Three Growth Stocks That Outperformed the S&P 500 in 2024 and Remain Valuable Investments in 2025
2025 is shaping up to be an exciting year for investors, even for those aiming to surpass the S&P 500's impressive gains. Growth stocks like Archer Aviation (ACHR), Pentair (PNR), and Meta Platforms (META) absolutely crushed it in 2024, with Archer soaring 59% and Pentair and Meta posting 38.4% and 386.5% gains, respectively. But why should you still consider these stocks for your portfolio in 2025?
Archer Aviation: Reaching new heights
A plethora of reasons made 2024 a fruitful year for Archer Aviation, from positive analyst coverage to new partnerships in the Middle East. While the stock's impressive rise might lead some to believe it's too late to hop on the bandwagon, don't count out Archer just yet. In 2025, there are catalysts that could send shares soaring even higher:
- Silicon Valley manufacturing facility: Archer completed its high-volume manufacturing facility in Georgia in 2024, bolstering investor confidence in management and potentially driving additional gains if the company hits its stated production targets.
- New growth opportunities: From securing partnerships with companies like Anduril to expanding its operational locations, Archer continues to snag new growth opportunities. Once Archer receives the required FAA certifications and starts commercial operations, these moves will further propel its stock.
- Relevant, disruptive technology: The electric vertical take-off and landing (eVTOL) aircraft from Archer has significant potential to disrupt the transportation industry. In 2025, we could see this promising technology revolutionize air travel.
A value play: Pentair
In 2024, the water technology company Pentair outperformed the S&P 500 index by 38.4%, a feat that was likely driven by several factors. The perfect storm of lower interest rates, a growing installed base of swimming pools, and targeted pricing initiatives allowed Pentair to soar, and those trends could continue in 2025:
- New pool construction: Following a year where new pool construction was slower due to high interest rates, 2025 could see a rebound in demand as interest rates begin to dip.
- Better efficiencies: Pentair's ongoing transformational initiative to expand profit margins and drive sales should help the company maintain its growth momentum by reducing costs and increasing market share.
- Value bargain: With a P/E ratio just over 20 times 2025 earnings, Pentair seems like a sound investment offering strong growth potential at a reasonable price.
Meta Platforms: Riding the AI wave
Meta Platforms, already a behemoth in the social media sphere, had a monumental year in 2024, posting a staggering 386.5% gain. A whopping 27% of the company's revenue now goes towards R&D, a significant investment in AI technology. This emphasis on innovative technologies sets Meta up for potential success in 2025:
- AI revolution: The age of AI is upon us, and Meta Platforms is perfectly positioned to capitalize on this trend due to its focus on R&D and AI integration.
- Instagram success: Meta's photo-sharing app Instagram has demonstrated significant potential for monetization through AI technologies. The platform's user base could grow exponentially, further fueling Meta's gains.
- Expansion into AR: Meta Platforms is also exploring augmented reality, a space that is poised to revolutionize the tech industry. If the company can successfully integrate AR into its existing platform, it could unlock a world of new revenue opportunities.
Making informed investment decisions is crucial, and understanding these three growth stocks can set you up for a prosperous 2025.
To further maximize your investment opportunities in 2025, consider allocating a portion of your finance portfolio to these promising growth stocks. By investing wisely in Archer Aviation, you could benefit from the company's imminent manufacturing facility opening, new partnerships, and the disruptive potential of their eVTOL technology.
Investing in Pentair could yield returns due to potential rebounds in new pool construction, better efficiencies, and its current attractive value proposition as a stock. Lastly, Meta Platforms, with its focus on AI technology and potential AR expansion, could ride the AI wave and monetize its Instagram app, offering significant growth potential for 2025.