My top 3 S&P 500 stocks to consider buying in 2025!

Wondering which US stocks to buy for a portfolio? Here’s a trio of ideas to consider owning for at least the next five years.

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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.

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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.

Created with Highcharts 11.4.3Axon Enterprise PriceZoom1M3M6MYTD1Y5Y10YALL6 Jan 20206 Jan 2025Zoom ▾Jul '20Jan '21Jul '21Jan '22Jul '22Jan '23Jul '23Jan '24Jul '24Jan '2520212021202220222023202320242024www.fool.co.uk

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.

Created with Highcharts 11.4.3Uber Technologies PriceZoom1M3M6MYTD1Y5Y10YALL6 Jan 20206 Jan 2025Zoom ▾Jul '20Jan '21Jul '21Jan '22Jul '22Jan '23Jul '23Jan '24Jul '24Jan '2520212021202220222023202320242024www.fool.co.uk

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.

Created with Highcharts 11.4.3Amazon PriceZoom1M3M6MYTD1Y5Y10YALL6 Jan 20206 Jan 2025Zoom ▾Jul '20Jan '21Jul '21Jan '22Jul '22Jan '23Jul '23Jan '24Jul '24Jan '2520212021202220222023202320242024www.fool.co.uk

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.

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Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Ben McPoland has positions in Axon Enterprise and Uber Technologies. The Motley Fool UK has recommended Alphabet, Amazon, Axon Enterprise, Tesla, and Uber Technologies. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

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