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3 Stocks to Buy for the End of 2025

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Key Takeaways

  • NVIDIA is up 51% year-to-date but is expected to increase sales by 56.9% this year.
  • Vertiv has a higher P/E ratio, at 48, than NVIDIA.
  • Constellation Energy is expected to grow earnings by 25.8% in 2026.

  • (0:45) - Where Should Investor Look To Buy Heading Into The New Year
  • (8:00) - Tracey's Top Stock Picks For Your Watch List Right Now
  • (20:50) - Episode Roundup: NVDA, VRT, CEG
  • Podcast@Zacks.com

 

Welcome to Episode #462 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 talk about stocks to own into the end of 2025.

As Zacks Chief Equity Strategist, John Blank, often says, “you don’t have to be a genius.” There is one industry that has been red hot all year and it’s the AI Revolution. If stocks rally further into the end of the year, investors will want to be in this trade.

You don’t need to get fancy and find an obscure small cap stock that no one has heard of to invest in the AI Revolution. Start with the basics.

NVIDIA is the leader of the revolution. But is it too late to buy it after its big rally?

It has partners to build out the data centers that hold the chips, such as Vertiv. Is infrastructure the way to play it?

And someone has to power the data centers. How will they get electricity?

There are other ways to invest in the AI Revolution as well. There are companies designing and building the data centers. Additionally, there are other companies that are cooling the data centers.

Here are three stocks to keep on your short list for the end of the year.

3 Top Stocks to Buy for the End of 2025

1. NVIDIA Corp. (NVDA - Free Report)

Is it too late to buy NVIDIA?

Shares of the leading AI Revolution company recently hit new all-time highs. NVIDIA has gained 51% year-to-date. But it has been a tough journey. Over the last year, the stock is up only 45.6%.

It is not a cheap stock based on classic fundamentals. It trades with a price-to-sales (P/S) ratio of 30.4. A P/S ratio of 10 is considered expensive so 30.4 is sky-high. But NVIDIA is also expected to grow its sales by 56.9% in fiscal 2026 and another 32.1% in fiscal 2027.

NVIDIA is a Zacks Rank #2 (Buy) stock.

If investors are looking for an AI industry leader into the end of the year, then NVIDIA should be on the short list.

2. Vertiv Holding Co. (VRT - Free Report)

Vertiv is a partner with NVIDIA in the build-out of the data centers. Shares of Vertiv recently hit a new high. It is up 70.6% year-to-date.

But Vertiv still has attractive valuations. Yes, it has a forward P/E that is higher than NVIDIA, at 48. But it has a low PEG ratio, which measures earnings divided by growth, of just 1.6. A PEG of 1.0 or under indicates a company has value.

Vertiv is a Zacks Rank #1 (Strong Buy). This is the highest Zacks Rank.

If investors are looking for an AI infrastructure stock, Vertiv should be on your short list.

3. Constellation Energy Corp. (CEG - Free Report)

Constellation Energy is the largest producer of carbon free energy. Headquartered in Baltimore, it powers more than 20 million homes and businesses through hydro, wind, solar and the nation’s largest carbon-free nuclear fleet.

Shares of Constellation Energy have hit new highs this year. Constellation is up 71% year-to-date.

It’s not cheap. Constellation Energy trades with a forward P/E of 42.7. But earnings are expected to rise 25.8% in 2026.

Constellation hasn’t reported earnings yet. It will report on Nov 7, 2025, before the open.

Should a utility company like Constellation Energy be on your short list?

What Else Should You Know About the AI Revolution Stocks to Buy Now?

Tune into this week’s podcast to find out.

[In full disclosure, Tracey owns shares of Vertiv in Zacks Value Investor and in her own personal portfolio.]


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Constellation Energy Corporation (CEG) - free report >>

NVIDIA Corporation (NVDA) - free report >>

Vertiv Holdings Co. (VRT) - free report >>

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