3 Unstoppable Growth Stocks Worth Buying Before 2025

Stock market volatility will come and go, but what makes growth stocks truly unstoppable is the strength of the underlying business. Regardless of whether a company’s stock will rise or fall in the near future, if you patiently hold shares of a competing company, you will earn big profits sooner or later.

Three phenomenal growth stocks to buy right now are: Amazon (AMZN 2.50%), MercadoLibre (MELI 0.04%)AND Home warehouse (HD -0.78%). Here’s what three Motley Fool writers have to say about these star companies.

Amazon’s profitability is growing

John Ballard (Amazon): Amazon has truly been a wealth-building investment for long-term shareholders. The stock has doubled just over the last five years and will continue to look strong in 2024.

Amazon pursues many business opportunities including e-commerce, digital advertising and cloud computing (e.g. Amazon Web Services or AWS). E-commerce itself is a multi-trillion-dollar market that continues to grow. Revenue for all these companies in the last 12 months increased 12% year over year, reaching $604 billion in the second quarter.

This is a healthy growth rate for such a large company and demonstrates the significant opportunities ahead. Incorporating artificial intelligence (AI) into the shopping experience could allow Amazon to increase its share of the online retail market, especially in areas such as clothing. The company is making significant investments in AI generative shopping assistants that will make browsing and finding the right products more convenient and easier.

Another reason to consider Amazon an unstoppable growth stock worth owning is its improved financial performance. Amazon is becoming a financial powerhouse, with second-quarter operating profit nearly doubling year over year. Over the past five years, its trailing free cash flow has more than doubled to $48 billion.

With management focused on reducing costs, improving operational efficiency and investing in growth opportunities such as artificial intelligence and cloud services, investors will do very well with Amazon stock in 2025 and the years ahead.

Rapid development in many businesses

Jennifer Saibil (MercadoLibre): MercadoLibre is a leading e-commerce retailer in Latin America with a competitive fintech business. It continues to experience strong growth and profits despite Latin America’s volatile economy and inflation, and if the global economy begins to improve, it will be well positioned to benefit even more.

E-commerce is still the company’s main activity and is developing dynamically. Gross merchandise volume increased 20% year over year in the second quarter, or 83% on a currency neutral basis. E-commerce remains underpenetrated in Latin America, which continues to move away from a largely cash-based society, leaving MercadoLibre with a long way to grow in this sector alone. It serves over 500 million inhabitants and constantly activates new customers who buy more and more often. Even if this was his only activity, it would be a standout position.

But there is much more. The fintech industry is developing even faster and creating enormous opportunities. The fintech platform offers digital payments, credit cards and more in a completely digital app. It runs a large lending business with approximately 20 million users and costs less than $1 to service. It is a low-asset, cash-rich business that provides strong financial performance for the entire company.

Like Amazon, MercadoLibre leverages its extensive e-commerce platform for media and advertising with strong results. It ranks third in digital advertising market share in its region, with ad revenue growing from $436 million to $705 million in 2023.

Total revenue increased 42% (113% currency neutral) year-over-year to $5.1 billion in the fourth quarter, and net income increased from $262 million last year to $531 million this year. These are typical growth rates.

MercadoLibre stock is outperforming S&P500 32% this year and could rise much higher as it continues to show solid performance.

Take advantage of the housing revival

Jeremy Bowman (home squad): The housing market has remained steady since mortgage rates began to skyrocket in 2022. Home prices remain high, and the lockdown effect of low mortgage rates during the pandemic has discouraged Americans from moving.

However, the Federal Reserve recently lowered the federal funds rate (with further reductions likely), which should lead to lower interest rates, and the housing market is starting to show signs of life. Redfin reported that mortgage rate locks were up 70% from a month ago after the Fed cut interest rates by 50 basis points, and mortgage purchase applications were also up 10%.

Meanwhile, Americans have record levels of home equity, which they are eager to use for home improvement projects.

All of these trends are good news for Home Depot, the nation’s leading home improvement retailer. Home Depot’s results were weak while the housing market was sluggish, but should rebound during the economic recovery, especially as the country is short of millions of homes.

Both presidential candidates plan to address the housing shortage with proposals that would make it easier to build new homes and make homeownership more affordable by favoring home improvement retailers like Home Depot.

Additionally, Home Depot is well positioned to take advantage of a rebound following its acquisition earlier this year of SRS Distribution, a leading building materials distributor that expanded its target market by $50 billion and strengthened its professional customer relationships.

Home Depot stock may not look like a bargain right now, trading at a price-to-earnings ratio of 27, but there is a lot of leverage in the company’s business model. Once growth returns, earnings could rise significantly, making the stock a winner in 2025.

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a board member of The Motley Fool. Jennifer Saibil holds positions at MercadoLibre. Jeremy Bowman holds positions at Amazon, MercadoLibre, and Redfin. John Ballard holds positions at MercadoLibre. The Motley Fool covers and recommends Amazon, Home Depot, MercadoLibre and Redfin. The Motley Fool recommends the following options: short November 2024 $13 calls on Redfin. The Motley Fool has a disclosure policy.