While the year is not over yet, it is close enough to start to compile year-end lists for the best performing stocks. We’ll start with the best performing stocks on the S&P 500 in 2024.
The S&P 500 had a much stronger year than most experts anticipated, as the consensus was for high single-digit to low-double-digit gains.
Few thought the large-cap benchmark would surpass 6,000 and perform better than it did in 2023. But as of December 16, that is just what happened, as the S&P 500 is up 27% year to date. That’s better than the 24% return in 2023.
So, what were the top 5 stocks of 2024 on the S&P 500? One of them makes the list for the second year in a row, having been the best performing large cap stock of 2023.
1. Palantir Technologies, up 341%
Palantir Technologies Inc (NASDAQ:PLTR) has been the top performer on the S&P 500 this year, returning 341% year to date and trading at around $75 per share. Palantir wasn’t even on the S&P 500 at the start of the year, but its meteoric rise thrust it into the index in October.
The company, which provides data and analytics for corporations and governments, has been on a tear, fueled by “unrelenting AI demand” as CEO Alexander Karp said back in November. Specifically, Palantir’s platform analyzes massive amounts of data and develops generative AI models to improve decision-making.
The company grew revenue 30% in its most recent quarter and upped its earnings and revenue guidance for 2025. While Palantir has tons of earnings power, its P/E ratio is through the roof at 318, so be wary of that.
2. Vistra Corp., up 277%
Vistra Energy Corp (NYSE:VST) is the second-best performer on the S&P 500 this year, as the stock has returned 277% as of December 16. Vistra is an energy company that provides electric power to millions of customers across the U.S., specializing in nuclear, natural gas and solar power.
While energy stocks can be volatile, based on prices and economic conditions, Vistra has also benefitted from the AI boom, as it is one of leaders in powering AI data centers. The company has been in talks with data center developers in Texas and the PJM Interconnection region about expanding capacity at existing data centers and developing new plants to support data center projects. This could be a significant earnings driver for Vistra.
Vistra is reasonably valued with a P/E ratio of 27 and it has a median price target of $165 per share, which would suggest 18% upside.
3 – NVIDIA, up 166%
The NVIDIA Corporation (NASDAQ:NVDA) train just kept rolling in 2024, as the AI chip maker had another outstanding year. The stock is up 166% year to date to $132 per share after a 10-for-one stock split in June. Last year, it was the top performer on the S&P 500, returning 239% for the year. In fact, since 2020, it has had triple-digit returns every year except 2022, when it fell 50% during the bear market.
Over the past five years, NVIDIA stock has posted an average annualized return of 86.6%. And over the past 10 years, the AI stock has generated a 75% average annualized return.
In 2024, NVIDIA kept churning out massive earnings. In Q3 for example, revenue surged 94% to a record $35 billion while earnings rose 111% to 78 cents per share. And with its new Blackwell AI chips rolling out now and into 2025, NVIDIA is expected to see continued earnings power as CFO Colette Kress called the demand “staggering.”
NVIDIA remains expensive, but less so than it was a year ago with a P/E of 51 and a forward P/E of 30. Analysts have a median price target of $175 per share, which would be a 37% increase over the current price.
GE Vernova and Axon crack top 5
Rounding out the top five of 2024 are GE Vernova LLC (NYSE:GEV) and Axon Enterprise Inc (NASDAQ:AXON).
GE Vernova is the energy arm of the former GE, which was split into three companies earlier this year. GE Vernova stock is up 157% YTD.
Axon Enterprise, which makes tasers, body armor, and dashboard cameras for law enforcement, has returned 151% YTD.