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5 Best Short Term Stocks to Buy for Q1 2025
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Looking for good stocks to buy and hold for a short or longer period. In this article, we look at some of the top companies that combine strong value and momentum, which could see them generate strong returns in the near term.
What are the top short term stocks to buy?
Copy link to sectionBuying short term stocks can be done by buying shares in companies and holding them for a short period of time. The table below picks out five stocks our experts believe will perform well over the next few months.
# | Stock symbol | Company name | Learn more |
---|---|---|---|
1 | AMD | Advanced Micro Devices | Learn more > |
2 | PDD | PDD Holdings | Learn more > |
3 | PYPL | PayPal | Learn more > |
4 | LVS | Las Vegas Sands | Learn more > |
5 | AVGO | Broadcom | Learn more > |
1. Advanced Micro Devices (NASDAQ: AMD)
Copy link to section- Market cap: $271 billion
- Dividend yield: N/A
- 1-year return: 42%
- Country: USA
- Stock price: $167
Artificial Intelligence has become the hottest theme in the world, helped by the rising demand for products like Claude, Google Gemini, and ChatGPT. This trend has benefited many semiconductor companies, with Nvidia becoming the best performer.
AMD has not benefited substantially from this trend even as its stock jumped by over 40% in the past 12 months. This performance is mostly because AMD’s revenue growth has not been all that strong in the past few months.
However, there is a likelihood that the company will turn itself around and benefit from the AI theme. It has launched new AI GPUs that it hopes will compete with those made by Nvidia. Analysts at Citigroup expect that these chips will gain about 10% market share in the data center field in the coming years.
Analysts are bullish on the AMD stock, with the average stock target being $187, higher than the current $167. Some of the most bullish are from companies like Jefferies, Benchmark, Citigroup, and UBS.
2. PDD Holdings (NASDAQ:PDD)
Copy link to section- Market cap: $200 billion
- Dividend yield: N/A
- 1-year return: 98%
- Country: China
- Stock price: $143
PDD Holdings, formerly known as Pinduoduo, is one of the best short-term stocks to buy in 2024. The company has grown to become a fast-growing e-commerce company in China, the second-biggest country in the world by GDP.
Most importantly, it has changed its strategy and aimed to become a leading player in the global e-commerce industry. It launched Temu in 2022, an app that has become the top performers in the retail industry globally.
All these investments have helped PDD Holding’s revenue figures to surge in the past few years. Total revenue jumped to over $34.8 billion in 2023 from $18.9 billion a year earlier. It has also become highly profitable, with its net profit soaring to over $11 billion.
PDD Holdings also has one of the best balance sheets in the corporate world with over $33 billion in cash and short-term investments and just $735 million in debt.
Therefore, it is a good company to invest in because of its strong Chinese and international business and its strong balance sheet. The only risk is that it is a Chinese company and tensions between Beijing and Washington could affect its growth. For example, Temu could be banned in the US as we saw with TikTok.
3. PayPal (NASDAQ: PYPL)
Copy link to section- Market cap: $70 billion
- Dividend yield: N/A
- 1-year return: 5%
- Country: United States
- Stock price: $67
PayPal, one of the most recognizable brands in the financial services industry, has become a fallen angel in the past few years. Its stock has crashed from over $300 in 2021 to less than $70 today.
PayPal’s business is going through major challenges as the number of users in its platform crash and as competition rises. Its branded business is seeing competition from the likes of Remily and Wise.
On the other hand, its unbranded division is seeing strong competition from companies like Klarna, Affirm, and Apple Pay. All this has led to a company whose revenue is no longer growing and whose margins have thinned.
At the same time, PayPal has become one of the most undervalued companies in the fintech space. It has a forward P/E multiple of 16.3, which is lower than the forward S&P 500 multiple of 21.
The company has a room to bounce back in 2024 as the management focuses on turning around its businesses. One approach would be to sell some of its underperforming companies and cut costs.
4. Las Vegas Sands (NYSE:LVS)
Copy link to section- Market cap: $33.5 billion
- Dividend yield: 1.78
- 1-year return: -23%
- Country: United States
- Stock price: $67
Founded in 1988, Las Vegas Sands is a casino and resort company based in Nevada who also own properties around the world. The Venetian and Palazzo are two of the resorts it developed on the Las Vegas Strip while also operating several resorts in Macau and Asia.
Like most resort and casino stocks, the pandemic hit the company hard when lockdowns effectively shut it down for months. LVS was particularly hit as it has never moved into the online gambling space, limiting revenue streams.
Las Vegas Sands is a good short-term stock to buy because it has become severely undervalued in the past few months. It has a forward P/E ratio of about 16, lower than most companies in Wall Street.
The company’s business is growing, helped by its locations in Macau, where it makes most of its money. Recent financial results show that the company is moving back to its pre-pandemic normal. Its revenue tumbled to $2.9 billion in 2020 and has been growing since then.
It brought in $4.2 billion in 2021 followed by $4.1 billion in 2022 and $10.3 billion in 2023. This growth trajectory will continue, with the average revenue estimate for 2024 being $11.4 billion and $12.7 billion in 2025.
Las Vegas Sands is also a highly profitable company as its earnings per share (EPS) is expected to move from $1.89 in 2023 to $2.7 in 2024 and $3.09 in 2025.
5. Broadcom (NASDAQ: AVGO)
Copy link to section- Market cap: $651 billion
- Dividend yield: 1.49%
- 1-year return: 77%
- Country: United States
- Stock price: $1,406
Broadcom is one of the best technology companies to invest in. In the past few years, the company has grown organically and through acquisitions. Some of its biggest acquisitions are companies like Avago Technologies, Brocade Communications, CA Technologies, Symantec, Cypress Semiconductor, and VMware.
As a result, the company’s annual revenue has surged from over $22.5 billion in 2019 to over $35 billion in 2023. The average estimate is that its annual revenue will soar to $50 billion this year followed by $57 billion in 2025. Its earnings per share is expected to grow from $46.97 in 2024 to $57.11 in 2025.
Broadcom is a great company to invest in because of its growing revenues and dependable payouts to investors. However, the biggest issue to remember is that the company’s balance sheet has become stretched because of its past acquisitions. It now has over $73 billion in debt and $11.8 billion in cash, giving it a net debt of 61 billion, which is still high.
Where to buy the best short term shares
Copy link to sectionIf you’re looking to invest for a short period of time, the best place to do so is with a broker. Check out our recommended brokers below.
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What is a short term stock?
Copy link to sectionShort term stocks are stocks that are better suited for holding for a short period of time. These types of stocks are typically bought and sold within a few hours to a few months.
These stocks have certain characteristics and investors are mostly concerned with how the company is performing now, as opposed to how it may perform many years down the line.
Are short term shares a good investment?
Copy link to sectionThat depends on the type of investor you are and your investment goals. These shares make good investments for people who do not want to hold a stock for many years while being exposed to wider market volatility.
Investors in short term stocks tend not to worry about the overall fundamentals of a company and are more focused on near term movements and upcoming news releases. Short term shares are a good idea for investors wanting to put unused capital to work while benefiting from quick price movements.
Before buying shares for a short period of time, it’s a good idea to keep an eye on the latest developments, which you can do by clicking the links below.
Methodology: How we choose the best short term stocks
Copy link to sectionAt Invezz, our mission is to empower our readers with the most accurate and reliable financial information. Our curated selection of the best stocks in specific industries is designed to provide investors with well-researched, expertly reviewed stock recommendations. Our team follows a rigorous process to ensure our readers receive high-quality, trustworthy stock selections.
- Initial screening. Our team of experienced stock market analysts conducts an initial screening of stocks within the chosen industry. This involves analyzing a broad range of companies based on key financial metrics such as revenue growth, profitability, debt levels, and market capitalization.
- Earnings reports and financial analysis. Analysts review the latest earnings reports of shortlisted companies. This includes a detailed assessment of financial statements, looking for consistent earnings growth, strong balance sheets, and positive cash flow trends. Special attention is given to year-over-year performance and quarterly results.
- Sector analysis. A comprehensive sector analysis is conducted to understand the macroeconomic factors affecting the industry. This includes examining market trends, competitive landscape, regulatory changes, and technological advancements. Our analysts utilize industry reports, market research, and economic forecasts to gain a holistic view of the sector.
- Analyst recommendations. We consider recommendations from reputable sources such as Barron’s and Zacks. These sources provide expert opinions and ratings on stocks, which serve as an additional layer of validation for our selections. Incorporating external analyst recommendations ensures that our curated stocks are backed by a consensus of expert views.
- Internal review. After the initial selection by our analysts, the chosen stocks are reviewed by a sub-editor. The sub-editor ensures that the analysis is clear, concise, and adheres to Invezz’s editorial guidelines. This review process helps maintain the quality and readability of our content, making it accessible to a broad audience.
- Quarterly updates. To ensure our stock recommendations remain relevant and up-to-date, we update the curated section quarterly. Each update cycle involves re-evaluating the stocks based on the latest financial reports, industry developments, and market conditions. This regular update process ensures that our recommendations reflect the most current information available.
Our approach combines expert analysis, comprehensive research, and regular updates to deliver reliable and insightful investment recommendations. Read more about our review process and editorial policy.