Investors Rejoice: 10 Stocks Poised to Deliver Exceptional Returns in 2025
As the curtain closes on 2024, investors have every reason to celebrate. The Dow Jones Industrial Average, S&P 500, and Nasdaq Composite have all posted impressive gains, with the latter two indices surging by 24% and 30%, respectively. While market sentiment can shift quickly, savvy investors know that opportunities abound, even in uncertain times. Here are 10 magnificent stocks that can help you build wealth in 2025.
Social Media Titan: Meta Platforms (NASDAQ: META)
Meta Platforms, the social media behemoth, remains an attractive investment opportunity. Despite its dominance, the company’s annual sales growth of around 20% is often overlooked. With 3.29 billion daily active users across its family of apps, Meta’s advertising revenue is poised to continue growing. The company’s treasure trove of capital, including $70.9 billion in cash and marketable securities, will fuel investments in high-growth initiatives like artificial intelligence and the metaverse.
Pharmaceutical Powerhouse: Pfizer (NYSE: PFE)
Pfizer, a pharmaceutical giant, is primed for a comeback in 2025. While COVID-19 therapy sales have declined, the company’s novel-drug portfolio is stronger than ever. Excluding COVID-19 therapies, Pfizer’s sales jumped by 14% in the September-ended quarter, driven by double-digit growth in its oncology and specialty care segments. The acquisition of Seagen, which closed in December 2023, will pave the way for an expansive cancer-drug pipeline and substantial cost savings.
Renewable Energy Leader: NextEra Energy (NYSE: NEE)
NextEra Energy, America’s largest electric utility by market cap, has delivered a positive total return to its shareholders in 20 of the last 23 years. The company’s cash flow transparency and predictability make it an attractive investment opportunity. As a leader in renewable energy, NextEra Energy’s electricity-generation costs have decreased, resulting in high-single-digit annual EPS growth and targeted double-digit annual growth in its dividend.
Retail Real Estate Investment Trust: Realty Income (NYSE: O)
Realty Income, a premier retail REIT and monthly dividend payer, is poised to thrive in 2025. While REITs have been weighed down by higher Treasury yields, a Federal Reserve rate-easing cycle can open the door for REITs to flourish. Realty Income’s secret to success lies in its leases to well-known, time-tested businesses that attract foot traffic in any economic climate. The company’s expansion into new verticals, including data centers and gaming, will drive predictable funds from operations.
Social Media Gem: Pinterest (NYSE: PINS)
Pinterest, another social media stock, is a no-brainer buy in 2025. Despite Wall Street’s lukewarm response to the company’s fourth-quarter sales guidance, Pinterest’s key performance indicators continue to trend upward. With 537 million monthly active users, Pinterest’s ad-pricing power will improve over time. The company’s operating model is well-insulated from changes in app developers’ data-tracking tools, making it a phenomenal value with a forward P/E of 16.
Cybersecurity Up-and-Comer: SentinelOne (NYSE: S)
SentinelOne, a cybersecurity upstart, is the sixth magnificent stock that can make investors richer in 2025. The company’s subscription-driven model provides consistent cash flow, and its AI- and machine learning-powered software-as-a-service solutions have lifted its adjusted gross margin to 80%. With annual recurring revenue growing by 29% in the latest quarter, investors can expect SentinelOne’s losses to shrink in the new year.
E-commerce Giant: Alibaba Group (NYSE: BABA)
Alibaba Group, a leading e-commerce company, is ripe for the picking. Despite concerns about China stocks, Alibaba’s Taobao and Tmall combined to account for around half of all online retail sales market share in 2023. The company’s cloud infrastructure services offer substantially juicier margins than online retail sales, which will lead to margin and profit expansion throughout the decade. Alibaba’s $33 billion in net cash on its balance sheet makes its microscopic forward P/E of 9 even more attractive.
Specialty Biotech: BioMarin Pharmaceutical (NASDAQ: BMRN)
BioMarin Pharmaceutical, a specialty biotech company, is another phenomenal company that can help fatten up investor portfolios in 2025. Despite new competitors entering the arena, BioMarin’s fast-growing drug Voxzogo may hold a competitive advantage with regard to label expansion opportunities. The company’s pipeline remains promising, with two new drug launches forecast by 2027 and a total of 11 by 2034.
Online-Services Marketplace: Fiverr International (NYSE: FVRR)
Fiverr International, an online-services marketplace, has all the necessary tools to make investors richer in the new year. The shift toward remote work has played perfectly into Fiverr’s platform, which connects freelancers with buyers through its marketplace. Price transparency is one reason Fiverr stands out from other freelancer marketplaces, and its take rate of 33.9% should lead to superior margins.
Payment-Processing Goliath: Visa (NYSE: V)
Visa, a payment-processing giant, has shown that its competitive advantages allow it to outperform in virtually any economic climate. By sticking to payment facilitation, Visa avoids the risks associated with lending. The company’s mouthwatering international opportunity, including sustained double-digit growth in cross-border payment volume, makes it an attractive investment opportunity.
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