As the new year quickly approaches, the question on every investor’s mind is what are the best stocks to invest in 2025. With a new US government taking office and a high degree of geopolitical tension, investors are well-advised to take a good look at how their portfolios are positioned for 2025 and beyond.
Yet again, though not cheap by any stretch, the US stock market stands out as the market with the best prospects, and some of the usual suspects like $AMZN continue to look as attractive as ever.
Determining the best stocks to invest in 2025
To help our user community and readers of this blog position their portfolios for 2025, our research team took to the stock screener and our extensive research database to put together a list of 10 stocks that stand to do well in 2025 and beyond. Going forward, you can track these 10 stocks in our new model portfolio “Best Stocks for 2025”.
But before we explain in greater detail what we like about these stocks, let’s take a look at the market context that will shape 2025.
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Rate cuts leading to lower interest rates
At the time of this writing, the CME’s FedWatch tool sees two rate cuts down to 4% by the end of 2025 as the most likely scenario. Though the extent of the expected rate cut is not huge, lower interest rates still stand to benefit growth stocks.
However, investors must be wary that higher tariffs ahead represent an upside risk to inflation, which could have repercussions on the interest rate trajectory.
Trump policies to reduce taxes and regulation
Trump’s proposed corporate tax policies aim to extend or even lower existing cuts, potentially spurring economic growth. Lower corporate taxes will boost net income, allowing US firms to reinvest in expansion, innovation, and workforce development.
As a further boon to US businesses, Donald Trump has promised a major drive for deregulation. He’s enlisted Elon Musk and Vivek Ramaswamy as his “efficiency” czars to lead a new advisory body, the Department of Government Efficiency (DOGE). Tasked with streamlining the U.S. administration, DOGE is wasting no time – it’s already drafting a list of thousands of regulations Trump could swiftly invalidate, setting the stage for rapid action.
A big drop in energy cost ahead?
We predict lower oil prices for 2025 with a global oil market that is already in over supply. Add to that shale oil’s break even price dropping to below $40 a baril and Donald Trump’s drill, baby, drill drive and you get the perfect storm for the oil market. Consumers and energy hungry companies stand to benefit while the climate will not.
Learn more about the 10 best stocks to invest in 2025
The year 2025 will not be easy to navigate. With a forward PE ratio of 23x for the S&P 500, the market is expensive. The Trump administration can be expected to enact highly impactful legislation. Global geopolitical pension remains high.
Still, as at any time, the stock market comprises massive opportunities, especially in the US market.
In 2025, stock picking will be key. More than ever, it will be crucial to pick soundly run companies operating in industries with long-term structural growth prospects.
Here are some key figures and investment theses for the 10 best stocks to invest in 2025.
1. Amazon (AMZN) 📈
$AMZN
| 2025 Price/Earnings | 37x |
| 2025 Revenue Growth | 11% |
| 2025 Earnings Growth | 10% |
While Amazon needs no introduction, many investors don’t realize the extent to which the company has reinveted itself in recent years. Over the past ten years, Amazon has successfully diversified into not just one but several new massive revenue channels.
The share of revenue from online stores has decreased from 65% in 2013 to 43% in 2023. With significantly higher margins than retail, cloud services’ share of revenue grew more than five-fold from 3% of revenue in 2013 to 16% in 2023. Amayon’s third-party-service marketplace segment more than doubled from from 10% to 23%. Advertising has exploded into a $47B revenue stream.
Not cheap, but unique
For the full year 2023, net cash flow from operations was almost three times as high as net income – $85B versus $30B. On a valuation of 15x next year’s cashflow, AMZN looks a lot less expensive compared to the earnings-based valuation. The stock’s not cheap, but you’re buying a category killer – in multiple categories – for years to come. And we didn’t even mention AI.
2. Blackrock (BLK) 📈
$BLK
| 2025 Price/Earnings | 21x |
| 2025 Revenue Growth | 15% |
| 2025 Earnings Growth | 12% |
BlackRock is the world’s largest asset manager with over $10 trillion in assets under management. The company offers a diverse range of investment solutions including ETFs, mutual funds, and alternative investments. Known for its innovative use of technology, such as the Aladdin platform, BlackRock delivers data-driven insights to institutional and retail clients globally.
The biggest beneficiary of the boom in ETFs
BlackRock is the primary beneficiary of the massive growth in exchange-traded funds (ETF). ETF assets have increased at a compound annual growth rate (CAGR) of approximately 15% over the past five years. Growth in ETF assets is even expected to accelerate to close to 20% over the next five years to reach $20 trillion by 2026. This expansion is driven by multiple factors including the rise of actively managed ETFs. In the U.S., ETFs are expected to capture a significant share of assets currently held in mutual funds thanks to their significant cost advantage.
3. Visa (V) 📈
Needing less of an introduction than a reminder of its might, Visa is a global leader in digital payments, connecting millions of consumers, businesses, and financial institutions across more than 200 countries. Visa facilitates over 250 billion transactions annually. With a strong focus on innovation, Visa has managed to defend its MOAT and lead in payment technology, including contactless payments, mobile wallets, and fraud prevention solutions.
