3 High-Growth Momentum Stocks to Buy for 2025

Core Insights - Growth and momentum stocks present significant investment opportunities, but identifying the right ones at reasonable valuations is crucial [1] - Three highlighted stocks—Gambling.com, Palomar Holdings, and Expedia Group—exhibit strong fundamentals and are well-positioned for future growth [2] Gambling.com - Gambling.com is a leading performance marketing company in the online gambling sector, benefiting from the expanding online betting market due to increasing legalization in the US and Europe [3] - The company holds a Zacks Rank 2 (Buy) and is projected to achieve revenue growth of 16.4% this year and 36.5% next year, with earnings expected to surge by 74% this year and 15% next year [4] - The stock is attractively valued at 15.8x forward earnings, reflecting its strong growth potential and fundamentals [4][5] Palomar Holdings - Palomar Holdings operates in the insurance sector, characterized by predictable cash flows and essential products, making it a stable investment option [8] - The company has a Zacks Rank 1 (Strong Buy) and is expected to grow sales by 33.6% this year and 22.1% next year, with earnings projected to rise by 25% and 18.3%, respectively [9] - Palomar trades at 22.9x forward earnings, below the industry average, despite its superior growth prospects [9][10] Expedia Group - Expedia Group is a major player in the online travel industry, leveraging its scale and technology to drive bookings and revenue growth [12] - The company holds a Zacks Rank 2 (Buy) with sales expected to rise by 6% this year and 7.3% next year, while earnings are projected to grow by 18.2% annually over the next three to five years [13] - The stock trades at a forward earnings multiple of 16.8x, significantly below its 15-year median of 21.6x, indicating potential undervaluation [14] Conclusion - Gambling.com, Palomar Holdings, and Expedia Group represent compelling investment opportunities, combining growth, momentum, and value, making them suitable for investors seeking high-growth stocks at reasonable valuations [17]