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2 Soaring Stocks I'd Buy Now With No Hesitation

The Motley FoolAug 23, 2025 7:15 AM

Key Points

Investing in growing companies is how you can stay on top of your financial goals and build wealth. Stocks showing relative strength are companies you should be curious about, because all great companies in the past have one thing in common: a share price that hits new highs over time.

That said, let's look at two soaring stocks that still offer excellent return potential.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

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1. Take-Two Interactive

Investors can position themselves to earn substantial returns in the stock market by investing where younger generations are spending more time and money. One of the industries benefiting from continued engagement by younger generations is video games -- a $189 billion industry, according to Newzoo, which only keeps growing as technology advances.

Take-Two (NASDAQ: TTWO) is one of the best gaming stocks to buy in 2025. The stock has surged to new highs this year and is up 51% over the past year, more than doubling the return of the Nasdaq.

It makes perhaps the most popular gaming franchise of all time -- Grand Theft Auto. The latest installment in the 20-plus-year series has sold morethan 215 million copies since 2013. The sixth installment releases on May 26, 2026, which falls under Take-Two's fiscal 2027, and should kick off several more years of profitable growth for the company.

As investors wait for that blockbuster title to release, Take-Two's existing games are performing well. It just reported record bookings (non-GAAP adjusted revenue) for fiscal 2025, which ended in March, and followed that up with another strong quarter to start fiscal 2026. Top games in its lineup, like NBA 2K, Red Dead Redemption 2, and several mobile titles, including Words With Friends! and Toon Blast, continue to attract players and drive revenue from in-game spending.

What makes Take-Two a solid business is that 83% of its bookings last quarter didn't come from new game sales but recurrent consumer spending, which includes high-margin sales of extra content players buy while playing a game. This extends the life of the game and keeps players engaged for longer periods. This is also why Grand Theft Auto, which offers endless entertainment through ongoing updates, can drive strong earnings for the business.

Analysts expect Take-Two's earnings to grow at an annualized rate of 42% over the next few years. Despite the stock's recent rise, investors can still earn market-beating returns through 2030.

A music artist performing at a concert.

Image source: Getty Images.

2. Live Nation Entertainment

Live Nation Entertainment (NYSE: LYV) is another growth stock sitting close to new highs in 2025 that still offers attractive return prospects. It has delivered market-beating returns for many years, but it has particularly benefited from a post-pandemic boom in live concert spending -- a $36 billion market that is expected to reach $47 billion by 2030.

Live Nation, which owns Ticketmaster and operates a growing footprint of venues around the world, dominates this market. Revenue grew 16% year over year to $7 billion, which it mostly earns from concerts and related ticket sales, with a small amount of revenue coming from sponsorships and advertising. Strong financial results have lifted the stock 68% over the past year, significantly outperforming the broader market.

Global attendance is booming, up 14% year over year, reaching 44 million fans. The company said that stadium attendance tripled over the year-ago quarter, indicating major artists are attracting huge crowds. More than 40% of stadium shows sold nearly all tickets in the first week.

Management is expanding its venue portfolio to capture the opportunity ahead. It opened four amphitheaters in the U.S. last quarter and has projects in the works across Mexico, Colombia, and Canada. It expects to open 10 large venues in 2026. Importantly, the company says the capital investments in new venues continue to drive high returns on capital over 20%, signaling that management is focused on making sure these investments deliver shareholder returns over the long term.

Live Nation has delivered double-digit revenue and free cash flow growth on an annualized basis over the last 10 years, and that should continue. Artists are increasingly relying on live events to boost income. Plus, fans are more in tune with new event announcements because of concert discovery features on streaming services like Spotify, which is benefiting ticket sales.

Analysts expect free cash flow to double by 2029. Live Nation's dominance in the live concert market makes it a compelling investment.

Should you invest $1,000 in Take-Two Interactive Software right now?

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John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Spotify Technology and Take-Two Interactive Software. The Motley Fool recommends Live Nation Entertainment and recommends the following options: short October 2025 $140 puts on Live Nation Entertainment. The Motley Fool has a disclosure policy.

Disclaimer: The information provided on this website is for educational and informational purposes only and should not be considered financial or investment advice.

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