2 Magnificent Growth Stocks That Can Outperform the S&P 500

From Nasdaq: 2025-01-19 04:10:00

Investors can achieve long-term wealth by following Warren Buffett’s strategy of investing in quality businesses at fair prices. The S&P 500 historically returns 10% annually, but well-chosen growth stocks can outperform. Uber Technologies (UBER) has doubled in value, with earnings expected to grow at a 41% rate, making it a promising investment.

Meta Platforms (META) is on track for further gains in 2025, with earnings projected to grow at a 17% annualized rate. The company monetizes its services through advertising, with revenue growing 19% in Q3. Investments in AI are expected to boost growth and share price, potentially doubling in the next five years.

Uber Technologies and Meta Platforms both offer growth potential for investors, with Uber trading at a forward P/E multiple of 21 and Meta at 24. Investors can expect both stocks to outperform the market over the next five years. The Motley Fool’s Stock Advisor service offers insights into top-performing stocks, providing guidance for successful investing.



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