A myriad of profit drivers make V one of the best stocks to invest in 2025
Many investors who underestimate Visa’s growth prospects do so at their own peril. The company benefits from a multitude of profit drivers while continuing to successfully defend its market position.
With significant underpenetration of card payments in regions like Africa, Latin America, and parts of Asia, Visa’s efforts to expand in these markets are critical to its long-term growth strategy.
Growth in digital payments is a secular trend that will continue to play out for years to come.
The rapid growth of e-commerce continues to fuel transaction volumes on Visa’s network, as consumers increasingly shop online.
Visa’s focus on innovation, such as contactless payments, blockchain technology, and real-time payment systems, positions the company to capture emerging opportunities in the payments ecosystem. The company’s Visa Direct platform, enabling instant payments, is a key driver of revenue growth.
As global travel and tourism recover post-pandemic, cross-border transaction volumes – one of Visa’s most profitable segments—are expected to increase, boosting earnings.
Visa is diversifying beyond traditional card payments into areas like B2B payments, remittances, and peer-to-peer transfers, unlocking additional revenue streams.
With significant underpenetration of card payments in regions like Africa, Latin America, and parts of Asia, Visa’s efforts to expand in these markets are critical to its long-term growth strategy.
4. Microsoft (MSFT) 📈
Needing harldy an introduction, Microsoft best known for its innovative software, hardware, and cloud-based solutions, including its flagship products like Windows, Office, Azure, and LinkedIn. With a strong focus on AI, cloud computing, and enterprise solutions, Microsoft is set to shape the future of technology.
The ulimate AI play next to Nvidia. But not just.
As the leading investor in Open AI, the creator of ChatGPT, MSFT is one of the most obvious AI plays for investors. In fact, MSFT is not just Open AI’s leading investor. Open AI cooperates with Microsoft more closely than with any other company.
Of course, Microsoft is so much more than just artificial intelligence. Over the past decade, Microsoft’s revenue from cloud services has experienced substantial growth, becoming a leading contributor to the company’s overall revenue. The share of cloud services in MSFT’s revenue rose from a mere 3% in 2010 to 38% of Microsoft’s $198bn in revenue by 2023. Revenue from cloud services now surpasses traditional software and hardware sales. Growth numbers are impressive. Cloud services revenue was up by 22% year on year in MSFT’s most recent financial year.
In addition to its booming artificial intelligence and cloud services division, Microsoft’s revenue is also significantly driven by its strong performance in the gaming sector, including Xbox and related services. LinkedIn, its professional networking platform, has been steadily increasing its revenue through advertising and premium subscriptions.
Like the market, MSFT is not cheap at current levels. That said, the company is firing on all cylinders with formidable structural growth prospects for years to come.
5. Texas Roadhous (TXRH) 📈
Texas Roadhouse operates around 700 casual dining restaurants in the United States and internationally. The company operates and franchises restaurants under the Texas Roadhouse, Bubba’s 33, and Jaggers names. The company was founded in 1993 and is based in Louisville, Kentucky.
Stand-out performer in the restaurant space
TXRH is on a strong growth trajectory with double digit profit growth. The company has executed its strategy very successfully over the past few years. By targeting mid-sized markets, TXRH has faced less direct competition compared to urban areas while still benefiting from significant customer demand.
Value creation for shareholders is driven by the company’s ability to combine operational efficiency and customer-centric strategies with strategic expansion. Analysts expect continued growth driven by further store openings and continued strengthening of brand loyalty
Also Read: Best Restaurant Stocks to Buy
6. Royal Gold (RGLD) 📈
RGLD is a premier precious metals royalty and streaming company, providing financing to mining operators in exchange for a percentage of production or revenue from mining assets. With a diversified portfolio of over 180 properties across 12 countries, Royal Gold primarily focuses on gold, while also maintaining interests in silver and copper. By operating without direct mining risks, the company offers investors a stable and scalable way to benefit from fluctuations in metal prices.
A great business model benefitting from the rise of the price of gold
RGLD’s business and earnings prospects are looking bright. Having grown its portfolio through acquisitions of royalties and streaming agreements, RGLD has successfully diversified its revenue base and grown its operational leverage. RGLD gets this operational leverage without the mining risk experienced by traditional mining companies. This model ensures higher margins and scalability as mining operators increase production.
Revenue and earnings growth prospects are attractive for years to come. The company has interests in multiple projects in various stages of development. As these projects transition into production, they will contribute to incremental earnings growth over the coming years.
7. Autodesk (ADSK) 📈
Autodesk is a global leader in software solutions for design, engineering, and entertainment industries, empowering professionals to create, visualize, and simulate innovative ideas. Known for flagship products like AutoCAD and Revit, Autodesk serves industries ranging from architecture and construction to manufacturing and media. The company has been hugely successful thanks to a strong focus on cloud-based solutions and sustainable design through which it drives digital transformation and innovation across its customer base worldwide.
