U.S. stock markets witnessed an impressive rally in 2024 after an astonishing bull run in 2023. Several stocks have skyrocketed in the past year. The bull run continued in 2025 despite intermittent fluctuations in U.S. stock markets.
Wall Street is facing various near-term concerns. Sticky inflation and a relatively hawkish Fed raised questions about the magnitude of interest rate cut this year. Moreover, the Trump administration’s tariffs and trade-related policies, and their impact on U.S. economic growth, especially on the inflation rate are still uncertain. Additionally, prolonged geopolitical conflicts in the Middle East and other parts of Asia and Europe pose concerns.
Despite these headwinds, a handful of stocks of U.S. corporate behemoths (market capital > $50 billion) that soared last year have seen another break-through in 2025. Stock prices of these companies have popped more than 30% in just one and a half months of trading this year.
Five such stocks with a favorable Zacks Rank are Palantir Technologies Inc. PLTR, CrowdStrike Holdings Inc. CRWD, Interactive Brokers Group Inc. IBKR, Carvana Co. CVNA and Constellation Energy Corp. CEG.
These stocks have strong revenue and earnings growth potential for 2025. Further, these stocks have seen positive earnings estimate revisions in the last 60 days. Each of our picks carries either a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The chart below shows the price performance of our five picks in the past year.
Image Source: Zacks Investment Research
Zacks Rank #2 Palantir Technologies, the artificial intelligence (AI)-powered software platform and data analytics firm, reported robust earnings results for fourth-quarter 2024. Both the top and bottom lines exceeded the Zacks Consensus Estimate. Moreover, PLTR issued solid guidance for first-quarter and full-year 2025 revenues and earnings.
Palantir Technologies’ commercial business has gathered pace besides its traditional government contracts. This is primarily due to PLTR’s aggressive venture in the AI space. In 2023, PLTR launched its Artificial Intelligence Platform (“AIP”), an AI-powered system that helps customers quickly concentrate and analyze data and discover how it can help advance their business goals.
AIP provides unified access to open-source, self-hosted, and commercial large language models that can transform structured and unstructured data into LLM-understandable objects and turn organizations' actions and processes into tools for humans and LLM-driven agents. This shift in revenue structure has enabled the company to no longer depend on government defense agencies.
Palantir Technologies has an expected revenue and earnings growth rate of 31.4% and 31.7%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 12.5% in the last 30 days. It has a long-term (3-5 years) earnings growth rate of 31.4% compared with 12.4% for the S&P 500.
The chart below shows the price performance of PLTR year to date.
Image Source: Zacks Investment Research
Zacks Rank #2 CrowdStrike Holdings, a leading provider of cybersecurity solutions in the United States and internationally, has been benefiting from the rising demand for cybersecurity solutions and the increasing need for secure networking products amid the growing hybrid working trend.
Continued digital transformation and cloud migration strategies adopted by organizations are key growth drivers. CRWD’s portfolio strength, mainly the Falcon platform’s 22 cloud modules, boosts its competitive edge and helps add users.
CrowdStrike’s success is rooted in continuous innovation, particularly in the wake of the July 2024 incident, which prompted the company to enhance its Falcon platform with advanced automated recovery techniques. These updates bolstered visibility, quality assurance and overall security, reassuring customers and strengthening trust in its solutions.
The Falcon platform now boasts more than 28 modules, spanning endpoint security, identity protection and next-gen SIEM, allowing CRWD to diversify its revenue streams. CRWD’s ability to anticipate and respond to cybersecurity threats makes it a key partner for enterprises navigating an increasingly complex digital landscape.
A significant driver of CRWD’s customer retention is the Falcon Flex subscription model, which simplifies security adoption by offering modular, scalable cybersecurity solutions. This flexibility encourages long-term commitments, ensuring steady revenue growth and deep customer integration.
CrowdStrike Holdings has an expected revenue and earnings growth rate of 20.2% and 16.6%, respectively, for the current year (ending January 2026). The Zacks Consensus Estimate for current-year earnings has improved 2.1% in the last 60 days. It has a long-term (3-5 years) earnings growth rate of 34.5% compared with 12.4% for the S&P 500.
