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Some names in the Dow Jones Industrial Average could continue their gains next year, according to Wall Street analysts. This year, the 30-stock Dow is up nearly 15%. But the index has lost more than 3% this month, putting it on track for its worst month since April. However, companies such as Nvidia and Merck may reliably buck a slump and come out on top next year, according to analysts. The companies listed below have buy ratings and average price targets from Wall Street that suggest a potential upside of more than 20% for the stocks over the next year, according to the CNBC Pro screening tool . Of the list, Merck has the highest projected upside of 32%. The pharmaceutical company’s stock price is down more than 8% year to date. In late October, Merck narrowed its full-year sales forecast and lowered its adjusted profit guidance, hit by lighter-than-expected revenue from its vaccine that prevents cancer from human papillomavirus. But Merck still has a steady pipeline of drugs in late-stage development, and the company has seen strong sales from its top-selling cancer drug Keytruda, leading to some positive sentiment around the stock. Bank of America analyst Tim Anderson recently reinstated coverage of several large-cap U.S. pharma and biotech names, assigning a buy rating to Merck and calling it “arguably the best ‘GARP’ name in the category” with continued great performance from Keytruda. GARP stands for “growth at a reasonable price.” Anderson is not as bullish on Johnson & Johnson and Amgen , however, giving them neutral and underperform ratings, respectively. Both of these names made it to CNBC’s screen. Amgen’s “obesity premium” appears to be coming out of the stock but there could still be more room to run, Anderson said in a Dec. 10 note. Pockets of Wall Street are still bullish on those pharma stocks after a rough year for the group, however. Analysts project Johnson & Johnson and Amgen shares could gain more than 21.5% and that UnitedHealth Group could gain roughly 28.9%, per LSEG. In 2024, Johnson & Johnson is off 7%, while Amgen is down more than 8%. UnitedHealth is off more than 3% in 2024. Merck, Johnson & Johnson and Amgen are also expected to be among the Dow’s top 10 dividend yielders for next year. All three currently have dividend yields exceeding 3%. Nvidia, this year’s artificial intelligence blockbuster play, is another Wall Street favorite heading into 2025 with nearly 28% projected upside. Shares have surged more than 180% in 2024. The stock’s brief fall into correction territory this month marked some profit-taking but also flashed a possible warning sign that the chipmaker is overvalued. Wall Street is largely sticking with Nvidia, however, as 22 analysts rate it a strong buy and 37 a buy, per LSEG. Only six rate the stock a hold. Morgan Stanley recently reaffirmed its overweight rating on Nvidia, calling concerns about the stock “irrelevant longer term.”
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