutions business. Kelleher says high interest rates have negatively impacted customer demand in recent quarters, but inventory levels have normalized, and enterprise and carrier customers have started to become more active. He says Cisco’s annualized recurring revenue, software revenue and remaining performance obligations trends have been encouraging in a difficult environment. Argus has a “buy” rating and $70 price target for CSCO stock, which closed at $62.43.
JPMorgan Chase & Co. (JPM)
JPMorgan Chase is one of the world’s largest banks and financial services companies with roughly $4 trillion in assets. In 2023, JPMorgan acquired First Republic Bank after it failed during a regional banking crisis and was seized by the Federal Deposit Insurance Corp. Biggar says First Republic provided JPMorgan with a large amount of healthy loans and deposits from high-net-worth customers. He says JPMorgan has an attractive loan growth profile and has a superior credit card franchise relative to large U.S. bank peers. Argus has a “buy” rating and $275 price target for JPM stock, which closed at $274.99.
Cencora Inc. (COR)
Cencora, formerly known as AmerisourceBergen, is one of the largest U.S. pharmaceutical distributors and health care supply chain services companies. The company’s primary business involves warehousing and logistics services that help connect brand name and generic pharmaceutical manufacturers with consumers. Analyst David Toung says Cencora has attractive growth opportunities, and the company’s management team has committed to supporting shareholders via dividends and buybacks. Toung says the popularity of GLP-1 weight loss and diabetes drugs has been a tailwind for health care utilization in recent quarters. Argus has a “buy” rating and $270 price target for COR stock, which closed at $246.75
Costco Wholesale Corp. (COST)
Costco is a large, members-only retailer focused primarily on the U.S. and Canadian markets. Analyst Christopher Graja says Costco’s consistent growth and strong performance among value-conscious customers differentiates it from other grocery retailers. Graja says the company’s ability to consistently deliver exceptional value while maintaining financial strength helps it stand out as an attractive investment. He says Costco is executing its business plan effectively and generating strong traffic and membership renewal trends, two metrics that Graja says will remain key to the Costco bull thesis. Argus has a “buy” rating and $1,100 price target for COST stock, which closed at $1,058.34.
Netflix Inc. (NFLX)
Netflix is a market leader in video streaming and has about 300 million subscribers around the world. Analyst Joseph Bonner says Netflix has generated impressive subscriber growth in recent years. That subscriber growth has been boosted by the launch of a low-priced, ad-supported tier and a crackdown on password sharing. Bonner says the regular launch of buzzworthy original content has been key to attracting and maintaining subscribers. The company has also worked to update and optimize its user interface and recommendation algorithms. Argus has a “buy” rating and $1,120 price target for NFLX stock, which closed at $1,008.08.
Alphabet is one of the world’s largest online search and advertising companies and is the parent company of Google and YouTube. Despite emerging artificial intelligence threats, Bonner says Google is still an online advertising juggernaut. In addition, he says the YouTube and Google Cloud businesses are solid as Alphabet ramps up its own investments in AI technology and infrastructure. Bonner says Alphabet will continue to be an industry leader in massive secular growth markets such as public cloud, mobile search, big data analytics, AI technology and quantum computing. Argus has a “buy” rating and $200 price target for GOOGL stock, which closed at $185.32.
Visa Inc. (V)
Visa is a global credit card leader and owner of the world’s largest electronic payment network. Biggar projects secular growth in payment volumes and says Visa’s cost controls and aggressive buybacks will support earnings per share growth. He says Visa is focused on boosting consumer payments revenue and identifying new cash flows, including money movements among individuals, businesses and governments. Visa is also investing in improving security and other technology, along with strengthening its brand. Visa’s investor day set for Feb. 20 could be its next catalyst. Argus has a “buy” rating and $395 price target for V stock, which closed at $350.72 .
Walmart Inc. (WMT)
Walmart is the largest U.S. brick-and-mortar retailer, operating department stores, wholesale clubs, supermarkets and supercenters around the world. Graja says Walmart’s management has capitalized on the company’s pandemic success and widened its competitive edge by investing in improving efficiency. He says Walmart has proven its value as a long-term defensive investment. The stock is significantly less volatile than the S&P 500, the company has an AA credit rating from both S&P and Moody’s, and it has raised its dividend every single year since 1974. Argus has a “buy” rating and $100 price target for WMT stock, which closed at $102.47 .
Rithm Capital Corp. (RITM)
Rithm Capital is an asset manager operating in real estate, credit and other financial services. Analyst Kevin Heal says Rithm, formerly known as New Residential Investment, has completely restructured its business since the COVID-19 crisis in 2020. Heal says Rithm is taking advantage of emerging debt-related investment opportunities while growing its mortgage servicing business. The company has also completed several major acquisitions in recent years, including alternative asset manager Sculptor Capital Management. Heal says the market is underestimating the value of Rithm’s mortgage servicing rights portfolio and the revenue potential of its acquisitions. Argus has a “buy” rating and $13 price target for RITM stock, which closed at $11.85.
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