Investors scored big wins last year as the S&P 500, the Nasdaq, and the Dow Jones Industrial Average all climbed by double digits. Investor enthusiasm about technology and growth stocks, and the economic environment ahead, drove the momentum.
Right now, it's too early to predict with 100% certainty whether the indexes will deliver yet another annual gain, but there are reasons to be optimistic about the possibility. After all, the artificial intelligence (AI) growth story is in its early days, and the Federal Reserve has launched interest rate cuts. These elements could support stock performance in the year ahead.
But, no matter what direction the general market takes, some stocks could stand out, potentially in 2025, and most importantly over the long term. Here are my top 10 buys, with this list offering you the great combination of growth and security, to start the new year off right.
Image source: Getty Images.
1. Eli Lilly
Eli Lilly (LLY -6.59%) is the maker of one of today's most in-demand treatments: weight loss drugs. Lilly makes tirzepatide, sold under the name Zepbound for weight loss and Mounjaro for type 2 diabetes. These products have quickly become blockbusters, bringing in billions of dollars in revenue.
On top of that, Lilly has scored two recent victories. Regulators declared tirzepatide no longer is in shortage, meaning compounding pharmacies no longer can produce their versions and take market share from Lilly. And second, Lilly won approval for Zepbound in sleep apnea along with obesity -- and that helped it recently secure Medicare coverage for the drug when prescribed for the sleep apnea indication.
Goldman Sachs Research forecasts the obesity drug market may reach as much as $130 billion by 2030, Bloomberg reported, and Lilly is well positioned to benefit from this growth.
2. Meta Platforms
Meta Platforms (META -2.31%) is a leader in the world of social media as owner of Facebook, Messenger, Instagram, and WhatsApp. And this has helped the company generate billions of dollars in advertising revenue year after year.
Today, Meta continues to dominate in social media and on top of this the company is investing heavily in AI. The idea is to build AIs that all users can benefit from -- and as they spend even more time on Meta's apps, advertisers may invest even more in advertising here to reach them. Meta's work in AI also may generate other compelling products and services over time.
All of this makes now a great time to get in on this top tech player.
3. Salesforce
Salesforce (CRM 1.40%), a leader in the customer relationship management software space, has proved its revenue strength over the long term. Now, it's heading for a new growth opportunity that may be huge, and that's agentic AI. This is the creation of AI software, or agents, to analyze complex problems and apply solutions.
The tech giant recently launched Agentforce, a platform that allows users to build their own AI agents to handle a variety of tasks from processing transactions to addressing customer inquiries -- and all of this 24/7. Salesforce said it's already signed 200 deals, and the pipeline for future deals looks strong.
That considerably increases the company's total addressable market, offering the potential for considerable growth ahead. "We've really created a whole new market," CEO Marc Benioff said in the latest earnings call.
4. Chewy
Chewy (CHWY 0.45%) is the best friend of your furry friends, offering everything from food and treats to toys and prescription medicines on its e-commerce platform. The company has become profitable in recent years, and returning customers drive revenue growth: About 80% of revenue comes from customers who choose to have their favorite products automatically reordered and shipped to them.
The company recently launched veterinary clinics, a great move to expand the business opportunity and also to introduce its e-commerce platform to a whole new audience.
I also like Chewy's financial health. The company is debt free and had a liquidity position of about $1.3 billion at the close of the latest quarter. And free cash flow and return on invested capital are on the rise, showing Chewy is benefiting from its investments.
CHWY Free Cash Flow (Quarterly) data by YCharts
5. CRISPR Therapeutics
CRISPR Therapeutics (CRSP -1.26%) reached a major milestone in recent years. The company won its first regulatory approval for a product based on its gene-editing technology. In fact, this approval of Casgevy for blood disorders represented the world's first nod for a product based on CRISPR gene editing, which involves harnessing a natural repair process to "fix" faulty genes.
