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In 2024, artificial intelligence advanced significantly, becoming roughly ten times smarter. Curious about its stock-picking capability, I consulted Google’s AI platform, Gemini (formerly Bard), for recommendations on the best stocks to buy in 2025. Here’s the response.
Google’s Recommendations
While identifying the ‘best’ stocks can be tricky due to the ever-changing market, here are five UK stocks that may show promise in 2025, based on current trends and analyst evaluations:
- Diageo: This global beverage leader boasts renowned brands such as Johnnie Walker, Guinness, and Smirnoff, and has a strong growth history paired with a resilient business strategy.
- AstraZeneca: A top pharmaceutical company with an impressive pipeline of innovative medications, AstraZeneca stands to benefit from an aging global population and the heightened demand for healthcare solutions.
- Unilever: This consumer goods powerhouse has a varied portfolio that includes brands like Dove, Lipton, and Ben & Jerry’s. Its strong brand presence and global footprint contribute to its relative stability as an investment.
- NatWest Group (LSENWG): The UK’s second-largest bank is leveraging rising interest rates to improve its lending margins, despite an uncertain economic outlook that may affect its performance.
- Shell: Although transitioning to renewable energy, this major oil and gas firm continues to profit significantly from its fossil fuel operations. The volatile oil and gas prices present both risks and opportunities for investors.
Common Picks
To start, it’s worth noting that NatWest is not the UK’s second-largest bank. Besides that, these recommendations appear to be fairly conventional stock choices, largely focused on consumer goods, which might perform well during rate-cutting cycles.
Shell and AstraZeneca also rank as the largest stocks by market capitalization on the FTSE 100. While Shell is a diversified energy enterprise, it still relies heavily on hydrocarbon revenues and is trading at a notable discount compared to its largest American counterparts.
AstraZeneca’s shares, however, have recently declined due to an investigation in China, but several analysts suggest this might be a prime opportunity to acquire shares in this biotech-pharmaceutical frontrunner, especially with its current price-to-earnings-to-growth (PEG) ratio at 1.4.
Reasons for NatWest
Although Gemini’s investment rationale lacks depth, there are strong reasons to consider NatWest for a robust recovery in 2025. Historically, banks thrive in interest rate-cutting environments, potentially setting the stage for NatWest’s further rise.
Lower interest rates typically stimulate borrowing and economic activity, which enhances bank profitability due to increased loan demand. Moreover, banks implement hedging strategies to cushion the effects of fluctuating rates, which can actually lead to higher margins when central banks lower rates.
Despite ongoing challenges, including economic uncertainties and inflationary pressures from Labour’s initial budget, the prospects for improved performance in a favorable monetary environment position NatWest as a notable stock to monitor.
