Picking stocks can lead to higher returns than sticking with investing in an index fund, but you don't have to turn to speculative plays to achieve compounded gains. Some stocks have reasonable valuations, multiple tailwinds, and financial growth that warrant a closer look.
You'll see corporations of all sizes check those boxes: trillion-dollar giants, large-cap companies, and even small caps. These three stocks may lead to long-term wealth if they continue their current trends.
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1. Amazon can't stay down for another year
Amazon (AMZN +0.20%) has been a surprising laggard this year, only showing a 3% gain as 2025 approaches its final weeks. However, the e-commerce leader continued to deliver attractive financial growth rates that suggest a rebound is on the way.
NASDAQ: AMZN
Key Data Points
Amazon's 13% net sales increase in Q3 and rising profit margins outpaced the stock's one-year return. While revenue from online stores achieved moderate growth, the company's cloud platform and online ads continued to soar. Amazon Web Services was up by 20% year over year, while online ad revenue surged by 24% year over year.
The tech stock offers exposure to multiple business segments. Amazon also has plenty of cash flow to invest in additional opportunities. Amazon's Trainium2 AI chips could become a major revenue driver in the future. AI chip sales are up by 150% quarter over quarter for the company and are already a multibillion-dollar business.
It may take a few years before AI chip sales meaningfully impact Amazon's revenue, since it brought in $180.2 billion in Q3. However, its cloud computing and ads are already having a tangible impact on total sales. Amazon's revenue growth may accelerate as these two business segments continue to gain momentum.
2. SoFi brought back crypto trading
SoFi (SOFI +2.92%) stock has almost doubled this year as the fintech leader continues to gain ground in multiple categories. Online banks have become more accepted, and some people see the benefits of online banks over traditional banks, such as higher APYs and lower fees.
NASDAQ: SOFI
Key Data Points
The fintech firm's revenue jumped by 38% year over year in Q3, with multiple product categories performing well. SoFi Invest was the worst-performing category, with 27% year-over-year growth. That's still pretty good, and five other components of SoFi's business did even better.
However, SoFi Invest shouldn't be the slowest-growing part of the business for long. SoFi recently brought back crypto trading, which is likely to increase trading volume, attract more users, and bring additional attention to SoFi's other financial products.
The fintech leader now has 12.6 million members after adding 905,000 members in Q3. Total membership increased by 35% year over year. SoFi may see new memberships accelerate with its crypto offering.
3. Pinterest is an underrated social media stock
When most people think about social networks, they think about Facebook, Instagram, YouTube, and X. However, Pinterest (PINS +0.08%) is another fast-growing platform that is an underrated growth stock. It has more than 600 million monthly active users and recently delivered 17% year-over-year revenue growth in Q3. Pinterest more than tripled its profits in the quarter as well.
NYSE: PINS
Key Data Points
Pinterest CEO Bill Ready said that he views Pinterest as "an AI-powered shopping assistant" and a leader in visual search. He also told investors that the social network is attracting more international advertisers.
The visual platform grew in all key regions, but it has a large opportunity in Europe and other international countries. Revenue from those regions increased by 41% and 66% year over year, respectively. The company's average per user in those regions also surged, with Europe up by 31% and international markets up by 44% year over year.
Pinterest's ability to attract more users while boosting the average revenue per user is a healthy dynamic that could pave the way for additional stock gains. The stock is down by 15% this year, with some analysts citing tariff-related issues for U.S. retailers as headwinds. However, Pinterest guided for 14% to 16% year-over-year revenue growth in Q4, which is in line with Q3 results. If Pinterest can maintain its momentum, the social media stock may become a winner in 2026.
