ValuEngine’s Top 10 for 2025

Last year, I was asked by a local investing club to provide a list of ValuEngine’s top 10
stock picks for 2024. I screened our list for top-rated stocks with at least $10 Billion in
Market Capitalization and excluded ADRs and stocks not ranked by any analysts
according to our data feed. This top 10 list, as it was published in the January 2024
ValuEngine blog “stocks to Watch in 2024”, is posted below.

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The list included three Internet companies: Spotify (SPOT); Affirm Holdings (AFRM);
and Okta (OKTA). Also Included were three software companies: Twilio (TWLO); Block
(SQ); and Unity Software (U). Rounding out the field were two companies in the
Leisure and Gambling Sector, Carnival (CCL) and DraftKings (DKNG); along with
Auto/Tech company Tesla (TSLA) and Media company Roku (ROKU).

Here were the results for calendar year 2024:

1-Yr.
Company Price Price Price
Ticker Name Sector Name 12/31/2024 12/29/2023 Return

CARNIVAL Consumer
CCL CORP Discretionary 24.54 18.31 34.03%

AFFIRM Business
AFRM HOLDINGS Services 62.63 46.60 34.40%

TWILIO Computer and

TWLO INC-A Technology 108.62 75.87 43.17%

TSLA TESLA INC Auto-Tires-Trucks 417.41 250.08 66.91%

Consumer
ROKU ROKU INC Discretionary 74.89 91.65 -18.29%
SPOTIFY Business
TECH SA Services 451.79 188.80 139.30%

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 SPOT

DRAFTKING Consumer
DKNG S INC Discretionary 37.10 35.25 5.25%

UNITY Computer and

U SOFTWARE Technology 22.51 40.89 -44.95%
Computer and
OKTA OKTA INC Technology 79.64 90.53 -12.03%

Business
SQ BLOCK INC Services 87.48 77.35 13.10%

Total VE Top
10 Portfolio Equal-Weight 26.09%

Comparisons/
Benchmarks:

SPY S&P 500 SPDR Trust ETF 588.22 469.23 24.89%

Invesco S&P 500 Equal Weight

RSP ETF 175.23 155.36 12.78%

Current ValuEngine reports on all covered stocks and ETFS can be viewed HERE

The results indicate that this methodology applied at the end of 2023 resulted in a
strong top ten list in 2024. In a year that Standard & Poor’s SPIVA (S&P vs. Active) Blog
reported that more than 75% of actively managed mutual funds underperformed the
24.9% gain of the S&P 500 SPDR Trust ETF (SPY), an equally weighted portfolio of
these 10 stocks would have gained 26.1%. This is not statistically significant
outperformance, but it is worth noting in a year that any edge in rates of return was quite
rare.

Moreover, it is well known that the ”Magnificent” top-seven mega-caps drove the
performance of the cap-weighted index while the average S&P 500 stock did not
perform nearly as well. Since we equally weight our top ten portfolio, a better
benchmark ETF would have been the Invesco S&P 500 Equal Weight ETF (RSP).
Here, the ValuEngine Top 10 portfolio more than doubled the 12.8% recorded by RSP.
Another way of looking at it is that the price change of the average stock in the VE Top

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10 was double that of the average stock in the S&P 500 Index. Moreover, this
performance was achieved with just one mega-cap stock, Tesla (TSLA). Not one of the
other nine stocks are in the largest 100 within the S&P 500 and more than half of the
stocks are considered midcap.

Since the methodology produced such a resilient portfolio, we repeated the process
using ValuEngine’s data from the 12/31/2024 close to choose 10 stocks meeting this
same criteria for the next year.

Introducing the Top 10 List for 2025

Market
Company Cap VE Forecast Valuation
Rank Ticker Name ($Bil) Price Rating Ranking Ranking

CARVANA
1 CVNA CO 36.8 203.40 5 100 86

TWILIO
2 TWLO INC-A 17.3 108.10 5 100 86

PAYPAL
3 PYPL HOLDINGS 87.8 85.35 5 100 81

CREDO
4 CRDO TECH GRP 12.1 67.21 5 99 62

TENET
5 THC HEALTH 11.7 126.20 5 99 78

CHEWY
6 CHWY INC 14.7 33.49 5 99 72

BLOCK
7 SQ INC 56.8 84.99 5 99 85

INTUITIVE
8 ISRG SURG 190.7 522.00 5 99 92

DOCUSIGN
9 DOCU INC 18.2 89.94 5 99 83

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 GENERAL
10 GM MOTORS 56.9 53.27 5 98 55

Current ValuEngine reports on all covered stocks and ETFS can be viewed HERE

All ten stocks receive ValuEngine’s highest rating of 5 (Strong Buy). All are in the top
50% of our universe according to our valuation model. The two company names in bold
are holdovers from last year’s list.

