5 Top Stocks to Buy Now for 2025 Growth

The stock market soared to new highs in 2024, extending an impressive run that began roughly two years ago. The bullish winds appear ready to remain at the market’s sails in 2025 as Wall Street looks to strong earnings growth and lower interest rates, alongside the possibility of lower corporate taxes and less red tape under the second Trump administration.

The current bull market celebrated its 2nd anniversary in October. This is a good sign since bull markets have lasted roughly five and a half years on average, with some running much longer.

The stock market could face near-term selling pressure if investors take home profits following the post-Trump election rally and the wider 2024 run.

Thankfully, any near-term pullback likely creates better buying opportunities for investors whenever it comes.

The five market-crushing stocks we explore today earn Zacks Rank #1 (Strong Buys) and appear worth buying in 2025 and holding for long-term upside: TSM, VST, VRT, APP, and MTZ.

Image Source: Zacks Investment Research

Taiwan Semi is One of The Best Stocks to Buy for Tech and AI Growth

Taiwan Semiconductor Manufacturing Co. (TSM Quick QuoteTSM - Free Report)  is arguably the most important company in the world, fueling technological growth across all critical areas of technology, including artificial intelligence. Taiwan Semi physically builds the most cutting-edge chips.

TSMC reportedly holds a roughly 60% share of the entire semiconductor foundry market and 90% of advanced chip manufacturing.

Taiwan Semi is boosting its industry-leading 3-nanometer production as its clients such as Nvidia ramp up shipments to drive the AI arms race. The costs and institutional knowledge required to build advanced semiconductors have created an impenetrable moat around Taiwan Semi.

TSM is addressing its geopolitical fears by expanding its manufacturing footprint outside Taiwan into Japan and the U.S.

Image Source: Zacks Investment Research

TSM’s big beat-and-raised Q3 helps earn its Zacks Rank #1 (Strong Buy). TSM reported on December 10 that its November sales jumped 34%.

Taiwan Semi is projected to boost its adjusted earnings by 35% in 2024 and 27% next year on the back of 29% and 25%, respective revenue growth—soaring from $69 billion in 2023 to $112 billion next year. 

Taiwan Semi shares have more than tripled the Zacks Tech sector over the past 20 years, including a 90% YTD charge compared to Tech’s 32%. TSM trades around 8% below its records and 18% below its average Zacks price target.

Despite its run, Taiwan Semi trades at a 35% discount to its highs and 20% below the Tech sector at 21.9X forward earnings. On top of that, Taiwan Semi pays a dividend and its balance sheet is solid.

Why This Skyrocketing Nuclear and AI Stock Is a Strong Buy

Vistra (VST Quick QuoteVST - Free Report)  stock has soared over 270% in 2024 for the second-best performance in the S&P 500, crushing Nvidia (NVDA Quick QuoteNVDA - Free Report) . VST has shined as investors clamor for its exposure to growth across nuclear energy and infrastructure spending needed to fuel the rapid built out of AI data centers.

Vistra is the largest competitive power generator in the U.S., with a portfolio spanning nuclear, solar, battery storage, natural gas, and beyond. The company owns the second-largest competitive nuclear fleet and the second-largest energy storage capacity in the country.

The Texas-based firm serves around 5 million residential, commercial, and industrial retail customers across 20 states. Vistra is projected to grow its revenue by 34% in FY24 and 13% next year to help boost its adjusted earnings by 38% and 26%, respectively.

Image Source: Zacks Investment Research

Vistra’s upward earnings revisions earn it a Zacks Rank #1 (Strong Buy). On top of that, 11 of the 12 brokerage recommendations Zacks has are “Strong Buys.” The company also pays a dividend.

Vistra’s 2024 run is part of a 610% climb in the last three years, leaving its sector’s 3% and the S&P 500’s 30% run in the dust. 

Vistra trades 15% below its average Zacks price target and its Price/Earnings-to-Growth (PEG) Ratio offers 30% value compared to the Zacks Utilities sector. The stock recently found support at its 50-day moving average.

