Roth Capital’s top stock picks for 2025 include mining stocks that are up 250%
Roth Capital’s top stock picks for next year span a variety of sectors and include ride-sharing leader Uber and furniture retailer Lovesac. Heading into 2025, the investment firm favors a mix of defensive stocks and value stocks heading into the new year. “We will continue to focus on stocks and sectors with lower cyclically adjusted valuations,” wrote Michael Darda, chief economist and market analyst at Roth. “We believe these areas will fall less if things get worse and will have more upside if the cycle continues in a sustained manner.” Strategist, in a recent note. “However, if we are not very lucky, and are price sensitive, defensive groups are likely to outperform.” In the same note, Roth outlined his top stock picks for 2025, saying these names offer potential upside anywhere from 9% to 183% during this time next year. Our top-performing stock pick for 2024 was semiconductor provider Semtech, which added 193% in 2024. P500 up 26.9% and Russell 2000 from Roth Capital Books: 16.4% (all through 12/12). Here are some of the stocks the company said were its top picks through 2025. In the technology, media and telecommunications sector, one of Roth’s favorite stocks was ride-hailing platform Uber Technologies. Uber shares have been flat this year, but analyst Rohit Kulkarni’s 12-month price target of $90 suggests the stock could rise 45% from its close on Monday. Kulkarni wrote that his catalysts for Uber included the company’s market leadership and network size, increased buffering of macro uncertainty, improving structural profitability and a more optimistic regulatory and insurance outlook. “For 2025, we are increasingly positive on Uber as we expect investor sentiment to become more positive driven by sustained growth in restaurant and grocery delivery, a maturing international mobility sector, and better structural profitability in advertising and subscription,” the analyst added. Modern furniture maker and retailer Lovesac was another name on Ruth’s list. While shares are down 4% this year, analyst Matt Kuranda’s $33 price target suggests a potential 38% upside for the name, a top pick for the second year in a row. “We see the furniture/home goods category improving from the recent cyclical bottom in early 2024 and expect Lovesac to benefit from an improving demand backdrop,” Kuranda wrote. “Adding growth from new Lovesac products and continued showroom expansion to the better overall backdrop suggests we should see an acceleration in revenue growth throughout fiscal 2025.” Meanwhile, better operating leverage due to the company’s previous investments would also contribute to further margin expansion. In the energy, mining and metals sector, Roth highlighted Perpetua Resources, which is already up 251% in 2024. However, analyst Mike Nehauser’s 12-month price target of $15 is consistent with another 40% upside for the stock. Neihauser pointed to Perpetua’s development of the Stibnite Gold Project in central Idaho as a major catalyst, especially as gold and antimony prices remain near record levels. “While antimony is expected to provide a relatively small percentage of project revenues, the lack of available sources of antimony accounts for a close relationship with the US Department of Defense and bipartisan support for licensing and production of the project,” Neihauser explained. “PPTA received $75 million from the Department of Defense, and a $1.8 billion letter of interest from the Export-Import Bank of the United States, and may qualify for the China Export and Transformation Program, allowing its bank to extend terms like what China offers its country-operating business.” Other names from Roth’s top picks included video game publisher Take-Two Interactive Software and solar parts provider First Solar.
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