Finding a good growth stock to buy these days isn’t easy. Many that have been doing well are at sky-high valuations. Investing in a stock at a steep premium can limit the return you can earn from it, or worse, result in a significant loss in the event of slowing market conditions.
But there are three stocks that still look attractively valued today, and they can be excellent options for growth investors. Amazon (AMZN -0.56%), Carnival Corp (CCL -1.62%), and Novo Nordisk (NVO -2.76%) are among the best stocks you can buy heading into 2025. Here’s why.
1. Amazon
Heading into the new year, there are a couple of things I really like about Amazon’s stock. Although it is up around 50% in 2024, its valuation is fairly low — by Amazon standards, anyway. It’s trading at just under 50 times its trailing earnings, which is far lower than what it has averaged in the past (it has often been at a price-to-earnings multiple of well over 60).
Plus, the company has a potentially huge growth catalyst waiting in the wings. It recently announced the launch of Amazon Haul, a new section on its site that will focus on low-priced goods. This will help it compete more effectively against Shein and Temu (which PDD Holdings owns). By offering lower-priced goods and potentially reaching even more customers, Amazon could be on track to deliver greater revenue and profit growth in 2025.
Amazon stock is a solid long-term investment as it is, but with an attractive valuation and an exciting new growth opportunity on the horizon, it falls into the category of being a no-brainer buy at this point.
2. Carnival Corp
Carnival is one of my favorite travel stocks, because it too trades at a reasonable valuation and has a lot of growth potential. There’s also plenty of visibility for investors to see how the business is doing. Since cruises are normally booked far in advance, there’s a lot of time for the cruise ship operator to react to any sign of slowing demand.
Shares of Carnival have been skyrocketing more than 50% in the past six months as investors begin to recognize the potential the stock has. Even with such impressive gains, however, Carnival is still well below the more than $50 it was trading at in late 2019, before the pandemic began.
Through the first nine months of the year, the company has generated revenue totaling $19.1 billion, which increased by 18% year over year. More importantly, Carnival’s operating profit nearly doubled to more than $3 billion. With significantly stronger financials than a year ago, and the company seeing strong growth numbers ahead for not just 2025 but 2026 as well, Carnival’s shares could go a whole lot higher than where they are right now.
3. Novo Nordisk
One stock investors have been bearish on of late that could be a sleeper pick for 2025 is Novo Nordisk. The healthcare company is known for its diabetes medication, Ozempic, which many people have been using for weight loss.
Shares of Novo Nordisk are up a modest 7% this year. But with the company experiencing significant growth and trading at just 28 times next year’s estimated earnings (based on analyst expectations), it’s a potential bargain buy heading into the new year.
The company’s biggest problem these days is not having enough supply to meet the surging demand for its diabetes and weight loss products. Novo Nordisk is investing billions into securing more capacity, which is why it could be an excellent long-term buy.
Investors may also be discounting the business due to the growing number of companies vying to create a weight loss treatment. But Novo Nordisk has a big advantage in being early to the market. By being early, patients have more experience with the company’s products, and their side effects. As a result, patients may be more comfortable taking Ozempic or Wegovy (Novo Nordisk’s approved weight loss drug) than a new option which may not necessarily be more effective.
Through the first three quarters of the year, Novo Nordisk has grown its sales by 23%, while operating profits increased by 21%. With more growth still on the horizon, the stock may be too attractively priced to pass up right now.
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. David Jagielski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon. The Motley Fool recommends Carnival Corp. and Novo Nordisk. The Motley Fool has a disclosure policy.
