GOBankingRates works with many financial advertisers to showcase their products and services to our audiences.
These brands compensate us to advertise their products in ads across our site.
This compensation may impact how and where products appear on this site.
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information.
it’s possible for you to read more about oureditorial guidelinesand our products and servicesreview methodology.
But not many consistently do, aside from Oracle of Omaha Warren Buffett.
And it could be a good time to do so.
But thehome improvement retailerhas struggled over the past few years alongside real estate markets.
First, interest rates are expected to come down through the rest of 2024 and into 2025.
And dont forget about the housing shortage.
Bowman also pointed to rebounding home sales.
Existing home sales are down about 40% from pre-pandemic levels.
That will normalize however, and 2025 looks poised for that trend to start, he said.
It also owns a smaller European Transportation business, which it plans to sell, he said.
So what makes it a good investment?
Its recent performance and growth are positive signs.
In recent quarters, XPO has achieved strong profit growth and margin improvement.
Its also made service improvements, likebetter on-time ratesand a sharp drop in damage claims, Bowman said.
Though the sector can be volatile, there are positive signs for this stock.
Overall, Bowman thinks this stock should see a good recovery in 2025.
In particular, he likes niche companies that rarely see any media exposure yet feature great fundamentals.
And one of those is PureCycle.
Polypropylene is found in everything from yogurt containers tocar parts and carpets.
With the stocks trading price as of early November, Lee explained that its trading far below its peak.
And thats not the only good sign for this stock.
Insiders have been aggressively accumulating shares, he said.
And theres further growth on the horizon.
Even after this rapid growth, PureCycles market penetration would only be 1.5% of the overall polypropylene market.
Lee cautioned investors that the company is not yet profitable, however.
PureCycle stands poised for profitability within three years.
Until then, it will be volatile, he explained.
While cigarette smoking is in decline, make no mistake tobacco is still a thriving business, Stanzione said.
The company remains astrong cash generatorand currently offers a yield of over 8% a year.
And thats not all.
It makes agood defensive stockif markets fall in 2025, he said.
More From GOBankingRates
Share This Article:
