Are you still setting up your portfolio for maximum growth in 2025? Maybe you're thinking even longer-term than that. Either way, there are plenty of tremendous prospects out there. Here's a closer look at three of them.
1. Axon Enterprise
If Axon Enterprise(NASDAQ: AXON) rings a bell, you may remember this company was all the rage about 20 years ago, when tasers and body cams first started becoming standard-issue equipment for law enforcement personnel. At the time, it was the only major name offering such tech.
As is usually the case, the euphoria faded. After all, investors are forever on the hunt for the next big thing.
Demand for such non-lethal and evidentiary law enforcement products never really waned, though. Indeed, it's only continued to soar, driving Axon's annual top line up from $24 million then to more than $2 billion now. The company's stock price has followed suit, advancing from 2003's close of $6.86 per share to its current price near $590. That's enough growth to push Axon Enterprise into the NASDAQ 100 index, displacing weakening tickers like Super Micro Computer and Moderna.
This enviable accolade may well thrust Axon deeper into the bullish spotlight, rather than marking an "as good as it gets" moment that inclusion in a high-profile stock index so often signals.
The tailwind is certainly in place for more gains. Market research outfit Mordor Intelligence believes the global body cam market is set to grow at an average yearly rate of 16% through 2030, while the so-called connected-energy gun market is poised to grow at a respectable annualized pace of more than 6% for the same timeframe. Given the growing reports of violent interactions with police in the U.S. and abroad -- paired with increasing levels of litigation -- these outlooks hold water.
The newest arrow in Axon Enterprise's quiver is aerial drones, which in many ways serve as first responders by virtue of being able to be somewhere before first-responder personnel can physically get to where they're needed. The camera-equipped drones also provide much-needed information to emergency personnel.
Axon's stock saw huge gains in 2024, setting the stage for a bit of weakness now. The small lull from its early December high may be all the discount you'll see anytime soon. The environment still necessitates great need for this company's wares.
2. Celsius Holdings
While 2024 was a banner year for Axon Enterprise shareholders, it was quite the opposite for owners of Celsius Holdings(NASDAQ: CELH). Following a red-hot 2023, shares of this up-and-coming beverage company fell more than 70% from March's peak to November's trough. Simple profit-taking was a big driving force behind the pullback.
However, this sizable sell-off is also a tremendous buying opportunity.
Celsius is a brand of energy drinks. It competes with the likes of Red Bull and Monster Beverage, although it's still nowhere near as big as either of the industry's top two behemoths. Despite its tremendous growth within the U.S. in the past few years, the company still only reports domestic market share of between 10% and 20% (depending on the sales channel). It's even less of a draw overseas, although it's only recently made a concerted effort to penetrate the international market.
Celsius Holdings differentiates itself in a way that increasingly matters to consumers. Although its energy drinks contain levels of caffeine comparable to beverages offered by Monster and Red Bull, its drinks also have healthier natural ingredients like ginger, guarana, and green tea, plus seven essential vitamins. What they don't include is sugar, aspartame, or high fructose corn syrup, nor any artificial colors or flavors. This ingredient mix is aligned with what health-minded customers increasingly want. At the same time, Celsius' beverages are clinically proven to boost metabolism, and are specifically aimed at the underserved fitness-minded exercise crowd.
So why last year's steep sell-off? That's mostly the result of timing and unusual circumstances. This stock soared during and because of the pandemic, with the echoes of this underlying optimism still ringing through the early part of last year. After finally realizing shares had traveled too far and too fast in a relatively short period of time, investors corrected their mistake.
However, they arguably overcorrected their mistake, setting up a prolonged turnaround beginning sometime this year.
The analyst community thinks so, anyway. The majority of them consider this name a strong buy right now, with a consensus 12-month price target of $41.00 per share. That's 50% above the stock's present price.
3. Shopify
Finally, add Shopify(NYSE: SHOP) to your list of stocks that could skyrocket in 2025 and then keep going.
Shopify offers companies of all sorts and sizes a means of building and managing their own e-commerce presence. It's largely meant to be an alternative to online malls like eBay and Amazon, which don't necessarily always act in sellers' best interests. With Shopify, merchants can sell directly to customers, cultivating relationships in a way that just isn't possible with third-party selling platforms.
Consumer-facing companies increasingly love the option. Shopify's tech handled $69.7 billion worth of business during the quarter ending in September, generating nearly $2.2 billion revenue en route to a full-year top line of nearly $8.9 billion, extending a long-lived growth streak. It's also profitable, expected to earn $1.33 per share in 2024 versus 2023's bottom line of $0.73.
As of its most recent look at the numbers, the U.S. Census Bureau says that only around 16% of U.S. retail sales are currently handled online. The remaining 84% of this spending is still done in-store. Certainly some of this consumerism will never be able to move online. Much of it still can, however. Ditto for overseas markets. That's why Mordor Intelligence expects the global e-commerce industry to grow at an average annual pace of nearly 16% through 2030. Shopify is expected to win a nice share of this growth, with analysts calling for yearly revenue growth in excess of 20% at least through 2026.
Shopify stock isn't cheap, to be clear. Shares are priced at more than 50 times next year's projected earnings of $1.94 apiece. This is one of those cases, however, where investors are supporting such a premium because the future is so bright. The stock's stagnation since November is a buying opportunity that isn't apt to last long.
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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. James Brumley has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Axon Enterprise, Celsius, Monster Beverage, and Shopify. The Motley Fool recommends Moderna and eBay. The Motley Fool has a disclosure policy.
