As 2024 comes to a close, several investment opportunities stand out. Investors may want to consider buying some stocks before larger fund managers swoop in, positioning themselves for 2025.
Here are three strong stock picks to consider now, each with significant growth potential in their markets.
Top 3 Stocks to Buy Before 2025
1. CrowdStrike: The Cybersecurity Leader
CrowdStrike (NASDAQ: CRWD) was previously known as the leading stock in cybersecurity until an incident on July 19 affected millions of devices. Thankfully, the impact was minimal. CEO George Kurtz confirmed the company’s demand pipeline has returned to its pre-incident levels. Investors can now redirect their focus to CrowdStrike’s ambitious target: achieving $10 billion in annual recurring revenue by fiscal year 2029 (which ends in January 2029).
If CrowdStrike meets this target, and if it converts 30% of that into profits, it could generate $3 billion annually. Referring to Adobe’s historical P/E ratio of 47 as a benchmark, CrowdStrike could potentially reach a market cap of $141 billion. This is a significant rise from its current $76 billion market cap, suggesting a compound annual growth rate (CAGR) of 16%, which would outperform market averages.
The cybersecurity field is vast, and CrowdStrike is poised to capitalize on this growth. Consequently, now is an opportune time for investors to consider buying shares.
2. Meta Platforms: A Growth Powerhouse
Meta Platforms (NASDAQ: META), formerly known as Facebook, excels not only in social media but also dives into augmented and virtual reality. The company is currently a contender in the generative artificial intelligence (AI) race through its large language model named LLaMA.
In 2024, Meta has shown robust growth, with every quarter surpassing a 20% increase in revenue. Although projections indicate a slowdown to 14% growth in 2025, this remains impressive for a company dominating social media advertising.
Meta’s stock appears reasonably priced with a forward P/E ratio of 23, especially given its competitive position in the generative AI sector and its dependable advertising revenue from social media. Anticipating solid performance in 2025, investing in Meta now is a prudent choice.
3. dLocal: The Emerging Market Pioneer
dLocal (NASDAQ: DLO) is relatively unknown but plays a vital role in emerging markets such as Egypt, Indonesia, and Thailand by enabling local payment processing. Each of these countries has specific payment systems, and setting up individual solutions can be expensive. dLocal simplifies this by charging its clients a fee for its ready-to-use services.
Big players like Amazon, Spotify, and Microsoft utilize dLocal’s technology, helping to legitimize its operations, yet the stock remains undervalued.
The current trading price stands at just 19 times trailing earnings and 14 times projected earnings for 2025. This relative discrepancy stems from dLocal’s status as a less recognized business, despite impressive financial results. In Q2, the company’s payment volume surged by 38% year over year, totaling $6 billion, while revenue grew only 6%. This variance is attributable to currency fluctuations in regions like Egypt, Nigeria, and Argentina.
With CEO Pedro Arnt, formerly from Latin American leader MercadoLibre, leading the charge, there’s optimism for dLocal’s revival and future growth. The business’s potential is significant, and positioning oneself in this stock could yield rewards in 2025.
Final Thoughts: A Unique Investment Opportunity
If you’ve ever felt like you missed the chance with high-performing stocks, now may be your moment. Occasionally, our analysts highlight certain stocks with high potential for growth. If you’ve been hesitant, it’s best to take action before the opportunity passes. Here are a few notable past successes:
- Amazon: A $1,000 investment in 2010 would now be worth $21,365!*
- Apple: A $1,000 investment in 2008 would be worth $44,619!*
- Netflix: A $1,000 investment in 2004 would soar to $412,148!*
Currently, we are issuing alerts for three exceptional companies, and this might be one of your last chances to capitalize on them.
See 3 “Double Down” stocks »
*Stock Advisor returns as of October 21, 2024
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook, as well as sister to CEO Mark Zuckerberg, is also a board member. Keithen Drury holds positions in Adobe, Amazon, CrowdStrike, DLocal, MercadoLibre, and Meta Platforms. The Motley Fool has positions in and recommends Adobe, Amazon, CrowdStrike, MercadoLibre, Meta Platforms, Microsoft, and Spotify Technology. Furthermore, the Motley Fool recommends DLocal and advises various options involving Microsoft. The Motley Fool maintains a disclosure policy.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
