2 Unstoppable Stocks to Buy With Great Upside Potential
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Market volatility comes and goes, but holding a portfolio of well-chosen growth stocks is the easiest way to build wealth. It doesn't matter if you have $50 or $5,000; regularly...
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real estate
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July 2, 2025
06:30 AM
The Motley Fool
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Market volatility comes and goes, but holding a portfolio of well-chosen growth stocks is the easiest way to build wealth
It doesn't matter if you have $50 or $5,000; regularly buying s of growing es in the stock market is one of the smartest moves you can make for your financial future
Here are two stocks than can der great returns for investors over the long term
Image source: Getty Images
Amazon s of Amazon (AMZN -0. 23%) have doubled since the market bottomed out in 2022, but s are up only 58% in the last five years
This is despite a 400% increase in the company's net income over that period
Amazon's opportunity to imve margins, especially with the use of robots in its fulfillment network, is an opportunity that is not reflected in the stock's valuation
On a trailing-12-month basis, Amazon's operating cash flow, or cash from operations (CFO), increased 15% year over year to $114 billion in the first quarter
It has increased meaningfully over the past few years, as management focuses on imving customer experiences while lowering costs
This growth in cash flow has brought Amazon's price-to-CFO multiple down to 21, below its previous 10-year average of 27
If Amazon can continue to grow its fits and operating cash flow at high rates in the coming years, the stock would be significantly undervalued right now and offer attractive upside
Amazon has added more than 750,000 robots across its retail, which is speeding up deries while lowering costs
Amazon's investments in artificial intelligence (AI) could make it one of the leaders in robotics -- an industry that could be worth trillions within the next few decades
Just looking at Amazon's opportunity to lower costs with robots in its e-commerce warehouses, Morgan Stanley analyst Brian Nowak believes the company could more than $10 billion in costs by 2030
But that estimate is based on less than half of Amazon's orders in the U
Being cessed by robots
As it scales robots to all fulfillment centers, including assisting with dering packages to customers' door, the savings could add up significantly
There's ly a lot of room for Amazon to lower costs and imve margins over the long term
With the stock trading close to its lowest price-to-CFO multiple in 10 years, Wall Street hasn't figured this out yet, which makes it a compelling buy right now
Roku Roku (ROKU 0. 39%) is one of the biggest brands in digital entertainment
It is the No. 1 TV operating system in the U. , Mexico, and Canada
Viewers spent more than 35 billion hours last quarter watching content on the platform
The stock has been underwater due to challenges in the digital advertising market, which is how Roku makes money
The stock's underperformance the past few years has brought its valuation down to levels that may undervalue Roku's growth opportunity as more households ditch cable in favor of ing
Roku is well positioned to capture a significant of digital ad spending flowing from traditional TV to ing platforms
Its platform revenue grew 17% year over year in the first quarter, driven by healthy spending from advertisers
Roku's ad revenue grew faster than the over-the-top ad market, which are the ads shown to consumers through ing services
This indicates the value that leading brands are placing on Roku's large audience reach
Roku has multiple ways to monetize its platform and drive revenue growth
Management is looking to take advantage of its screen, where millions are landing every time they fire up their Roku TV
This is prime digital real estate for advertisers
Management also sees opportunities to better take advantage of imving the user interface for content discovery and subscriptions to third-party services, where Roku also earns revenue
Roku's growth is ultimately being driven by millions of people still in the cess of ditching costly cable subscriptions for more affordable ing options
The is still relatively small compared to the revenue it could generate in 10 years
Connected TV advertising is one of the fastest-growing segments of the $800 billion digital ad market
Roku generated $4. 2 billion in trailing revenue, which is a small fraction of the $35 billion connected TV ad market
The stock's 2. 94 price-to-sales multiple undervalues the long-term growth Roku will continue to see from more users signing up and advertisers more to get exposure to this large audience on the platform
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors
John Ballard has no position in any of the stocks mentioned
The Motley Fool has positions in and recommends Amazon and Roku
The Motley Fool has a disclosure policy.
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