As someone who has consistently delivered 30% returns on average over the past six years, I’m always on the lookout for stocks that can outperform the market. While the “Big 7” often dominate headlines, there are other compelling opportunities on the Nasdaq that deserve your attention. Today, I’ll break down five stocks outside of the Big 7 that have been making higher highs in 2024 and are expected to continue their upward momentum into 2025.
1. AppLovin Corporation (APP)
Year-to-Date Performance: +724%
Expected End-of-2025 Price: $80.00 (based on current trajectory and valuation models)
Pros:
Market Leadership: AppLovin’s app monetization platform has gained substantial traction, becoming a go-to solution for developers.
Earnings Growth: The company has reported consistent revenue growth, driven by the expanding mobile gaming market.
AI Integration: Its use of AI for ad targeting and optimization enhances scalability and performance.
Cons:
Valuation Concerns: With such a massive YTD return, some analysts worry about overvaluation.
Dependence on Mobile Gaming: Any slowdown in mobile gaming adoption could impact growth.
2. Marvell Technology (MRVL)
Year-to-Date Performance: +96%
Expected End-of-2025 Price: $85.00 (reflecting robust semiconductor demand)
Pros:
Strong Tailwinds: Marvell benefits from booming demand in cloud computing, 5G infrastructure, and AI-related technologies.
Resilient Business Model: The company’s diversified semiconductor portfolio protects it from single-market vulnerabilities.
R&D Investments: Heavy investment in advanced technologies positions Marvell as a future-ready player.
Cons:
Cyclical Industry: The semiconductor industry is historically cyclical, and a downturn could hurt performance.
Intense Competition: Facing rivals like NVIDIA and AMD in certain segments could pressure margins.
3. Dell Technologies (DELL)
Year-to-Date Performance: +55.3%
Expected End-of-2025 Price: $80.50 (supported by continued hardware demand and operational efficiencies)
Pros:
Diversified Revenue Streams: Dell’s strength in PCs, servers, and cloud solutions reduces dependency on any one segment.
Consistent Demand: Strong enterprise and consumer demand for computing hardware have driven steady growth.
Operational Efficiency: Streamlined operations and strategic acquisitions bolster its profitability.
Cons:
Slower Growth Potential: Unlike more speculative tech plays, Dell’s mature market position could limit upside.
Economic Sensitivity: Demand for hardware often correlates with broader economic conditions.
4. Leidos Holdings (LDOS)
Year-to-Date Performance: +34.1%
Expected End-of-2025 Price: $125.00 (driven by robust defense and IT contracts)
Pros:
Stable Revenue Base: Long-term government contracts in defense, IT, and aviation provide predictable cash flows.
Innovative Solutions: Investments in AI, cybersecurity, and biomedical technologies position Leidos for future growth.
Sector Resilience: Defense and IT are less impacted by economic downturns, offering a safe haven for investors.
Cons:
Regulatory Risks: Heavy reliance on government contracts makes Leidos vulnerable to policy changes and budget cuts.
Limited Upside Potential: While stable, its growth may not match high-flying tech peers.
5. Trimble Inc. (TRMB)
Year-to-Date Performance: +33.8%
Expected End-of-2025 Price: $75.00 (reflecting continued adoption of positioning technologies)
Pros:
Niche Leadership: Trimble is a leader in advanced positioning technologies, serving industries like agriculture, construction, and transportation.
Steady Growth: Its diversified portfolio and expansion into software solutions offer consistent revenue streams.
Sustainability Focus: Increasing interest in sustainable technologies plays into Trimble’s strengths.
Cons:
Economic Sensitivity: Slowdowns in construction or agriculture could impact growth.
Technological Competition: As positioning technologies become more competitive, margins could face pressure.
Final Thoughts
Each of these stocks has strong fundamentals and growth catalysts that make them worth considering for 2025. However, investing always involves weighing potential risks against expected rewards. My approach would be to carefully monitor valuation metrics and market conditions while staying diversified.
If I had to pick a favorite, Marvell Technology (MRVL) stands out due to its exposure to multiple high-growth sectors like AI and 5G. That said, risk-averse investors might prefer Leidos Holdings (LDOS) for its defensive positioning and reliable income streams.
Let’s continue to stay ahead of the curve as we enter 2025.
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Happy investing!