Nancy Tengler has unveiled her “Five for 25” stock picks from the firm\u2019s 12 Best Ideas portfolio. These companies showcase strong earnings potential and innovative strategies, making them ideal for investors seeking long-term growth. Below, we explore these top selections, their standout qualities, and why they remain core holdings for Laffer Tengler Investments.<\/p>\n\n\n\n
Amazon continues to shine under the leadership of CEO Andy Jassy, who has skillfully steered the company post-Bezos. Amazon is projected to grow earnings by 21% in 2025 and 22% in 2026. This growth is supported by robust free cash flow, estimated to surpass $60 billion in 2025, even after heavy capital expenditures.<\/p>\n\n\n\n
The stock’s price\/earnings-to-growth (PEG) ratio is under 2.0x for 2025 and just over 1.0x for 2026, reflecting a solid valuation. Tengler notes that Amazon\u2019s earnings-driven growth positions it as a top performer, cementing its status as a stock to own for the long haul.<\/p>\n\n\n\n
ServiceNow, led by CEO Bill McDermott, is capitalizing on the convergence of cloud computing, AI, and workflow automation. The company\u2019s AI products are the fastest-growing in its history, with use cases across various sectors driving unprecedented demand.<\/p>\n\n\n\n
Earnings growth for ServiceNow is expected to remain at 20% annually for the foreseeable future. McDermott\u2019s assertion that AI spending could reach $20 trillion by 2030 highlights the enormous runway ahead for companies like ServiceNow. Tengler considers McDermott one of the best CEOs in America, making ServiceNow a compelling choice for investors seeking exposure to the AI revolution.<\/p>\n\n\n\n
Spotify, a recent addition to the 12 Best Ideas portfolio, is transforming its business through enhanced monetization strategies. CEO Daniel Ek declared 2024 the \u201cyear of monetization,\u201d emphasizing growth in audiobooks, advertising, and subscriber engagement.<\/p>\n\n\n\n
The company is expected to deliver earnings growth of 58% in 2025, with a PEG ratio below 1.0x. While growth may slow to 28% in 2026, Spotify\u2019s valuation remains attractive. Tengler likens Spotify to Netflix as a recession-resistant leader in its space, capable of adapting to changing consumer preferences.<\/p>\n\n\n\n
Goldman Sachs, a portfolio member since 2021, has faced challenges but is now poised for recovery. CEO David Solomon has refocused the company after its troubled retail banking venture, while AI adoption enhances analytical functions and operational efficiency.<\/p>\n\n\n\n
As mergers and acquisitions gain momentum in a more favorable regulatory environment, Goldman Sachs stands to benefit. With a modest 13.4x forward earnings valuation and improving macro conditions, the firm is well-positioned for future growth.<\/p>\n\n\n\n
Broadcom, under CEO Hock Tan, continues to thrive, blending hardware and software with exceptional results. Recent earnings revealed AI-driven revenue opportunities of $60 billion to $90 billion by 2027, excluding new data center customers.<\/p>\n\n\n\n
Broadcom\u2019s capital allocation plan includes an 11% dividend increase, signaling a focus on rewarding investors while reducing debt from the VMware acquisition. With stable earnings growth projected at 28% in 2025 and 21% in 2026, the company\u2019s PEG ratio of 1.2x reflects its strong value proposition.<\/p>\n\n\n\n
Tengler emphasizes that exceptional management teams are the foundation of her stock picks. Leaders like Jassy, McDermott, Ek, Solomon, and Tan exemplify the ability to pivot and execute strategies that drive earnings growth. This focus aligns with her investment philosophy: earnings growth ultimately drives stock prices.<\/p>\n\n\n\n
While the “Five for 25” captures the spotlight, Tengler remains bullish on other names like Walmart (WMT), Tesla (TSLA), Microsoft (MSFT), Chipotle (CMG), and Palo Alto Networks (PANW). These companies also boast strong growth prospects and innovative strategies but fell outside the catchy headline criteria.<\/p>\n\n\n\n
For investors seeking a comprehensive view of Laffer Tengler Investments\u2019 top picks, Tengler invites readers to explore her research on these additional names. As Tengler concludes, \u201cGreat management teams drive earnings growth, and earnings growth drives stock prices.\u201d<\/p>\n\n\n\n
Her \u201cFive for 25\u201d portfolio offers a compelling roadmap for investors aiming to build wealth through thoughtful, long-term stock ownership.<\/p>\n\n\n\n