After back-to-back years of 20%-plus gains in 2023 and 2024, the S&P 500 is off to a sluggish start to 2025.
Still, the S&P 500’s forward earnings multiple of 21.2 is 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 10 best stocks to buy included below are all recommended by Argus analysts and have a Thomson Reuters consensus rating of “positive,” an Argus A6 quantitative rating of “buy” and a Market Edge rating of “long.”
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Here are 10 of the best stocks to buy for 2025:
Stock | Upside potential from Mar. 10 |
Pilgrim’s Pride Corp. (ticker: PPC) | 7.3% |
CME Group Inc. (CME) | -6.6% |
State Street Corp. (STT) | 32.5% |
JPMorgan Chase & Co. (JPM) | 18.4% |
Cisco Systems Inc. (CSCO) | 12.8% |
Sanmina Corp. (SANM) | 30.1% |
Bank of New York Mellon Corp. (BK) | 12.8% |
Linde PLC (LIN) | 6.0% |
Cencora Inc. (COR) | 7.1% |
Aptiv PLC (APTV) | 21.2% |
Pilgrim’s Pride Corp. (PPC)
Pilgrim’s Pride supplies fresh, frozen, and value-added chicken and pork products to distributors, retailers and food service operators. Argus analyst John Staszak says beef shortages and modest supply growth over the next five years will support chicken demand from both fast food chains and full-service restaurants. In addition, Staszak says more health-conscious U.S. consumers will favor chicken over less-healthy pork and beef. He says the largest growth in global chicken demand will likely come from emerging markets
, where rising income bodes well for chicken consumption. Argus has a “buy” rating and $60 price target for PPC stock, which closed at $55.93 on March 10.
CME Group Inc. (CME)
CME Group is the world’s largest futures exchange and provides a wide range of futures and options products and services. Analyst Kevin Heal says interest rate cuts by the Federal Reserve will support further growth in CME’s interest rate contract volumes in 2025. Heal also anticipates higher trading volume for equity index, cryptocurrency, agricultural and micro contracts from retail investors, tailwinds that should improve CME Group’s bottom line. Finally, he says CME Group’s stock is trading on the low end of its long-term valuation range. Argus has a “buy” rating and $245 price target for CME stock, which closed at $262.28 on March 10.
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 initially boosted many financial sector stocks thanks to his pro-business, anti-regulation policies. Analyst Stephen Biggar says State Street’s decision to terminate its planned acquisition of Brown Brothers Harriman Investor Services in 2022 allowed the company to shift its focus to capital returns, including a new $5 billion share buyback program in 2024. Biggar says State Street should improve its operating leverage further over time. Argus has a “buy” rating and $115 price target for STT stock, which closed at $86.80 on March 10.
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., or FDIC. Biggar says First Republic provided JPMorgan with a healthy, valuable infusion of loans and deposits that has helped the bank expand its base of high-net-worth customers. He says JPMorgan has a strong credit card franchise, an industry-leading growth profile and an attractive valuation. Argus has a “buy” rating and $275 price target for JPM stock, which closed at $232.22 on March 10.
Cisco Systems Inc. (CSCO)
Cisco Systems provides networking, cloud, and cybersecurity hardware and software solutions. Analyst Jim Kelleher says artificial intelligence
investments are boosting carrier and enterprise network spending. Cisco is experiencing significant positive momentum so far this year, and the company has forecast $1 billion in AI infrastructure orders in fiscal 2025. Kelleher says AI inference, AI training, AI connectivity, software and services will be key order growth drivers for Cisco. He says Cisco’s software revenue growth, annualized recurring revenue and remaining performance obligations are all trending positively. Argus has a “buy” rating and $70 price target for CSCO stock, which closed at $62.06 on March 10.
[Read: 2025’s 10 Best-Performing Stocks]
Sanmina Corp. (SANM)
Sanmina is an electronic manufacturing services company that provides customized services to original equipment manufacturers in industries such as communications, enterprise computing, multimedia, defense and aerospace, and automotive. Despite a soft demand environment, Kelleher says Sanmina has made significant investments in expanding its capabilities, diversifying its end markets and supporting new high-complexity programs that generate wider margins. He says the company is off to a strong start to fiscal 2025, and industry inventories should continue to normalize this year, creating tailwinds for growth areas such as generative AI networking. Argus has a “buy” rating and $96 rating for SANM stock, which closed at $73.81 on March 10.
Bank of New York Mellon Corp. (BK)
Bank of New York Mellon is a trust bank, which involves managing cash for large investment funds, providing day-to-day funding for large corporations and serving as a fixed-income clearing firm. The bank generates much of its income from transaction fees. Biggar says higher market valuations have supported fee revenues and triggered a recent rebound in net interest income. He says a combination of expense discipline, revenue growth and elevated net interest income will drive 13% earnings per share growth for the bank in 2025. Argus has a “buy” rating and $95 price target for BK stock, which closed at $84.24 on March 10.
Linde PLC (LIN)
Linde is the world’s largest industrial gas company, selling atmospheric and process gasses and designing and building industrial gas equipment. Analyst Alexandra Yates says merger synergies and elevated demand for industrial gases should be bullish catalysts for Linde. Yates says the company is also highly exposed to defensive end markets in the health care, food and beverage, and electronics industries. These markets should help support Linde’s revenue even in a soft macroeconomic environment. Finally, Yates says Linde has a sizable $10 billion project backlog and a strong balance sheet. Argus has a “buy” rating and $490 price target for LIN stock, which closed at $462.06 on March 10.
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 end users. Analyst David Toung says distribution volumes of GLP-1 weight loss and diabetes drugs have supported Cencora’s growth, and the company has opportunities to generate additional value for investors via dividend hikes and share buybacks. Toung says Cencora’s acquisition of Retna Consultants should also help diversify revenue. Argus has a “buy” rating and $280 price target for COR stock, which closed at $261.56 on March 10.
Aptiv PLC (APTV)
Aptiv is a leading supplier of automotive components. Underwhelming global demand for electric vehicles and auto manufacturer production cuts have weighed on Aptiv’s stock price in the past year, but analyst Bill Selesky says Aptiv is still positioned for impressive earnings growth over the next several years. Selesky says Aptiv will likely report improving earnings and revenue growth in the first half of 2025 as EV demand rebounds. In the longer term, he anticipates Aptiv can expand margins, grow market share and increase its automotive content. Argus has a “buy” rating and $78 price target for APTV stock, which closed at $64.34 on March 10.
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10 of the Best Stocks to Buy for 2025 originally appeared on usnews.com
Update 03/11/25: This story was previously published at an earlier date and has been updated with new information.