Citi (C, Financial) Research analysts released a list of their Top 20 large-cap stocks outperforming the S&P 500, with the index ending December 5.2% down from the index. This carefully curated selection showcases Citi's belief in continued growth despite the market volatility we anticipate in 2025.
U.S. equity strategist Scott Chronert of Citi summed up its outlook in the 2025 Outlook Roundup, saying structural trends and productivity gains will support index fundamentals. However, markets are already pricing much of that good news in. We forecast the S&P 500 to target 6,500 in 2025 on earnings per share (EPS) of $270 from earnings improvement from underperforming stocks and strong tailwinds for recent market leaders.
Communication services stand out to me, with key picks such as Alphabet Inc (GOOG, Financial), Amazon Inc (AMZN, Financial), Royal Caribbean Cruises (RCL, Financial) in consumer discretionary, and Constellation Brands (STZ, Financial) in consumer staples. Energy giant Schlumberger Ltd. (SLB, Financial), along with financials including Huntington Bancshares (HBAN, Financial) and LPL Financial Holdings (LPLA, Financial), and healthcare top dogs Intuitive Surgical (ISRG, Financial) and Merck & Co. (MRK, Financial) are also featured.
Citi's recommended stocks range from industrials Delta Air Lines (DAL, Financial) and Honeywell International (HON, Financial) to information technology Marvell Technology (MRVL, Financial) and Snowflake Inc (SNOW, Financial).
