My top 3 S&P 500 stocks to consider buying in 2025!

As the name indicates, the S&P 500 contains hundreds of blue-chip shares. So when deciding which US stocks to buy, there are certainly plenty of investing options.

Here are three picks I believe are worth considering in 2025 for a minimum five-year holding period.

Axon

First up is Axon Enterprise (NASDAQ: AXON). This is the company that makes Tasers and body cameras worn by law enforcement officers. It also operates a giant cloud-based evidence management platform.

If this was just a share to consider for 2025, I might not have included Axon. That’s because it’s very pricey right now after rocketing 130% last year. At $601, the stock is trading at 18 times this year’s forecast sales!

That valuation doesn’t leave much wiggle room if sales come in weaker than expected or the market tanks.

Over five years however, I think the stock is set up for more market-beating gains. The average customer contract length at Axon is more than five years, while 95% of its revenue is now subscription-based.

This supports an incredible net revenue retention rate of 123%. In other words, the firm is not only retaining all its revenue from existing customers, but also growing it by another 23% through upselling or expanding services.

Speaking of which, Axon has just launched a new artificial intelligence (AI) subscription product called the AI Era Plan. This bundles together existing and future cutting-edge AI products, including Draft one, which analyses body-camera video and audio to write the first draft of the police report in seconds. Axon claims this product can save an individual officer an hour or more per shift writing reports!

Uber

The second stock is Uber Technologies (NYSE: UBER), whose share price has fallen 25% since October.

This is due to the rise of robotaxis from Alphabet‘s Waymo and, possibly one day, Tesla. The fear is that in future consumers may bypass Uber’s ride-hailing app.

I personally think this risk is overblown. It could take decades before robotaxis become the dominant transportation mode in every town and city.

Before then, I reckon robotaxi firms will partner with Uber rather than spend billions taking it on. This means the company would benefit from the technology rather than be disrupted by it.

Meanwhile, the global ride-hailing market is set to grow at an average annualised rate of 15.4% between 2024 and 2034, according to researcher Future Market Insight. As the market leader, Uber is poised to capture an outsized chunk of this growth.

Finally, the stock is trading at 20 times next year’s forecast earnings, which I see as good value for a global growth company.

Amazon

Finally, I’m picking Amazon (NASDAQ: AMZN). Like probably millions of others, I did much of my Christmas shopping on the app last month. The convenience, rapid delivery, and value I get as a Prime member keeps me loyal.

That said, cheaper shopping apps like Temu might pose a risk to the company’s market position over time.

However, it’s important to remember that Amazon is about much more than just e-commerce. It makes money from advertising, logistics, and operates Amazon Web Services (AWS), the world’s leading cloud computing platform.

With management continuing to optimise costs, the company’s profits should motor higher. And this should translate into further share price gains.

The post My top 3 S&P 500 stocks to consider buying in 2025! appeared first on The Motley Fool UK.

But this isn’t the only opportunity that’s caught my attention this week. Here are:

5 Shares for the Future of Energy

Investors who don’t own energy shares need to see this now.

Because Mark Rogers — The Motley Fool UK’s Director of Investing — sees 2 key reasons why energy is set to soar.

While sanctions slam Russian supplies, nations are also racing to achieve net zero emissions, he says. Mark believes 5 companies in particular are poised for spectacular profits.

Open this new report — 5 Shares for the Future of Energy — and discover:

Britain’s Energy Fort Knox, now controlling 30% of UK energy storage
How to potentially get paid by the weather
Electric Vehicles’ secret backdoor opportunity
One dead simple stock for the new nuclear boom

Click the button below to find out how you can get your hands on the full report now, and as a thank you for your interest, we’ll send you one of the five picks — absolutely free!

Grab your FREE Energy recommendation now

More reading

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Ben McPoland has positions in Axon Enterprise and Uber Technologies. The Motley Fool UK has recommended Alphabet, Amazon, Axon Enterprise, Tesla, and Uber Technologies. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.