2025-01-14 04:10:00 ET
The market indexes continued to soar in 2024, but there are still plenty of excellent companies selling at attractive valuations . With earnings multiples for top growth stocks starting to look frothy, 2025 might be the year to start adding more value stocks to your portfolio. Here are two leading e-commerce companies that could double your money in five years.
Alibaba (NYSE: BABA) has fallen well off its highs over the last few years but is trading at a bargain price. Analysts expect this leading e-commerce and cloud computing provider in China to grow earnings at 15% per year over the long term, yet the stock trades at less than 10 times 2025 earnings estimates.
The earnings growth alone would be enough to double the share price in five years. But there's also the potential for investors to bid the share price up to a higher price-to-earnings multiple. The combination of earnings growth and expansion in the earnings multiple could set the stage for outstanding returns.