Outperforming the Market: 3 Growth Stocks to Watch in 2025
The S&P 500’s impressive 20% gain in 2024 was no easy feat to surpass, but three growth stocks managed to do just that. Archer Aviation, Pentair, and Meta Platforms outshone the index, and their upward trajectory is expected to continue in 2025.
Electric Dreams: Archer Aviation Takes Flight
Archer Aviation’s remarkable 59% surge in 2024 can be attributed to several factors, including positive analyst coverage and a new partnership in the Middle East. Despite its impressive rise, the electric vertical take-off and landing (eVTOL) aircraft manufacturer still has plenty of room for growth. The completion of its high-volume manufacturing facility in Georgia is a significant milestone, and achieving production targets will likely boost investor confidence. With new growth opportunities on the horizon, including a deal with Anduril and expanding operations, Archer Aviation is poised to continue its upward trend.
Pentair: Riding the Wave of Water Technology
Pentair, a water technology company, designed and produced pool products, fluid treatment and pump systems, and commercial and residential water systems. Its 38.4% return in 2024 outperformed the S&P 500 index, and four key reasons suggest it can do so again in 2025. With interest rates expected to decrease, new pool construction may increase, driving discretionary spending on pools. The installed base of swimming pools is still growing, ensuring non-discretionary spending will continue. Management’s ongoing transformational initiative aims to expand profit margins and drive sales, making Pentair an excellent value with strong long-term growth prospects.
Meta Platforms: A Social Media Giant on the Rise
Meta Platforms’ staggering 386.5% surge between 2023 and 2024 may seem like a reason to be cautious, but the company’s impressive expansion of margins and earnings growth make it a compelling value. With a focus on research and development (R&D) and artificial intelligence (AI), Meta Platforms is well-positioned for long-term success. Its 40% operating margins and rapid revenue growth are testaments to its ability to balance near-term profits with investments in future projects. As the company continues to ride the AI wave, its Reality Labs division may eventually become a significant contributor to its growth.
These three growth stocks have demonstrated their ability to outperform the market, and their continued growth prospects make them worth considering for your portfolio in 2025.
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