3 stocks that could come to life in 2025

While 2024 was a successful year for many investors, roughly a third of stocks on U.S. exchanges ended lower. Some of these losing stocks will have to overcome major challenges to return to the top, but a few have the potential to outperform the market in 2025, according to analysts.

Such candidates include Advanced Micro Devices (AMD), Comcast and Realty Income. Let's take a look at why these companies might be worth a look.

Advanced Micro Devices: artificial intelligence on the rise

AMD $AMD ended 2024 with an 11% drop in stock price, despite benefiting from the artificial intelligence (AI) boom overall. The company's data center division posted a 122% year-over-year increase in revenue, meaning that more than half of the company's total revenue now comes from this area. On the other hand, the gaming segment lost 69% and embedded solutions fell 25%.

Despite these declines, AMD achieved overall revenue growth of 22%, its highest rate in two years. The outlook for 2025 suggests even stronger growth of 27%. Earnings are growing even faster than revenues, indicating a solid foundation for future growth. Although AMD stock is not cheap, its valuation could prove attractive given the long-term potential of AI and technology innovation.

Comcast: Challenges and new opportunities

The year 2024 has been a challenging one for Comcast $CMCSA, with shares down 11%. The company is struggling with a decline in broadband subscribers, a result of increasing competition from cheaper wireless services. On the other hand, however, Comcast has its trump cards. The film production has been a huge success with the first episode of Wickedwith a second installment planned for next year.

In addition, a new Epic Universe theme park is set to open in May 2025, which will boost revenue from the entertainment division. The company also boasts a stable dividend, which has been growing steadily since 2008. Comcast is an example of a company that can adapt and make the most of even a difficult environment.

Realty Income: Stability and attractive yields

Realty Income $O, also known as "O," ends 2024 with a slight decline in its stock price. This real estate investment trust (REIT) owns more than 15,000 properties across 90 sectors and boasts a 98.7% occupancy rate. It is known for its monthly dividend payout, which has been growing continuously for 108 quarters.

Earnings growth of 5% is expected in 2025, meaning shareholders can look forward to further dividend increases. Moreover, falling interest rates make its 5.6% dividend yield more attractive. Realty Income thus remains a stable choice for investors seeking regular income and long-term security.

Disclaimer: You will find a lot of inspiration on Bulios, but stock selection and portfolio construction is up to you, so always conduct a thorough analysis of your own.

Source: TheMotleyFool