Top 20 Stocks For 2025
My Top Picks for the Year
2025 is just around the corner.
Morgan Stanley estimates the S&P 500 could hit 7,400 from about 6,000 today.
I don’t make predictions like that. No one knows the future.
I do know two things:
The best investment is always one in yourself.
Stocks compound your wealth over time
Let’s provide you with some interesting investment ideas for the new year.
20. Kainos Group ($KNOS)
Company Profile
Kainos Group is a technology company specializing in digital services and software.
They help organizations transition to cloud-based systems and create custom software solutions.
Kainos earns revenue through service contracts and licensing fees for its software platforms.
Investment Rationale
The public cloud market is expected to grow at a CAGR of 18.5% (!) until 2029
Excellent track record of innovation and execution
Significant runway for international expansion
19. Judges Scientific ($JDG)
Company Profile
Judges Scientific acquires and operates niche businesses in the scientific instruments sector.
These companies design and manufacture highly specialized tools for research and industry.
Judges Scientific makes money by growing these acquired companies.
Investment Rationale
Exceptional capital allocation under long-term CEO David Cicurel
Serial acquirers outperform the market in the long run on average
Judges Scientific has been a 100-bagger since 2003
18. Teqnion ($TEQ)
Company Profile
Teqnion is a serial acquirer.
The company operates as an industrial conglomerate. It owns businesses in various sectors, such as manufacturing, technology, and niche services.
Teqnion is going through a storm lately. The stock price dropped due to declining profitability. For long-term investors, I believe this is short-term noise:
Investment Rationale
Decentralized model encourages an entrepreneurial spirit
Founder-led company with skin in the game
Stock price dropped due to short-term noise
17. Adobe ($ADBE)
Company Profile
Adobe provides creative and marketing software solutions through its industry-leading platforms like Photoshop, Illustrator, and Adobe Experience Cloud.
The company generates revenue primarily via subscriptions. 94% (!) of revenue is recurring in nature.
Adobe disappointed investors lately. Revenue and earnings results were below market expectations. This could provide opportunities.
Investment Rationale
Adobe’s products are the industry standard
The company profits from high customer loyalty and a strong brand name
High FCF margin (31.3%) and ROIC (22.9%)
16. Old Dominion Freight ($ODFL)
Company Profile
Did you also do a lot of online shopping for Christmas? Those goods don’t move themselves. Old Dominion Freight Line comes into the picture here.
The company specializes in less-than-truckload (LTL) freight shipping across North America. The trucking company has been around for almost 100 (!) years.
Revenue comes from transporting smaller freight loads for businesses.
Investment Rationale
The industry leader in operational excellence
Family business with an outstanding culture
CAGR since IPO in 2001: 28.4%
15. Domino’s Pizza ($DPZ)
Company Profile
Domino's Pizza is a global leader in pizza delivery.
Its franchise model drives growth, allowing others to run stores under Domino’s brand in exchange for royalty fees.
The franchise model enables Domino’s to expand rapidly without directly managing most stores. It’s a highly efficient, scalable business model with strong margins.
Investment Rationale
Very high ROIC: 53.6%
On average, the company bought back 5% of outstanding shares per year in the last 10 years
A business model based on franchises is very attractive
14. Dream Finders Home ($DFH)
Company Profile
Dream Finders Homes is a fast-growing homebuilder specializing in affordable, high-quality housing.
The company uses an asset-light model that reduces risk and improves margins.
What’s interesting about the company? The CEO Patrick Zalupski. His shareholder letters beautifully show what the company wants to stand for. Zalupski still owns 64% (!) of the business.
Investment Rationale
There’s a big housing shortage in the US
Founder and CEO Zalupski owns 64% (!) of the business
Amazing growth: 5-year Revenue CAGR: 48.3%
Now let’s dive into the last 3 names for today.