Highlighting a ‘stick to winners’ approach, global brokerage Bernstein has unveiled its top stock recommendations for 2025. With a focus on the booming IT, media, and telecom sectors, these recommendations underscore the value of strategic investment in market leaders and growth-oriented companies.
Bernstein’s top picks include Infosys, TCS, Coforge, Persistent Systems, Zomato, and Bharti Airtel. Each selection reflects robust growth potential, making these stocks a compelling choice for investors aiming to optimize their portfolios. Let’s dive deeper into Bernstein’s strategy and the factors influencing these picks.
The year 2025 is shaping up to be a pivotal one for investors, particularly those tuned into the IT, media, and telecom sectors. Bernstein, a leading global brokerage firm, emphasizes a ‘stick to winners’ approach, advising investors to prioritize proven performers in these dynamic industries. With growth driven by advancements in technology, AI, and consumer behavior, these stocks present lucrative opportunities.
But why does Bernstein advocate this strategy, and what makes these companies stand out? Let’s unravel the details.
Why Choose a ‘Stick to Winners’ Strategy?
What makes the ‘stick to winners’ strategy so effective? This approach prioritizes companies with a track record of consistent performance and leadership in their sectors. Bernstein’s methodology ensures investors can leverage predictable growth and minimize risks associated with underperforming stocks.
Key advantages of this strategy include:
- Predictable Returns: Proven winners often outperform during market fluctuations.
- Lower Risk: Established companies typically exhibit resilience against economic downturns.
- Growth Potential: Market leaders are often better positioned to capitalize on emerging trends.
Zomato Shares: Why They’re a Top Pick for 2025
Leadership in Food Delivery and Quick Commerce
Zomato holds a dominant position in the food delivery and quick commerce space. With an expanding total addressable market (TAM) and initiatives like Dine Out, the company continues to attract a growing user base.
- Growth Drivers:
- Expansion into Tier 2 and Tier 3 cities.
- Integration of AI to enhance customer experience.
- Partnerships with restaurants and local delivery networks.
- Market Outlook: Zomato’s leadership in quick commerce is expected to outpace other channels, making it a strong contender for long-term growth.
Infosys: A Growth Champion
Why Infosys is Poised for Success?
Infosys has long been synonymous with innovation and robust performance in IT services.
- Cloud and Digital Services: Infosys leverages its expertise in cloud and digital transformation to secure multi-billion-dollar deals.
- Financial Projections: Revenue is projected to grow at 10%+ annually, with EPS achieving a compound annual growth rate (CAGR) of 14%.
Infosys remains a safe bet for investors seeking steady returns.
TCS: A Margin Champion
The Pillar of Consistency
TCS is renowned for its ability to deliver exceptional results through disciplined execution.
- Healthy Deal Wins: The company continues to secure large-scale deals across diverse industries.
- Growth Metrics: TCS is expected to deliver 9.5% revenue growth and a 13% EPS CAGR.
Persistent Systems: A Rising Star
Persistent Systems stands out for its prowess in software product engineering and technology offerings like AI and cloud solutions.
- Revenue Growth: A projected CAGR of 19%, with EPS growth expected at 27% over FY25-FY27E.
- Competitive Edge: The company’s focus on cost take-out deals makes it an appealing option for large enterprises.
Coforge: Expanding Horizons
Coforge’s emphasis on the BFSI sector and diversified client base ensures consistent growth.
- Target Achievement: The company is on track to reach its $2 billion revenue target by FY27.
- Valuation Updates: Coforge’s P/E multiple has been revised upward to reflect its promising trajectory.
Bharti Airtel: Riding the Telecom Wave
Airtel’s position as a telecom leader is reinforced by its ARPU growth and 5G rollout.
- Growth Segments: Enterprise services, fiber connectivity, and digital platforms.
- Challenges Addressed: EPS estimates have been adjusted to reflect subscriber churn post-tariff hikes.
‘Stick to Winners’ Strategy Guides Bernstein’s 2025 Top Stock Picks, Including Airtel & Zomato
Bernstein’s approach underscores the importance of staying with market leaders like Airtel and Zomato. This strategy is rooted in historical data and a deep understanding of market dynamics, ensuring sustainable growth for investors.
FAQs
1. What is the ‘stick to winners’ strategy?
It’s a strategy that emphasizes investing in companies with a proven track record of performance, reducing risk while ensuring consistent returns.
2. Why are Zomato Shares recommended by Bernstein?
Zomato’s dominance in food delivery and quick commerce, coupled with its TAM expansion and innovative initiatives, makes it a top pick.
3. What sectors are included in Bernstein’s 2025 recommendations?
Key sectors include IT, telecom, and media, with a focus on leaders like Infosys, TCS, and Airtel.
4. What is the projected growth for Infosys?
Infosys is expected to achieve a revenue growth of 10%+ annually, with a 14% CAGR for EPS.
5. How is Airtel positioned for 2025?
Airtel is poised to benefit from the telecom repair cycle, 5G rollout, and enterprise growth.
6. What are the key drivers for Persistent Systems?
Persistent Systems leverages its expertise in cloud and AI, driving revenue growth at a CAGR of 19%.
Conclusion
Bernstein’s 2025 stock picks reflect a well-rounded strategy for navigating the evolving market landscape. By focusing on proven winners like Zomato and Airtel, investors can capitalize on growth opportunities while minimizing risk. With the right mix of innovation, resilience, and market leadership, these stocks are set to redefine investment success in 2025.
For savvy investors, it’s time to stick to the winners and watch your portfolio thrive!
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