{"id":64708,"date":"2025-02-02T18:10:11","date_gmt":"2025-02-02T18:10:11","guid":{"rendered":"https:\/\/peraltafinancing.com\/business\/finance\/top-analyst-unveils-stocks-to-target-for-rest-of-2025\/"},"modified":"2025-02-02T18:10:11","modified_gmt":"2025-02-02T18:10:11","slug":"top-analyst-unveils-stocks-to-target-for-rest-of-2025","status":"publish","type":"post","link":"https:\/\/fivemor.com\/?p=64708","title":{"rendered":"Top analyst unveils stocks to target for rest of 2025"},"content":{"rendered":"


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The technology stock selloff after DeepSeek’s surprising launch is raising many questions about what could happen to stocks next.\u00a0<\/p>\n

It’s certainly been good times for investors. The S&P 500 has delivered back-to-back 20% plus annual returns, and despite a swoon in the first week of January and the DeepSeek sell-off this week, the benchmark is still on pace to finish January with gains.<\/p>\n

\ud83d\udcb0\ud83d\udcb8 Don\u2019t miss the move: SIGN UP for TheStreet\u2019s FREE Daily newsletter<\/a> \ud83d\udcb0\ud83d\udcb8<\/strong><\/p>\n

Of course, whether that trend continues throughout 2025 is anyone’s guess, but if history is our guide, the odds appear good.\u00a0<\/p>\n

Related: Fed decision cements interest rate case<\/a><\/strong><\/p>\n

Typically, more returns follow when stocks rally between election day and the inauguration.\u00a0 If that trend holds, then research from CFRA suggests it makes sense to focus on some stocks more than others.\u00a0<\/p>\n

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Stocks have a tendency to generate positive full year returns after stocks rally between election day and the inauguration.<\/p>\n

Michael M&period; Santiago&sol;Getty Images<\/a><\/p>\n<\/figcaption><\/figure>\n

What past performance may tell us about the future<\/h2>\n

This time around, from election day through inauguration day, the S&P 500 gained almost 4% (actually 3.7%) versus an average of 1.6% in all years dating back to 1944.\u00a0<\/p>\n

As a result, the market\u2019s performance from election day to inauguration day ranks 11th out of 21 periods over the past several decades.<\/p>\n

Related: Top analyst revisits Nvidia stock price target amid DeepSeek threat<\/a><\/strong><\/p>\n

The highest return during this period came from the Biden administration (+14.3%), while the worst market performance came from President Obama (-19.9%) due to the financial crisis that took place from 2007 to 2009.<\/p>\n

The good news is that based on past periods, when returns were positive from election day through inauguration day, that led to positive returns over the next 100 days and the rest of the full calendar year almost 80% of the time. <\/p>\n

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When stocks have rallied between election day and inauguration day in the past, returns for the full year have been solid.<\/p>\n

TheStreet&sol;CFRA<\/p>\n<\/figcaption><\/figure>\n

In addition, based on data from 1993, the top four sectors in the S&P 500 that outperformed the market during this period went on to outperform the market over the remainder of the year, about 75% of the time.\u00a0<\/p>\n

They\u00a0delivered calendar-year gains of 17.0% on average, compared to the S&P
\n500\u2019s average return of 15.9%, according to CFRA.<\/p>\n

The top 10 S&P
\n500 industries during the period did even better, increasing by 26.8% for the full year.<\/p>\n

Of course, what worked in the past is not guaranteed to work again in the future, but the data is intriguing.<\/p>\n

Which S&P 500 sectors outperformed and underperformed after the election<\/h2>\n

This time around, the four sectors that generated the best performance between election and inauguration day were<\/p>\n