These 3 Stocks Doubled in 2024. Here's the Best One for 2025

Toast - Toast was named one of the top financial-technology stocks for 2024 by Baird analysts, with its shares climbing 100% in 2024, outperforming the S&P 500 index [1] - The company's net loss improved dramatically in 2024, with a net loss of $13 million through the first three quarters compared to $231 million in the same period of 2023 [4] - Toast's revenue increased by 26% in the third quarter of 2024, driven by rapid revenue growth and controlled operating expenses [6] - The company increased its sales and marketing spending by 14% in 2024 while reducing general and administrative expenses by 17%, focusing on growth while cutting corporate overhead [5] - Management expects strong growth in 2025 as market saturation increases, making it easier to win new business through word of mouth [17][18] Revolve - Revolve's stock more than doubled in 2024, driven by a resurgence in revenue growth after a period of stagnation [7] - The company has an active customer base of 2.6 million, which grew by 5% in the most recent quarter, with an average order value of $303 [8] - Revolve reported positive net income in every quarter since going public in 2019 and is debt-free with over $250 million in cash [9] - Revenue increased by 10% in Q3 2024, with management noting a stronger start to Q4, signaling accelerating growth [10] On Holding - On's stock doubled in 2024, with net sales increasing by 27% through the first three quarters compared to the same period in 2023 [12] - The company's net sales grew by 69% in 2022 and 47% in 2023, capturing market share as other brands shifted to direct-to-consumer channels [11] - Approximately one-third of On's sales are direct-to-consumer, with gross margins reaching an all-time high above 60% and operating margins exceeding 9% [13] - The athletic shoe market offers significant growth potential, with room for further market share gains [14] Comparison and Outlook - Revolve is seen as a solid business but targets a narrow market segment, with modest revenue growth of 10% in Q3 2024, limiting its long-term upside [15] - On Holding has strong growth and financials but faces challenges in maintaining a durable competitive advantage due to unpredictable consumer tastes, with its stock trading at 15 times sales, considered overvalued [16] - Toast is favored for 2025 due to its improving profitability, strong revenue growth, and potential for market saturation to drive further growth [17][18]