10 Best Economic Recovery Stocks to Buy

2. Stellantis N.V. (NYSE:STLA)

Estimated average analysts’ upside: 82.77%

Revenue CAGR last 5 years: 33.64%

Number of Hedge Fund Holders: 32

​​Stellantis N.V. (NYSE:STLA) is a multinational manufacturer of cars under 14 brands, including Abarth, Alfa Romeo, Chrysler, Citroën, Dodge, Fiat, Jeep®, Maserati, Opel, Peugeot, and others. With industrial operations in over 30 countries and a sales presence in more than 130 markets, STLA holds substantial market share and is one of the global automotive leaders. STLA’s broad brand portfolio, covering all price categories, as well as its global footprint, makes it the ideal automotive stock to benefit from increased consumer demand and economic activity during periods of economic recovery.

Stellantis N.V. (NYSE:STLA) experienced a challenging 2024, with an adjusted operating income margin landing at the bottom of the guided range of 5.5% to 7%. The company saw consolidated shipments decline by 750,000 units or 12%, with one-third attributed to inventory reduction actions and two-thirds related to lower sales and a temporary product hiatus. Net revenues declined 17% YoY, impacted by lower shipment volumes, mix effects particularly in North America, and FX headwinds in third engine regions.

Looking forward, Stellantis N.V. (NYSE:STLA) is prioritizing profitable growth, rigorous execution, and ensuring profitability converts into cash. The company has initiated several strategic actions, including empowering regions for closer customer proximity, launching 30 new products between 2024 and 2025, and extending product offerings across different powertrains to increase market coverage. For 2025, management expects revenue improvement compared to 2024, with a mid-single-digit operating margin and a return to positive industrial free cash flow, particularly in the second half of the year. With strong guidance ahead and a giant 82.77% average upside estimated by analysts, STLA is one of the best economic recovery stocks.