S&P 500 Up 25%; Stocks to Watch for a 2025 Rebound

As the year closes, the S&P 500 shows a 25% increase, supported by decreasing interest rates and moderating inflation. Key stocks like Wayfair, Opendoor, and Disney may rebound in 2025 due to varying factors affecting their performance, setting the stage for potential investment opportunities.

Date: 22-12-2024

AI Rating: 7

The report highlights a bullish sentiment within the market, as the S&P 500 is up 25% heading into the final week of the year, driven by declining interest rates and easing inflation. This positive environment may bolster investor sentiment, which can affect stock prices positively.

Several companies are discussed with differing prospects for recovery. Wayfair's report indicates that it has $11.9 billion in trailing 12-month revenue, showcasing the scale of its business, despite ongoing losses. The improvement in adjusted EBITDA by almost $100 million in Q3 suggests that they are moving closer to profitability, which is a positive sign for potential investors. Lower interest rates could further support Wayfair's recovery in 2025.

Opendoor shows remarkable resilience despite challenges from the poor housing market. The company reported a 41% year-over-year increase in revenue during Q3 and 3,615 home sales—35% more than the previous year. This growth indicates a potential turnaround. If the housing market shows improvement along with lower interest rates, Opendoor might see a rebound in stock prices.

Disney has made significant strides, recently marking profitability in its streaming segment for the first time, with total entertainment segment operating income reaching $1.1 billion, up from $236 million. With a strong slate of upcoming films and a growing subscriber base, Disney appears to be well-positioned heading into 2025. The company remains a favorite due to its diverse revenue streams and iconic brand strength.

Stocks: W OPEN DIS