Having started the year on a highly optimistic note, the market has now turned into an uncertain zone. The inflation report and the pushback of Fed rate cuts have left investors worried. However, some stocks can survive a soft landing. These growth stocks weren’t made in a day. These companies have a rich history, solid long-term potential and the ability to keep going even in turmoil.
If the economy continues to grow, we will see these companies report higher earnings. With that in mind, let’s look at the growth stocks that can thrive in the long run. If you are ready to take the leap, invest $5,000 in these three growth stocks by 2025 and build a resilient portfolio.
Growth Stocks to Buy: DraftKings (DKNG)
First, DraftKings (NASDAQ:DKNG) has trended 22% higher since the beginning of the year and 112% in the past 12 months. That is no small feat, considering the high-interest environment. Trading at $42 today, this growth stock is a solid buy.
The online sports betting sector is set to grow in the coming years, and that means DraftKings is in a strong position right now. The company could see a higher valuation over the decade. Currently, it only exists in a few states, and as more states legalize online sports betting, DraftKing’s market share will grow.
For Q4, 2023, the company reported a revenue of $1.23 billion, up 44% year-over-year (YoY), and reported a non-GAAP profit of $0.29 per share, up from the loss of $0.14 per share in the same period the previous year. Its monthly unique payers (MUP) stood at 3.5 million, and the average revenue per MUP came in at $116. For 2024, it is aiming for a revenue of $4.8 billion.
Several analysts, including Goldman Sachs (NYSE:GS) and Morgan Stanley (NYSE:MS), have a bullish view on DKNG stock. Goldman Sachs has initiated the stock with a Buy rating with a price target of $60. It expects a 42% upside on the stock driven by healthy growth in existing states and an expansion after the legalization in other states. Morgan Stanley has a price target of $50 for the stock with an Overweight rating.
Oracle (ORCL)
Up 14% year-to-date (YTD) and 23% in the year, Oracle (NYSE:ORCL) is making the most of the AI hype. Exchanging hands for $118 today, ORCL stock is racing ahead. It is building 100 data centers to expand its cloud services to other companies. That expansion is only the beginning as its current customers are more likely to adopt its solutions.
The company has a rich history and many years of experience in catering to the needs of clients. The company recently announced an investment of $8 billion in cloud computing and AI in Japan. Oracle reported impressive third-quarter results with a 7% YOY revenue surge and a 29% YOY rise in the order backlog to over $80 billion.
Palantir (NYSE:PLTR) recently signed a deal with Oracle to deliver AI solutions to the government, and it also has a contract with Nvidia (NASDAQ:NVDA), where both companies will market their software and AI chips.
It could be a win-win situation for both the tech giants. There is no stopping the growth of Oracle, and it could make you big gains by 2025. It also pays a dividend and yields 1.35%, making Oracle one of the best AI stocks to own.
Walmart (WMT)
No matter how the market moves from here, people will not stop shopping at Walmart (NYSE:WMT). The company is a highly diversified business and has been holding strong over the past two years. Up 14% YTD, WMT stock is trading for $59 today, and I think it is highly undervalued. While it is close to the 52-week high of $61, it can keep moving higher.
One of the most popular retail chain stores, Walmart has been investing in the e-commerce businesses and saw a 23% surge in its global online sales in the fourth quarter. It manages more than 10,000 stores right now, and the business continues to focus on groceries, health and wellness products.
Known for offering lower-priced goods, the biggest grocery store chain isn’t affected by the ups and downs of the market. That ensures the company posts strong financials and the stocks keep rallying upwards. WMT stock has soared 74% over the past five years.
Another reason to put money in this growth stock is its dividend yield. Walmart stock enjoys a yield of 1.39%, which makes it even more attractive for passive income investors.
On the date of publication, Vandita Jadeja did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