It will take time for revenue to grow since Casgevy requires a months-long treatment process. But the company has started treatment for about 40 patients, so progressively this should add to revenue. Importantly, this regulatory nod is vote of confidence in CRISPR Therapeutics' technology, used across its pipeline.
And speaking of pipeline, the company is working on several other candidates, so this could be just the beginning of its growth story.
6. Intuitive Surgical
Intuitive Surgical (ISRG -0.16%) is the global leader in robotic surgery, and its solid moat, or competitive advantage, should help it keep this spot. Most surgeons train on Intuitive's flagship da Vinci robot, making it likely they'll want to stick with the platform. And hospitals, after spending more than $1 million to buy or lease a robot, probably will continue using it to amortize the investment.
I also like that Intuitive actually generates more quarterly revenue from the sales of instruments and accessories than from sales of the robots themselves. These are tools that must be ordered for each procedure with the device. This shows each robot sold or leased represents an opportunity for recurrent revenue -- and growth.
All of this makes Intuitive a great long-term stock to bet on now.
7. CrowdStrike
CrowdStrike (CRWD 1.93%) is a leader in cybersecurity, and it proved its strength last year after experiencing the worst of times. A faulty CrowdStrike software update in July led to the world's biggest information technology outage. In response, CrowdStrike quickly tackled the problem, offered companies compensation packages, and made moves to ensure a similar event doesn't happen again.
The company said in earnings reports that followed that its pipeline of deals didn't suffer, and most customers remained loyal. And the compensation packages, which will somewhat weigh on CrowdStrike growth in the near term, over time should drive growth. That's because they offer customers the opportunity to expand their work with CrowdStrike.
In CrowdStrike's latest quarterly earnings report, annual recurring revenue climbed in the double digits to more than $4 billion -- and about $153 million was just added in the quarter, a sign that customers continue to flock to CrowdStrike.
Image source: Getty Images.
8. Amazon
I like Amazon (AMZN -0.32%) because of its leadership in two growth businesses, e-commerce and cloud computing. They've helped the company generate billions of dollars in earnings over time, and moves Amazon has made to revamp its cost structure in recent years should set it on the right earnings path in the coming months and years.
On top of this, Amazon may become one of the biggest winners of the AI boom. The company already is benefiting from AI in two ways. Amazon uses AI to make gains in efficiency across its fulfillment network -- for example, streamlining warehouse operations. And Amazon offers AI tools to customers through its Amazon Web Services (AWS) business. In fact, AWS already has reached a $110 annual revenue run rate.
So Amazon is well positioned to maintain leadership in e-commerce and cloud, and its focus on AI could spur a new wave of growth ahead.
9. Nvidia
Speaking of AI, Nvidia (NVDA -1.10%) may be one of the biggest winners of all in this market. The company is the No. 1 chip designer and has expanded into a wide range of related products and services. All of this has generated double- and triple-digit revenue quarter after quarter -- and at high profitability, as we can see by Nvidia's gross margin of more than 70%.
Now, as the new wave of AI growth emerges, Nvidia could continue to soar. This growth has to do with software and the idea of applying AI to real world use. Nvidia's Enterprise software platform and tools to create AI agents, for instance, should help the company win in this area.
That means that even after Nvidia's 140% gain over the past year, the stock still could have plenty of room to run, especially over the long term as the AI story develops.
10. SPDR S&P 500 ETF Trust
The SPDR S&P 500 ETF Trust (SPY 0.14%) isn't a stock, but it's an asset that allows you to invest in the performance of a number of stocks. This exchange-traded fund tracks the S&P 500, offering you exposure to the top players driving the day's economy. And it trades daily on the market, just like a stock, so buying it is simple and easy for investors.
The one main difference between an ETF and a stock is ETFs come with fees, expressed as expense ratios. The SPDR S&P ETF's expense ratio is 0.09%, making it inexpensive and well worth the investment.
Why buy this ETF now? It's a great way to instantly diversify your portfolio, offering you exposure to 11 industries and many of today's top stocks. That's why, along with the carefully selected stocks in this list, this asset makes a great addition to your portfolio for 2025.
