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3 Cheap Growth Stocks to Buy in 2025
AZNAstraZeneca(AZN) The Motley Fool·2025-01-09 11:45

Growth Stocks Overview - Many growth stocks are trading at high valuations, suggesting limited near-term upside potential [1] - Long-term investors may consider rebalancing portfolios by selling recent high performers and buying cheaper growth stocks for better long-term gains [1] AstraZeneca (AZN) - Leading healthcare company investing in next-generation oncology therapies that are more targeted than traditional chemotherapy or radiation [3] - Acquired Fusion Pharmaceuticals, a clinical-stage company developing radioconjugates for precise cancer treatment [4] - Revenue target of 80billionby2030,upfrom80 billion by 2030, up from 51 billion over the past four quarters [4] - Stock fell 3% last year, trading at a forward P/E of 14, significantly lower than the healthcare sector average of 20 [5] - Potential to be one of the best healthcare stocks over the next five-plus years if growth targets are met [5] Uber Technologies (UBER) - Ride-hailing company with shares down 2% last year due to overblown concerns about competition from Alphabet's Waymo [6] - Remains a dominant and practical option for consumers with strong growth and surging profits [7] - Revenue increased 17% to over 32billioninthefirstninemonthsof2024,withoperatingprofitjumpingfrom32 billion in the first nine months of 2024, with operating profit jumping from 458 million to over 2billionyear−over−year[7]−AttractivevaluationwithaforwardP/Eof25andaPEGratioofaround0.70,supportedbyimprovingfundamentalsandstronggrowthprospects[8]ZoomCommunications(ZM)−Videoconferencingcompanystillgrowingdespitebeingperceivedasapandemicplay[9]−Zoom′seaseofuseandflexibilitymakeitapreferredchoiceoverMicrosoftTeams,evenfororganizationswithMicrosoft365subscriptions[10]−Revenuegrew32 billion year-over-year [7] - Attractive valuation with a forward P/E of 25 and a PEG ratio of around 0.70, supported by improving fundamentals and strong growth prospects [8] Zoom Communications (ZM) - Videoconferencing company still growing despite being perceived as a pandemic play [9] - Zoom's ease of use and flexibility make it a preferred choice over Microsoft Teams, even for organizations with Microsoft 365 subscriptions [10] - Revenue grew 3% year-over-year to 3.5 billion in the nine months ending Oct 31, with a low monthly churn rate of 2.7% [11] - Expanding product offerings with AI features and solutions like Zoom Mail, supporting long-term growth [11] - Stock trades at a modest forward P/E of 15, making it an attractive growth stock to buy and hold [12]