Investing

Recent Developments Show These 3 Growth Stocks Could Be Big Winners In 2025

Chris MacDonald

Published: February 20, 2025 8:55 am

As earnings season concludes, investors looking for meaningful catalysts to point to as reasons to own specific stocks certainly have plenty to think about. As a result of specific earnings reports, investors can come up with reasons why they should or shouldn’t own particular stocks.

For investors looking for companies with post-earnings catalysts worth considering, the good news is there are plenty of companies to choose from.

Key Points About This Article:

• These three growth stocks are among the best options for long-term investors looking to grow their portfolios in sustainable ways.
• Here’s why these three companies could be big winners in 2025, particularly if key catalysts remain in play for the year to come.
• If you’re looking for some stocks with huge potential, make sure to grab a free copy of our brand-new “The Next NVIDIA” report. It features a software stock we’re confident has 10X potential.

Netflix (NFLX)

Streaming giant Netflix (NASDAQ:NFLX) was certainly among the most important mega-cap tech stocks in focus this earnings season, and the company didn’t disappoint. Maybe that’s putting it lightly – the company absolutely crushed its expectations this past earnings season.

The company initially projected 2025 revenue of $43.5-$44.5 billion (up 11.5%-14.1% year-over-year), driven by an improvement in the company’s operating margin to 29%. However, the company beat all metrics, with the management team raising its guidance, reflecting confidence in this growth continuing over the long term. Netflix appears to have been successful in expanding its live-event strategy, drawing over 30 million viewers for NFL broadcasts and 5 million for WWE’s Raw debut. The company also secured rights to Christmas Day NFL games for two years and a 10-year, $5 billion WWE deal, ensuring 52 weeks of programming annually.

Analysts predict that Netflix will experience double-digit revenue growth in 2025, driven by improved engagement and retention rates. The company is also focusing on expanding its advertising initiatives, which could further enhance its revenue streams. With an expected addition of 30 million new subscribers in 2025, Netflix is positioned for substantial growth following its earnings report.

Intuitive Surgical (ISRG)

Intuitive Surgical (NASDAQ:ISRG) closed 2024 with strong Q4 results, posting $2.21 EPS which surpasses the consensus $1.79 estimate for this past quarter. Importantly, Intuitive Surgical also posted $2.4 billion in revenue, up 25% year over year. Despite exceeding expectations, the stock dipped on cautious guidance but remains 55% higher over the past year.

For over 20 years, the da Vinci surgical system has set the standard for robotic-assisted surgery, enhancing precision and reducing complications. Intuitive Surgical expanded its installed base by 15% in 2024 to 9,902 systems, outpacing 2023’s 14% growth. Procedure volume surged 17%, driving demand for its single-use instruments, now over half of total revenue. With 84% of revenue recurring, up from 75% in 2021, the company’s razor-and-blade model continues fueling earnings growth.

As a leader in robotic-assisted surgery, Intuitive Surgical’ s recent earnings surpassed expectations. Although there are concerns about a potential contraction in gross margins for 2025, the company’s strong market position and innovative products suggest it could still see significant growth post-earnings. Analysts remain optimistic about its long-term prospects despite short-term challenges.

Cerence Inc. (CRNC)

Cerence Inc. (NASDAQ:CRNC) is set to report earnings on February 6, 2025, with its stock currently trading at $11.37, reflecting an 8.75% decline for the day. The stock has experienced significant volatility, ranging from $2.34 to $27.50 over the past year. Analysts remain cautious, citing a Fear & Greed Index of 39 and a negative EPS of -$14.12. While forecasts suggest a modest price rebound to $12.53 by mid-February, investor sentiment remains uncertain. The upcoming earnings report will be critical in determining whether Cerence can reverse its recent losses and regain investor confidence.

As  AI-driven virtual assistant provider for the automotive sector, Cerence saw its stock price surge in 2025 after announcing a collaboration with Nvidia to enhance its large language models. It launched six generative AI solutions, securing 10 customer wins in FY2024, while implementing cost-saving measures targeting $35-$40 million annually.

Cerence specializes in AI-powered voice recognition technology for vehicles. With a strong performance forecasted for the upcoming earnings report, analysts expect continued growth as the demand for AI solutions in automotive applications increases. The company’s recent stock performance reflects a positive sentiment among investors.