The hunt for the best stocks to buy is never ending. But investors who spotted the growth potential of Endeavour Mining (LSE:EDV) at the start of 2025 are likely pretty pleased. The West African gold mining enterprise has been successfully ramping up production of the shiny yellow metal. And when paired with rising gold prices, the group achieved record-breaking free cash flow that has sent the stock flying by 75% since the start of the year.

Considering the FTSE 100 is only up by around 11% since 2025 kicked off, Endeavour shareholders have massively outperformed the market. But as every investor knows, past performance isn’t an indicator of future results. So the question now is, can Endeavour continue to deliver robust market-beating gains moving forward? Let’s explore.

The bull case

As previously mentioned, over the first six months of 2025, the company ramped up its gold production by an impressive 38%, from 470,000 to 647,000 ounces year on year. With an all-in cost of $1,281 per ounce versus an average selling price of $2,953 per ounce, margins and earnings have skyrocketed.

Yet, as it turns out, this could be just the tip of the iceberg. Why? Because the group’s exploration activities are also hitting crucial milestones.

The definitive feasibility study (DFS) for its Assafou project remains on track for completion in early 2026. This aims to confirm the project’s economic viability and check the final planning boxes before construction can begin.

Providing the DFS comes back with no nasty surprises, Endeavour’s expansion of gold production could be set to increase by another 329,000 ounces per year if the initial projections are correct. And with an estimated lifespan of almost 15 years, Assafou could unlock an enormous source of wealth for shareholders over the long run. And with other projects in the exploration pipeline, further projection increases could also materialise in the future.

What could go wrong?

As impressive as Endeavour’s growth potential seems, there are some notable risks that investors must consider. Even if the DFS comes back with a positive result, the firm still has to navigate through an ocean of operational, regulatory, and political challenges.

Delays in production at Assafou could result in missing earnings targets. But even if that doesn’t happen, profits and cash flow may still fall short. After all, mining incurs significant fixed costs, which work wonders when commodity prices are rising since it leads to rapidly expanding profit margins.

However, suppose gold prices decide to reverse due to a market rotation out of precious metals? In that case, Endeavour’s future growth might prove disappointing.

The bottom line

So should investors be considering Endeavour Mining as a potential top-notch stock to buy even after its recent share price rally?

The business certainly has some exciting growth prospects, provided gold prices don’t suddenly dip. However, at a price-to-earnings ratio of 37, it seems investors are already baking in a lot of the group’s future production potential into the share price.

As such, the slightest hiccup in operations could be all that it takes for a sharp and sudden sell-off. Put simply, the mining stock’s a classic case of high-risk, high-reward. This isn’t something I’m personally tempted by. But growth investors with a higher risk tolerance may want to investigate Endevour further.

With the US market showing signs of weakness, I’ve been considering snapping up some cheap shares before it recovers. Valuations across the S&P 500 have been stretched for some time, so I went looking for stocks that might be trading at more attractive levels.

To find potential bargains, I screened the index for companies with a forward price-to-earnings (P/E) ratio below 10. That gave me a decent shortlist but not every stock with a low valuation is worth holding. Forecast earnings can be overly optimistic and the market may have good reason to price a company cheaply.

To narrow things down further, I ranked the list by relative trading volume and then reviewed recent earnings growth. One name in particular stood out — Verizon Communications (NYSE: VZ.). Not only does it look highly undervalued but its 6.2% dividend yield caught my attention. Then I spotted another stalwart, Pfizer (NYSE: PFE), with an even higher yield of 6.9%.

Both stocks have fallen around 28% over the past five years. In Pfizer’s case, most of those losses have been concentrated in the past 12 months. That level of decline usually signals problems but it can also be an opportunity for investors who like to consider contrarian picks.

Verizon

Verizon has been under pressure from intense competition in the US telecoms market and high infrastructure costs. Yet its financials still look solid. Earnings grew by 61.4% year on year, while revenue rose 14.7%. On a forward P/E ratio of 9.4, that looks cheap compared with many other S&P 500 constituents.

At $44 a share, it’s a fair way down from its five-year high of $64.

What impresses me most is Verizon’s commitment to shareholders. The company has increased its dividend for 18 consecutive years, and the current payout ratio sits at 63%. That gives me confidence the dividend is sustainable even if profits slow.

Of course, there are risks. Heavy debt from network investments leaves Verizon exposed if interest rates stay higher for longer. Growth opportunities are also limited in a saturated telecoms market. 

Still, I think it’s a share for income investors to think about.

Pfizer

Pfizer’s been hit hard by declining Covid-related revenues. Much of its pandemic windfall has now disappeared, and the market has been quick to punish the stock. But away from vaccines, the company still posted revenue growth of 14.7% year on year, with earnings up 61.4%.

The forward P/E ratio of 7.9 suggests the market remains unconvinced. Now selling at $24.30, the shares are 60% down from their all-time high of $61.70

Pfizer’s raised its dividend for 15 consecutive years. However, the quality of this income stream looks weaker than Verizon’s. Dividend coverage is thin, with a payout ratio of 90.9% and just 1.9 times cash coverage. If earnings come under pressure again, cuts could follow.

Regulatory challenges and patent expirations add further uncertainty. While the yield’s tempting, it’s not without risk.

Final thoughts

Both Verizon and Pfizer look undervalued at current prices. But if I had to pick just one, I’d lean towards Verizon. It has a healthier dividend profile and appears further along in its recovery. 

For investors seeking exposure to US stocks while maintaining strong income potential, I think Verizon’s a stock well worth careful consideration.