Picture supply: Getty Photos
Yearly, we ask our freelance writers to share their prime US stocks with buyers to think about shopping for within the yr forward — right here’s what they charge extremely for the long run!
[Just beginning your investing journey? Check out our guide on how to start investing in the UK.]
CSX
What it does: CSX is likely one of the two main US freight railroads working within the Jap half of the USA.
By Stephen Wright. I’m nearly sure that CSX (NASDAQ:CSX) received’t be the best-performing inventory within the S&P 500 in 2025. However I believe the possibilities of the corporate doing badly are extraordinarily low.
I’m anticipating US industrial output to develop subsequent yr and that’s going to imply supplies must get moved round. Doing this by rail is cheaper and extra environmentally pleasant than vans.
That’s to not say the enterprise is invulnerable. Industrial motion is one and storms damaging infrastructure that may be costly to exchange is one other.
CSX has handled each points in 2024, although, and nonetheless carried out nicely. I anticipate it to maintain doing this, with regulation and prices limiting the specter of competitors from different companies.
At 1.3%, the dividend yield isn’t big. However add on a share buyback programme that has minimize the shares excellent by 4% per yr during the last decade and I believe issues get very fascinating.
Stephen Wright owns shares in CSX.
Snowflake
What it does: Snowflake is a expertise firm that provides cloud computing and knowledge analytics providers by way of a software-as-a-service (SaaS) mannequin.
By Edward Sheldon, CFA. It wasn’t straightforward to select my prime US inventory for 2025. That’s as a result of there are such a lot of world-class corporations within the US in the present day. However I’m going to go together with Snowflake (NYSE: SNOW). It’s a software program firm that’s rising quickly.
I anticipate synthetic intelligence (AI) to be an enormous theme once more in 2025. And I reckon Snowflake will probably be a beneficiary. You see, it affords options that assist organisations retailer and construction their knowledge successfully. If companies are eager to make use of AI, getting their knowledge proper is step one.
Snowflake’s latest Q3 outcomes had been good. For the quarter, income was up 28% yr on yr. In the meantime, web income retention charge was 127% (which means that prospects are spending extra with the corporate). After these outcomes, over 20 brokers raised their worth targets for the inventory.
One issue behind the corporate’s latest efficiency is new CEO Sridhar Ramaswamy. He’s been working seven days per week to drive development. Wanting forward, elevated financial readability ought to assist the corporate obtain additional development. This backdrop ought to give companies extra confidence to spend money on tech options.
I’ll level out that Snowflake has a lofty valuation. If development slows for some purpose (e.g. companies cut back spending on AI), the share worth may very well be unstable. Taking a long-term view, nevertheless, I’m excited in regards to the potential right here. I’ve been including to my place just lately.
Edward Sheldon owns shares in Snowflake.
Uber Applied sciences
What it does: Uber is the world’s main ride-hailing firm.
By Ben McPoland. I reckon Uber Applied sciences (NYSE: UBER) inventory is about up for a powerful 2025.
After years of steep losses, the corporate lastly turned worthwhile in 2023. This was after it exited underperforming abroad markets, minimize prices, and disposed of non-core companies.
In consequence, Uber is leaner and income are set to motor increased within the years forward. Certainly, between 2024 and 2026, earnings per share (EPS) are anticipated to nearly double!
As I write, this places the inventory on a ahead P/E ratio of 30, falling to round 22 by 2026. I see that as cheap for a rising companywith 161m month-to-month lively customers – and counting – throughout its ride-hailing and meal supply platforms.
There are dangers, in fact. These primarily centre round growing laws and calls for for increased wages amongst drivers.
Nevertheless, I reckon buyers might flip extra bullish on driverless taxis. Uber has signed partnerships with 14 main autonomous car corporations, whereas market chief Waymo is already doing tens of hundreds of paid robotaxi journeys per day (many by means of the Uber app) in a handful of US cities.
I believe the inventory’s price contemplating for 2025 and past.
Ben McPoland owns shares in Uber.
