Stocks to Watch

For the week starting Monday, March 24, 2025, identifying promising stocks involves looking at recent market trends, upcoming catalysts, and technical signals. Based on current conditions as of March 22, 2025, here are a few stocks that might stand out, along with the reasoning behind their potential. Note that stock performance is inherently uncertain, and this is not financial advice—always consult a financial advisor and conduct your own research before making investment decisions.

Stocks to Watch

1. KB Home (KBH)  

   • Why it’s promising: KB Home, a major U.S. homebuilder, is scheduled to report its Q1 2025 earnings after the market closes on Monday, March 24. Analysts expect steady performance in the housing sector, with new home sales data due Tuesday potentially reinforcing demand trends. Recent housing starts and permits data (released March 18) showed resilience despite economic uncertainty, which could bode well for KBH if its results beat expectations.

   • Context: The stock has been sensitive to interest rate expectations and consumer confidence, both of which are in focus this week with additional economic releases like the PCE price index (Friday, March 28). A strong earnings beat could lift the stock, especially if paired with positive guidance.

   • Risk: A miss on earnings or weak forward guidance could pressure the stock, particularly if Tuesday’s new home sales data (expected at 0.68 million units) disappoints.

2. NVIDIA (NVDA)  

   • Why it’s promising: NVIDIA’s GPU Technology Conference (GTC) wraps up on March 21, but its impact often lingers into the following week as investors digest announcements. CEO Jensen Huang’s keynote on March 18 likely highlighted updates on AI chips (e.g., the Vera Rubin GPU or Blackwell Ultra GB300), which could drive momentum if analyst upgrades or positive sentiment emerge over the weekend. NVIDIA has been volatile, down over 20% from recent highs, but a 50%+ drop from its peak might attract buyers looking for a dip.

   • Context: Tech stocks have lagged in 2025, but Friday’s rally (S&P 500 up sharply on March 14) led by NVIDIA and Palantir suggests potential rotation back into growth names. The stock’s oversold technicals (e.g., RSI below 30 earlier this month) also hint at a possible rebound.

   • Risk: Broader market weakness or tariff-related fears could overshadow GTC momentum, especially if the VIX remains elevated (currently near 20).

3. McCormick & Company (MKC)  

   • Why it’s promising: The spice and seasoning giant reports earnings on Tuesday, March 25, alongside consumer confidence data. As a consumer defensive stock, MKC could appeal to investors seeking stability amid recent volatility. Its consistent revenue growth (up 5–10% annually) and dividend reliability make it a safe haven if economic data this week (e.g., PCE inflation) signals slowdown fears.

   • Context: Value stocks have outperformed growth in 2025, and MKC’s forward P/E of around 23 is reasonable for its sector. A beat-and-raise quarter could spark a rally in this steady performer.

   • Risk: Weak consumer confidence numbers could hurt sentiment, though MKC’s defensive nature might mitigate downside.

4. Tesla (TSLA)  

   • Why it’s promising: Despite a rough 2025 (down 50% over three months as of March 20), Tesla’s high volatility makes it a candidate for a short-term bounce. Elon Musk’s recent comments urging patience amid “tough times” (reported March 20) might rally retail investor sentiment, especially if the stock finds support near $150–$160. Monday’s retail sales data (February) could also provide a tailwind if consumer spending holds up.

   • Context: Tesla led the “Magnificent 7” lower with a 15.4% drop on March 10, but oversold conditions and its cult-like following could trigger a relief rally. The broader consumer discretionary sector’s performance will be key.

   • Risk: Continued economic uncertainty or negative tariff developments (e.g., impacting China-made EVs) could push it lower.

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Broader Market Considerations

• Economic Data: This week’s releases—S&P Global PMIs (Monday), new home sales (Tuesday), durable goods (Wednesday), GDP (Thursday), and PCE inflation (Friday)—will shape market direction. Strong data could lift cyclicals like KBH and Tesla, while weak data might favor defensives like MKC.

• Volatility: The VIX has eased from 25 to just below 20, but triple witching on March 21 may have set up choppy trading into Monday. A bullish close on Friday could signal upside for the week.

• Sector Trends: Tech (e.g., NVIDIA) might regain traction post-GTC, while housing (KBH) and consumer staples (MKC) offer exposure to key data points.

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Final Thoughts

These stocks—KB Home, NVIDIA, McCormick, and Tesla—look promising due to upcoming catalysts (earnings, GTC fallout) and their positioning within current market dynamics. NVIDIA and Tesla offer high-upside potential with higher risk, while KBH and MKC provide more balanced opportunities tied to economic releases. Pick based on your risk tolerance and watch Monday’s market open for confirmation of sentiment. What’s your trading style—growth, value, or momentum? That could narrow it down further!