Most clients of Argus Research are buy-and-hold investors. As such, our proprietary BUY-HOLD-SELL ratings and target prices are established with one-year time horizons. We also have five-year ratings for even longer-term investors. But we do have select hedge fund clients that are looking for more trading opportunities or for long/short portfolio ideas. The early weeks of 2025, with roller-coaster ups and downs in stock prices, likely have provided more opportunities for momentum traders than for fundamental investors. Indeed, the VIX Volatility Index is near 24, up from 17 at the start of the year and above the historical average of 20. The list below includes some of the shorter-term trading ideas our analysts and strategists have identified recently. All stocks are rated BUY at Argus.

Weekly Tee Up: Argus Lowers Rate Forecast This week features some new housing data and the ongoing flow of earnings reports, with some big names ready to report. Last week, the Dow Jones Industrial Average rose 0.6%, the S&P 500 was up 1.5%, and the Nasdaq gained 2.6%. Year to date, the DJIA is up 5%, while the S&P and the Nasdaq have both gained 4%. On Tuesday, Arista Networks and Medtronic will report earnings; on Wednesday, Analog Devices and Carvana; on Thursday, Walmart, Alibaba, and Booking Holdings; and on Friday, NatWest and United States Cellular. Some 383 of the S&P 500 companies have reported for last quarter, and earnings so far show a strong 15% growth rate from the prior-year quarter. That compares to 9% growth in 3Q. Communication Services, up 32%, and Financial, up 30%, are the best-performing sectors, while Energy is doing the worst, down 30%, according to Refinitiv. On the economic calendar, Wednesday brings updates on Housing Starts and Building Permits, and the Minutes of the Fed's January rate meeting. On Friday, Existing Home Sales hit the tape. For the Economic Call of the Week, Argus Chief Economist Chris Graja, CFA, has selected Housing Starts, which he expects to decline 9% from a year ago, to 1.25 million seasonally-adjusted for January. This is above the consensus call for a decline of 1.4 million, and lower than the stronger-than-expected 1.5 million in December. Chris offers the following thoughts. 'The December pace might have received a boost from builders' post-election optimism. However, our near-term concern is that the jump in mortgage rates since September will make builders more cautious. Still, we remain upbeat on the prospects for homebuilders because demographics and underbuilding have created a big shortage of affordable housing. With existing homeowners handcuffed to their low, locked-in mortgages, Millennials and other buyers are turning to the new-home market. Builders are being pragmatic and offering incentives and mortgage-rate buy-downs, which are helping them to sell homes.' Last week, mortgage rates dipped 2 basis points (bps), with the average 30-year fixed-rate mortgage now at 6.87%, according to FreddieMac. Gas prices rose five cents to average $3.13 per gallon for regular gas. The Atlanta Fed GDPNow indicator is forecasting for 1Q and calls for expansion of 2.3%. The Cleveland Fed Inflation Nowcast is at 2.81% for CPI in February. The next Fed rate decision is on March 19, with odds at just 2.5% that there will be a rate cut, according to the CME FedWatch rate tool. After that, the next meeting is in early May, with odds at just 20% for a cut. Given recent data and commentary from Federal Reserve officials, we have lowered our expectations for 2025 to two rates cuts, from three. We expect both cuts will be in the back half of the year, and both by 25 bps.

Based in Marlborough, Massachusetts, Boston Scientific is a developer, manufacturer, and marketer of medical devices used in a range of interventional medical specialties, including interventional cardiology, peripheral interventions, vascular surgery, electrophysiology, oncology, endoscopy, urology, gynecology, and neuromodulation. The company is a component of the S&P 500.

Argus has identified 10 Investment Themes for 2025. This week, we take a deep dive into Theme 10, Pharmaceuticals and Biotechnology. With the aging U.S. population, the use of medications and medical technology is rising. The number of medications dispensed increased about 60% from 2012 to 2022, according to Statista. With the aging Baby Boomers cohort and the increasing percentage of the population over the age of 65, the rate is expected to go up. Analysts estimate that nine out of 10 elderly adults take prescription medication and more than half take four or more prescriptions. While the elderly represent the majority of the prescription market, those under the age of 65 are also taking more medications than ever as treatments become available for chronic and rare diseases. Blockbuster drugs also contribute to the escalating use of prescriptions. The market for GLP-1 medications used for weight loss and diabetes reached $47 billion in 2024 and is projected to reach $150 billion by 2030, according to market research firm MarketsandMarkets. Similarly, the global Alzheimer's market was at $8 billion in 2024 and is expected to grow at a 5% compounded annually growth rate through 2032. Over the coming years, the industry will continue to face headwinds from patent expirations on key drugs. A growing number of Big Pharma companies have turned to AI for drug development to boost revenue streams. Medtech is another growth sector within Healthcare. Doctors increasingly are using robotics and sophisticated and evolving medical devices to enhance quality of life. This week's list is a collaboration from our Healthcare team. Here are some companies on the Argus BUY list that our analysts believe are poised to benefit.