Citigroup Inc.

🇺🇸New York Stock Exchange
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Citigroup Inc. stock analysis C overview
Bullish +75

10 Best Stocks to Buy in a Rising Market According to Wall Street Analysts

📈 US equities remain bullish as S&P 500 and Nasdaq 100 return to record highs fueled by AI enthusiasm.

⚡️ Record first-quarter earnings bolster investor confidence despite geopolitical tensions and high oil prices.

🏦 Citigroup strategists joined peers BlackRock and Morgan Stanley in maintaining a constructive outlook on the US market.

🔮 Analysts forecast the S&P 500 reaching 7,700 by year-end despite macro headwinds that appear priced in.

📊 Goldman Sachs notes valuations are less demanding than previous months while earnings growth continues.

📉 Markets have moved ahead of visible risks, leaving some stocks with significant upside potential according to strategists.

🔍 The selection process used Finviz screener data identifying stocks with over 20% year-to-date gains and 20% upside.

🧠 Hedge fund allocations were prioritized, as historical research shows imitating top picks can outperform the market by 300% since 2014.

🌐 ASML Holding N.V. leads the list with strong order intake driven by chip demand outpacing supply capabilities.

💰 ASML expects second-quarter net sales between €8.4 billion and €9.0 billion with gross margins of 51%-52%.

📜 Devon Energy Corporation's merger with Coterra Energy cleared antitrust regulations in April without objection.

🚀 Devon shares rallied over 26% year-to-date as the proposed merger creates a large-cap producer focused on the Permian Basin.

💵 The Devon and Coterra merger targets $1 billion in annual pretax savings by 2027 with share buybacks exceeding $5 billion.

Bullish Signals
  • The equity market remains bullish, driven by a record-setting trend fueled by renewed enthusiasm for artificial intelligence.
  • Strong first-quarter earnings have bolstered investor confidence despite soaring geopolitical tensions in the Middle East and inflationary pressures from higher oil prices.
  • The S&P 500 and tech-heavy Nasdaq 100 are back to record highs, affirming the bull market could persist into 2027.
  • Citigroup strategists expect the S&P 500 to reach 7,700 by year’s end, indicating significant upside potential from current levels.
  • Goldman Sachs expects the S&P 500 to continue edging higher as it has after episodes of geopolitical risk.
  • ASML Holding N.V. reported first-quarter net sales of €8.8 billion in line with guidance, net income of €2.8 billion, and a gross margin of 53%.
  • Second-quarter net sales are expected to be between €8.4 billion and €9.0 billion with a gross margin of 51%-52%, demonstrating solid forward guidance.
  • Full-year net sales are expected to be between €36 billion and €40 billion, maintaining strong growth expectations for the remainder of the year.
  • ASML Holding NV intends to declare a total dividend for 2025 of €7.50 per ordinary share, representing a 17% increase compared to 2024.
  • In the first quarter, ASML Holding returned value to shareholders by repurchasing €1.1 billion of shares, showing commitment to share buybacks.
  • Devon Energy Corporation (NYSE:DVN) has rallied by more than 26% year to date as market sentiment is bolstered by the proposed merger with Coterra Energy.
  • The Devon and Coterra Energy merger targets €1 billion in annual pretax savings by 2027, planning to reward investors with high dividends and share buybacks of more than $5 billion.
Risk Factors
  • Geopolitical tensions in the Middle East and inflationary pressures from higher oil prices are creating headwinds for the equity market, even though investors are currently bullish.
  • Citigroup strategists expect the S&P 500 to reach 7,700 by year's end, but other analysts like Goldman Sachs note that macro headwinds generally appear priced in while valuations remain elevated relative to history.
  • Morgan Stanley strategist Michael Wilson insists markets have moved well in front of the risks that are now obvious, suggesting a potential disconnect between current prices and underlying fundamentals.
  • ASML Holding N.V. (NASDAQ:ASML) expects gross margins of 51%-53% for the full year, which is lower than the company's Q1 gross margin of 53%, indicating potential margin pressure ahead.
  • The Devon Energy Corporation and Coterra Energy merger remains subject to customary closing conditions and is expected to close in the second quarter, introducing execution risk and timing uncertainty.
  • Devon Energy Corporation (NYSE:DVN) has rallied by more than 26% year to date, which may already price in much of the potential upside from the proposed merger with Coterra Energy.
Full Analysis
The equity market remains bullish, driven by a record-setting trend fueled by renewed enthusiasm for artificial intelligence and strong first-quarter earnings that bolster investor confidence despite soaring geopolitical tensions in the Middle East and inflationary pressures from higher oil prices. Major indexes such as the S&P 500 and tech-heavy Nasdaq 100 have returned to record highs, with strategists from Citigroup, BlackRock, and Morgan Stanley expressing confidence in the resilience of the US market. Citigroup analysts expect the S&P 500 to reach 7,700 by year-end, while Goldman Sachs suggests valuations are less demanding than a few months ago despite remaining elevated relative to history, with earnings growth fundamentals continuing to run strong according to Goldman's Ben Snider. To compile a list of the best stocks to buy in this environment, analysts utilized the Finviz screener to identify companies that have gained more than 20% year to date and are outperforming the overall market as of April 27. The selection process further focused on stocks with upside potential exceeding 20% and highlighted popularity among elite hedge funds in Q4 2025. This approach is supported by research indicating that imitating the top stock picks of the best hedge funds can outperform the market, a strategy reflected in a quarterly newsletter that has returned 498.7% since May 2014, beating its benchmark by 303 percentage points. ASML Holding N.V. (NASDAQ: ASML) was identified as one of the top picks, with CEO Christophe Fouquet reiterating on April 15 that order intake remains strong due to chip demand outpacing supply. The company expects second-quarter net sales between €8.4 billion and €9.0 billion with gross margins of 51%-52%, following first-quarter net sales of €8.8 billion. ASML intends to declare a total dividend for 2025 of €7.50 per ordinary share, a 17% increase compared to 2024, and previously repurchased €1.1 billion of shares in the first quarter. The company remains the world's leading manufacturer of photolithography machines essential for semiconductor companies like TSMC, Intel, and Samsung. Devon Energy Corporation (NYSE: DVN) is another highlighted stock following the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act on April 11 for its proposed merger with Coterra Energy. The transaction is expected to close in the second quarter without objection, satisfying key regulatory conditions and targeting $1 billion in annual pretax savings by 2027. Devon Energy has rallied more than 26% year to date, driven by the merger plan which focuses on becoming a large-cap oil and gas producer in the Permian Basin with rewards for investors including high dividends and share buybacks of over $5 billion.