5 Unbeatable Stocks I'm Eager to Buy in 2025

Market Overview - The Dow Jones Industrial Average, S&P 500, and Nasdaq Composite all experienced double-digit percentage growth and reached multiple record-closing highs in 2024 [1] Sirius XM Holdings - Sirius XM is a legal monopoly as the only licensed satellite-radio operator, giving it significant subscription pricing power [2] - The company updated its pricing structure in November 2024, moving away from discounting practices and focusing on subscription simplicity [2] - Sirius XM is valued at less than 8 times forward-year earnings and is approaching a 5% dividend yield [3] - The company generated nearly 77% of its net sales from subscriptions in the first nine months of 2024, making it more resilient during economic downturns compared to traditional radio companies [14] Pfizer - Pfizer's shares have been negatively impacted by declining sales of its COVID-19 therapies, Comirnaty and Paxlovid, but this presents an opportunity for long-term investors [4] - The company has a forward P/E ratio of 9 and a historically high yield of 65% [5] - Pfizer's acquisition of cancer-drug developer Seagen for $43 billion in December 2023 significantly expanded its oncology pipeline and is expected to positively impact EPS and result in cost savings starting in 2025 [16] - Despite a decline in COVID-19 therapy sales, Pfizer's net sales have risen by 46$619 billion in cash, equity securities, short-term investments, and restricted cash, providing flexibility for stock repurchases and growth initiatives [18] - Alibaba is the leading cloud infrastructure service platform in China with a 39% market share entering 2024 and is leveraging the AI revolution to drive margins and sustained double-digit growth [24] PubMatic - PubMatic's management decision to build its own cloud-based infrastructure instead of relying on third-party providers is expected to result in superior operating margins as the company scales [8] - The company is focused on digital advertising, particularly in video, mobile, and connected TV, positioning it well for long-term growth given the disproportionate length of economic expansions compared to recessions [19] - PubMatic ended the third quarter with $1404 million in cash, cash equivalents, and marketable securities, and has no debt, with a valuation of 18 times forward-year earnings and the potential for sustained double-digit EPS growth [26] Johnson & Johnson - Johnson & Johnson is one of only two publicly traded companies with a AAA credit rating from Standard & Poor's and has sufficient operating cash flow and cash on its balance sheet to cover potential legal settlements [27] - The company has a forward P/E ratio of 137, a low-water mark over the last decade, and a yield of 34%, nearly at its highest point in 10 years [28] - Johnson & Johnson's shift to novel drug development provides a path to faster growth and substantially higher margins despite the finite sales exclusivity of brand-name drugs [21]