U.S. stock markets are set to close January on a positive note, maintaining the bull run that started at the beginning of 2023. With just a day of trading left this month, the three major stock indexes — the Dow, the S&P 500 and the Nasdaq Composite — are up 5.9%, 3.5% and 2.1%, respectively. The small-cap benchmark — the Russell 2000 — is also up 3.4%.
The trading pattern of January has not been a smooth one. Fluctuations appeared intermittently due to sticky inflation, a relatively hawkish Fed, the Trump administration’s trade and tariff policies and the DeepSeek-related mayhem in the technology sector. Therefore, it is commendable that Wall Street is finishing January in the green with a broad-based rally.
At this stage, we have selected five large-cap strong buy stocks with double-digit upside potential in the short term. These are: Amphenol Corp. APH, Weyerhaeuser Co. WY, Marvell Technology Inc. MRVL, United Airlines Holdings Inc. UAL and News Corp. NWSA.
5 Strong Buy Stocks Set to Soar in the Short Term
These five stocks have strong revenues and earnings growth potential in 2025. The stocks have seen positive earnings estimate revisions in the last 60 days. Each of our picks sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The chart below shows the price performance of our five picks in the past year.
Zacks Investment Research
Image Source: Zacks Investment Research
Amphenol Corp.
Amphenol has been benefiting from a diversified business model. It expects first-quarter 2025 sales in the defense market to increase moderately on a sequential basis. APH’s strong portfolio of solutions, including high-technology interconnect products, is a key catalyst. Expanding spending on both current and next-generation defense technologies bodes well for APH’s top-line growth.
Apart from Defense, APH’s prospects ride on strong demand for its solutions across Commercial Air, Industrial and Mobile devices. For first-quarter 2025, Amphenol expects a mid-to-high single-digit increase in Commercial Air sales. APH’s diversified business model lowers the volatility of individual end markets and geographies. Strong cash flow generating ability is noteworthy.
Amphenol has an expected revenue and earnings growth rate of 9.1% and 11.1%, respectively, for the current year. The Zacks Consensus Estimate for the current-year earnings has improved 1.6% over the last seven days.
APH has a return on equity of 25.67% compared with 0.63% of the industry and 16.99% of the S&P 500 Index. The forward P/E for the current financial year is 30.80X, in line with the industry and 18.17X of the S&P 500.
Robust Short-Term Price Upside Potential for APH Stock
At present, the short-term average price target of brokerage firms for the stock represents an increase of 24% from the last closing price of $71.66. The brokerage target price is currently in the range of $63-$102. This indicates maximum upside of 42.3% and maximum downside of 12.1%.
Weyerhaeuser Co.
Weyerhaeuser has been benefiting from its focus on operational excellence, cost control, and long-term growth strategies. Besides, WY is optimistic about the growing support for the voluntary carbon markets and is well-positioned to capitalize on the increasing demand for high-quality credits. Also, ensuring shareholder value and expanding its footprint in emerging markets like India and Vietnam, are additional benefits.
Although higher lumber manufacturing & raw materials costs along with weather-related risks, and delays in renewable energy and CCS projects are concerns for its prospects, WY is witnessing improved lumber/OSB market fundamentals.
Weyerhaeuser has an expected revenue and earnings growth rate of 8% and 69.8%, respectively, for the current year. The Zacks Consensus Estimate for the current-year earnings has improved 1.2% over the last 30 days.
Impressive Short-Term Price Upside Potential for WY Shares
At present, the short-term average price target of brokerage firms for the stock represents an increase of 16.6% from the last closing price of $30.96. The brokerage target price is currently in the range of $32-$39. This indicates maximum upside of 25.8% and no downside.
Marvell Technology Inc.
Marvell Technology is benefiting from the strong demand environment across the data center end market. In the last reported quarter, MRVL’s data center end market revenues increased 98% year over year and 25% sequentially, propelled by strong revenue growth across AI-driven demand for PAM products and ZR electro-optics.
MRVL is a promising player in the solid-state drive controllers’ market. The storage market is seeing a steady increase in demand, given the fast-growing data volume, especially the exponential growth in unstructured data. Completion of inventory digestions is likely to aid growth for MRVL across the enterprise networking and carrier infrastructure end markets.
Marvell Technology has an expected revenue and earnings growth rate of 40.3% and 72.8%, respectively, for the current year. The Zacks Consensus Estimate current-year earnings has improved 7.6% in the last 60 days.
Attractive Short-Term Price Upside Potential for MRVL Stock
At present, the short-term average price target of brokerage firms for the stock represents an increase of 23.1% from the last closing price of $110.33. The brokerage target price is currently in the range of $95-$188. This indicates maximum upside of 70.4% and downside of 13.9%.
United Airlines Holdings Inc.
United Airlines Holdings has been benefiting from swelling passenger volumes. UAL's ability to capitalize on strong corporate travel volumes and premium leisure demand is supporting growth. Low fuel costs are aiding UAL’s bottom line.
In fourth-quarter 2024, the top line increased 7.8% year over year due to upbeat air-travel demand. This was driven by a 6.9% rise in passenger revenues (which accounted for 90.3% of the top line) to $13.3 billion. Nearly 44,344 passengers traveled on UAL flights in the last quarter, up 6.1% year over year. Cargo revenues grew 29.6% year over year to $521 million. Revenues from other sources rose 12% year over year to $899 million.
United Airlines Holdings has an expected revenue and earnings growth rate of 7.5% and 21.1%, respectively, for the current year. The Zacks Consensus Estimate current-year earnings has improved 0.2% in the last seven days.
The forward P/E of UAL for the current financial year is 8.42X, compared with 9.62X of the industry and 18.17X of the S&P 500. The forward P/S for the current financial year is 0.62X, compared with 0.61X of the industry and 3.08X of the S&P 500.
The forward P/B for the current financial year is 2.81X, compared with 1.76X of the industry and 3.60X of the S&P 500. United Airlines Holdings has a return on equity of 32.26% compared with 12.55% of the industry and 16.99% of the S&P 500 Index.
Excellent Short-Term Price Upside Potential for UAL Shares
At present, the short-term average price target of brokerage firms for the stock represents an increase of 23.8% from the last closing price of $109.40. The brokerage target price is currently in the range of $115-$165. This indicates maximum upside of 50.8% and no downside.
News Corp.
News Corp. is benefiting from prudent strategic efforts, which include the ongoing digital transformation of the business and investments in the Digital Real Estate Services, Dow Jones and Book Publishing segments. NWSA has been diversifying revenue streams through strategic acquisitions and operational enhancement.
Solid momentum in Digital Real Estate Services owing to higher Australian residential revenues at REA Group is expected to aid top-line growth in the upcoming quarters. NWSA has been diversifying revenue streams with acquisitions. Cost savings across business lines related to headcount and other cost reductions are expected to aid the bottom line.
News Corp. has an expected revenue and earnings growth rate of -11.6% and 30%, respectively, for the current year (ending June 2025). The Zacks Consensus Estimate for current-year earnings has improved 2.3% in the last 30 days.
The forward P/E of NWSA for the current financial year is 30.99X, compared with 22.70X of the industry and 18.17X of the S&P 500. The forward P/S for the current financial year is 1.58X, in line with the industry and 3.08X of the S&P 500. The forward P/B for the current financial year is 1.75X, compared with 2.53X of the industry and 3.60X of the S&P 500.
Huge Short-Term Price Upside Potential for NWSA Stock
At present, the short-term average price target of brokerage firms for the stock represents an increase of 33% from the last closing price of $28.08. The brokerage target price is currently in the range of $32-$43. This indicates a maximum upside of 53.1% and no downside.
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