Why Adobe, AMD, and Hershey are the best stocks right now – Magic Post

Now that the new year 2025 has begun, most investors are focused on getting ahead as much as possible in the first quarter so that they have an open field for the rest of the year and don’t worry too much about the market. Fluctuations and fluctuations. One of the best ways to do this is to align portfolios with major companies that are trading at a discount.

The essence of every value investor’s strategy and the view that is most likely to lead to comfortable Q1 portfolio performance can be achieved in the coming months by looking at some of the best and strongest companies in the market today, which do not have a lot of experience. A reason to trade at deep discounts. However, this is where the market gives investors rare opportunities.

Opportunities like Adobe company Nasdaq: Literary To represent one of the best discounts in the technology sector today, or Advanced Micro Devices Company Nasdaq: AMD Supporting a new wave in the semiconductor industry and participating in some tailwinds for Adobe today. Even in the consumer goods sector. Hershey Company New York Stock Exchange: HSE It proves to be an undeniable value at today’s discounts.

Adobe Stock: Not far from Buffett’s bet

Adobe Today

$419.58 -3.05 (-0.72%)

Effective 01/08/2025 at 04:00 PM ET

52 week range

$415.51

▼

$638.25

P/E ratio

33.84

Price target

$575.85

Warren Buffett recently decided to acquire a stake in the domain and online security company Verisign Company Nasdaq: VRSNHis thesis may center around the growth and adoption of the digital economy, which some might call the creator economy.

While you love companies Alphabet company Nasdaq:Google and Meta Platforms Inc Nasdaq: Meta Providing real estate for advertising and social media platforms, workers and businesses need tools like Adobe and VeriSign to develop these properties. When it comes to Adobe, management knows exactly what’s going on.

Recently, insiders decided to shift the entire business model to a subscription-based business, where all Adobe’s creative software products are bundled into a monthly subscription for customers to enjoy. Most people – if not all – are happy to be locked into a 12-month contract with Adobe, and that says a few things about the stock.

First, they have a monopoly in this area, as management knows they have very few competitors that offer the comprehensive package that Adobe has achieved here. Second, financials are now more stable and predictable than ever before under this new business model.

That’s why, despite trading at 66% from its 52-week high, Wall Street analysts feel comfortable maintaining the consensus price target of $575.85 per share. Compared to today’s prices, this represents a net rise of 37.4%.

Is AMD the best bet for semiconductor investors?

Today’s advanced micro-devices

AMD

Advanced micro devices

$121.84 -5.49 (-4.31%)

Effective 01/08/2025 at 04:00 PM ET

52 week range

$117.90

▼

$227.30

P/E ratio

109.77

Price target

$187.85

For most of the past eighteen months, all the attention seems to have been focused around her Nvidia company Nasdaq: NVDA And its role in developing artificial intelligence through new semiconductor technology.

Whatever advantages the company has in terms of its high valuations, it has created a massive imbalance across the industry.

This imbalance can be seen in stocks like Advanced Micro Devices, which has been left behind. NVIDIA shares are trading at 92% of their 52-week high, while Advanced Micro Devices is significantly behind at just 54%. Some on Wall Street are starting to notice this widening gap, and it’s showing in their price targets.

For NVIDIA, the consensus valuation of $164.6 per share would require a 17.5% upside from where it is trading today. It’s still attractive but nowhere near Advance Micro Devices and its current valuation of $187.85. The latter implies an upside of up to 55% from today’s prices, which is significantly more attractive as a start for investors looking to move forward into 2025.

Warning: Hershey stock may worsen your wealth

Hershey today

$162.51 -3.01 (-1.82%)

As of 01/08/2025 at 03:58 PM ET

52 week range

$159.87

▼

$211.92

Dividend yield

3.37%

P/E ratio

18.72

Price target

$182.21

There are several reasons why this is the case. First, the stock generates a return on invested capital (ROIC) rate of up to 23%, and this is the basis for wealth multiplication, as the annual stock price performance tends to match the long-term ROIC rate over time.

Then, there’s the fact that the stock is down 77% from its 52-week high today, creating enough headroom to give investors a nice risk-reward setup in the company. Taking advantage of this favorable situation, some institutional investors have decided to take matters into their own hands.

Like those from State Street, who boosted their stake in Hershey stock by 5.8% as of November 2024, bringing their net position to a high of $1.3 billion today, or 3.5% ownership in the company.

Of course, Wall Street’s expectations for earnings per share (EPS) in the next 12 months may have influenced part of this decision.

Analysts now see up to $2.25 in EPS for the next 12 months, which represents a significant 77.2% increase from today’s EPS level of $1.27 and another bullish factor for investors to consider going forward in their 2025 purchasing decisions.

Before you consider Adobe, you’ll need to hear this.

MarketBeat tracks the highest-rated and best-performing research analysts on Wall Street and the stocks they recommend to their clients on a daily basis. MarketBeat identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches up… and Adobe wasn’t on the list.

While Adobe currently has a “Moderate Buy” rating among analysts, top-rated analysts believe these five stocks are better buys.

View the five stocks here

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