Promising Stocks of 2025 with Short-Term Upside

The AI-driven bull run of 2023 and 2024 has persisted into this year. Despite the overstretched valuation of U.S. stocks, particularly in the technology sector, Wall Street continues its upward trajectory in 2025, with only minor fluctuations.

The imposition of restrictive tariff and trade policies by President Donald Trump, ongoing global geopolitical conflicts, and recent signs of cracks in the U.S. labor market have not deterred investors from equities.

Moreover, the CME FedWatch interest rate derivative tool currently indicates a 100% probability of a 25-basis-point interest rate cut by the Fed at its FOMC meeting scheduled this week. A low-interest-rate environment is expected to benefit stock investors.

Despite these positives, several large-cap AI stocks have delivered negative returns year to date. Surprisingly, a handful of these stocks with a favorable Zacks Rank currently offer strong short-term price upside potential.

These stocks include Assurant Inc., DocuSign Inc., Duolingo Inc., West Pharmaceutical Services Inc., and Zebra Technologies Corp. Each of these stocks currently holds a Zacks Rank #1 (Strong Buy). The complete list of today’s Zacks #1 Rank stocks can be viewed.

The chart below illustrates the year-to-date price performance of these five stocks.