Roth Capital has unveiled its top stock recommendations for the year ahead, presenting a diverse mix across several sectors, including ride-sharing giant Uber and furniture retailer Lovesac. As we edge closer to 2025, the firm shows a preference for both defensive and value-driven investments. Michael Darda, Roth’s chief economist and market strategist, highlighted in a recent report the importance of focusing on sectors with low cyclically adjusted valuations. He noted, “These sectors are likely to experience less downside if market conditions worsen while offering significant upside if positive trends continue. On the other hand, in less favorable scenarios, rate-sensitive, defensive groups are expected to outperform.”
In this same analysis, Roth outlined its top stock projections for 2025, anticipating potential gains between 9% and 183% over the next year. In 2024, the standout performer was Semtech, a semiconductor provider, which saw a remarkable increase of 193%. Overall, Roth’s top picks for 2024 delivered an 8.5% return unweighted, and an impressive 47.9% weighted return, compared to the S&P 500’s 26.9% and Russell 2000’s 16.4%, as of December 12th.
Among the firm’s top selections for 2025 within the technology, media, and telecommunications sector, Uber Technologies remains a favorite. Despite its stock stagnating this year, analyst Rohit Kulkarni has set a price target of $90 for Uber, suggesting a potential climb of 45% from its recent close. Kulkarni attributed Uber’s resilience to its leadership position, extensive network, enhanced resistance to economic fluctuations, improved profitability structure, and favorable regulatory and insurance outlooks. He added, “For 2025, we’re increasingly optimistic about Uber, expecting investor sentiment to improve due to sustained growth in restaurant and grocery delivery, maturation in the international mobility segment, and better profitability in advertising and subscription services.”
Another prominent name on Roth’s list is the contemporary furniture retailer Lovesac. Although its shares dipped by 4% this year, analyst Matt Koranda’s target of $33 projects a possible 38% upside, making it a top pick for the second consecutive year. Koranda remarked, “We see the furniture and home goods sector bouncing back from a recent downturn early in 2024, and anticipate Lovesac will benefit from the heightened demand. Growth in new products and showroom expansions, coupled with better market conditions, point towards accelerating revenue growth throughout 2025.” Moreover, previous investments enhancing operational efficiency are expected to drive greater margin expansion.
In the energy, mining, and minerals arena, Roth spotlighted Perpetua Resources, which has already soared 251% in 2024. Analyst Mike Niehuser set a price target of $15, forecasting an additional 40% increase. Niehuser identified the Stibnite Gold Project development in Idaho as a major catalyst, underpinned by strong gold and antimony prices. He elaborated, “Despite antimony contributing a smaller revenue portion, its scarcity facilities close collaboration with the U.S. Department of Defense, enjoying bipartisan support for the project’s permitting and production.” He also noted Perpetua’s $75 million award from the DoD, $1.8 billion interest from the Export-Import Bank of the U.S., and possible eligibility for advantageous terms under the China and Transformational Exports Program.
Other notable stocks on Roth’s recommendation list include Take-Two Interactive Software, well-known for video games, and First Solar, a leading solar parts supplier.