Here are some brief business summaries for the companies behind these stocks.

Carvana Corp. (CVNA) together with its subsidiaries, operates an e-commerce platform
for buying and selling used cars in the United States. Its platform allows customers to
research and identify a vehicle; inspect it using the company's 360-degree vehicle
imaging technology; obtain financing and warranty coverage; purchase the vehicle; and
schedule delivery or pick-up from their desktop or mobile devices. The company also
operates auction sites. The company was founded in 2012 and is based in Tempe,
Arizona.

Twilio Inc. (TWLO) together with its subsidiaries, provides customer engagement
platform solutions in the United States and internationally. The company provides
various application programming interfaces and software solutions for communications
between customers and end users, including messaging, voice, email, flex, marketing
campaigns, and user identity and authentication. Twilio Inc. was incorporated in 2008
and is headquartered in San Francisco, California.

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PayPal (PYPL) - operates a technology platform that enables digital payments on behalf
of merchants and consumers worldwide. It operates a two-sided network at scale that
connects merchants and consumers that enables its customers to connect, transact,
and send and receive payments through online and in person, as well as transfer and
withdraw funds using various funding sources, such as bank accounts. The company
provides payment solutions under the PayPal, PayPal Credit, Braintree, Venmo, Xoom,
Zettle, Hyperwallet, Honey, and Paidy names. The company was founded in 1998 and
is headquartered in San Jose, California.

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Credo Technology Ltd (CRDO) provides various high-speed connectivity solutions for
optical and electrical Ethernet applications globally. Its products include HiWire active
electrical cables, optical digital signal processors, low-power line card PHY, and SerDes
IP, as well as integrated circuits, active electrical cables. The company also offers
intellectual property solutions. It sells its products to hyperscalers, OEMs, ODMs and
optical module manufacturers. The company was founded in 2008 and is based in
Grand Cayman, Cayman Islands.

Tenet Healthcare Corporation (THC) operates as a healthcare services company in the

United States. The company operates through two segments: Hospital Operations and
Services, and Ambulatory Care. Its general hospitals offer acute care services,
operating and recovery rooms, radiology and respiratory therapy services, clinical
laboratories, and pharmacies. The company also provides intensive and critical care,
and/or coronary care units; cardiovascular, digestive disease, neurosciences,
musculoskeletal, and obstetrics services; outpatient services, including physical
therapy; tertiary care services, such as cardiothoracic surgery, complex spinal surgery,
neonatal intensive care, and neurosurgery services; quaternary care services in heart
and kidney transplants; and limb salvaging vascular procedure, acute level 1 trauma,
intravascular stroke care, minimally invasive cardiac valve replacement, imaging,
surgical robotic, and telemedicine access services. In addition, it offers a range of
procedures and services, such as orthopedics, total joint replacement, and
musculoskeletal procedures; gastroenterology; pain management; otolaryngology;
ophthalmology; and urology. It operates hospitals, ambulatory surgery centers, imaging
centers, surgical hospitals, and micro-hospitals. Tenet Healthcare Corporation was
founded in 1967 and is headquartered in Dallas, Texas.

Chewy, Inc. (CHWY), together with its subsidiaries, engages in pure play e-commerce
business in the United States. It provides pet food and treats, pet supplies and pet
medications, and other pet-health products, as well as pet services for dogs, cats, fish,
birds, small pets, horses, and reptiles through its retail websites and mobile
applications. The company was founded in 2010 and is based in Plantation, Florida.

Block, inc. (SQ) – operates as a technology company with a focus on financial services.
It builds tools to help people to access the economy. Its products include Square that
makes commerce and financial services easy and accessible for sellers with its
integrated ecosystem of technology solutions; Cash App to send, spend, or invest
money in stocks or bitcoin; Afterpay for connecting consumers and businesses; TIDAL;
and TBD that is building an open source platform and developer infrastructure which
enables everyone to participate in the global economy. The company, formerly known
as Square, Inc. was incorporated in 2009 and is based in Oakland, California.

