The new year is around the corner, and we are sure you will have new goals and resolutions for the new year. Do you have any financial goals? If not, we recommend creating financial goals or resolutions for 2025. Today, we will cover some best stocks for 2025 to add to your watchlist from different sectors. You can track them and invest in the ones that align with your goals. These are not investment advice, and to add any stock to your portfolio, you should take portfolio advisory services if you cannot make the call on your own.
How to select the best stocks?
Before getting to the best stocks, you should understand how you can select the best stocks – as the stocks mentioned in this blog, or for that matter anywhere, may not remain the best after a while. AI Financial advisors can find and monitor the best stocks that you add to your portfolio. We will discuss that in some other articles. Let us shift focus on how to select the best stocks.
Step 1: Define your investment goal
Are you looking for short-term investing or long-term investing? Also, you should know your risk profile – are you an aggressive or conservative investor! Jarvis artificial intelligence can help you determine your risk profile in minutes. What is your focus area – dividend stocks, blue-chip stocks, or small-cap opportunities?
Step 2: Screen for Quality Stocks
Pick your category – you want stocks from the large-cap, mid or small-cap category. Next, identify the sectors that align with your strategy or are likely to perform well. By now, you will have a pool of stocks, and for the shortlisted stocks, you need to check the valuation metrics like PE ratio, dividend yield (if that is your priority), etc.
Step 3: Analyze Fundamentals
Look for companies that have consistent revenue and profit growth over 3-5 years. You may prefer to have companies with low debt-to-equity ratios. Also, check ROE and ROCE, which should be greater than 15% and industry average, respectively.
Step 4: Incorporate Technical Analysis
You should also check the technical analysis and identify stocks that are in uptrend. You should also analyze price levels to time your entry.
Sectors to watch out for in 2025
In 2024, realty and pharma have been the best-performing sectors, with 39% and 32% gains, respectively (end of the first week of December). For 2025, the industries that are expected to do well are manufacturing, healthcare, and renewable energy. The healthcare sector has reported 21.2% earning growth, and innovative breakthroughs and global demand will fuel further growth. Renewable energy is also placed well for significant growth as our power demand continues to increase, driven by clean energy initiatives and sustainability goals.
Best Stocks to add to your watchlist
Here are three stocks you may consider:
Havells India: It is currently trading at a premium P/E ratio of 50x based on its FY27 EPS and is backed by a strong brand reputation and a well-established distribution network. The company’s in-house manufacturing capabilities provide it with greater control over its supply chain, leading to cost efficiencies and improved product quality.
Recent investments in team building, brand enhancement, and distribution expansion are expected to further drive growth. Additionally, the company’s foray into international markets presents significant export opportunities, while a strong balance sheet and improved financial ratios underscore its financial health and ability to weather economic downturns.
BHEL: It is a leading player in the power sector and presents a compelling investment opportunity for 2025. The company’s strong order book, coupled with government initiatives in infrastructure development, positions it for robust growth. BHEL’s focus on diversifying into renewable energy and defense sectors adds to its growth potential. Additionally, the company’s strong financial position and cost-cutting measures have improved its profitability.
Waaree Renewables: Waaree Renewables is a strong contender for your watchlist in 2025. As a leading player in India’s renewable energy sector, the company benefits from the increasing global focus on sustainable energy solutions. As the global shift towards renewable energy accelerates, Waaree Renewables is poised to benefit from this trend and deliver strong returns to its investors. While the stock might be trading at a premium valuation, the underlying fundamentals and growth prospects justify this premium – but to an extent. You can have it on your watchlist, and if available at a better valuation, you can add it to your portfolio.
Disclaimer: Please note that the stocks mentioned above are provided solely for educational purposes. We do not endorse or recommend any of these stocks without thorough independent research.
Before you go,
Nifty50 has delivered double-digit returns to investors in 2024. If you can make good investment decisions in 2025, and if the market is favorable, investors can make better returns in 2025 as well. As per Kotak Securities, Nifty50 will reach 26,100 in 2025. But which stocks will be multibaggers stocks?
If you are not sure how to evaluate companies and find quality stocks, one of the things you can do is use artificial intelligence to invest in direct stocks. Download the Jarvis Invest app or visit our website jarvisinvest.com.
