Benzinga and Yahoo Finance LLC may earn commission or revenue from certain programs through the links below.
Only few things can match the thrill of seeing a stock you own outperform the market and make money. The tricky part is figuring out how long to hold on before the scary adjustment happens. Luckily for you, investing guru Jim Cramer just profiled two outperforming stocks from 2024 that he believes will continue to be winners in 2025. Read on to find out what they are.
From humble beginnings in the stagecoach days of the Old West, the bank has grown into one of the world's premier financial institutions. The Federal Reserve considers Wells Fargo "too big to fail." That speaks volumes about the bank's size and influence, but also earns it additional scrutiny from regulators.
Don't miss:
Although Wells Fargo is a profitable bank, it has been subject to a $1.95 trillion "asset cap" since 2018. The asset cap was imposed as punishment by the Fed in response to a high-profile scandal involving Wells Fargo employees creating fake accounts for the bank. Existing customers incur additional costs. However, a recent Reuters article suggested that the Federal Reserve may lift the ban in 2025.
Jim Cramer heard the same thing and believed the rumors had merit. When the topic of Wells Fargo came up at a recent Investor Club meeting, Cramer said, "The idea that this kind of stupid behavior from regulators would continue into 2025 is pretty incredible." Activity was restricted, but a lot was done, and unbelievably, the lifting of restrictions had no impact on stocks.”
The incoming Trump administration is also likely to take a more "hands-off" regulatory approach than the outgoing Biden administration. This also benefits Wells Fargo. Now might be the perfect time to buy some stocks, and don't forget that this stock has passive income potential. Wells pays a solid 2.24% dividend on its stock price of $71.57, according to Benzinga estimates and public filings.
See also: Arrived Home's private credit funds have historically paid an annualized dividend yield of 8.1%*, It offers a pool of short-term loans backed by residential real estate, with minimum amounts as low as $100.
TJ Maxx is in the retail business, but Jim Cramer thinks the company could also benefit from the impending leadership change in the White House. Cramer believes Trump's proposed tariffs on certain consumer goods will raise prices at traditional retail stores. This may prompt customers to opt for more affordable alternatives, putting them directly into the hands of TJ Maxx.
The company has been one of America's leading discount retailers for decades, carving a place in the hearts of bargain-conscious shoppers. TJ Maxx gets these bargains by purchasing excess inventory from retail stores at deep discounts. Unlike traditional retailers who must pass on tariff prices to consumers, TJ Maxx will purchase inventory after the tariffs are paid.
Retailers may also try to circumvent Trump tariffs by overordering inventory before they take effect. This could also result in deep discounts for TJ Maxx customers and huge profits for TJ Maxx shareholders. During a recent earnings call, TJ Maxx CEO Ernie Herrman told shareholders, "Manufacturers can get inventory in advance. This creates greater supply of goods for us at favorable prices."
TJ Maxx has something else in common with Wells Fargo. It's popular with passive income investors because it pays dividends. According to Benzinga's latest estimates, TJ Maxx will pay a 1.23% dividend on its share price of $121.65. If you're worried about the impact of tariffs on your favorite retail stocks, you might consider switching to TJ Maxx in the discount industry to increase your profits.
Wondering if your investments could give you a $5,000,000 nest egg? Talk to a financial advisor today. SmartAsset's free tool matches you with up to three vetted financial advisors serving your area, and you can interview your advisor matches for free to decide which one is right for you.
The changing interest rate environment has created an incredible opportunity for income-seeking investors to make huge gains, but not through dividend stocks... Certain private market real estate investments are giving retail investors a chance to take advantage These high-yield opportunities and Benzinga's Opportunities have identified some of the most attractive options for you to consider.
For example, Rising Income Fund from EquityMultiple aims to generate stable income from senior commercial real estate debt positions, backed by real assets, with a historical distribution yield of 12.1%. With payment priorities and flexible liquidity options, the Ascent Income Fund is a cornerstone investment vehicle for income-focused investors. EquityMultiple first-time investors can now invest in the Ascent Income Fund with a minimum investment of just $5,000. Benzinga Readers: Sign up here and get a 1% return boost on your first EquityMultiple investment (accredited investors only).
Don't miss this opportunity to take advantage of high-yielding investments while interest rates are high. Check out Benzinga's favorite high-yielding products.
This article Jim Cramer thinks these two stocks (WFC) (TJX) will continue to beat analyst estimates in 2025 originally appeared on Benzinga.com