Investing.com -- Bank of America analysts unveiled their "Top 10 U.S. Ideas" for Q1 2025, highlighting nine stocks with Buy ratings and one Underperform.
The quarterly list emphasizes stocks expected to benefit from significant business and market-related catalysts.
Ametek (NYSE:AME)
BofA projects Ametek will exceed Q4 earnings expectations and provide solid 2025 guidance. They highlight the company’s pricing power and its exposure to improving demand indicators. “Broader leading indicators of demand, such as the New Orders component of the US manufacturing PMI and OECD US leading indicators, have turned up,” said the bank. “These historically have had a good correlation with Ametek’s organic revenue growth with a two-quarter lag.”
Chevron (NYSE:CVX)
Chevron’s 2025 is expected to kick off with growth catalysts, including Namibia well results and cost-cutting initiatives. Analysts believe these factors will drive free cash flow inflection and a potential multiple re-rating, supporting a price target of $180.
“During 4Q earnings reporting, we expect an updated outlook through 2026, which we believe will give investors a better line of sight on this inflection and lead to a multiple re-rating,” writes BofA.
Chewy (NYSE:CHWY)
BofA sees Chewy as an early-stage earnings revision story, supported by stabilizing pet adoption rates and higher margin sales. Analysts forecast a 24% compound annual growth rate in EBITDA, with a target of $40.The stock is also one of BofA’s SMID Cap Internet top picks for 2025.
Dexcom (NASDAQ:DXCM)
With new product launches like the 15-day G7 and expanding market opportunities, Dexcom is expected to experience accelerating revenue growth. BofA’s target is $90, supported by strong volume growth and favorable guideline updates.
HubSpot (NYSE:HUBS)
BofA rates HubSpot as a leader in the small- and medium-sized business CRM space. Analysts expect growth to reaccelerate, driven by AI innovations, with a price target of $850.
PayPal (NASDAQ:PYPL) Holdings
BofA notes that PayPal’s turnaround efforts are gaining momentum, with a February Investor Day as a key catalyst. The bank expects improved sentiment and robust free cash flow, setting a target of $103.
“Holiday season e-comm spending data points have been encouraging, and we don’t think potential modest improvement in 4Q branded total payment volume (TPV) growth is priced in,” states BofA.
Progressive Corp (NYSE:PGR)
Progressive’s ad spending and policy growth momentum make it a standout, according to BofA. Analysts forecast sustained growth and peak underwriting margins, with a price target of $339.
The Trade Desk (NASDAQ:TTD)
BofA explains that strong growth in digital and connected TV advertising, coupled with potential S&P 500 inclusion, keeps The Trade Desk in focus. It assigned the stock a target of $155 a share.
Wells Fargo (NYSE:WFC)
BofA highlights Wells Fargo’s efficiency improvements and potential regulatory relief, setting a price target of $84.
Illumina (NASDAQ:ILMN) (Underperform)
Illumina is the Underperform-rated name on the list. BofA says the recovery story faces skepticism due to potential slow revenue growth and risks from government budget cuts. “We believe Illumina’s initial FY25 outlook could be disappointing,” says BofA. The price target for the stock is $120.
Overall, BofA believes, “This remains a stock pickers' market.”