Three Potential Investment Opportunities in 2025, Showing Promising Signs of Growth
Locating a decent growth stock nowadays isn't a walk in the park. Numerous ones performing well are priced sky-high. Purchasing a stock at an elevated premium can limit your potential gains or even lead to substantial losses during market downturns.
However, there are three stocks that remain reasonably priced today and could be excellent choices for growth investors. Amazon (AMZN -1.09%), Carnival Corp (CCL -0.12%), and Novo Nordisk (NVO -1.88%) are some of the best options for your investment portfolio as we approach 2025. Let me explain why.
1. Amazon
As we enter a new year, there are two factors that make Amazon's stock appealing. Despite its 50% increase in 2024, its valuation remains relatively low - under 50 times its trailing earnings. This is significantly lower than its historical average (usually well over 60).
Moreover, the company has a promising growth catalyst lurking in the shadows. Its announcement of Amazon Haul, a new low-priced goods section on its site, will help it compete better against Shein and Temu (owned by PDD Holdings). By providing lower-priced goods and potentially reaching more customers, Amazon could be on track to deliver impressive revenue and profit growth in 2025.
Given its strong long-term investment potential, coupled with an attractive valuation and a new growth opportunity, Amazon stock is a no-brainer buy at the moment.
2. Carnival Corp
Carnival is another travel stock I love due to its reasonable valuation and growth potential. The visibility it offers investors is another plus. Since cruises are generally booked well in advance, there's plenty of time for the cruise operator to adjust to any signs of slowing demand.
Carnival's shares have soared more than 50% in the past six months, as investors start to see the potential in this stock. Despite these impressive gains, however, Carnival is still well below its late-2019 price of over $50, before the pandemic.
During the first nine months of the year, Carnival generated revenue of $19.1 billion, an 18% increase year over year. Even more impressively, the company's operating profit nearly doubled to over $3 billion. With significantly improved financials compared to a year ago, and strong growth prospects not just for 2025 but also for 2026, Carnival's shares could still see substantial gains.
3. Novo Nordisk
Last but not least, Novo Nordisk is a stock that has been seen as bearish by some investors, but it could be a hidden gem for 2025. This healthcare company is known for its diabetes medication, Ozempic, which has been popular for weight loss.
Novo Nordisk's shares have risen a modest 7% this year. But with the company delivering impressive growth and trading at just 28 times next year's estimated earnings (based on analyst forecasts), it's a potential bargain buy heading into the new year.
The company's main challenge these days is meeting the soaring demand for its diabetes and weight loss products. Novo Nordisk is investing billions to increase its production capacity, making it a strong long-term buy.
Investors might be overlooking the business due to the growing number of competitors entering the weight loss market. But Novo Nordisk has an edge as it entered the market ahead of most competitors. Patients have more experience with the company's products and their side effects, which could make them more comfortable using Ozempic or Wegovy (Novo Nordisk's approved weight loss drug) than a new alternative.
Through the first three quarters of the year, Novo Nordisk has grown its sales by 23%, while operating profits increased by 21%. With even more growth ahead, the stock might be too good a deal to pass up at present.
Investing in Amazon's stock could be worth considering, especially given its lower valuation compared to its historical average, despite a 50% increase in 2024. This, coupled with its new growth opportunity with Amazon Haul, could lead to potential impressive revenue and profit growth in 2025.
Carnival's share price, despite its 50% increase in the past six months, remains below its late-2019 price. With improved financials and strong growth prospects, Carnival's shares could still see substantial gains in 2025, making it a potential investment opportunity in finance.
