As the name indicates, the S&P 500 contains hundreds of blue-chip shares. So when deciding which US stocks to buy, there are certainly plenty of investing options.
Here are three picks I believe are worth considering in 2025 for a minimum five-year holding period.
Axon
First up is Axon Enterprise (NASDAQ: AXON). This is the company that makes Tasers and body cameras worn by law enforcement officers. It also operates a giant cloud-based evidence management platform.
If this was just a share to consider for 2025, I might not have included Axon. That’s because it’s very pricey right now after rocketing 130% last year. At $601, the stock is trading at 18 times this year’s forecast sales!
That valuation doesn’t leave much wiggle room if sales come in weaker than expected or the market tanks.
Over five years however, I think the stock is set up for more market-beating gains. The average customer contract length at Axon is more than five years, while 95% of its revenue is now subscription-based.
This supports an incredible net revenue retention rate of 123%. In other words, the firm is not only retaining all its revenue from existing customers, but also growing it by another 23% through upselling or expanding services.
Speaking of which, Axon has just launched a new artificial intelligence (AI) subscription product called the AI Era Plan. This bundles together existing and future cutting-edge AI products, including Draft one, which analyses body-camera video and audio to write the first draft of the police report in seconds. Axon claims this product can save an individual officer an hour or more per shift writing reports!
Uber
The second stock is Uber Technologies (NYSE: UBER), whose share price has fallen 25% since October.
This is due to the rise of robotaxis from Alphabet‘s Waymo and, possibly one day, Tesla. The fear is that in future consumers may bypass Uber’s ride-hailing app.
I personally think this risk is overblown. It could take decades before robotaxis become the dominant transportation mode in every town and city.
Before then, I reckon robotaxi firms will partner with Uber rather than spend billions taking it on. This means the company would benefit from the technology rather than be disrupted by it.
Meanwhile, the global ride-hailing market is set to grow at an average annualised rate of 15.4% between 2024 and 2034, according to researcher Future Market Insight. As the market leader, Uber is poised to capture an outsized chunk of this growth.
Finally, the stock is trading at 20 times next year’s forecast earnings, which I see as good value for a global growth company.
Amazon
Finally, I’m picking Amazon (NASDAQ: AMZN). Like probably millions of others, I did much of my Christmas shopping on the app last month. The convenience, rapid delivery, and value I get as a Prime member keeps me loyal.
That said, cheaper shopping apps like Temu might pose a risk to the company’s market position over time.
However, it’s important to remember that Amazon is about much more than just e-commerce. It makes money from advertising, logistics, and operates Amazon Web Services (AWS), the world’s leading cloud computing platform.
With management continuing to optimise costs, the company’s profits should motor higher. And this should translate into further share price gains.