Ideally positioned for the digital transformation
engineering tools across industries such as architecture, construction, manufacturing, and entertainment. The company has brillantly executed a swith to a subscription-based model endowing it with a steady revenue stream and strong customer retention.
The company sits at the intersection of massive global trends like AI, digitization, smart manufacturing, and the adoption of Building Information Modeling (BIM) in construction.
As sustainability leader, Autodesk has positioned itself well for the growing industry and regulatory emphasis on environmentally conscious practices, making its solutions even more attractive.
8. First Solar (FSLR) 📈
First Solar provides photovoltaic (PV) solar energy solutions in the United State, Japan, France, Canada, India, Australia, and internationally. The company designs, manufactures, and sells cadmium telluride solar modules that converts sunlight into electricity. First Solar is headquartered in Tempe, Arizona.
Ideally positioned for the digital transformation
FSLR stock has taken a beating since it became clear that Donald Trump would return to the White House. Investors are fearful that a Trump administration will revoke many of the tax credits that FSLR is benefitting from as part of the Inflation Reduction Act. However, that fear may be much overblown. Solar energy is now arguably the choice of energy in most settings. It boasts the best economics, produces no emissions and it can be installed in a matter of days. Even if FSLR was to lose some tax credits, the company’s products will stay in high demand.
In fact, the company stands to win big from a tough stance on Chinese imports, given that China is by far the largest and most competitive producer of solar panels.
Investors should take note of the fact that analysts covering the company have barely taken down their revenue and earnings estimates. This makes FSLR possibly the cheapest growth stock in the US market with a PE ratio of 9.5x and 6.9x for 2025 and 2026 respectively.
Also Read: Best Renewable Energy Stocks to Buy
9. Skechers (SKX) 📈
Skechers U.S.A. designs, develops, markets, and distributes footwear for men, women, and children. Its products cover a large spectrum of footwear types comprising casual, casual athletic, sport athletic, trail, sandals, boots, and retro fashion footwear for men and women.
Growth at a reasonable price
SKX has seen strong growth in its direct-to-consumers sales, which increased by 24% in 2023. The company has successfully managed to both drive sales volume and average selling prices.
Its management has done a great job executing on a dual distribution strategy. Both its e-commerce platforms and growing network of physical stores are driving sales. The bet to expand internationally is also paying off. International markets now represent over half of Skechers’ total sales.
In its space, Skechers is one of the most innovative companies. This has solidified its competitive edge and brand recognition.
SKX is a rare opportunity to buy double digit growth rates at a reasonable price, which clearly makes it one of best stocks to invest in 2025.
10. Mr Cooper (COOP) 📈
Mr. Cooper Group is a leading non-bank mortgage servicer and lender in the United States, managing a servicing portfolio of nearly $1 trillion in unpaid principal balances. The company provides homeowners with comprehensive mortgage solutions, including loan servicing, refinancing, and real estate services.
Market-leading execution
COOP’s recent track record and prospects make it the housing finance space. COOP’s recent success can be attributed to several strategic and operational factors.
First of all, the company significantly expanded its mortgage servicing portfolio growing it by 14% year-over-year, reaching $992 billion, nearing its $1 trillion target.
Secondly, the acquisition of Flagstar Bank’s mortgage servicing operations significantly increased Mr. Cooper’s servicing portfolio, enhancing its market position.
Thirdly, effective cost management has been a strong driver of operational leverage.
Finally, high interest rates have increased the value of mortgage servicing rights, benefiting non-bank servicers like Mr. Cooper. With interest rates hardly expected to fall in 2025, this favorable context will remain for the foreseeable future.
With COOP, investors have the opportunity to buy a stock with double digit growth rates at a PE ratio well below 10x.
Major changes ahead make selecting the best stocks to invest in 2025 more important than ever
Investors are well-advised to take a good look at how their portfolios are positioned before heading into the new year. In 2025, investor portfolios stand to be affected by a combination of major shifts in key market drivers – from interest rates to corporate taxes to deregulation and energy cost.
With a forward PE ratio of 23x for the S&P 500, the market is expensive. Yet, opportunities remain. Stock picking is key. To generate gains, investor must either find the rare bargain or pick the companies who will deliver for years to come. This list of the best stocks to invest in 2025 comprises stocks from both camps.
Other Stocks to Consider
While we believe the companies above could have strong returns in 2025, there are also a lot of other stocks to buy in 2025 that could help diversify your portfolio. Below are some of our favorites in different sectors.
- Best Dividend Stocks
- Best Gold Stocks
- Best Homebuilder Stocks
- Best Healthcare Stocks
- Best EV Stocks
- Best Growth Stocks
- Best Bond ETFs
- Best Midcap Stocks
Disclosure
Ziggma team members presently hold shares in AMZN, FSLR, and BLK.
Important Notice
This article is not investment advice. We cannot predict whether these stocks will go up or down.
We believe the information contained in this text to be reliable but do not warrant its accuracy or completeness. Opinions, estimates, and investment strategies and views expressed in this document constitute our judgment based on current market conditions available data and are subject to change without notice. Please consider your full financial situation prior to making an investment decision.