JPMorgan says these 2 value stocks are among its top ideas for 2025
The S&P 500 Index has seen growth of over 20% in 2024 and most analysts expect continued growth in 2025. Dubravko Lakos-Bujas, chief strategist for US equities at JPMorgan, points to several factors supporting US markets. Among them are the expansion of the business cycle, falling central bank interest rates and strong domestic demand in the US.
In this positive environment, several JPM analysts have decided to recommend traditional value stocks as an investment opportunity for this year.
3M $MMM: Stability and growth in the traditional sector
One stock that was selected for recommendation is 3M. This well-known conglomerate produces a wide range of products, including the iconic Post-It notes. 3M has a history of more than a century and has been steadily among the market leaders. In 2024, 3M stock is up more than 40%, well above the market average. In the most recent quarter, the company generated $6.1 billion in revenue, which was $10.7 million above analysts' expectations. On top of that, 3M maintained a steady dividend payout of 2.17%, well above the industry average.
JPMorgan analyst Stephen Tusa, who rates 3M, expects continued earnings growth in 2025. He believes the company has significant growth potential, emphasizing positive factors such as restructuring and productivity improvements. Tusa estimates that 3M stock has the potential to rise more than 28% in 2025, with a target price of $165 per share.
TransUnion $TRU: Modernization and growth in the credit reporting sector
Another stock that JPM analysts recommend is TransUnion, a leader in the credit reporting space. Founded in 1968, the company provides credit information and analytical tools for individuals and businesses. In recent years, TransUnion has focused on upgrading its services and developing its OneTru platform, which allows customers to manage and analyze their credit data more efficiently. In the most recent quarter, the company reported revenue of $1.085 billion, representing 12.5% year-over-year growth.
JPMorgan analyst Andrew Steinerman sees attractive value in TransUnion stock. He believes that technological innovation and positive trends in consumer lending can fuel the stock's growth in 2025. Steinerman estimates that TransUnion stock could rise 31% and recommends buying it with a target price of $124.
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Source: Yahoo Finance
