Top 10 stocks to consider in 2025

What happened in stock markets in 2024?

Global stock markets had an excellent 2024, driven especially by strong US performance. The MSCI World Index closed up 26%, well above its long-run average of 10.6%, with the S&P500 up 23%. Markets shrugged off political risks and manufacturing worries to enjoy a strong bull run, with many traders and investors benefiting from sustained price rises. Traders will naturally be asking themselves whether this excellent performance can repeat itself – a steady rise in the price of gold could be a  hint that some are worried about future turbulence. Whatever happens, individual stock selection based on industry trends, valuation, and corporate leadership can protect you from the fluctuations of the overall market.

2025: stocks and sectors to watch

Markets started the new year on a high, naturally raising worries about their further upside potential. That said, there is no rule against two outstanding market years in a row, and with some skillful stock selection, investors can identify companies who stand to perform well in both bull and bear markets. What all the ten stocks to watch below have in common is a focus on sticky demand, hardware over software and services, and competitive valuations.

Tech stocks: too far, too fast?

The last decade has seen massive consolidation in the tech sector, with startups absorbed by giant conglomerates Alphabet, Microsoft, and Apple. Huge increases in the stock price of these multinational American giants have driven the US stock market to new highs, despite persistent worries about valuation. 2025 could be a repeat of 2024, or these worries could finally break through and force a reversal. Tech companies focused on hardware or security may be better positioned to weather a potential downturn in 2025. With that in mind, here are three major tech, EV, and cybersecurity stocks to consider.

NVIDIA

NVIDIA is a diversified tech company known for its graphical processing units (GPUs). GPUs are used to handle graphics on computer displays, including for video such as streaming services. The two most important business lines are discrete GPUs and AI chips. Some computers, such as laptops, have GPUs built into the processor, but for other computers and higher-performance machines the GPU is separate and known as a ‘discrete GPU’. NVIDIA has an 80-90% market share in discrete processors, and a similarly dominant position in the AI chip market. NVIDIA products like the H100 GPU are used in datacentres to train AI models, and the company has experienced massive order growth as this industry continues to develop. Market dominance and technological development helped NVIDIA stock to the second-best overall S&P500 return for 2024.

Tesla

Tesla is the world’s second largest and most famous electric car manufacturer, overtaken in unit sales in 2024 by Chinese rival BYD Auto. Known as a pioneering company in the field, Tesla has drawn both praise and criticism for its ambitious production targets and colourful product launches. CEO Elon Musk is the largest Tesla shareholder, owning around 25% of all shares. With his new role in the current Trump administration, it is not clear how his leadership of Tesla will be managed going forward, and if there will be  some conflict between the stated policies of the administration and the interests of the electric vehicle market. Tesla shares experienced a strong rally at the end of 2024, but it remains to be seen whether the company will be able to fulfil its promises of higher production, autonomous vehicles, and a wider range of vehicle types. On the other hand, with the company’s owner now playing a central role in the US government, there will surely be opportunities for Tesla to win contracts and open new opportunities.

Palo Alto Networks

Palo Alto Networks is a cybersecurity company headquartered in California, specialising in digital security solutions. The company is a significant provider of cybersecurity infrastructure, with a product portfolio including firewall systems, endpoint protection, cloud security, and threat intelligence platforms. The company generates increasing revenue from software-as-a-service (SaaS) solutions, benefiting from a growing market in cloud-based security services. Institutional investors, including Vanguard and Blackrock, hold substantial stakes in the company. Palo Alto Networks has seen steadier share price growth than more speculative tech stocks, and benefits from an underlying requirement for security that exists in all market conditions. For tech investors worried about the market approaching its peak, Palo Alto Networks may be of interest toinvestors who still want exposure to the US tech sector.

Energy stocks

Energy stocks had a tough 2024, with a glut in global supplies and pressure from environmental regulations. That means some energy stocks are starting to look undervalued, potentially leading to a growth in investor interest in this cyclical sector. The global energy market is valued at around $6 trillion. A diverse sector, with oil and petrochemicals companies dominant but facing growing rivalry from renewable and other energy providers, energy is the most basic and essential requirement of modern industry.

Investing in oil stocks: local or global?

MENA is the key region for global oil supply, with Saudi Arabia the world’s second largest oil producer and other nations including Iraq, Iran, the UAE, and Kuwait also featuring in the top ten. In 2024, global oil demand was above 100 million barrels per day, with average oil prices relatively high. This boosts returns for regional producers who benefit from far lower extraction costs than the US, Canada, or Brazil. Our 2025 energy stocks selection includes a mix of classic oil companies and diversified groups, including those involved in petrochemicals, chemical processing, and green energy.

SABIC

Saudi Basic Industries Corporation (SABIC) is one of the world’s largest petrochemicals companies and is majority-owned by Saudi Aramco, the world’s largest oil company. SABIC produces a wide range of chemicals, fertilisers, and plastics, which are essential for industries including construction, car manufacturing, and consumer goods. The company benefits from its integration with Saudi Aramco’s vast oil and gas resources, ensuring low feedstock costs. SABIC is the second-largest company in the Middle East, and its diversified operations mean it will benefit from growth in any sector. After a long bear market, SABIC shares are cheap compared to equivalent conglomerates. Traders should consider both technical and fundamental factors before opening any position.

