Roth Capital’s top stock picks for the upcoming year span a variety of sectors and include ride-sharing pioneer Uber and furniture retailer Lovesac . With 2025 around the corner, the investment firm likes a mix of both defensive and value stocks heading into the new year. “We would continue to focus on stocks and sectors with low cyclically adjusted valuations. We believe these areas will fall less if things go wrong and have more upside if the cycle continues in an uninterrupted fashion,” wrote Michael Darda, Roth’s chief economist and market strategist, in a recent note. “However, if we are not so fortunate, rate-sensitive, defensive groups would likely outperform.” In the same note, Roth identified its top stock picks for 2025, saying these names offer potential upside of anywhere from 9% to 183% through this time next year. The firm’s top-performing stock pick of 2024 was semiconductor provider Semtech , which has added 193% in 2024. “The combined return of Roth’s 2024 top picks generated an 8.5% return (unweighted) and 47.9% (weighted) vs. the S & P 500 of 26.9% and Russell 2000 of 16.4% (all through 12/12),” Roth Capital wrote. Below are some of the stocks the firm said are its top picks heading into 2025. Within the technology, media and telecommunications sector, one of Roth’s preferred stocks was ride-hailing platform Uber Technologies. Shares of Uber have remained flat this year, but analyst Rohit Kulkarni’s 12-month price target of $90 implies the stock could rise 45% from its Monday close. Kulkarni wrote that his catalysts for Uber included the company’s market leadership and network scale, growing insulation to macro uncertainty, improving structural profitability and a more upbeat regulatory and insurance outlook. “For 2025, we are incrementally positive on Uber as we expect investor sentiment to turn more positive driven by sustained growth in restaurant and grocery delivery, maturing of the international mobility segment, and better structural profitability in advertising and subscription,” the analyst added. Modern furniture manufacturer and retailer Lovesac was another name on Roth’s list. While shares have slipped 4% this year, analyst Matt Koranda’s price target of $33 implies a potential upside of 38% for the name, which is a top pick for the second year in a row. “We view the furniture/home goods category as improving off a recent cyclical bottom in early 2024 and expect Lovesac to benefit from the improving demand backdrop,” Koranda wrote. “Adding growth from Lovesac’s new products and sustained showroom expansion to the better macro backdrop suggests we should see accelerating revenue growth throughout CY2025.” Meanwhile, better operating leverage due to the company’s previous investments should also contribute to more margin expansion. Within the energy, mining and minerals sector, Roth highlighted Perpetua Resources , already up an eye-watering 251% in 2024. However, analyst Mike Niehuser’s 12-month price target of $15 corresponds to yet another 40% rise for the stock. Niehuser cited Perpetua’s development of the Stibnite Gold Project in central Idaho as a key catalyst, especially with gold and antimony prices persisting near record levels. “While antimony is expected to provide a relatively small percentage of project revenues, the lack of available sources for antimony accounts for a close relationship with the U.S. Department of Defense and bipartisan support for project permitting and production,” Niehuser elaborated. “PPTA was awarded $75 million from the DoD, a $1.8 billion Letter of Interest from Export Import Bank of the United States, and may be eligible for the China and Transformational Exports Program, allowing its bank to extend terms like what China offers its state-run businesses.” Other names from Roth’s list of top picks included video game publisher Take-Two Interactive Software and solar parts provider First Solar .
