As the year comes to an end, many issues remain to be resolved in 2025, viz Potential new trade tariffsConflict in the geopolitical realm, and the inauguration of a new United States president. Each of these topics creates volatility in the stock market, so investors need to tread carefully to avoid falling into potential traps and pockets of volatility in the coming months.
This is where today’s list is Consumer staple stocks becomes beneficial, as it offers both security and low volatility. Since every portfolio needs a potential growth source on top of this protection, it also has a potential growth. Financial sector In can benefit from current trends Real estate space. Security, growth, and the ability to start 2025 off on the right foot so that the rest of the year is open ground ahead for individual plays and isolated gains.
There are stocks like this that make the list McDonald’s Co. NYSE: MCD Makes it easy for analysts to value and project a company’s financial position, for stable and predictable demand. Then there is the most sought-after real estate investment trust (REIT), Realty Income Co. NYSE: OAnd its monthly dividend payout, which currently beats inflation rates and GDP growth estimates. Finally, a potential mortgage rebound could boost shares Rocket Companies Inc. NYSE: RKT.
Why McDonald’s stock offers excellent value at its current price
McDonald’s Today
(as of 12/17/2024 ET)
- 52-week range
- $243.53
▼
$317.90
- Dividend yield
- 2.39%
- P/E ratio
- 25.99
- Price target
- $320.50
The value proposition from McDonald’s doesn’t just come from their affordable prices for customers; They also apply to investors today. As the stock only went down 87% of its 52-week high While the broader S&P 500 stood at its all-time high, investors understand the nature of Low beta stocks Will demand to close this gap.
With a beta of 0.7, McDonald’s stock isn’t going to give investors a wild ride in the coming months, but that’s the whole point of holding the name for future portfolio protection and stability. That’s why Wall Street analysts still hold the company highly, regardless of the business cycle.
Notably, analysts at Truist Financial now have a buy rating on McDonald’s stock, giving Price target of $342 per share. They call for a net growth of 16% from where it trades today, which is no easy feat for a company that today trades at a $214 billion market capitalization.
Other benefits of owning McDonald’s come from the company’s dividend, which today pays $7.08 per share. 2.4% in annual yield.. These yields are not on par with inflation rates of 2.7%, but they still give investors a near breakeven rate for inflation on top of the double-digit upside potential through price appreciation.
Finally, institutional investors are another gauge to give retail investors an idea of sentiment for McDonald’s stock. Geode Capital Management increased its holdings by 1.4% to November 2024, its net position $4.8 billion todayor 2.2% ownership in the company.
How Dividend Realty Income Stocks Can Increase Your Buying Power for 2025
Realty income today
(as of 12/17/2024 ET)
- 52-week range
- $50.65
▼
$64.88
- Dividend yield
- 5.80%
- P/E ratio
- 51.92
- Price target
- $63.23
A monthly dividend can benefit investors who allocate real estate income in two ways. First, it allows them to buy more shares each month and has the effect of monthly income compounding. Second, it creates liquidity and purchasing power for investors to take advantage of opportunities that come later in 2025.
As of today, the company offers shareholders a net payout of $3.16 per share, which translates to a Annual yield of 5.8%. This doubles inflation rates, so investors get a nice premium on their cash and purchasing power in 2025. However, the benefits of owning realty income stocks do not end there.
Analysts at UBS Group reiterated their buy rating on Realty Income stock until November 2024. This time, they have one Price target of $71 per share On the company, that calls for a net upside of 29.3% from where the stock trades today.
Why Rocket Companies’ Stocks May Soar as the Mortgage Industry Recovers
Rocket companies today
(as of 12/17/2024 ET)
- 52-week range
- $10.87
▼
$21.38
- Price target
- $14.33
Now that the Federal Reserve (Fed) is set to cut interest rates again in December 2024, CME Group’s FedWatch tool is now Price in more than 96% probability Along with the rate cut, there may be some tailwinds in the mortgage industry. As rates come down, so do mortgage rates, allowing some homebuyers to step aside.
This is especially the case The mortgage market index is now at a 1996 lowThat means the risk-to-reward setup in mortgage stocks is very attractive today. That’s where rocket company stocks come into play today and where Wall Street analysts see an upside, such as one at Morgan Stanley. Priced at $18 per share.
To justify these views, the stock would have to rally up to 47.5% from where it trades today. This is supported by attractive upside potential earnings per share (EPS) estimates for the next 12 monthsWhere analysts are looking for $0.14 in earnings versus $0.08 today, a net growth rate of 75%, to act as a tailwind for the stock.
Before you consider rocket companies, 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 before the broader market arrives… and Rocket Companies was not on the list.
While Rocket Companies currently has a “Reduce” rating among analysts, top analysts believe these five stocks are better buys.
