In the ever-shifting landscape of the stock market, separating the wheat from the chaff is no easy feat. It’s a world where the wrong picks can erode your hard-earned gains, but the right ones? They have the power to catapult your portfolio to new heights. With thousands of stocks in the fray, pinpointing those poised for a breakthrough can feel like searching for a needle in a haystack.
This is where we step in. Every week, we comb through the market’s labyrinth, scrutinizing trends, earnings reports, and industry shifts. Our goal? To distill this vast universe of stocks down to a select few – those unique opportunities that are primed for significant movement in the near future.
This week, we’ve zeroed in on three standout stocks. These aren’t your run-of-the-mill picks; they are the culmination of rigorous analysis and strategic foresight. We’re talking about stocks that not only show promise in the immediate term but also hold the potential for sustained growth.
Penn Entertainment (NASDAQ: PENN) A Strategic Bet on Long-Term Growth
Penn Entertainment is quietly positioning itself as a compelling opportunity for investors looking for growth in the gaming and sports betting sector. While 2024 hasn’t been kind to its stock price—it’s down more than 23% year-to-date—there are reasons to believe that brighter days are ahead, especially with a significant growth strategy beginning to take shape.
One of Penn’s most exciting prospects is the growth potential of ESPN Bet, its rebranded sports betting platform. Analysts see this as a major driver for future revenue, with projections for segment EBITDA turning modestly positive by 2026. What’s especially interesting is the company’s flexibility—if the segment underperforms, Penn can scale back and still benefit from approximately $60 million in market access fees annually. This adaptability provides a safety net that many competitors lack.
Beyond sports betting, Penn is investing in its regional land-based casinos, with $850 million in capital projects expected to start delivering double-digit cash-on-cash returns by late 2025. This dual strategy—leveraging its online gaming potential while reinvesting in its core casino business—positions Penn to capture both market growth and operational stability.
JPMorgan recently upgraded the stock to “overweight” with a price target of $27, representing nearly 35% upside from its current levels. With a recovery in cash flow from its regional casino operations and the promise of new revenue streams from ESPN Bet, Penn is shaping up to be more than just a comeback story—it’s a strategic bet on long-term growth.
Amazon (NASDAQ: AMZN) A Blueprint for Sustained Growth in 2025
Amazon is shaping up as a top contender for 2025, offering a combination of robust revenue growth and margin expansion that makes it hard to ignore. While the stock has already climbed over 51% in 2024—outpacing the broader market—analysts see plenty of room for further gains.
Amazon Web Services (AWS), its cloud-computing powerhouse, is expected to drive faster revenue growth next year, providing a significant boost to overall performance. Meanwhile, operating margins are set to expand, signaling that the company’s strategic investments are starting to pay off. The growing net cash position also gives Amazon flexibility in capital allocation, which could mean more investments in high-growth areas or potential shareholder returns.
Analyst John Blackledge from TD Cowen recently raised his price target to $265, implying a 15.1% upside from current levels. He named Amazon his top large-cap pick for 2025, citing these key growth drivers as reasons to stay bullish. However, it’s not without risks. Slower-than-expected growth in e-commerce or AWS, along with elevated investments, could weigh on margins. That said, Amazon’s track record of delivering strong demand for its products and services globally suggests it’s well-positioned to overcome these challenges.
With its diversified growth engines and consistent performance, Amazon remains a compelling choice for investors looking to add a blue-chip tech name to their portfolios heading into 2025.
Hims & Hers Health (NYSE: HIMS) A Digital Health Growth Powerhouse
Hims & Hers Health has been a standout performer this year, and its momentum shows no signs of slowing. The telehealth company has delivered a stunning 251% gain year-to-date, fueled by its growing footprint in mental health, weight loss, and dermatology. But there’s reason to believe this growth story is just getting started.
The company is expanding access to compounded GLP-1 weight loss injections, addressing a critical market need for consistent supply. This initiative, alongside its scalable subscription-based services, is driving substantial customer growth. In the third quarter alone, subscriptions jumped 175% year over year, significantly outpacing the broader business growth rate of 44%. These numbers suggest that Hims & Hers is tapping into a broad and underserved market.
What makes this stock even more compelling is its leadership. The management team and board include veterans from companies like Uber, Netflix, and Novo Nordisk, giving Hims & Hers a strategic edge in both digital health and direct-to-consumer services. Their growth-focused strategy is expected to deliver a 30% revenue compound annual growth rate (CAGR) between 2024 and 2026, according to estimates.
With a forward-looking strategy and a track record of execution, Hims & Hers is well-positioned to capture increasing demand for personalized medication and digital health solutions. Even after this year’s incredible run, the stock remains attractive, with a price target of $42, offering over 53% upside from current levels. For investors looking for a growth stock in the booming health-tech space, Hims & Hers is one to watch.
