While fears of a possible US recession continue, growth stocks continued to perform better than value stocks by 2024.
Investors are still optimistic about the Federal Reserve’s anticipated interest rate reductions, which will support companies with high growth rates.
CFRA’s analysts identified some top performing stocks which have shown consistent revenue growth and are therefore attractive investments in today’s market.
The top 5 growth stocks according to CFRA’s analysts are those that reported at least a 15% increase in revenue annually over the last three years.
Nvidia’s (NVDA), a leader in AI-driven growth, leads the way
Nvidia, the semiconductor giant has had a stellar performance in the stock exchange over the last 15 years. Its growth rate shows no sign of slowing down.
In the third fiscal quarter of 2018, revenue increased by 94% over last year, while net income rose 109%.
Angelo Zino, an analyst at Angelo Zino & Associates in San Francisco remains positive about Nvidia. He cites its growing market share into edge devices as well as software-based revenue streams.
He predicts a 43% increase in revenue for fiscal 2026. CFRA has maintained a buy rating on Nvidia with a $165 price target. The stock closed February 13 at $135.29.
Tesla (TSLA), a leader in autonomous vehicles, is aiming for a regulatory boost
Tesla, the largest US electric car manufacturer, is facing a slowing in revenue growth. The fourth quarter saw a mere 2% year-over-year increase.
Even its core automobile segment reported a 8% decrease.
Analyst Garrett Nelson, however, believes Tesla’s fortunes may improve under an upcoming Trump administration that could accelerate the regulatory approvals of autonomous driving technologies.
Tesla’s Cybercab is also expected to be launched by 2027.
CFRA has given Tesla a rating of “Buy” with a price target of $540. CFRA also projects that revenue will rebound in 2025 to a 16% increase. Tesla closed on 13th February at 355.94.
Broadcom AVG0 benefits from AI Infrastructure Demand
Broadcom is a leading player in the semiconductor sector. It has reported strong figures of growth, including a 44% increase in revenue in fiscal year 2024, and 5% growth during its most recent quarter.
Angelo Zino, an analyst at Broadcom, believes that the artificial intelligence infrastructure boom will benefit Broadcom’s business of application-specific integrated Circuits and switches.
The company has also been able to expand its margins in the software sector, thanks to a smooth integration of VMware.
CFRA expects Broadcom to increase its revenue by 19% and 15% respectively in 2025, while maintaining the “buy” ratings and $265 price target.
Broadcom’s closing price was $235.80 as of February 13, 2019.
Eli Lilly rides weight-loss drug boom
Eli Lilly, the pharmaceutical giant, continues to reap benefits from the soaring demand for GLP-1 diet drugs.
Revenue from Zepbound increased from $175.8 to $1.9billion in one year.
Analyst Sel Hardy thinks Eli Lilly is going to remain at the forefront of the weight-loss drug industry in 2025.
CFRA rates the stock as “buy”, with a price of $970. Stock closed on February 13 at $870.36.
JPMorgan gains from the banking sector’s rebound
JPMorgan Chase is one of the largest banks in the world. It reported an impressive fourth quarter performance. Revenue increased by 10%, and its net income jumped 50%.
JPMorgan’s leadership in the financial industry has been strengthened by its purchase of First Republic Bank, during the banking crisis that affected the region.
Kenneth Leon, an analyst at the Bank of America, expects that a stronger US economy, investment banking businesses in recovery, as well as potential policy changes under a Trump Administration will benefit it.
CFRA has a buy rating on JPMorgan, with a $275 price-target. Stocks have already exceeded the $275 price target, closing at $276.32 in February.
The post, Top 5 Growth Stocks to Watch in 2025 As Market Momentum Builds may be updated as new information unfolds.
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