We recently compiled a list of the 10 Stocks That Will Make You Rich In 2025. In this article, we are going to take a look at where Chord Energy Corporation (NASDAQ:CHRD) stands against the other stocks that will make you rich in 2025.
What to Expect from the Stock Market in 2025
Jurrien Timmer, Director of Global Macro at Fidelity Management & Research Company, recently shared his outlook for the stock market in 2025. His analysis reflects cautious optimism, emphasizing potential growth and significant risks. Timmer described 2024 as a “Goldilocks” year for U.S. stock returns, characterized by robust earnings growth and rising valuations. The S&P 500 Index experienced a substantial increase, concluding the year with a gain of approximately 28% as it reached new all-time highs. This performance was driven by strong earnings from major companies, particularly the so-called “Magnificent Seven” stocks whose growth has significantly influenced the overall market dynamics.
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Looking ahead to 2025, Timmer maintained a bullish stance on stocks but cautioned that investors should not expect returns to match the spectacular gains of the previous two years. He noted that while earnings forecasts remain strong, especially for the mega-cap stocks, valuations are stretched, currently sitting in the 90th percentile historically. This suggests that significant further expansion in price-to-earnings (PE) ratios could lead to a bubble scenario, which he believes is unlikely. He expects continued earnings growth to support stock prices in 2025. However, valuations may limit future growth. Timmer suggests that earnings must drive performance rather than further valuation expansion to avoid a bubble scenario.
With the bull market entering its third year, Timmer describes it as being in “later innings,” indicating increased caution regarding future performance. He also suggested several risks that could potentially impact the market in 2025. For instance, heavy reliance on a few mega-cap stocks poses a risk; if these stocks falter, it could drag down overall market performance despite broader participation from other stocks. Secondly, although he does not foresee a return to the high inflation rates of the past decades, he warns that rising inflation could lead to higher interest rates, which would negatively affect the stock market.
Our Methodology
To compile the list of 10 stocks that will make you rich in 2025, we conducted a consensus. We sifted through various internet rankings to get an initial list of stocks expected to explode in 2025. Next, we sourced analyst sentiment for each stock from CNN and ranked our list in ascending order of the analysts’ projected upside potential for the next twelve months. Please note that the data was recorded on Friday, December 20, 2024.
Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A technician in a lab coat examining a sample of crude oil.
Chord Energy Corporation (NASDAQ:CHRD)
Analysts Upside Potential: 64.67%
Chord Energy Corporation (NASDAQ:CHRD) is an independent company that focuses on exploring and producing oil and natural gas. It primarily operates in the Williston Basin, which spans parts of North Dakota and Montana. This area is known for its rich deposits of oil and gas, particularly in formations called the Middle Bakken and Three Forks. On March 31, the company reported completing its merger with Enerplus Corporation, creating a leading exploration and production (E&P) company focused on the Williston Basin. The newly formed company boasts a substantial land position of about 1.3 million net acres in the area. The combined entity expects to achieve over $200 million in annual synergies, exceeding initial estimates.
During the fiscal third quarter of 2024, Chord Energy Corporation (NASDAQ:CHRD) reported strong financial and operational results. Oil production for the company reached 158.8 thousand barrels per day (MBopd), close to the upper limit of its guidance, and total production was 280.8 thousand barrels of oil equivalent per day (MBoepd), which also exceeded expectations. As a result total revenue of approximately $1.45 billion increased 38% year-over-year, generating $225.3 million as net income. It is one of the 10 stocks that can make you rich in 2025.
Carillon Tower Advisers stated the following about Chord Energy Corporation (NASDAQ:CHRD) in its Q3 2024 investment letter:
“Chord Energy Corporation (NASDAQ:CHRD) is an independent exploration and production company with operations in the Williston Basin in North Dakota, Montana, and South Dakota. The company’s shares lagged largely due to the recent pressure on the price of oil. Some recent data indicating slightly disappointing initial well productivity from a handful of recently completed wells also contributed to lackluster performance. Despite this, we remain optimistic about management’s ability to drive operational efficiencies following the recent close of Chord’s acquisition of Enerplus, by applying best practices of both independent companies in a manner that should provide upside to the previously communicated synergies. We believe the continued successful implementation of Chord’s 3-mile lateral strategy, which entails drilling both vertically and horizontally for distances longer than in 2-mile lateral wells, also could drive increased shareholder returns.”
Overall CHRD ranks 2nd on our list of the stocks that will make you rich in 2025. While we acknowledge the potential of CHRD as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CHRD but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.