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Is A Recession Coming in 2025? Where to Invest Now

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  • (1:00) - Are We Heading Towards A Recession?
  • (7:10) - What Can We Expect From The Fed The Next Few Months?
  • (12:30) - How Should You Position Your Portfolio Right Now?
  • (17:40) - Top Stocks To Keep On Your Watchlist
  • (28:30) - Episode Roundup: ABBV, XOM, FANG, JPM, NVDA, TSLA, NVO, LLY, GPC
  •                 Podcast@Zacks.com

 

Welcome to Episode #437 of the Zacks Market Edge Podcast.

Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds, and ETFs and how it impacts your life.

This week, Tracey is joined by John Blank, Zacks Chief Equity Strategist, to discuss what they always discuss every few months on the podcast: is the United States in a recession? And if not, is one coming?

With all the market turmoil, they also discuss what investors should do right now. What stocks should investors buy?

John is the editor of Zacks Large-Cap Trader portfolio so he had some suggestions about what he was looking at in the large caps. Tracey is the editor of Zacks Value Investor portfolio so she mentions some value stocks.

5 Stocks After the Sell-Off: Should They Be On Your Short List?

1. Tesla, Inc. (TSLA - Free Report)

Tesla is one of the Magnificent 7 stocks. They have all corrected in the sell-off, which means they are down at least 10%. But Tesla is down even more, falling 38.6% year-to-date.

Tesla’s earnings are expected to rise 23.5% in 2025 and another 25.9% in 2026. Tesla has gotten more attractive on a price-to-earnings (P/E) basis since the shares have sold off. It is now trading at 77x. That is not cheap, however. A P/E under 15 is considered a value.

Should Tesla be on your short list after the sell-off?

2. NVIDIA Corp. (NVDA - Free Report)

NVIDIA is also one of the Magnificent 7 stocks. Over the last 5 years, shares of NVIDIA are up 2040%. But year-to-date, shares have fallen 13.8%.

NVIDIA saw record revenue in fiscal 2025 of $130.5 billion, up 114% year-over-year. NVIDIA’s earnings are expected to jump 46.8% in fiscal 2026 and another 24.3% in fiscal 2027.

After the stock sell-off, it now has a forward P/E of just 24.8. This is historically low for NVIDIA.

Should NVIDIA be on your short list at this valuation? 

3. JPMorgan Chase & Co. (JPM - Free Report)

JPMorgan Chase is one of the largest banks in the United States. Over the last year, shares are up 20%. But year-to-date, JPMorgan Chase shares have fallen 4.9%.

Earnings of JPMorgan Chase are expected to fall 8.1% in 2025. It now trades with a forward P/E of 12.6. JPMorgan Chase also pays a dividend, which yields 2.2%.

Should a big bank like JPMorgan Chase be on your short list?

4. Exxon Mobil Corp. (XOM - Free Report)

Exxon Mobil is a large, integrated American energy company. Oil stocks have been weak over the last year as oil prices have tumbled. Exxon Mobil shares are up in the last year, but just 0.8%. In 2025, with all the market turmoil, Exxon Mobil is still up 1.5%.

However, earnings are expected to fall 4.9% in 2025. Exxon Mobil has a forward P/E of 14.7. A P/E under 15 usually indicates a stock is a value. Exxon Mobil also pays a dividend, yielding 3.6%.

Should energy stocks like Exxon Mobil be on your short list?

5. Novo Nordisk A/S (NOV - Free Report)

Novo Nordisk is a global healthcare company headquartered in Denmark. It specializes in diabetes and weight loss. Shares of Novo Nordisk soared on increased sales of the weight loss drugs, gaining 180% in the last 5 years. But year-to-date, shares have fallen 12.8%.

Earnings are expected to rise 17% in 2025 and another 21.3% in 2026. Novo Nordisk now trades with a forward P/E of 20.3. Novo Nordisk also pays a dividend, yielding 0.9%.

Should a big healthcare company like Novo Nordisk be on your short list?

What Other Stocks Do Tracey and John Talk About After the Sell-Off?

Tune into this week’s podcast to find out.

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