5 Predictions for the Stock Market in 2025 -- and Which Stocks Will Soar the Most If They're Right

Market Predictions for 2025 - Artificial intelligence (AI) agents are predicted to become the next big thing in 2025, with AI programs independently choosing actions rather than following instructions [3][4] - Alphabet (GOOG, GOOGL) is expected to benefit significantly from the AI trend due to its diverse product portfolio, including Android, Google Cloud, Google Search, Google Workspace, and Pixel smartphones, as well as its recent launch of Google Agentspace using the Gemini large language model (LLM) [5] Inflation and Its Impact - Inflation is expected to remain stubbornly high in 2025, causing investor angst, particularly due to the Federal Reserve's hints of fewer rate cuts [6] - The S&P 500 is not expected to generate the same level of gains in 2025 as it did in 2024 due to inflation's impact on the Fed's strategy [7] - Costco Wholesale (COST) is predicted to perform well in a high-inflation environment, as consumers are more likely to shop at Costco stores, making its stock attractive to investors [8] Value Stocks and Financial Sector - Value stocks are expected to increase in popularity in 2025 as investors pay more attention to valuations [9] - BioNTech (BNTX) is highlighted as a top value stock, trading at seven times forward earnings and with an enterprise value of $10.2 billion, less than four times the consensus sales estimate for 2025 [10] - Deregulation under the incoming Trump administration is expected to benefit the financial sector, with Citigroup (C) singled out as a potential winner due to its attractive valuation and momentum from deregulation [11][12] Energy Sector and Deregulation - The energy sector is expected to be impacted by deregulation, with increased drilling potentially helping energy stocks but also risking lower oil prices [13] - Enterprise Products Partners (EPD) is identified as a clear winner from deregulation, with its extensive pipeline network benefiting from increased oil and gas flow, and offering a forward distribution yield of 6.63% [14][15]