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In 2025, tech, media, and telecom stocks are experiencing significant growth.
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The technology and communication services sectors are outperforming the S&P 500 this year.
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UBS has revealed its top 10 most confident picks in this thriving market sector.
2025 has proven to be another noteworthy year for technology.
The tech, media, and telecommunications sector is among the most dynamic areas of the market. UBS shared its leading selections recently.
In the S&P 500, technology stocks are up by 20% year-to-date, while communications services stocks have risen by 22%. This significantly exceeds the broader index, which has increased by just 13% since the year’s beginning.
In a recent note to clients, UBS analysts identified 10 buy-rated stocks within these sectors, showcasing the bank’s highest-conviction recommendations in this market landscape. These selections reflect instances where UBS holds a “differentiated view” or has proprietary data backing its optimistic projections, as pointed out by the analysts.
Hereâs a look at the prominent stocks that UBS is monitoring:
NIQ Global Intelligence
Ticker: NIQ
Year-to-date performance: -16%
Predicted upside: +56%
Analyst reasoning: “After its transformation in 2021, including approximately $920 million in investments ($400 million in technology and $520 million across various deals, including Fetch), NIQ is set for around 5% organic CC revenue growth from 2024 to 2027. We anticipate the adjusted EBITDA margin will improve by 550 basis points to 24.1% by 2027, driven by cost efficiencies and enhanced equity quality.”
Walt Disney Co.
Ticker: DIS
Year-to-date performance: +2%
Predicted upside: +21%
Analyst reasoning: “We maintain a positive outlook on Disney shares, viewing the parks as a significant growth driver that should enhance as new attractions and cruise capacity come into play,” analysts noted. “This supports our belief that Disney can achieve an EPS growth rate of approximately 17% CAGR through fiscal 2027 compared to the Street’s prediction of about 13%.”
American Tower Corporation
Ticker: AMT
Year-to-date performance: +6%
Predicted upside: +35%
Analyst reasoning: “AMT stands to gain from increased activity among U.S. carriers (including AT&T amendments following the Echostar spectrum acquisition as well as VZ/TMUS densification), alongside accelerated international expansion, leading to 6-8% annual AFFO per share growth from 2025 to 2027, compared to about 1% growth recently.”
Amazon
Ticker: AMZN
Year-to-date performance: -0.4%
Predicted upside: +23%
Analyst reasoning: “Amazon seems uniquely positioned for growth due to its investments in e-commerce, cloud services, advertising, and satellite technologies. As revenue expands, operating profit and free cash flow revisions could exceed those of its competitors. We forecast operating margins of 11.3% for 2025, 12.9% for 2026, and 15.7% for 2027, with additional upside possible if revenue generation surpasses current estimates.”
