ZACKS·2025-12-26 15:11Core Viewpoint - The article highlights a positive sentiment in the tech sector, particularly during the Santa Claus rally, with a recommendation to invest in specific S&P 500 stocks that show strong growth potential for 2025 [2][3]. Economic Context - The S&P 500 reached an all-time closing high of 6,909.79 points, rising 0.5% on Tuesday, driven by a reported U.S. economic growth rate of 4.3% in Q3, exceeding the consensus estimate of 3.2% [4]. - The Federal Reserve may revise its monetary policy outlook for 2026, with markets now anticipating at least two interest rate cuts next year, as inflation is expected to ease and economic growth to accelerate [5]. Tech Sector Performance - Tech stocks have rebounded after a period of volatility, alleviating investor concerns regarding the profitability of AI investments and high valuations [6][7]. Featured Stocks Analog Devices, Inc. (ADI) - ADI is a manufacturer of semiconductor devices, with a product line that includes amplifiers, converters, and sensors [8]. - The expected earnings growth rate for ADI is 12%, with a Zacks Consensus Estimate for current-year earnings improving by 5.3% over the past 60 days. ADI holds a Zacks Rank of 2 [9]. Amazon.com, Inc. (AMZN) - Amazon is a leading e-commerce provider with a strong presence in both online retail and cloud computing through Amazon Web Services [10]. - The expected earnings growth rate for Amazon is 9.5% for next year, with the Zacks Consensus Estimate for current-year earnings improving by 4.7% over the last 60 days. Amazon also has a Zacks Rank of 2 [11]. Fortive Corporation (FTV) - Fortive is a diversified industrial growth company providing technologies for connected workflow solutions globally [12]. - The expected earnings growth rate for Fortive is 6.8% for next year, with the Zacks Consensus Estimate for current-year earnings improving by 4.7% over the past 60 days. Fortive carries a Zacks Rank of 2 [12].