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Every year, we ask our freelance writers to share their top US stocks with investors to consider buying in the coming year – here’s what they rate for the long term!
[Just beginning your investing journey? Check out our guide on how to start investing in the UK.]CSX
What it does: CSX is one of the two largest US railroads operating in the Eastern half of the USA.
Written by Stephen Wright. I’m almost certain that CSX (NASDAQ:CSX) will not be the best performing stock in S&P 500 in 2025. But I think the chances of the company doing badly are very low.
I expect US industrial production will increase next year and that will mean that materials need to be shaken up. Doing this by rail is cheaper and more environmentally friendly than trucks.
That doesn’t mean the business is risk-free. Industrial action is one and storms that damage infrastructure that could cost replacing are another.
CSX has addressed both of these issues in 2024, and is still doing well. I expect it to continue to do this, with legislation and costs that reduce the threat of competition from other businesses.
At 1.3%, the dividend yield is not great. But add in a share buyback program that has reduced outstanding shares by 4% per year over the past decade and I think things get pretty interesting.
Stephen Wright is a shareholder in CSX.
Snowflake
What it does: Snowflake is a technology company that provides cloud computing and data analytics services through a software-as-a-service (SaaS) model.
Written by Edward Sheldon, CFA. It wasn’t easy to pick my top US stocks for 2025. That’s because there are many world-class companies in the US today. But I will go with him Snowflake (NYSE: CHOICE). It is a fast growing software company.
I expect artificial intelligence (AI) to be a big theme again in 2025. And I think Snowflake will benefit. You see, it offers solutions that help organizations store and organize their data effectively. If firms are willing to use AI, getting their data right is the first step.
Snowflake’s latest Q3 results were positive. For the quarter, revenue was up 28% year over year. During that time, the overall revenue retention rate was 127% (meaning customers are spending more money with the company). After these results, more than 20 brokers raised their target prices for the stock.
Another factor behind the company’s recent performance is new CEO Sridhar Ramaswamy. He worked seven days a week to improve growth. Looking ahead, more economic clarity should help the company achieve more growth. This background should give firms more confidence to invest in technology solutions.
I will point out that Snowflake has a higher price. If growth slows for some reason (eg firms reduce spending on AI), the share price may fluctuate. Taking a long-term view, however, I’m excited about the potential here. I have been adding to my position recently.
Edward Sheldon is a Snowflake shareholder.
Uber Technologies
What it does: Uber is the world’s leading ride-hailing company.
Written by Ben McPoland. I think so Uber Technologies (NYSE: UBER ) stock is set for a strong 2025.
After years of heavy losses, the company finally turned a profit in 2023. This was after it exited underperforming overseas markets, cut costs, and divested non-core businesses.
As a result, Uber is shrinking and profits are set to rise in the coming years. Indeed, between 2024 and 2026, earnings per share (EPS) are expected to nearly double!
As I write, this puts the stock at a forward P/E ratio of 30, falling to around 22 by 2026. I see that makes sense for a growing company with 161m monthly active users – and counting – across its ride-hailing and food delivery platform. platforms.
There are risks, of course. This mainly focuses on increasing regulations and demands for higher wages for drivers.
However, I think investors can unlock more potential in driverless taxis. Uber has signed partnerships with 14 leading autonomous car companies, and market leader Waymo is already making tens of thousands of paid robot trips per day (many through the Uber app) in several US cities.
I think the stock should be considered for 2025 and beyond.
Ben McPoland is an Uber shareholder.
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