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Intuitive Surgical Inc. (ISRG) develops, manufactures, and markets products that
enable physicians and healthcare providers to enhance the quality of and access to
minimally invasive care in the United States and internationally. The company offers the
da Vinci Surgical System that enables complex surgery using a minimally invasive
approach; and Ion endoluminal system, which extends its commercial offerings beyond
surgery into diagnostic procedures enabling minimally invasive biopsies in the lung. The
company sells its products through direct sales organizations, such as capital and
clinical sales teams. It has a collaboration agreement with FluoGuide A/S for head &
neck cancer. The company was incorporated in 1995 and is headquartered in
Sunnyvale, California.

DocuSign, Inc. (DOCU) provides electronic signature solutions globally. The company
provides e-signature solution that enables sending and signing of agreements on
various devices; Contract Lifecycle Management (CLM), which automates workflows
across the entire agreement process; Document Generation streamlines the process of
generating new, custom agreements; and Gen for Salesforce, which allows sales
representatives to automatically generate agreements with a few clicks from within
Salesforce. It also provides Identify, a signer-identification option for checking
government-issued IDs; Standards-Based Signatures, which support signatures that
involve digital certificates; Monitor that uses advanced analytics to track DocuSign
eSignature web, mobile, and API account; Notary which enables notaries public to
conduct remote online notarization transactions; and Web Forms, a web forms that
quickly draft agreements using pre-populated data from completed forms or external
systems via APIs. In addition, the company offers Rooms for Real Estate that provides a
way for brokers and agents to manage the entire real estate transaction digitally.
Signature and CLM are FedRAMP, an authorized version of DocuSign eSignature for
U.S. federal government agencies; and life sciences modules that support compliance
with the electronic signature practices. The company sells its products through direct
and partner-assisted sales, and digital self-service purchasing. DocuSign, Inc. was
incorporated in 2003 and is headquartered in San Francisco, California.

General Motors Company (GM) designs, builds, and sells trucks, crossovers, cars, and
automobile parts; and provides software-enabled services and subscriptions worldwide.
It markets its vehicles primarily under the Buick, Cadillac, Chevrolet, GMC, Baojun, and
Wuling brand names. In addition, the company sells trucks, crossovers, cars, and
automobile parts through retail dealers, and distributors and dealers, as well as to fleet
customers, including daily rental car companies, commercial fleet customers, leasing
companies, and governments. Further, it offers a range of after-sale services through
the dealer network, such as maintenance, light repairs, collision repairs, vehicle
accessories, and extended service warranties. Additionally, the company provides

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automotive financing; and software-enabled services and subscriptions. General Motors
Company was founded in 1908 and is headquartered in Detroit, Michigan.

This list focuses mainly on growth companies. Beyond that, six of them focus on either
direct-to-consumer sales or revenues from small businesses using their services. Many
are easily recognizable names. Yet the largest company in market cap, Intuitive Surgical
(ISRG), is probably one of the less familiar names to most people. The majority of the
companies were founded in the 21st Century and are headquartered in the state best
known for new-economy technology companies, California. One newcomer on the list,
General Motors (GM), is a glaring exception to almost all the characteristics I listed. It is
a value company founded more than 100 years ago and headquartered in Michigan.

This list is provided primarily as a monitoring tool. As always, potential investors and
the advisors are advised to read the entire ValuEngine report and the summary
prospectus among other “homework” before investing. While we are thrilled with the
performance of the top ten list and the ValuEngine signals generally, 2024 is just one
year and the first in which we had published a top ten list. Even 20 years of superior
performance do not guarantee future success, let alone one. ValuEngine “Buy” signals
in general have provided superior return records over most long-term periods and were
especially strong in 2023 and 2024. However, we’ve had our signals-in-reverse years
also so there are no prudent shortcuts to due diligence. Let our signals lead you to
focus your investigations, then do your own homework.

________________________________________________________________

By Herbert Blank

Senior Quantitative Analyst, ValuEngine Inc

www.ValuEngine.com

[email protected]

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