Josh Brown’s Stock Picks: 3M and EOG Resources Set for Breakout
In recent market movements, Josh Brown, CEO of Ritholtz Wealth Management, has made notable adjustments to his list of top stocks. In February, he removed well-known names like Delta Air Lines, Constellation Energy, and Arista Networks from his top recommendations. Instead, he has pinpointed two stocks that he asserts are on the brink of a significant breakout: 3M Inc. and EOG Resources Inc. His analysis paints a compelling picture for investors looking to make wise decisions as we head into 2025.
3M Inc (NYSE: MMM)
First on the list is 3M Inc., a multinational conglomerate that has seen its shares remain relatively stable since September, trading within a certain range. Josh Brown notes that this range may soon be challenged, indicating potential for upward movement. He makes a strong case, stating that while the Relative Strength Index (RSI) is currently “fairly cool,” it suggests that 3M is not overbought and is positioned for a significant move.
According to CEO William Brown, 3M has returned to positive organic revenue growth and is carrying that momentum into 2025. This signals that the company is not just about maintaining but also about advancing. Additionally, major financial institutions, including UBS, echo this sentiment, rating the stock as a “buy” and indicating a price target of $184. This projection represents a substantial upside of over 25% from current levels. Moreover, with a dividend yield of 1.99%, 3M presents itself as an enticing option for investors looking for both growth and income.
EOG Resources Inc (NYSE: EOG)
Next up is EOG Resources, a company engaged in the exploration and production of oil and natural gas. Currently trading close to where it was in 2022, EOG represents a commodity sector that is beginning to reawaken after a dismal performance compared to other markets. Based on his assessment, Josh Brown believes EOG is poised for a breakout, especially if its shares can break through the $135 resistance level. He suggests that once this level is surpassed, EOG could experience a smooth ascent without facing immediate resistance.
Moreover, the financial health of EOG has been promising. It is preparing to announce its fourth-quarter earnings soon, with a consensus expectation of earnings per share at $2.55—a solid year-on-year increase of 20%. The investment community shares Brown’s bullish view, as reflected in the consensus “overweight” rating on EOG, along with an average price target of $148, implying a healthy upside of about 13% from its current price.
Additionally, EOG offers a competitive dividend yield of 2.97%, making it attractive for both growth-oriented and income-focused investors. The energy sector may provide a contrarian opportunity, especially in an environment where energy demands will likely grow due to increasing global consumption and potential regulatory changes favoring fossil fuels.
Conclusion
In summary, Josh Brown’s insights into 3M and EOG Resources reiterate the necessity for a careful and analytical approach when investing. As both companies show signs of financial stability and potential growth, they could be valuable additions to any discerning investor’s portfolio. With the markets constantly evolving, aligning investment strategies with strong fundamentals and a clear vision can yield favorable results in the upcoming years. The real question is whether you’ll take the plunge and invest wisely in what could be breakout stocks heading into 2025.
