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3 No-Brainer Growth Stocks to Buy for 2025 With $100 Right Now
DraftKingsDraftKings(US:DKNG) The Motley Foolยท2025-01-11 15:15

Group 1: Market Overview - The S&P 500 index ended 2024 up 23%, following a 24% increase in 2023, indicating a strong market performance despite concerns about stock valuations [1][2] - Many stocks have seen price increases outpacing improvements in their underlying fundamentals, leading to perceptions of an expensive market [1][2] Group 2: Uber - Uber holds a dominant market position with over 161 million users, leveraging its network for growth in ride-sharing, delivery, and freight services [3][4] - In Q3, Uber's gross bookings increased by 17% for ride-sharing and 16% for delivery, with improved profitability in the ride-sharing segment [4] - Uber's stock is priced at around $65, with an enterprise value-to-sales ratio of 3.4 and a forward price-to-earnings multiple of 28, while analysts expect sales growth of 16% and earnings growth of 23% in the coming year [7] Group 3: Etsy - Etsy is undergoing a transition to improve long-term growth in gross merchandise sales, focusing on customer experience rather than immediate sales [8][9] - The company experienced a 4.1% drop in gross merchandise sales but offset this with a higher take rate and increased advertising service sales [10] - Etsy's stock trades at 20 times analysts' expectations for 2025 earnings, presenting a good value despite being a more cyclical stock [12] Group 4: DraftKings - DraftKings is a leading online sports betting and iGaming company, positioned to benefit from the rapid growth of online gambling in North America [13][16] - The company reported a 41% year-over-year increase in users, with management expecting revenue growth of 27% to 35% in 2025 and an EBITDA margin improvement to about 7.4% [16] - DraftKings stock is priced at $38, with an enterprise value approximately 20 times the forecasted 2025 EBITDA, indicating strong potential for earnings growth [17]