The S&P 500 May Soar in 2025: 2 Brilliant Stocks to Buy Before It Does, According to Wall Street

Core Insights - Wall Street analysts have issued over 12,000 ratings on S&P 500 stocks, leading to a one-year target of 6,920 for the index, suggesting a potential gain of nearly 13% from the current level of 6,145 [1][2] Company Analysis: Microsoft - Microsoft has two primary growth engines: enterprise software and cloud computing, enhanced by AI features, although the stock has declined 9% in the last three months, presenting a potential investment opportunity [4][2] - Approximately 70% of Fortune 500 companies utilize Microsoft 365, with a 60% sequential increase in usage recently, indicating strong market penetration [5] - Azure, Microsoft's cloud platform, is well-positioned in the AI sector, with analysts noting its competitive edge over Amazon Web Services due to its partnership with OpenAI [6] - Earnings for Microsoft are expected to grow at 13% annually through fiscal 2026, with a current valuation of 33 times earnings, which is a discount to the 12-month average of 36 times earnings, suggesting a reasonable entry point for investors [7] - The average target price for Microsoft among 59 analysts is $510 per share, indicating a 23$415 [11] Company Analysis: MercadoLibre - MercadoLibre operates the largest online marketplace in Latin America, with a projected market share in retail e-commerce of 30% by 2026, up from 28% in 2024 [8] - The company boasts the fastest logistics network in Latin America and holds over 50% market share in retail media advertising, enhancing its attractiveness to merchants [9] - The ongoing digitization of the Latin American economy is expected to drive online retail sales growth at 10% annually through 2028, which will also benefit MercadoLibre's digital payments and advertising segments [10] - Wall Street anticipates earnings growth of 43% annually through 2025, with a current valuation of 73 times earnings appearing reasonable [11] - The average target price for MercadoLibre among 25 analysts is $2,300 per share, suggesting an 11$2,075 [11]