5 Stocks to Watch: Week of 12/30/2024
According to analysts and our quant rating system, the hottest stocks to watch this week are Fox Corp. (NASDAQ: FOXA) due to positive near term catalysts, LPL Financial Holdings Inc. (NYSE: LPLA) as a beneficiary of higher rates, Pure Storage Inc. (NYSE: PSTG) as a “pick and shovel” AI play, Sezzle Inc. (NASDAQ: SEZL) due to its trending category, and Broadcom Inc. (NASDAQ: AVGO) as a more direct AI play. Here’s the story.
1- Fox Corp. (NASDAQ: FOXA)
Yep, it’s probably the Fox you’re thinking of — the big media corporation. With solid analyst support and strong fundamentals, this is one worth watching in 2025.
Zen Rating: A (Strong Buy) — see full analysis >
Recent Price: $49.53 — get current quote >
Max 1-year forecast: $58.00
Why we’re watching:
- Analyst support: Among the 15 analysts we track issuing ratings on FOXA, the stock enjoys a Buy consensus. See the ratings
- For example, Michael Ng of Goldman Sachs (a top 6% analyst) just raised their price target on FOXA from 11.8% from $51 to $57, while maintaining a Strong Buy rating.
- Following a meeting with Fox's management, the analyst reported bolstered confidence in the stock, and that they believe the company is in a good position to handle industry changes, citing the company's portfolio of high-quality sports and news networks.
- Supporting analyst sentiment, FOXA enjoys a Zen Rating of A (Strong Buy), meaning it’s in an elite class of stocks that have enjoyed historical returns of over 30% per year.
- Among the stock’s high points, as reflected by the 7 Component Grades that play into the Zen Rating, FOXA has above-average ratings for Value, Sentiment, Safety, and Financials, suggesting this is a pick with solid, well-rounded fundamentals. (See all 7 Zen Component Grades here >)
2- LPL Financial Holdings Inc. (NYSE: LPLA)
This is the platform that financial pros use, offering an integrated platform of brokerage and investment advisory services to independent financial advisors. But financial advisors at financial institutions also make use of its services, giving it a big reach — and big potential.
Zen Rating: B (Buy) — see full analysis >
Recent Price: $327.93 — get current quote >
Max 1-year forecast: $413.00
Why we’re watching:
- Analyst support: We currently track 13 analysts issuing ratings on LPLA. 8 of those ratings are Strong Buy ratings, 2 are Buy, and 2 are Hold — making for a Strong Buy consensus. See the ratings
- Notably, Bill Katz of TD Cowen (a top 13% analyst) just upgraded LPLA from a Hold to Strong Buy, with a big price target increase, from $277 to $413.
- Katz noted that an "expanded value proposition" is visible under the company's new leadership that is an "attractive hedge" to potential "higher for longer" interest rates.
- Additionally, according to Katz, a combination of tighter expense control, further liquidity, and succession-as-a-service validation can bolster the company's multiple.
- LPLA’s above-average Zen Rating of B (Buy) supports what Katz has to say — it is rated in the top 20% of stocks we track. Of its 7 Component Grades, LPLA shines particularly bright in Growth, Momentum, and Financials, suggesting this stock may pair a solid foundation with great growth potential. (See all 7 Zen Component Grades here >)
3- Pure Storage Inc. (NYSE: PSTG)
Pure Storage, Inc. is quietly benefiting from the AI revolution as a company that offers data storage management and data storage software — must-haves for AI apps. With an above-average Zen Rating, analyst support, and an excellent outlook, here’s why it’s one of our top watches…
Zen Rating: B (Buy) — see full analysis >
Recent price: $63.82 — get current quote >
Max 1-year forecast: $93.00
Why we’re watching:
- It’s our Stock of the Week: PSTG caught Zen Investor Editor in Chief Steve Reitmeister’s eye as a beneficiary of AI applications that need secure storage; in a recent article, he noted, “This explains how the earnings per share for PSTG is up 6 fold in just the past two years (and the stock price rising even more).”
- He continues, “Even more impressive is the average 40% earnings beat the last 4 quarters including a 63% beat at the end of October putting everyone on notice that this is one of the true winners of the AI gold rush.”
- The Zen Ratings model certainly picks up on the attractiveness of PSTG shares. This is a B rated (Buy) stock overall in the top 8% of all 4,600 stocks analyzed by the model.
- Its greatest strength is the top 4% showing for Financials. Meaning that across 26 different financial metrics it shows impressive operational strength. The kind of strength that points to more earnings beats and share price gains in the future. (See full Zen Ratings analysis for PSTG here >)
4- Sezzle Inc. (NASDAQ: SEZL)
If you’re one of those people who “never carries cash,” then you probably appreciate services like Sezzle, which uses tech to enable payment solutions at brick and mortar stores as well as online. In an industry with an overall B Zen Rating, Sezzle shines as #3 of #46 companies we track in Credit Services.
Zen Rating: A (Strong Buy) — see full analysis >
Recent Price: $258.75 — get current quote >
Max 1-year forecast: $372.00
Why we’re watching:
- Analyst support: Though only 2 analysts we track are currently issuing ratings on Sezzle, they’re positive: 1 Buy and 1 Strong Buy rating. See the ratings
- For example, Hal Goetsch of B. Riley Securities (a top 7% analyst) just raised their price target on SEZL by 128.2% from $163 to $372 on 12/19.
- Goetsch increased their projections for the holiday shopping period, explaining that their previous estimates did not adequately account for seasonality.
- According to the analyst, the recent "brief report" did not provide any fresh investment insights instead, it "showed conceptional errors concerning the fundamentals" of Sezzle and the BNPL Industry, leading to a decline in the share price. However, there were some disclosures that were taken out of context and included in the report that were outdated and known to informed investors, Goetsch noted.
- Zen Ratings agrees with analysts: With an overall Zen Rating of A, SEZL shines as an exemplary pick not only in its industry but within all of the stocks we track. Stocks with an A rating have historically averaged over 30% annual returns.
- Among the 7 Component Grades that play into each Zen Rating, SEZL enjoys an A for Sentiment, meaning the general vibe on the street is good about the stock based on upgrades, coverage, and other factors; it also has above-average grades for Growth, Momentum, and Financials. (See all 7 Zen Component Grades here >)
5- Broadcom Inc. (NASDAQ: AVGO)
Broadcom designs and develops semiconductor devices that make the AI revolution possible. Some consider AVGO as second banana to Nvidia, but as you’ll see below, it has plenty of selling points of its own.
Zen Rating: B (Buy) — see full analysis >
Recent Price: $245.36 — get current quote >
Max 1-year forecast: $265.00
Why we’re watching:
- Analyst support: Currently, 18 analysts we track are issuing ratings. 15 are Strong Buy, and 3 are Buy ratings — pretty unanimous support. See the ratings
- Notably, Joseph Moore of Morgan Stanley (a top 3% analyst) just raised their price target on AVGO by 13.7% from $233 to $265, while maintaining a Strong Buy rating.
- Moore reported that their update was catalyzed by a deep dive into their Technology (Semiconductors) sector coverage area.
- Although the AI industry is showing signs of "a U-shaped bottom continuing to play out elsewhere," the analyst said their "attractive assessment" of the group remained unchanged.
- Our proprietary quant rating system agrees with analysts: AVGO earns a B (Buy) Zen Rating, meaning it’s considered an above-average stock among the thousands of stocks we track.
- AVGO has impressive scores in two particular areas: Growth and Momentum, suggesting that this is a stock is on an upward trajectory that could continue in the future. (See all 7 Zen Component Grades here >)
What to Do Next?
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