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3 Red Hot Stocks for the Second Half of 2025

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3 Takeaways

  1. PANW, PLTR and AVGO are breaking out to new highs in 2025.
  2. Each of these technology companies are expected to see double digit earnings growth in 2025.  
  3. Investors should put PANW, PLTR and AVGO on their short lists.

 

Welcome to Episode #451 of the Zacks Market Edge Podcast.

Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds, and ETFs and how it impacts your life.

This week, Tracey is going solo to profile 3 red-hot growth stocks investors should keep on their short lists for the second half of 2025.

There is nothing cheap about these stocks. Investors are buying the massive earnings and sales growth for this year and next.

These 3 stocks are breaking out to new highs but have momentum. The growth stock bulls are charging.

3 Red Hot Growth Stocks for the Second Half

1. Palo Alto Networks, Inc. (PANW - Free Report)

Palo Alto Networks is a global cybersecurity company. It’s a large cap company with a market cap of $133.7 billion.

Earnings rose 27.9% in fiscal 2024 and are expected to jump another 15.1% in fiscal 2025. Shares of Palo Alto Networks are trading near their all-time highs as cybersecurity demand remains elevated. Year-to-date, it’s up 8.2%.

Palo Alto Networks has a PEG ratio, which measures the price-to-earnings divided by the growth, of 3.0. A PEG ratio under 1.0 indicates value. A PEG ratio over 5 means a company is expensive. Palo Alto Networks is in the middle. Not too expensive but not a value either.

Should a cybersecurity company like Palo Alto Networks be on your watch list in the second half?  

2. Palantir Technologies (PLTR - Free Report)

Palantir is an AI-driven software company with a market cap of $308 billion. It has been one of the hottest stocks of 2025, gaining 75% year-to-date.

Palantir grew earnings by 64% in 2024 and is expected to grow them another 41.5% in 2025. However, even with the growth, Palantir is an expensive stock. Palantir trades with a PEG ratio of 7. It also has a price-to-sales (P/S) ratio of 99. A P/S ratio over 10 is considered expensive.

But the shares keep soaring to new highs.

Should investors ride the Palantir momentum in the second half of the year?

3. Broadcom Inc. (AVGO - Free Report)

Broadcom is a $1.2 trillion dollar semiconductor company. In 2024, it grew earnings by 15.4%. But in 2025, analysts believe it will step it up a notch, with earnings expected to jump 36.3%.

Shares of Broadcom are up 16.3% year-to-date and it is hitting new all-time highs.

Compared to other red-hot technology companies, Broadcom has an attractive PEG ratio of just 1.6. That’s almost cheap.

Is Broadcom a cheaper way to play the AI Revolution?

What Else Should You Know About Palo Alto Networks, Palantir and Broadcom?

Tune into this week’s podcast to find out.


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Broadcom Inc. (AVGO) - free report >>

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