5 'mispriced' stocks to watch in 2025
Antipodes portfolio managers discuss the stocks and key themes to watch in global markets in 2025.
As we look towards 2025, uncertainty may be the only certainty. Here’s a quick take on just some of the perilous events shaping the world.
- The range of outcomes from the Trump policy platform (it’s extensive).
- Threats to increase tariffs against China, Mexico and Canada.
- The two largest economies in the Eurozone – Germany and France – are in turmoil with Germany potentially heading for snap elections early next year, while France’s far right and far left have joined forces to bring down the centrist government that’s been in place for only a few months. In a striking example of the shifts taking place in the Eurozone, 10-year Greek government bonds yield the same as the French equivalent!
- Martial law was declared in South Korea (for 24 hours) by President Yoon who was impeached as a result.
- The recent collapse of the Assad regime in Syria adds to the already very volatile backdrop in the Middle East.
But keep in mind that in 2024 equity markets shrugged off a high degree of uncertainty.
Returns for global equities with the MSCI ACWI look to be about to finish up some +20% for the year (in USD).
So, despite all the unpredictability, there are opportunities for investors as we move into the new year - particularly for those looking for mispriced investments outside of the most crowded parts of the market.
Below, listen to our final podcast of the year for an overview of some those opportunities from our investment team.
Featuring in the episode is:
- Graham Hay - Portfolio Manager, Hardware, Industrials & Commodities
- Nick Cameron - Portfolio Manager, Healthcare
- Max Shramchenko - Portfolio Manager, Infrastructure
- James Rodda - Portfolio Manager, Domestic Developed Markets
- John Stavliotis - Portfolio Manager, Emerging Markets
Each PM highlights one stock (or sector) they expect will perform well in the year ahead, as well as one stock or market segment they intend to avoid.
The episode includes some additional holiday fun, with Alison Savas asking each PM for their favourite Christmas movie.
Subscribe to our podcast on Apple, Google or Spotify
Episode summary: the stocks to watch
Keysight Technologies (NYSE: KEYS)
With significant investment in research and development, Keysight Technologies, an American electronics manufacturing company, may not be a household name. However, the firm has a long-standing history of providing innovative test and measurement solutions across a wide range of technological fields.
"All the innovation that's coming, whether it be 6G or AI data centers, innovations in automatic and other communication networks...Keysight are a critical enabler of all that innovation. Despite going through a down cycle recently, their high levels of R&D and the collaborate role they play with customers, they are well positioned to flourish in the years ahead."
Skip to 0:35 on the podcast to hear more from Graham.
Alcon AG (SWX: ALC)
Swiss-American pharmaceutical and medical device company, Alcon continues to be well positioned for 2025, according to Dr Nick Cameron.
Following a solid performance in 2024, Alcon is projected to propel this success into 2025, driven by a significant ramp up in new and innovative product launches, facilitating increased revenue growth.
"Margins should also expand in the latter half of the year significantly after the initial cost to support those launches. The addition of free cash flow accelerating which we think the company will use to fund bolt-on acquisitions - a further source of upside in our case"
Skip to 8:53 on the podcast to hear more about the growing healthcare sector from Nick.
RWE AG (ETR: RWE)
German energy company RWE is an independent power producer which owns a mix of contracted renewable and merchant conventional power generation assets.
Success for this firm has been driven by compelling and successful energy transitional assets as well as through various creative acquisitions and transactions. Its current management team has transformed the firm from an overly vertically integrated utility, into a leading global developer and owner of renewable power.
"At its current share price, the market is only valuing the earnings power from the existing operating renewable assets, contributing to its status as a value trap. However, we believe that this will be proven wrong through RWE's plan to continuing to invest billions each year at attractive rates of return and continuously growing its core renewables EBITDA by more than 10% per annum."
Skip to 16:17 on the podcast to hear more from Max on this topic.
Alphabet Inc (NASDAQ: GOOGL)
American multinational technology conglomerate Alphabet Inc is growing by double digits and is the parent company that owns Google and its subsidiaries.
"Google is the Swiss Army knife. The competitive advantage Google holds in services, travel, e-commerce, and maps, is a point of difference that Large Language Models (LLM) are unable to compete with. The multiple ways of winning for google extends out to YouTube and Google Cloud, which are both performing well also."
Skip to 24:50 on the podcast to learn more from James on his views surrounding the future of Google.
Didi Global Inc. (NASDAQ: DIDI)
The growing global presence of ride-hailing service Didi is evidenced by their growing market share, where they hold circa 40% share in key markets such as Brazil and Mexico.
Despite initial disruptions to their business model, including being delisted from the New York Stock Exchange, the fundamentals of the business are strong.
"They've turned profitable with earnings before interest and taxes (EBIT) to gross merchandise volume (GMV) of over 3% this year whilst they grew transactional revenue by 10% this year. Looking forward, Didi is on track to see margins in China improve from over 3% to high single digits in the next five years."
Skip to 31:07 to hear John speak more on the projected growth in various global markets for Didi in the future.
Learn more about investing in global equities with Antipodes
Antipodes Partners provides exposure to differentiated international equities portfolios.
Its pragmatic value approach seeks to find attractively priced investments across global markets, by identifying resilient businesses that are cheap relative to their growth profile.
More insights from Antipodes can be found here.
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Antipodes' pragmatic value approach to investing in global equities aims to provide clients a smoother long-term wealth creation journey. We manage global long-only and long-short unit trusts, along with the Antipodes Global Shares (Quoted Managed Fund) active-ETF (ASX: AGX1). Through these vehicles, investors can access portfolios of attractively priced global businesses with strong long-term growth prospects. Antipodes was established in 2015. The investment team operates from offices in Sydney and London.
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Stock commentary is illustrative only.
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Antipodes' pragmatic value approach to investing in global equities aims to provide clients a smoother long-term wealth creation journey. We manage global long-only and long-short unit trusts, along with the Antipodes Global Shares (Quoted Managed...
Expertise
Antipodes' pragmatic value approach to investing in global equities aims to provide clients a smoother long-term wealth creation journey. We manage global long-only and long-short unit trusts, along with the Antipodes Global Shares (Quoted Managed...
Expertise
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