Artificial intelligence (AI) has created enormous opportunities for investors. nvidia (NASDAQ: NVDA) So far, it’s one of the best performing AI stocks. Demand for data center chips used to train AI models has exerted more than 700% of stocks since the end of 2022.
However, Nvidia’s revenue growth is beginning to slow down, and this year could lead to more gradual profits. The average analyst price target for the stock is currently $174, meaning a 42% increase over the current $122 stock price.
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While that would still be a great benefit for investors, all AI attention is removing the spotlight of non-technology stocks that are thought to be undervalued. In that memo, three football.com contributors confirm that there is a high chance that the Dollar General will rise. (NYSE:DG),PDD is owned (NASDAQ: PDD)and roku (NASDAQ:ROKU). Here’s why these stocks will soar in 2025:
Recover Ripe Discount Retailer
Jeremy Bowman (Dollar General): It’s not easy to beat Nvidia this year, but one stock in a good position to do that is Dollar General. Discount retailers faced a decline in profits in 2024, weaker consumer spending and increased competition with Walmart.
However, Dollar General has a turnaround plan in place, which will pay off this year. The company has closed temporary storage facilities to manage supply chain costs and improve efficiency, with a fully owned distribution center being added.
The company also reorients its in-store strategy, eliminates low-capacity inventory maintenance units, ensures stock is gone, checkout areas are staffed appropriately, and self-checkout to reduce theft It eliminates most of them.
Furthermore, as inflation drops, the consumer spending environment is becoming healthier, and interest rates are expected to continue to fall this year.
Dollar General faces several risks, including tariffs, but benefits from competitive advantages, including a store base at over 20,000 locations. That means you have stores within about five miles of the US population.
The company also experiments with same-day delivery through the app to match Walmart’s e-commerce products and partners with third-party services for delivery.
Dollar General also looks like a good candidate who will surge this year due to its low stocks and 12 prices and returns. Collecting losses from last year means profits of around 80% this year, low along with valuation, and it should not take much time to lift stock.
The company reported 1.3% of the same store sales growth in the third quarter, continuing to open hundreds of new stores a year. Retailers are still growing. You need to do a better job of managing costs. If we can do that, stocks could rise this year.
Great bargain growth stock
John Ballard (PDD Holdings): PDD is experiencing incredible growth in the global e-commerce market. It operates two online platforms, Pinduoduo and Temu. These platforms are taking discount retailers to a new level, translated into explosive growth.
The company has achieved many successes using direct sales strategies that reduce costs and provide large savings to consumers. However, the Pinduoduo platform also implements a gamification model that encourages customer loyalty and purchasing reward groups. Buyers can invite friends on social networks to get a volume discount on items, attracting large numbers of customers.
Despite the weak consumer spending environment, revenue across these platforms rose 44% year-on-year in the third quarter of 2024. In China, the e-commerce market is particularly competitive, and the growth of major e-commerce platforms is slowing. From Alibaba and JD.com. One reason for this is the increased competition with PDD.
Another attractive feature of PDD’s business is generating revenue from trading and marketing services billing. It makes it a very profitable business. In the third quarter, operating income reached $3.4 billion with revenue of $14 billion. This is an operating profit margin of 24%.
As more buyers reach a great deal, it will help attract more merchants and increase the selection of items for sale. This situation creates a positive cycle of growth and helps businesses achieve larger scale and reduce costs. The more PDD grows, the more competitive it becomes.
Economic uncertainty and increasing competition in China have driven online retail stocks to a low valuation. Investors can purchase PDD shares at nine times the 2025 earnings estimate. The stock could double in value and could trade at a modest multiple of 18 revenues.
Increased profitability should make this stock even higher
Jennifer Saibil (Roku): Roku has not been in favor of the market for some time. The 2021 high from Back was 83% off, down 11% over the past year. But it continues to show strong growth and has reason to be confident about its future. This may be the year when it finally rebounds in a big way.
Most people know the company about streaming devices that connect to the screen for optimal viewing. There are products in the AA range for a variety of budgets, including connected screens. This is a more visible business, but it is actually a small segment, accounting for around 15% of total revenue. A big opportunity for Roku is its platform business, with most advertising on free channels. Roku still reports net losses, which is the biggest problem right now, but also a more profitable business. But things are beginning to look much better.
The gross profit margin for the third quarter of 2024 was 45.2%, the highest in five quarters. It was also the fifth consecutive quarter of positively adjusted revenue prior to interest, taxes, depreciation and amortization (EBITDA) and positive free cash flow. Wall Street is still hoping for a net loss in 2025, but it should require continuous improvement, which should make the stocks higher.
Roku is growing consistently, on membership basis, viewing time and revenue. There were 85.5 million streaming households in the third quarter, up 13% year-on-year, with a slight increase in succession. Viewing times are up 20% year-on-year, and are etched in order, with more people seeing more money for Roku. It is strengthening international expansion, which could also significantly boost sales.
Investor feelings are beginning to change. Roku shares have grown 9% so far this year and could continue to be a winning stock in 2025.
Don’t miss this second chance with a potentially advantageous opportunity
Have you ever felt like you missed a boat when buying the most successful stocks? If you do that, you’ll want to hear this.
In rare cases, a team of analysts issue “double-down” stock recommendations for companies they think they are trying to pop. If you’re worried that you’ve already missed the chance to invest, now is the perfect time to buy before it’s too late. And the numbers speak for themselves:
nvidia: If you invest $1,000 when it doubled in 2009, It costs $336,677! *Apple: If you invest $1,000 when it doubled in 2008, you’ll have $43,109! *Netflix: If you invest $1,000 when it doubled in 2004, then $546,804! *
Currently, we are issuing “double-down” alerts to three incredible companies, and we may not have a chance like this anytime soon.
learn more “
*Stock Advisor will return as of February 3, 2025
Jennifer Cybil has a job at Walmart. Jeremy Bowman holds a job at Roku. John Ballard has the roles of Dollar General and Rok. Motley’s Fool has jobs at Roku and Walmart. Motley Fool recommends Alibaba Group and JD.com. Motley Fools have a disclosure policy.
The views and opinions expressed herein are the views and opinions of the authors and are not necessarily Nasdaq, Inc. It does not reflect the opinions of
