Wells Fargo Upgraded These 3 Stocks—Here’s Why They Stand Out

With recent volatility in the stock market due to trade tariff announcements, analysts seem to have picked three stocks to boost today.

By Gabriel Osorio-Mazilli | Feb 10, 2025
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Konskie, Poland - January 16, 2024: Marathon Petroleum company logo displayed on mobile phone screen — Stock Editorial Photography

Now that the first quarter of 2025 is underway, investors across the board are probably looking to find the best ideas to get their portfolios started on the right foot. This way, they can have not only the momentum but also the liquidity necessary to chase the growth plays that will become available in later months. In order to find these sorts of plays, they can use a powerful tool in today’s market.

This tool has been used by Wall Street analysts on certain stocks in . Today, as the first quarter earnings results become available, Wells Fargo analysts have decided to share their optimistic views on a select list of stocks, ones that carry enough momentum and fundamental tailwinds to get them into capital gains territory.

Included in this list of upgrades are names like  due to the safety of its subscription-based business model or a flip into the through shares of to fit in the bullish narrative for oil this year. Finally, a name offering stability in this volatile environment is found in .

Why Spotify Deserves Its New Ratings

Even though Spotify stock already trades at its 52-week high, these Wells Fargo analysts still see a path for it to deliver further upside. While the market is scrambling to figure out the economic effects of new trade tariffs, Spotify’s business model remains relatively immune to this theme.

That is why analysts felt comfortable reiterating their overweight rating on Spotify stock as of February 2025 and placing a on it. This new valuation would not only call for a new 52-week high for the company but also a net upside of as much as 11% from where it trades today.

Apart from this new optimistic outlook from Wall Street, investors can count on undeniable momentum in the stock, which delivered a run of alone. This momentum and the further upside left in Spotify stock would explain why institutional buyers from Amundi decided to accumulate up to of the stock as of February 2025.

More than that, a final gauge through market sentiment can be taken by investors looking to justify their potential buy thesis on Spotify stock. Apart from momentum and price action, Spotify stock trades at a 104.8x price-to-earnings (P/E) ratio today, a steep premium to the business sector’s 35.8x average valuation.

While some may call this expensive, seasoned investors and traders know that the market will always pay a premium for the stocks it believes will outperform in the coming months.

A Buffett Bet Is Always a Good Bet

There’s a reason why Warren Buffett decided to buy up to 29% of in recent quarters. He understands the commodity must catch up to the price action seen in gold and other energy commodities.

More than that, as a potential outperformer in 2025, just like Paul Tudor Jones did in a . Regarding Marathon Petroleum, buyers from Amundi also found this stock a reasonable buy during the shifting economic winds.

This is why they also boosted their holdings in the company by 194.2% as of February 2025, bringing their net position to a high of today, another bullish factor for retail investors to lean on for their potential portfolio additions.

This theme would also explain the recent overweight rating from Wells Fargo analysts, which came with a and called for up to a 22% upside from today’s stock price.

Steady Dividends in Clorox: A Tradeoff For a Smooth Ride

While recent Wells Fargo analyst on Clorox stock might not be the highest ceiling in this list, calling for only 8.5% upside from today’s stock price, investors can find further safety in the company’s business model, which enables management to keep paying up to $4.88 per share via dividends.

At today’s price, this payout would translate into an to beat the inflation rate in the United States economy. Backing up the growth in Clorox stock for the months to come is the current Wall Street forecast for earnings per share , shooting for $1.91 per share, a significant boost from today’s $1.55 level.

Be that as it may, Amundi buyers were spotted once again buying this safety and income name to cushion today’s volatile market. They have now accumulated up to of the stock as of February 2025. After a recent earnings decline to , the stock is now an undeniable dip-buying opportunity to carry investor portfolios into the green this coming quarter.

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Konskie, Poland - January 16, 2024: Marathon Petroleum company logo displayed on mobile phone screen — Stock Editorial Photography

Now that the first quarter of 2025 is underway, investors across the board are probably looking to find the best ideas to get their portfolios started on the right foot. This way, they can have not only the momentum but also the liquidity necessary to chase the growth plays that will become available in later months. In order to find these sorts of plays, they can use a powerful tool in today’s market.

This tool has been used by Wall Street analysts on certain stocks in . Today, as the first quarter earnings results become available, Wells Fargo analysts have decided to share their optimistic views on a select list of stocks, ones that carry enough momentum and fundamental tailwinds to get them into capital gains territory.

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