Now, as the first quarter of the new year approaches, investors can look for the best potential plays in the stock market. Having confidence and financial momentum early in the year can give portfolios the opportunity—and security—to seek more aggressive growth later in the year. But in order to achieve this goal, it is necessary to consolidate such a strong start to the year.
So, for portfolios to be in this position, today’s list will be of utmost importance for investors to consider in the first quarter. However, these are not the most popular stocks and this is where most of the upside potential will come from as the fundamentals and risk-reward frameworks make these stocks some of the best picks in the transportation and industrials sectors.
Once investors truly connect the dots on the stock’s big picture Knight-Swift Transportation Inc. New York Stock Exchange: KNXlinking the real estate investment trust (REIT) to the sector through Prolog Inc. New York Stock Exchange: PLDand even a clean energy player in the energy sector in NextEra Energy Inc. New York Stock Exchange: NOthe entire fundamental thesis of today’s economy will lead them directly to double-digit growth potential within this list.
Growth in business activity leads to growth in Knight-Swift shares
Now that the economy is starting to shift into a manufacturing-friendly environment and the manufacturing PMI is already showing investors a sudden surge in new orders and positive comments from various industries, sentiment has turned positive for industries that are supporting domestic business activity.
For example, transporting raw materials and finished goods will create significant demand tailwinds for these operators, potentially allowing them to generate higher profits in the coming months. If price action is any indication, investors already have a strong case for Knight-Swift stock today.
With the stock trading at 91% of its 52-week high, investors can safely assume that the market is favoring this stock for the reasons already mentioned. This may also explain why some Wall Street analysts decided to reiterate their optimism about Knight-Swift stock today.
Susquehanna officials gave the stock a positive rating, this time valuing it at $67 per share, suggesting upside potential of up to 21.4% from where the stock is trading today, not to mention a new 52-week high. This also explains why allocators at Principal Financial Group also decided to increase their assets by 21.5% as of January 2025, with a net position of $35.2 million to date.
Prologis Stock: Next in Line
While Knight-Swift will be responsible for transportation for this surge in business activity, Prologis will act as an intermediary, focusing on logistics planning and storage networks. That’s why the broader market is also willing to pay a price-to-earnings (P/E) ratio of 34.3x today, which is a premium compared to the financial sector’s average valuation of 24.8x.
Prologis stock forecast today
$128.67
Growth potential 8.95%Moderate purchase
Based on ratings from 19 analysts
| High forecast | $146.00 |
|---|---|
| Average forecast | $128.67 |
| Low forecast | $104.00 |
Prologis Stock Forecast Details
Some will call this valuation expensive and therefore unattractive. Others will understand that the market is always willing to pay a premium for stocks that it expects to outperform their peers in the coming months. Knowing that the value chain that already favors Knight-Swift will move into Prologis stock, new buyers have recently emerged.
As of January 2025, the new institutional placement from Sarasin & Partners increased the group’s asset share by 0.3%. While this may not seem like much of an achievement on a percentage basis, the net position to date has peaked at $99 million and has given investors another bullish factor to consider when making decisions.
Another benefit of owning these shares is the strong and stable cash flow they generate, allowing the company to pay shareholders a dividend of up to $3.84 per share, which equates to an annual dividend yield of up to 3.3% today.
Rising oil prices call for clean energy
Low oil prices provide little incentive for either consumers or businesses to seek alternative energy sources, which is why NextEra shares have fallen to 80% of their 52-week high. However, as business activity picks up, oil demand is expected to rise as well under most likely scenarios.
NextEra Energy stock forecast today
$87.15
Growth potential 26.03%Moderate purchase
Based on ratings from 14 analysts
| High forecast | $102.00 |
|---|---|
| Average forecast | $87.15 |
| Low forecast | $71.00 |
NextEra Energy Reserve Forecast Details
That view is shared by analysts at Goldman Sachs in its 2025 macroeconomic report, as well as by hedge funds that have recently accumulated holdings of oil futures. Connecting the dots in this latest leg of economic tailwind has seen Scotiabank analysts reaffirm their sector outperform rating as of December 2024.
Not only that, but this confirmation was accompanied by a valuation for Prologis shares of up to $96 per share, suggesting a net upside of as much as 35.5% from today’s stock level. Understanding and accepting this potential growth potential has led to buyers from Bartlett & Co. accumulated up to $55.9 million worth of NextEra socks to start the year.
These factors give investors a chance to get their first quarter off to a good start, a factor that institutions have already fallen behind on.
Before you consider Knight-Swift Transportation, you need to hear this.
MarketBeat tracks Wall Street’s top-rated and best-performing analysts daily and the stocks they recommend to their clients. MarketBeat identified five stocks that top analysts are quietly whispering to their clients to buy now, before the broader market takes hold… and Knight-Swift Transportation wasn’t on the list.
While Knight-Swift Transportation currently has a Moderate Buy rating among analysts, the top-rated analysts think these five stocks are Strong Buys.
View five stocks here
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