The chart below shows the price performance of CRWD year to date.
Image Source: Zacks Investment Research
Zacks Rank #1 Interactive Brokers Group, a global automated electronic broker, came out with fourth-quarter 2024 adjusted earnings of $2.03 per share, beating the Zacks Consensus Estimate of $1.86 per share. The company posted quarterly revenues of $1.42 billion, surpassing the Zacks Consensus Estimate by 3.50%.
IBKR witnessed higher revenues driven by growth in customer accounts and a rise in daily average revenue trades. IBKR’s efforts to develop proprietary software, lower compensation expenses relative to net revenues, enhance emerging market customers and global footprint, and relatively high rates are expected to support revenue growth.
Interactive Brokers Group executes, processes and trades in cryptocurrencies. IBKR’s commodities futures trading desk also offers customers a chance to trade cryptocurrency futures. Further, IBKR launched cryptocurrency trading via Paxos Trust Company, charging lower commissions compared with other crypto exchanges.
IBKR was one of the first brokers to introduce Overnight Trading on U.S. stocks and ETFs nearly 24 hours a day, five days a week. IBKR Lite has enabled investors to trade commission-free.
This month, IBKR announced the expansion of its offering of Stocks and Shares Investment Savings Accounts with the addition of mutual funds in the U.K. Last November, IBKR launched Plan d’Epargne en Actions accounts to boost its offerings for its French clients. Also, the launch of IBKR GlobalTrader has enabled investors worldwide to trade stocks through mobile applications.
Interactive Brokers Group has an expected revenue and earnings growth rate of 4.1% and 6%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.8% in the last seven days. It has a long-term (3-5 years) earnings growth rate of 19.1% compared with 12.4% for the S&P 500.
The chart below shows the price performance of IBKR year to date.
Image Source: Zacks Investment Research
Zacks Rank #1 Carvana operates an e-commerce platform for buying and selling used cars in the United States. CVNA’s acquisition of ADESA’s U.S. operations has strengthened its logistics network, auction capabilities and reconditioning processes. By utilizing ADESA’s infrastructure, Carvana can scale refurbishment operations, improving both the quality and volume of vehicles prepared for resale.
CVNA anticipates sequential year-over-year growth in retail unit sales for fourth-quarter 2024. Despite being the nation’s second-largest used car retailer, CVNA holds only a 1% share of the highly fragmented U.S. automotive retail market, signaling substantial expansion potential as online car buying gains traction. CVNA’s emphasis on driving significant adjusted EBITDA per unit is reinforced by ongoing enhancements in technology, processes and operational efficiency.
Carvana has an expected revenue and earnings growth rate of 20.9% and more than 100%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 6% in the last 30 days.
The chart below shows the price performance of CVNA year to date.
Image Source: Zacks Investment Research
Zacks Rank #2 Constellation Energy is a leading energy company in the United States with a significant thrust on clean energy, especially nuclear energy. CEG sells natural gas, energy-related products, and sustainable solutions. It has nearly 33,094 megawatts of generating capacity consisting of nuclear, wind, solar, natural gas, and hydroelectric assets.
CEG’s strategic $5.1 billion capital expenditure through 2025 should help acquire nuclear fuel and increase inventory levels. CEG aims to eliminate 100% of greenhouse gas emissions leveraging on innovative technology.
In late 2024, Microsoft Corp. (MSFT) entered into a 20-year agreement with CEG to revive the Three Mile Island nuclear plant in Pennsylvania. The $1.6 billion investment aims to restart the reactor, which has been dormant since 2019, to provide carbon-free electricity for Microsoft’s expanding data centers.
Constellation Energy has an expected revenue and earnings growth rate of -7.9% and 10.5%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 2.4% over the last 30 days. It has a long-term (3-5 years) earnings growth rate of 15.8% compared with 12.4% for the S&P 500.
The chart below shows the price performance of CEG year to date.
Image Source: Zacks Investment Research
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Constellation Energy Corporation (CEG) : Free Stock Analysis Report
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