As 2024 nears its end, the financial markets have crowned the top performers of the S&P 500. From tech giants riding the artificial intelligence wave to energy companies powering the data-driven future, here’s a closer look at the stocks that have dominated this year.
1. Palantir Technologies
Performance: Up 343% YTD
Palantir Technologies, a data-mining software provider, has become the S&P 500’s top-performing stock in 2024. The company, helmed by CEO Alex Karp, saw its share price skyrocket after its inclusion in the index in September. Strong financial results, including 30% revenue growth and a 43% jump in adjusted EPS for Q3, alongside rising AI adoption, have fueled its meteoric rise. However, valuation concerns persist, with Palantir trading at significantly higher multiples than global peers.
2. Vistra Corp
Performance: Up 279% YTD
Vistra Corp, which operates the world’s largest battery energy storage facility in California, has surged thanks to its inclusion in the S&P 500 in May and strong financials. A pivot toward nuclear energy to support AI and data center processes has also driven optimism. Despite a strong showing in revenue and EPS growth for Q3, Vistra’s financial health is under scrutiny due to high net debt. Analysts, however, remain overwhelmingly positive.
3. Nvidia Corporation
Performance: Up 171% YTD
Nvidia’s dominance in the AI revolution has propelled its stock to new heights, with a market cap exceeding $3 trillion. Exceptional Q3 results, including a 94% revenue surge, underline its role as a leader in AI, GPUs, and metaverse technologies. While analysts are bullish, the stock’s high valuation compared to peers remains a talking point.
4. Axon Enterprise
Performance: Up 150% YTD
Axon Enterprise, a provider of public safety technology like body cameras and AI-driven tools, has impressed with strong Q3 results and a 36% increase in annual recurring revenue. Its robust financial position contrasts with its high valuation, which is well above industry averages. Still, analysts are overwhelmingly optimistic about its future.
5. Texas Pacific Land Corporation
Performance: Up 133% YTD
As one of Texas’s largest private landowners, Texas Pacific Land Corp’s rise has been buoyed by its inclusion in the S&P 500 in November. Expectations of data center developments on its vast holdings and a special dividend this year have further bolstered investor interest. However, the stock’s premium valuation reflects its strong growth potential.
6. United Airlines
Performance: Up 131% YTD
United Airlines has flown high in 2024, supported by steady financial results, a $1.5 billion share repurchase program, and increased capacity and traffic. Despite its strong share price performance, concerns about liquidity and debt levels linger. Analysts remain largely positive, anticipating further upside.
7. Targa Resources Corporation
Performance: Up 117% YTD
Targa Resources, a natural gas infrastructure giant, has benefited from increasing demand and plans to expand gas processing facilities. While profitability is improving, high debt levels and liquidity concerns weigh on the company. Analysts, however, remain optimistic about its long-term potential.
8. Howmet Aerospace
Performance: Up 110% YTD
Howmet Aerospace, a supplier of engineered metal products for the aerospace industry, has delivered consistent growth, raising guidance for FY2024 following strong Q3 results. While the company’s balance sheet is solid, its premium valuation relative to peers might temper investor enthusiasm. Analysts, though, see significant upside ahead.
9. Constellation Energy
Performance: Up 106% YTD
Constellation Energy, a leader in carbon-free power solutions, has capitalized on the rising demand for sustainable energy. A deal with Microsoft to supply nuclear power and strong Q3 earnings have boosted its stock. The company’s valuation remains competitive, with analysts projecting further gains in 2025.
10. Broadcom Inc.
Performance: Up 104% YTD
Broadcom’s success lies in its role as a semiconductor and software powerhouse. Strong earnings growth, driven by demand in networking and security software, has cemented its place among the year’s top stocks. Despite its hefty valuation, analysts remain bullish on its growth trajectory.
A Year to Remember
These top performers reflect the themes shaping the market in 2024: the dominance of artificial intelligence, the shift to sustainable energy, and the resilience of key industries like aerospace and technology. As analysts debate valuations and growth potential, these stocks remain emblematic of an evolving market landscape.
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