Finding the right stocks in today’s market isn’t easy. With so many options, it’s tough to know which ones are worth your attention. But when you get it right, the payoff can be huge. That’s why we do the heavy lifting for you, sorting through the noise to bring you stocks that are set to move.
Each week, we dig into the data, look at market trends, and identify stocks with real potential. Our focus is on opportunities that aren’t just good for a quick win but have the strength to deliver ongoing growth.
This week, we’ve highlighted three stocks that stand out from the pack. Backed by solid analysis, these picks are positioned for a strong run in both the short and long term.
Revolve Group (RVLV) – A Resilient E-Commerce Player Positioned for Long-Term Growth
Revolve Group (RVLV) has seen impressive gains this year, with shares up about 100% since January 2024. While the stock has experienced significant volatility—down around 170% from its 2021 peak—this recent pullback could present a unique buying opportunity for long-term investors.
In the current climate, Revolve has been able to navigate challenging consumer spending trends better than many of its peers. The company continues to grow its customer base, expanding by 5% year-over-year to reach 2.6 million active customers. Its diverse range of products, from affordable fashion to luxury brands, and strong partnerships with influencers and AI-driven solutions continue to support steady growth, with net sales increasing 10% in the third quarter to $283 million.
One of the most promising aspects of Revolve Group’s financials is its profitability. Despite facing some headwinds, the company reported a remarkable 238% year-over-year increase in net income in Q3, signaling strong operational efficiency. This success is backed by Revolve’s wide portfolio of over 100,000 products across multiple categories, including apparel, footwear, beauty, and home products.
Revolve’s underlying business is positioned for continued growth, benefiting from a growing e-commerce sector. With a solid customer base, a strong brand, and consistent profitability, this could be a high-potential stock to consider adding to your portfolio as it remains undervalued compared to its peak.
Sirius XM Holdings (NASDAQ: SIRI) – Billionaires Are Betting Big on This High-Yield Turnaround Stock
Sirius XM Holdings (SIRI) has been one of the market’s laggards this year, with its stock tumbling more than 52% to levels not seen in five years. Despite this, recent SEC 13F filings reveal that some major institutional investors are taking new positions in the company, signaling that it may be undervalued. Warren Buffett’s Berkshire Hathaway, already a large shareholder, has maintained its stake, now worth approximately $2.9 billion. Additionally, Ken Griffin’s Citadel Advisors initiated a $59 million position in the third quarter, joining the list of funds that see potential in Sirius XM’s long-term prospects.
Sirius recently took significant steps to reset its trajectory. The company executed a 1-for-10 reverse stock split and separated from Liberty Media, simplifying its corporate structure to attract more institutional interest. At the same time, Sirius has been expanding its digital audio ecosystem, securing exclusive podcast advertising and distribution rights to bring in both paying subscribers and advertisers. These moves suggest a renewed focus on growth as the company seeks to capitalize on its strong brand presence in the digital audio space.
As the largest digital audio company in North America, Sirius benefits from a unique position as the sole holder of a commercial satellite license from the FCC. This creates a natural moat in the satellite radio market. Although subscriber numbers have declined and debt has been a concern, the company’s subscription-based revenue model offers the potential for consistent, recurring income—traits that align with value-focused investors. Coupled with a 4% dividend yield, Sirius provides income-focused investors with additional incentive to consider the stock.
The involvement of investors like Buffett underscores the potential in Sirius as a turnaround story. While not without risks, the company’s combination of strategic restructuring, institutional backing, and a strong dividend yield could make it an appealing opportunity for those seeking high-yield investments with growth potential. For retail investors, the institutional confidence reflected in recent filings may warrant a closer look. With the groundwork being laid for a recovery, Sirius could be positioned to surprise skeptics and reward patient investors.
Shopify (NYSE: SHOP) – An E-Commerce Titan Poised for Continued Growth
Shopify (SHOP) has been on an impressive run in 2024, with its stock climbing 48% through November, outpacing the broader market and solidifying its reputation as a leader in global e-commerce. Despite its recent rally, the company’s strong financial performance, expanding market share, and innovative strategy suggest that Shopify remains a compelling long-term investment opportunity.
Shopify’s momentum is evident in its financial results. The company has posted over 20% year-over-year growth in sales volumes for five consecutive quarters, with overall revenue surging by 26% in the most recent quarter. This growth is driven by a mix of higher transaction volumes and increasing subscription fees, the latter of which supports stronger customer retention and higher profit margins. CEO Harley Finkelstein summed it up succinctly in November: “Q3 was outstanding, further establishing Shopify as a leader in powering commerce anywhere, anytime.”
The company’s focus on recurring revenue is particularly noteworthy. Subscription charges, which management ties directly to the long-term value of merchant relationships, rose 28% last quarter. This steady stream of revenue is improving Shopify’s cash flow and operating profit margin, which has returned to pandemic-era highs—a testament to the business’s resilience and scalability.
Shopify is also capturing more market share in the global e-commerce space, an industry with significant room for growth. E-commerce has once again reached 16% of the total retail market, rebounding to its pandemic peak. Shopify’s ability to grow alongside this trend underscores its competitive strength and ability to adapt to shifting consumer behaviors.
Looking ahead, Shopify’s innovative use of capital is likely to fuel even more growth. Management is investing in additional services like payment processing, marketing tools, and artificial intelligence to enhance the platform’s capabilities. These moves aim to attract more merchants, deepen their engagement, and increase transaction fees over time. Such strategic investments are key to Shopify’s plan to remain a dominant player in e-commerce while boosting profit margins to nearly 20%.
It’s worth noting that Shopify shares are not cheap, trading near their highest levels since early 2022. This premium reflects the company’s strong fundamentals and growth potential but comes with risks, particularly if growth slows. Still, for investors comfortable with some volatility, Shopify represents a unique opportunity to gain exposure to a growing e-commerce giant with a proven track record.
With a strong holiday shopping season likely in the works and continued innovation on the horizon, Shopify is well-positioned to deliver value in 2025 and beyond. For those looking to invest in a company that combines market leadership, financial strength, and long-term growth potential, Shopify is a name to consider adding to your portfolio.