3 Discounted Stocks to Buy Early in 2025

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Investing in a Bear Market: Three Stocks to Consider

Betting on a bear market can be a perilous venture.
However, Morgan Stanley suggests that three declining stocks could present lucrative buying opportunities at a discount by early 2025.
Here’s an analysis of their forecast.

In the last months of the year, many investors implement a strategy known as “tax loss harvesting.” This involves selling stocks that are currently at a loss to offset realized capital gains, effectively reducing their tax burden.
The resultant mass sell-off of underperforming stocks can further amplify downward pressure in an already volatile market characterized by geopolitical, economic, and monetary uncertainty, even when these sales are primarily tax-motivated.

According to Morgan Stanley, certain stocks are particularly vulnerable to bearish pressures until the end of the year, yet they may turn into attractive purchases as those headwinds ease early next year.
Let’s explore these potential opportunities.

1) Adobe Inc.
(ADBE)

After a strong performance in 2023, Adobe has seen a downturn, losing approximately 16.2% since the year’s start.
Analysts are anticipating that revenue expectations from its Digital Media segment for the fourth quarter will fall short by $20 million, prompting a downward revision of the price target to $450—implying an approximate correction of 9% from current levels.

While Morgan Stanley predicts that Adobe shares will continue to underperform until year-end, they emphasize that the company’s fundamentals remain robust.
The integration of artificial intelligence into its operations and the rising demand for digital tools could act as catalysts for a rebound in Adobe’s stock at Wall Street early in 2025.

2) Boeing Co.
(BA)

Boeing is another stock of interest according to Morgan Stanley, having faced a staggering decline of about 42% since the beginning of the year.
The aerospace giant has encountered significant operational setbacks, including technical issues with its 737 Max 9, delivery delays, and labor strikes, all of which have compounded its challenges.

Analysts from Bank of America have voiced their concerns, noting that rising operational costs and excessive inventory are impacting the firm’s financial results.
As a result, they have revised their price target for the stock from $200 to $170 in the coming months.
Although this adjustment indicates a potential upside of 15% based on current figures, an improvement in Boeing’s performance may only become evident by early 2025, contingent upon a capital increase that is yet to be confirmed.

Furthermore, analysts highlight that the global aerospace industry’s recovery in the coming years could stimulate growth in commercial airplane orders, setting the stage for a possible rebound in Boeing’s stock.

3) Halliburton (HAL)

Halliburton, a leading oilfield services provider, has experienced a downturn of roughly 17% since the start of 2024.
Despite relatively stable oil prices throughout the year, which have risen 5%, Halliburton has struggled with slower growth and a lack of revenue diversification compared to its competitors.
The stock has felt the brunt of earnings volatility, adversely affecting overall performance.

Amid ongoing uncertainty in the commodity markets, several analysts, including those from RBC Capital Markets, have lowered their price target for Halliburton shares from $37 to $36, suggesting that the company may continue to face challenges in the short term.
This target reflects a potential upside of 18% from current levels.

In the last month, both JP Morgan and Citigroup have also reduced their price targets for Halliburton to $35 and $38, respectively, while maintaining a “buy” rating, anticipating a resurgence in demand for exploration and production services in 2025, when the energy market could stabilize following current geopolitical turmoil.

For more insights on investing wisely, check out this article.

Disclaimer

The information and opinions expressed in this article are not to be used as the sole or primary basis for making investment decisions.
The reader retains full autonomy in their investment choices and assumes all responsibility therein, as they alone are aware of their risk tolerance and investment horizon.
The content herein is provided for informational purposes only and does not constitute an offer or solicitation for public savings.

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