The US stock market continued its stellar performance in 2024, with the S&P 500 index reaching an all-time high on December 6th. Looking ahead to 2025, analysts predict positive returns for several stocks, including database software and cloud services firms Oracle (ORCL) and MongoDB (MDB).
According to Charles Schwab, since the first rate cut in a cycle, the S&P 500 index has posted positive returns 86% of the time. With interest rates expected to remain low, many analysts believe the index will continue growing until September 2025.
Oracle and MongoDB are two companies well-positioned to benefit from this trend. Oracle’s cloud infrastructure is used by major AI companies, and its unique modular design approach sets it apart from competitors. The company’s strong financials, with a price-to-sales ratio of 8.43 times trailing-12-month sales, make it an attractive investment.
MongoDB, on the other hand, has seen significant growth in its cloud platform business, driven by robust adoption by enterprises for running mission-critical projects. The company’s focus on reallocating resources to large enterprise channels is expected to drive higher revenue growth in the long run.
Both companies have strong financials and a solid track record of innovation. Oracle recently released the largest and fastest supercomputer in the world, while MongoDB has established a broad geographical footprint with 98 cloud regions.
Considering their several growth tailwinds and strong financials, both Oracle and MongoDB seem compelling buys for retail investors looking to ride secular tailwinds in 2025.
Source: https://www.fool.com/investing/2024/12/14/history-says-the-sp-500-will-surge-in-2025-2-top-s