The equity market outlook for 2025 appears uncertain, described by some as “stepping into a house of cards.” Michele Schneider, chief market strategist at Marketgauge.com, emphasizes the potential for individual stock opportunities despite market fluctuations. She suggests that the December sell-off may influence near-term sentiment, but patience could prove beneficial as the market resets in January.
Among her top stock picks are several companies poised to outperform the market this year. Ulta Beauty, a leading U.S. retailer in cosmetics, is noted for its extensive e-commerce and innovative AI features like the Virtual Artist. Despite a 9.4% decline over the past year, analysts project an average price target of $429.16 for a modest upside.
AbbVie, known for its dominance in pharmaceuticals and aesthetics—especially Botox—is another strong candidate, with shares up around 11.8% and a potential upside based on analyst targets. Rivian Automotive, focused on sustainable electric vehicles, is seen as a disruptive force despite a significant drop in share value. Lastly, Chewy Inc., a leading e-commerce platform for pet products, has gained over 60% but still has room for growth, aided by enhancements in customer experience through AI.