3 Red-Hot Stocks Breaking Out to New Highs in 2025

Three technology companies, PANW, PLTR, and AVGO, are breaking out to new highs in 2025, driven by expected double-digit earnings growth. Investors should put these stocks on their short lists, despite their high valuations. Palo Alto Networks (PANW) has a market cap of $133.7 billion and is expected to grow earnings by 15.1% in 2025. Palantir Technologies (PLTR) has a market cap of $308 billion and is expected to grow earnings by 41.5% in 2025, but is considered expensive with a PEG ratio of 7.

Three technology companies, Palo Alto Networks (PANW), Palantir Technologies (PLTR), and Broadcom Inc. (AVGO), are breaking out to new highs in 2025, driven by expected double-digit earnings growth. Investors should put these stocks on their short lists, despite their high valuations.

Palo Alto Networks, a global cybersecurity company, has a market cap of $133.7 billion and is expected to grow earnings by 15.1% in 2025. The company's shares are trading near their all-time highs as cybersecurity demand remains elevated. Year-to-date, it's up 8.2%. With a PEG ratio of 3.0, the company is neither too expensive nor a value stock [1].

Palantir Technologies, an AI-driven software company, has a market cap of $308 billion and is expected to grow earnings by 41.5% in 2025. The company has been one of the hottest stocks of 2025, gaining 75% year-to-date. However, even with the growth, Palantir is an expensive stock. It trades with a PEG ratio of 7 and a price-to-sales (P/S) ratio of 99, indicating high valuations [2].

Broadcom Inc., a $1.2 trillion dollar semiconductor company, is expected to grow earnings by 36.3% in 2025. Shares of Broadcom are up 16.3% year-to-date and are hitting new all-time highs. Compared to other red-hot technology companies, Broadcom has an attractive PEG ratio of just 1.6, indicating a cheaper valuation [2].

Despite their high valuations, these stocks are expected to continue their momentum, driven by strong earnings growth and market demand. Investors should keep an eye on these companies as they could offer significant returns in the coming years.

References:
[1] https://www.theglobeandmail.com/investing/markets/stocks/PLTR/pressreleases/33202019/3-red-hot-stocks-for-the-second-half-of-2025/
[2] https://au.finance.yahoo.com/quote/PLTR.MX/news/