Image source: Getty Images
This year, many S&P 500 stocks have produced big gains. Many of the stocks I own that are in this stock index are up more than 30%.
Looking ahead to 2025, I expect this index to once again be a source of opportunity for investors. With that in mind, here are three S&P 500 growth stocks you can consider buying for a stocks and shares ISA.
<h2 class="wp-block-heading" id="h-amazon“>amazon
Starting with a Big tech play, I like it amazon (NASDAQ: AMZN) right now. It has done well this year (up about 50%). However, I think the bullish trend here has strength.
One reason I'm optimistic is that after years of cost-cutting, amazon is back on a growth path. Recently, it has been launching some amazing ai products designed to help customers create their own ai applications.
It has also entered the ai chip space and recently launched its high-powered product 'Trainium 3'. These chips could be popular given that Nvidia chips are very expensive and in limited supply.
One risk now is a slowdown in consumer spending. Today, a large portion of amazon's revenue still comes from online shopping.
However, with the price-to-earnings (P/E) ratio below 40, I like the risk/reward setup. I have made stocks my largest holding.
KLA Corp.
2024 was a mixed year for companies in the ai chip ecosystem. While NVIDIA (which designs chips) did very well, many companies that specialize in chip manufacturing equipment did not do well.
Given this lack of performance in the chip manufacturing equipment space, I think there could be some opportunities here by 2025. And one stock I like is KLA Corp. (NASDAQ: KLAC).
This company specializes in technology that helps ensure chip quality and production efficiency. So, in my opinion, it is a good “pick and shovel” move in the semiconductor industry.
Although that's not the only reason I like it. I'm also attracted to earnings growth and valuation. For the year ending June 30, 2025, Wall Street expects earnings growth of a high 30%. Meanwhile, the P/E ratio here right now is only 20.7, which is not high.
Now, I will point out that KLA generates about 20% of its revenue in China. So restrictions on US exports are a risk.
However, I think the company will do well in the coming years. This is because it plays a crucial role in the chip industry.
Nasdaq
Finally, I like the look of Nasdaq (NASDAQ: NDAQ) as we move towards 2025. It operates stock market platforms and also offers solutions in relation to data, indexing, analytics and regulatory technology.
There are a few reasons why I'm optimistic here. One is that, as a tech-focused Nasdaq index operator, it should do well as the tech industry continues to grow.
Another is that there is a good chance that the IPO market will heat up next year. This could generate more revenue for the company.
Finally, the stock is trending up and the valuation looks attractive. Currently, the P/E ratio is less than 25.
Of course, in the short term, a crisis in the financial markets or the technology sector could cause weakness in the share price. However, from a long-term perspective, I think the stock has great potential.
I just bought some for my own purse.
