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This year, plenty S&P500 the shares brought massive profits. Many of the shares I own that are included in this stock index have increased by over 30%.
Looking ahead to 2025, I expect this index to once again become a source of opportunity for investors. With that in mind, here are three S&P 500 growth stocks worth considering for your Stocks and Shares ISA.
Amazon
I start with Big Tech art, which I like Amazon (NASDAQ: AMZN) right now. It has performed well this year (up about 50%). However, I think the uptrend has legs here.
One reason for my bias is that after years of cost cutting, Amazon is once again on a growth roll. It recently launched some amazing AI products that aim to lend a hand customers build their own AI applications.
It has also entered the AI ​​chip space and recently launched its high-power product ‘Trainium 3’. These chips could be popular given that Nvidia chips are both very exorbitant and constrained in supply.
The threat now is a slowdown in consumer spending. Today, a huge portion of Amazon’s revenue still comes from online shopping.
However, with a price-to-earnings (P/E) ratio below 40, I like the risk/reward mix. I made this stock my largest holding.
KLA company
2024 was a mixed year for companies in the AI ​​chip ecosystem. One sec Nvidia (which designs chips) did really well, many companies that specialize in chip manufacturing equipment did not.
Given the lack of capacity in the chip manufacturing equipment space, I think there may be some opportunities here in 2025. I like one action: KLA company (NASDAQ: KLAC).
The company specializes in technology that helps ensure chip quality and production efficiency. So, in my opinion, it’s a good pick and shovel game in the semiconductor industry.
But that’s not the only reason I like it. I’m also attracted to earnings growth and valuation. For the year ending June 30, 2025, Wall Street expects earnings to grow by a high 30%. Meanwhile, the P/E ratio is currently only 20.7, which is not a high result.
Now I will point out that KLA generates approximately 20% of its revenues in China. So U.S. export restrictions pose a risk.
However, I believe that the company will do well in the coming years. This is because it plays a key role in the chip industry.
Nasdaq
Finally, I like the look Nasdaq (NASDAQ: NDAQ) facing 2025. It operates exchange platforms and offers data, indexing, analytics and regulatory technology solutions.
There are a few reasons why I’m bullish here. First, as the operator of the tech-focused Nasdaq Index, it should do well as the tech industry continues to grow.
Another is that there is a good chance that the IPO market will recover next year. This may translate into higher company revenues.
Finally, the share price is on an upward trend and the valuation looks attractive. Currently, the P/E ratio is below 25.
Of course, in the brief term, a collapse in financial markets or the technology sector could lead to weakening stock prices. However, from a long-term perspective, I think the stock has huge potential.
I just bought some for my own portfolio.