Josh Brown says these two stocks are on the verge of a breakout

Ritholtz chief executive Josh Brown removed a few notable names from his list of “best stocks in the market” in February.

These include Delta Air Lines, Constellation Energy, and Arista Networks.

At the same time, he’s added a few names to the list that he’s convinced are on the verge of a breakout.

Among those, the financial markets expert recommends owning two in particular, 3M and EOG Resources.

Here’s what each of those two have in store for investors in 2025.

3M Inc (NYSE: MMM)

Josh Brown sees 3M as headed for a potential breakout following months of consolidation.

Shares of the multinational conglomerate have traded within a range since September – the upper end of which may be tested in the coming weeks.

Still, the “RSI is fairly cool, which means it’s not overbought … it hasn’t made its move yet,” the chief executive of Ritholtz Wealth Management said in a recent interview with CNBC.

3M stock may be worth owning at current levels also because it has returned to positive organic revenue growth and is “carrying this momentum forward” in 2025, according to its CEO William Brown. 

Ritholtz top executive Josh Brown is not alone in seeing major upside in 3M (MMM) shares.

UBS analysts also rate the $79 billion industrial giant based in Saint Paul as a “buy”, with a price target of $184, implying a potential upside of more than 25% from current levels.

The stock also offers a dividend yield of 1.99%, providing another compelling reason for investors to consider adding it to their portfolios.

EOG Resources Inc (NYSE: EOG)

EOG is currently going for roughly the same price at which it was trading in 2022.

But it’s in energy – “a sector that is starting to reawaken after horrendous relative performance to the rest of the market,” according to Josh Brown.

That’s why he sees a potential breakout in EOG ahead.

If shares of EOG Resources succeed in pushing through the $135 level, they are unlikely to face any further resistance in the near-term, the chief executive of Ritholtz Wealth Management argued on the “Halftime Report”.

Much like 3M, EOG is also doing fairly well in terms of financials. It is scheduled to report earnings for the fourth quarter today, after the bell.

Consensus is for the company to earn $2.55 a share that translates to about a 20% increase on a year-over-year basis.

Wall Street agrees with Brown on EOG stock as well. The consensus “overweight” rating on the company based out of Houston, TX is coupled with an average price target of $148, which translates to about a 13% upside from current levels.

EOG shares pay a healthy dividend yield of 2.97% as well. 

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