ADNOC Drilling

ADNOC Drilling is MENA’s largest drilling company by rig fleet size and plays an enormous role in the region’s oil and gas industry. A subsidiary of Abu Dhabi National Oil Company, ADNOC Drilling provides drilling services for both onshore and offshore oil fields. ADNOC Drilling benefits from the UAE’s low extraction costs and its strategic position as a key global oil supplier. The company has also expanded into renewable energy projects, including carbon capture and hydrogen production, to position the company for long-term growth. ADNOC Drilling saw strong share price gains in 2024, but valuation multiples remain low compared to its overseas equivalents.

Exxon Mobil

The successor to American energy giant Standard Oil, Exxon Mobil is one of the largest and most diversified companies in the world. Exxon’s operations span oil, natural gas, and petrochemicals. The company has a major presence worldwide, with major operations in the US, Guyana, Qatar, and Indonesia. To access other markets, Exxon forms partnerships with local oil companies, and the company is a leader in upstream exploration and production. Downstream services account for around half of overall revenue. Exxon also makes significant investments in low-carbon technologies, such as carbon capture and hydrogen fuel, as part of its strategy for energy transition. Currently, Exxon is undervalued relative to other energy companies, and it is unique amongst large US energy companies in spending heavily to achieve further growth. For investors who have a long view on global energy prices, Exxon may be a stock to look into.

Telecom stocks

Telecommunications stocks were one of the standout sectors in 2024, and they are well-positioned for another excellent year. Both regional and global stocks benefit from the growth of streaming services and the roll-out of 5G, with the vital role of telecoms only forecast to grow in the coming years. Like energy and tech hardware / cybersecurity, telecoms ticks many of the requirements for investing after a long bull run: a real business requirement, sticky demand, and low valuations.

Etisalat

Etisalat is the largest Emirati telecommunications company and one of the largest telecoms providers in the Middle East, Asia, and Africa. Etisalat provides much of the infrastructure for internet access as well as software services, including Internet of Things (IoT) and cloud services. As the region continues to diversify its economy towards professional services, iGaming, and fintech, telecom and cloud solutions will only increase in performance. After a major price rally and subsequent selloff around 2022, Etisalat entered 2025 relatively cheap and with a lower P/E ratio than industry standards, potentially attracting the interest of value investors.

Saudi Telecom

Saudi Telecom Company is the largest telecommunications provider in the Kingdom of Saudi Arabia, with operations across digital infrastructure, technology services, and financial technology. The company enjoys a 40% market share, with the Saudi market growing rapidly due to urbanisation and new infrastructure projects. Aside from telecommunications, Saudi Telecom (STC) provides cloud computing and digital payment solutions across the MENA region. Approximately 70% of STC is government-owned, with the remaining shares traded on public markets. Saudi Telecom benefits from many of the same tailwinds as Etisalat, as the growing regional base in diversified professional services and finance are heavily reliant on their services.

T-Mobile

T-Mobile (T-Mobile US)  is a major telecommunications company with strong market presence in the United States, and it operates as a subsidiary of the German telecoms provider Deutsche Telekom. The current business formed through mergers including integration with Sprint in 2020. The company has established itself as a leading provider of wireless communications infrastructure, with particular strengths in 5G network deployment and mobile service offerings. T-Mobile stock has enjoyed a long bull run, lasting from June 2023 until 2025. The company is highly competitive in terms of pricing, and aggressive in its acquisition strategy, making it an interesting choice for investors looking to access the US telecommunications market.

One more to consider, as tariffs hit

This final featured stock did not have a good 2024, and in the first month of 2025 has seen sell-offs after negative guidance over the coming 12 months’ business conditions. Ford Motor Company is a household name, but in recent years has faced strong challenges from Chinese manufacturers, weak performance in its electric vehicles division, and warranty expenses. These headwinds have made Ford, alongside its long-term rival General Motors, one of the cheapest major auto manufacturers in terms of P/E ratio and other valuations. That makes it a standout company in a generally expensive US equity market. Additionally, despite general subpar performance, Ford’s Q4 2024 results were stronger than expected, and the auto giant’s hybrid vehicles sell well worldwide. Most importantly, the possibility of further tariff action against China, with a 35% tariff already announced in January 2025, will insulate Ford from cheaper Chinese rivals, at least in the US market. All of these factors make Ford a potential wildcard stock to look into for 2025, particularly for value or contrarian investors.

Final thoughts

None of the stock profiles listed here are intended investment advice, instead thought-starters to get you thinking about potential market trends. Keep in mind that past performance is not indicative of future performance; while stock selection based on skilful analysis may improve chances of returns, they are never guaranteed. With a new administration in the White House, rapidly developing AI technology in China, and the continual demand for energy supply around the world, 2025 is shaping up to be a dynamic year for investors and traders alike. Participate in global equity markets with ADSS and stay on top of market movements year-round with our News and Analysis.