Now that the first quarter of the new year is underway, investors can look for the best potential plays in the stock market. Having confidence and financial momentum to start the year can give portfolios the room – and safety – to seek exposure to more aggressive growth plays later in the year. But to get there, this strong start to the year needs to come off.
So, to get the portfolio in that position, today’s list will be the top one for investors to consider for the first quarter. However, these are not the most popular names out there, and this is where the underlying upside will come in, as the fundamental setup and risk-to-reward setup make these stocks the best picks in transit and Industrial sector.
Once investors actually connect the dots in the bigger picture for stocks Knight-Swift Transportation Inc. NYSE: KNXReal Estate Investment Trust (REIT) connection to the sector through Prologis Inc. NYSE: PLDAnd even in the clean energy player Energy field in the NextEra Energy Inc. NYSE: NEEThe overall fundamental thesis behind today’s economy would put them directly above the double digits on this list.
Business activity leads to night-swift stocks
Now that the economy is starting to transition to a manufacturing-friendly environment, along with Manufacturing PMI The outlook for industries supporting domestic business activities has turned positive, with investors already seeing a sudden surge in new orders and positive commentary from various industries.
For example, transportation, as raw materials and finished goods are being transported, will create a significant demand tailwind for these operators to potentially see stronger profits in the coming months. If price action is any indication, investors already have a pillar of strength to account for in Knight-Swift stock’s favor today.
As it does business 91% of its 52-week highInvestors can safely assume that the market favors this stock for the reasons already mentioned. That may also explain why some Wall Street analysts decided to reiterate their optimism in Knight-Swift stock today.
People of Susquehanna have given a positive rating on this stock this time Its price is $67 per share Where the stock trades today calls for gains of up to 21.4%, not to mention a 52-week high. This also explains why Principal Financial Group’s allocators decided to boot their holdings to a net position of 21.5% by January 2025. $35.2 million today.
Prologis stock: Next in line
While Knight-Swift will handle transportation responsibilities for this increase in business activity, Prologis will act as an intermediary with a focus on logistics planning and storage networks. That’s why the broader market is also willing to pay a price-to-earnings (P/E) ratio of 34.3x today, a premium over the finance sector’s average valuation of 24.8x.
Prologis stock forecast today
$128.67
Up 11.73%buy medium
Based on 19 analyst ratings
| High forecast | $146.00 |
|---|---|
| Average forecast | $128.67 |
| Less predictable | $104.00 |
Some would call it an expensive valuation and, therefore, unattractive. Others will feel that the market is always willing to pay a premium for stocks that it expects to outperform its peers in the coming months. Knowing that the value chain, which already favors Knight-Swift, will move into Prologis stock, new buyers have flocked in recently.
As of January 2025, a new institutional distribution from Sarasin & Partners has increased the group’s holding to 0.3%. While this may not seem like much on a percentage basis, it has increased the net position to a Today is a high of $99 million And gave investors another leverage factor to consider in their decision making.
Another benefit of owning this stock is the strong and steady cash flow it generates, which allows it to pay shareholders up to $3.84 per share in dividends, translated annually. . Dividend yield up to 3.3% today
The rise in oil prices has increased the demand for clean energy
Low oil prices give consumers and businesses little incentive to seek alternative energy sources, which is why NextEra stock has traded lower. 80% of its 52-week high. However, as business activity increases, the demand for oil is also expected to increase under certain conditions.
NextEra energy stock forecast today
$87.15
Up 27.28%buy medium
Based on 14 analyst ratings
| High forecast | $102.00 |
|---|---|
| Average forecast | $87.15 |
| Less predictable | $71.00 |
This is a view shared by Goldman Sachs analysts among them 2025 Macro Outlook ReportAs well as hedge funds that have recently accumulated oil futures commodities. Connecting the dots in this latest phase of the economic tailwind led Scotiabank analysts to reiterate the sector’s outperform rating through December 2024.
Not only that, it came with repetition Valuation of up to $96 per share For Prologis stock, that would mean a net upside potential of up to 35.5% from where the stock sits today. Understanding and accepting this potential upside leads buyers from Bartlett & Company Collect up to $55.9 million NextEra socks price to start the year.
These factors give investors an opportunity to start their first quarter off on the right foot, a factor that institutions have already fallen behind on.
Before you consider night-swift transportation, you might want to hear this.
MarketBeat keeps track of Wall Street’s top-rated and best-performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified Five stocks That top analysts are quietly telling their clients to buy now before the broader market arrives… and Knight-Swift Transportation was not on the list.
While Knight-Swift Transportation currently has an “average buy” rating among analysts, top analysts believe these five stocks are better buys.
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