Here are some of BTIG’s top picks for the first half of 2025 By Investing.com

Investing.com – Investors should expect some growth in 2025 after two years of expansion of more than 20% in the benchmark index, according to BTIG analysts led by Jonathan Krinsky.

Although there was a certain end to 2024, the main US indices all posted double-digit increases for the year, with the S&P 500 in particular noting its best performance in years two from 1997-1998.

Much of the optimism was bolstered by the Federal Reserve’s decision to begin lowering interest rates from multi-year highs.

Policy makers have pointed to optimism about a reduction in inflationary pressures from the 2022 peak, although some have signaled that this reduction has slowed in recent months. Fed Chairman Jerome Powell said at a press conference last month that although policy is “in a good place,” the central bank will now take a “prudential” approach to further cuts.

The administration of President-elect Donald Trump, as well as several victories for other Republican candidates in November’s key elections, have also boosted hopes that companies will benefit from a new era of looser regulations and cuts. tax. However, uncertainty still surrounds Trump’s plans to impose tougher tariffs and mass layoffs — and whether these measures could stoke inflation.

Elsewhere, the growing interest in artificial intelligence has led to a rise in many technology startup stocks. Nvidia (NASDAQ:) has emerged as the world’s largest market leader in terms of market growth by 2024, thanks in large part to growing demand for its AI-focused chips across industries. different. The company added more than $2 trillion in market value by 2024, closing the year at $3.28 trillion, giving it the second-highest value among listed firms in the world.

BTIG’s Krinsky noted that while equity markets in the first half of 2024 were largely buoyed by the spread of mega-cap names like Nvidia, many investors expected the breadth of these gains to widen once the Fed start cutting prices.

However, Krinsky marked that breadth, as measured by the percentage of stocks trading in the Russell 3000 index above the 200-day moving average, reached mid-July. As of Dec. 30, less than 60% of stocks in the S&P 500 were above their 200-day moving average — the lowest level since 2023.

“As always, a broad breakdown may be a warning sign or an opportunity. We saw a similar set-up towards the end of (20) 21, and that clearly meant the news of base before the bear market (20) 22,” Krinsky said. .

“On the other hand, similar setups at (19) 96, (20) 04, (20) 14, and (20) 18 were all opportunities before strong rallies. Our bottom line at this point is that the recent divergence foretells more News from the start of the new year The rubber band between mega-cap growth and the rest of the market has widened significantly, and a reversal is likely said, and the winners will fall to the ground. the losers will balance out and the tax sale will continue.”

He added that “after the initial movement,” there may be “some marginality in the cyclical / value business,” as long as the macroeconomic data “continues to stand still.”

“While that may mean a much weaker Fed, ultimately the strongest factor should be equities over time,” Krinsky said.

With this view in mind, here are some of BTIG’s top picks for the first half of 2025.

Bloom Energy Corp (NYSE :): “The stock had been in a stable position for almost four years from early ’21 to late (20) 24. The high gap in November appears to be a game changer, with and the next higher power.”

Expedia Inc (NASDAQ :): “A big base from 2022-2024, but the stock broke out in November and has been consolidating for the past two months. If it can clear $192, it should test its levels the first of all time from the beginning of 2022 the price of $ 210-220.

Globus Medical (NYSE :): “After a multi-year bear market from 2021 -2023, the stock stabilized and reversed that trend, finally surpassing the peak of 2021 in December. – 80th place.

Health Equity (NASDAQ :): “After a multi-month consolidation in the first quarter of (20) 24, the stock bounced back from November with a gap up. After pulling back almost and to fill the gap, it has begun again upwards.”

In Holdings (NYSE :): “The stock has had a very consistent performance over the last six months, with the price consolidating, then moving higher, and consolidating again. It has just been consolidating since mid-November, and looks poised for another move higher that should take it well north of $60”.

Regency institutions (NASDAQ :): “With a lot of trading on the sidelines for most of 2022-2023, the stock started to bounce last summer. After peaking in September, it actually went sideways for of the past few months. This creates a good entry point (…)”

Group Block Inc (NYSE :): “The stock spent most of the 2022-2024 period in a sideways trade. In November, it finally broke through that multi-year resistance around $90. After nearly trading up to $100, it has combined to explode and is now poised to continue at higher levels.”

Description of Verona Pharma PLC shares (NASDAQ :): “The stock has had the strongest trend in just six months. The stock is up more than 4x since the May low, but as long as the uptrend continues, we would stick to the property.”