Millennials: 1 Growth Stock That Will Shine in 2025

It’s hard to believe, but we’re less than two months away from closing out 2024. This year has mostly been a strong year for stocks. Despite a lot of uncertainty (it was a US election year) and geopolitical tensions from around the world, TSX Index And S&P 500 We found a higher way. And it may be harder to generate returns as we head into 2025.

After all, the TSX Index is up more than 16% year to date. Unless a correction is in the cards in the next few weeks, I think the Canadian board is poised to close out one of its best years on a strong note.

While valuations look fairer today than they did a year ago, I think the TSX rally has room to continue from here, even if some breathing room for the S&P 500 is inevitable. While growth-to-value rotations are difficult to predict, I believe the TSX Index’s cheaper multiples would help it beat the S&P 500 in such a rotation. Of course, we’ve heard a lot about extended multiples in U.S. stocks and the possibility of lower returns over the next decade.

However, I’m not sure you can say Canada has the same problems; not with relatively quiet floors and a wide range of hipsters who I believe are still underrated compared to their counterparts trading south of the border.

I personally think Canada’s tech scene doesn’t get half the recognition it deserves. And while the AI ​​boom looks set to end in 2025, I believe the following two growth stocks could shine brightly.

Shopify shares: Don’t sleep with the $142 billion tech giant

Shopify (TSX:STORE) is Canada’s brightest tech game, at least in my opinion. Even though it’s been a pretty unstable process in recent years, I still think there’s a tremendous benefit to having this name as we head into 2025 where some of the less-acclaimed AI software games will start to gain more traction.

Not only does Shopify have a high growth ceiling as it looks to be more competitive with its large enterprise customers, but it also has the AI ​​capability to get ahead of its rivals in e-commerce. In many previous articles, I have praised Shopify as an AI stock with a good upside opportunity. invested money. As we move into 2025, I think we may see more AI features and updates start to drive the stock.

At the end of the day, Shopify provides value-added services that go well beyond chatbots and can be made significantly better with ever-improving AI tools. Sometimes AI technology that customers can’t see can provide the greatest value.

At the time of writing, SHOP shares are trading above $110 per share after a more than 36% gain in three months.

Shares may appear at 80.5 times price-to-earnings ratio (P/E) sparkling. But if Shopify can leverage AI to steal more market share from its competitors in the new year, I think such a multiplier is worth paying. In fact, I’d argue the stock could still be cheap relative to its long-term (think five years out) growth potential, given the Canadian tech darling’s track record.