VRT is a Great Picks and Shovels AI Investment

Vertiv Holdings Co (VRT Quick QuoteVRT - Free Report)  is a picks and shovels investment in the massive expansion of data centers, AI, and other compute-heavy innovations such as cryptocurrencies. Vertiv’s job is to support the smooth, 24/7 operation of data centers, communication networks, and more.

Vertiv boosted its guidance last quarter, citing “robust underlying demand” for its critical digital infrastructure products and services across its entire “AI-enabling portfolio of power, thermal, IT systems, infrastructure solutions and services.” VRT is working with Nvidia to help solve future data center efficiency and cooling challenges.

Image Source: Zacks Investment Research

VRT’s improving bottom-line outlook helps it earn a Zacks Rank #1 (Strong Buy). Vertiv is projected to grow its adjusted EPS by 52% in FY24 and 33% in FY25, following 230% earnings growth last year.

The tech stock is projected to boost its sales by 14% and 18%, respectively to reach $9.2 billion. Wall Street is paying close attention to and loving Vertiv’s outlook, with all 13 brokerage recommendations Zacks has at “Strong Buys.”

Vertiv stock has ripped 165% higher in 2024 and over 1,000% in the past five years, crushing the Zacks Tech sector during both stretches.

VRT, like Vistra, recently bounced off its 50-day and trades 19% below its average Zacks price target. The stock also trades at a 50% discount to Tech in terms of its PEG Price/Earnings-to-Growth (PEG) Ratio.

Buy this Skyrocketing Tech Stock for More Growth in 2025?

AppLovin Corporation (APP Quick QuoteAPP - Free Report)  was one of the hottest stocks on Wall Street in 2024, charging 745% YTD. The run includes a 100% jump since its Q3 earnings release where it supercharged its outlook for 2025 earnings. 

The digital application monetization company is projected to grow its revenue by 40% in 2024 and 22% next year, taking its revenue to $5.59 billion in 2025 from $1.45 billion in 2020.

AppLovin is projected to grow its adjusted earnings by 314% in 2024 and another 45% in 2025, following huge expansion during the last several years. APP’s upbeat EPS outlook earns it a Zacks Rank #1 (Strong Buy) and it topped our estimates by an average of 26% in the last four years.

Image Source: Zacks Investment Research

AppLovin’s growth comes as its AI-enhanced portfolio empowers companies and app developers to acquire and keep their ideal users and increase value across customers’ lifecycles.

APP helps its clients reach their target users in-app, on mobile devices, and across CTV. AppLovin is thriving as developers and companies flock to its offerings in the hyper-competitive digital app economy.

AppLovin’s valuation might force a recalibration of its stock price in the short run. But APP stock jumped off its 21-day moving average on Wednesday after cooling off from overheated levels.

Buy MasTec Stock for Long-Term Infrastructure Spending Growth?

MasTec, Inc. (MTZ Quick QuoteMTZ - Free Report)  more than doubled the Zacks Construction sector over the past 15 years, soaring 1,000%. Despite this run, MTZ has lagged slightly behind its sector in the last five years. That recent underperformance could be due to change after MTZ broke out into a new trading range and all-time highs in November after soaring 81% YTD.

MasTec is a top U.S. infrastructure construction firm. MTZ benefits from electrification, grid improvements and expansion, and other key long-term trends across the energy transition, infrastructure spending, and AI data center growth. MasTec closed last quarter with a record 18-month backlog of $13.9 billion.

Image Source: Zacks Investment Research

MasTec is projected to grow its adjusted earnings by 84% in 2024 and 45% next year. MasTec’s earnings outlook ripped higher after its Q3 release to land MTZ a Zacks Rank #1 (Strong Buy). The company is projected to boost its revenue by 2% in 2024 and 9% next year, following 24% average sales growth in the trailing three years.

MTZ is part of the Building Products - Heavy Construction space that ranks in the top 8% of 250 Zacks industries. MasTec trades 14% below its average Zacks price target and 11 of the 13 brokerage recommendations Zacks has are “Strong Buys.” And MTZ found buyers at its 50-day moving average on Wednesday.