This week, Zacks Equity Strategist Mayur Thaker, CFA, discusses:

• A review of the just-finished Q4 2024 earnings season and a preview of his outlook for the year ahead. As has been the case for years, the “Magnificent 7” big tech stocks again dominated in Q4, but EPS estimates are beginning to fade as we head into 2025.

• Meanwhile, the all-important cyclicals are seeing accelerating growth. Mayur points out that cyclicals, also known as value stocks, have great analytical value as a reflection of the true underlying economy. He argues that if the ISM Manufacturing PMI index has truly turned a corner, cyclicals could lead an expansion of market growth.

• Mayur also discusses the role of tariffs in the new administration’s pro-growth agenda. Finally, he offers his overall forecast for the S&P 500, and ideas for investors looking for deep value Cyclical stocks with strong balance sheets, high ROIC, and attractive valuations. Stocks he highlights include Littelfuse Inc (LFUS), United Parcel Service Inc (UPS), Albemarle Corp (ALB), Gentex Corp (GNTX), and others. Get ready for what’s ahead in 2025 with this essential strategy call!

The views of Mayur Thaker, CFA are not necessarily the views of Zacks Investment Research.

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