5 Stocks to Watch: Week of 12/23/2024

By Jessie Moore, Stock Researcher and Writer
December 21, 2024 10:41 AM UTC
5 Stocks to Watch: Week of 12/23/2024

Nothing naughty here, just 5 extra-nice stocks to watch this holiday week. Movies are hot, as proven by a recent price target upgrade for Imax Corp. (NYSE: IMAX). Data management is too, as evidenced by Datadog Inc.'s (NASDAQ: DDOG) continued momentum.

A sector to watch? Healthcare. We've got two picks in the sector today: McKesson Corp. (NYSE: MCK) and Unum Group (NYSE: UNM).

Finally, our latest Stock of the Week, BGC Group (NASDAQ: BGC), is "one of the best stocks for 2025." Keep reading for more.

1- Unum Group (NYSE: UNM)

Unum Group is a healthcare benefit company. The industry has an exemplary “A” rating according to WallStreetZen, but UNM stands out as one of the top picks within the industry. Here’s why analysts and our Zen Ratings system agree that UNM is worth watching.

Zen Rating: B (Buy) —  see full analysis >  

Recent Price: $71.10 — get current quote > 

Max 1-year forecast: $96.00 

Why we’re watching:

  • Analyst support: UNM currently enjoys a Strong Buy consensus among the 10 analysts we track issuing ratings. See the ratings here 
  • For example, John Barnidge of Piper Sandler (a top 11% analyst) just hiked their price target on UNM by 10.8% from $74 to $82 on 12/18. 
  • Barnidge’s price target hike on Unum Group was delivered in a Q4 2024 preview of names in their Financial (Life Insurance) sector coverage area.
  • Updating their models, the analyst said that compared to previous periods, the sector appears to be more attractively valued overall.
  • Our quant rating agrees: UNM has an above-average Zen Rating grade of B, meaning it’s a standout stock that is expected to perform in the top 20% of all the stocks we cover. 
  • Above-average scores for Value and Momentum: 7 Component Grades play into each Zen Rating — UNM has especially high marks for Value and Momentum. (See all 7 Zen Component Grades here >)

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2- Datadog Inc. (NASDAQ: DDOG)

Hot diggity Datadog! This analytics and monitoring platform helps enable developers and IT operations streamline their processes and manage data. The stock has also had an excellent year (up 21%!) and appears to have strong momentum that could continue for the foreseeable future, according to analysts and our proprietary ratings system.

Zen Rating:  B (Buy) —  see full analysis >  

Recent Price: $146.93 — get current quote > 

Max 1-year forecast: $200.00 

Why we’re watching:

  • Analyst support: 23 analysts we follow are currently issuing ratings on DDOG — with 12 Strong Buy and 11 Buy ratings, it has a Strong Buy consensus. See the ratings
  • Just this week, Brad Reback of Stifel Nicolaus (a top 6% analyst) raised their price target on DDOG by 17% from $141 to $165. 
  • While overall, Stifel Nicolaus expects management teams to take a more conservative approach to their Q1 guidance but believes that, overall, "revenue growth rates should at least mirror what we have seen in 2H 2024 because of many of the above-mentioned factors."
  • Supporting the positive analyst sentiment, DDOG has a Zen Rating of B (Buy), meaning it’s in a class of stocks that have enjoyed nearly 20% annual gains since 2003. 
  • Among DDOG’s many high points, it earns above-average Component Grades for Growth and Financials, indicating it has growth potential but also solid finances to support future growth. (See all 7 Zen Component Grades here >)

3- BGC Group (NASDAQ: BGC

This financial brokerage company has been around since 1945, but it’s still developing innovative financial products and services. Ranked in the top 5 of 55 stocks WallStreetZen tracks in the Capital Market industry, there are two key reasons why this stock is worth watching in the near term… 

Zen Rating: A (Strong Buy) see full analysis >  

Recent Price: $8.63 get current quote > 

Max 1-year forecast: $12.00 

Why we’re watching:

  • It’s our Stock of the Week: BGC earns the coveted title of Stock of the Week from Zen Investor Editor-in-Chief Steve Reitmeister. Here are just a few reasons he called it “one of the best stocks for 2025” in a recent article:
  • “As part of my 2025 Stock Market Outlook, I said that financials will be outperformers in the year ahead as the Fed lowers rates. That notion became extra solidified after Trump’s election because of all the steps he is taking to greatly reduce regulation that constrains many businesses...none more so than the financial industry.”
  • Reitmeister continues, “Not only does BGC enjoy a Zen Rating of A (Strong Buy) it actually has a percentile grade of 97.83. This means it’s basically in the top 2% of all stocks across the 115-factor review.
  • In the case of BGC, there is no weakness to be found in the 7 component grades. Meaning that BGC scores solidly in all areas from Growth to Value to Momentum to Sentiment to Financials to AI etc.”  (See full Zen Ratings analysis for BGC

4- McKesson Corp. (NYSE: MCK)

Founded in 1833, McKesson Corporation probably isn’t going anywhere. This company distributes branded, generic, and specialty pharmaceutical drugs and other healthcare-related products — and could be poised for a great 2025, according to top-rated analysts.

Zen Rating: B (Buy) —  see full analysis >  

Recent Price: $573.29 — get current quote > 

Max 1-year forecast: $713.00

Why we’re watching:

  • Analyst support: Based on 10 analysts we track issuing ratings on MCK, the stock has a Strong Buy consensus. See the ratings here
  • Notably, Erin Wright of Morgan Stanley (a top 7% analyst) recently raised their price target on MCK by 4.9% from $612 to $642.
  • Wright's price target hike was delivered in a FY 2025 preview of names in their Healthcare Services sector coverage area.
  • United Health Group was replaced by McKesson as Morgan Stanley's "Top Pick" in the group, the analyst told investors.
  • In 2024, Diversified Managed Care "woefully underperformed," but "the uncertainty pressuring sentiment" notwithstanding, the analyst expressed optimism about "opportunities in a friendlier policy backdrop" going forward.
  • Great Zen Rating: MCK boasts an above-average Zen Rating of B (Buy), meaning it’s in a class of stocks that have enjoyed average annual returns of 19.88%.
  • Great component scores: Among the 7 Component Grades that play into the overall Zen Rating, MCK has higher-than-average marks for Value, Growth, and Safety, meaning it may be an enticing mix for investors who want to reduce risk but still want growth potential. (See all 7 Zen Component Grades here >)

5- Imax Corp. (NYSE: IMAX)

Ever seen an IMAX movie? You have this company to thank. This cinematic solutions provider does more than you might think: It’s pivotal in planning theater design, creating specialized equipment, and more. With substantial leverage in the industry and a robust slate of upcoming movies, it’s on our radar for the foreseeable future. 

Zen Rating: B (BUY) — see full analysis >  

Recent Price: $24.70 — get current quote >

Max 1-year forecast: $30.00

Why we’re watching:

  • Analyst support: Among the 9 analysts we track issuing ratings on IMAX, the stock enjoys a Strong Buy consensus. 
  • For example, Benchmark's Mike Hickey recently raised their price target on IMAX 11.1% from $27 to $30. 
  • Factors contributing to Benchmark's continued optimism on Imax's future growth, according to Hickey, include a "robust" film slate, an increasing installation network, and substantial operational leverage.
  • Great Zen Rating: Movies have been making a comeback post-pandemic, and IMAX’s above-average Zen Rating of B (Buy) reflects that. Digging deeper, you can see that among the 7 Component Grades that play into that overall rating, IMAX scores high for Safety, meaning it may be suited to more conservative investors. (See all 7 Zen Component Grades here >)

What to Do Next?

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