The S&P 500 is off to a strong start in 2025, with several top-performing stocks already surpassing the market average by double-digit amounts. According to an Investor’s Business Daily analysis of data from S&P Global Market Intelligence and MarketSurge, two utilities, Vistra (VST) and Constellation Energy (CEG), as well as energy firm Texas Pacific Land (TPL), are leading the pack.
Utilities are seeing a resurgence in popularity this year, with Vistra experiencing an impressive 18% gain so far. This can be attributed to expected surge in demand from large language learning model AI systems, which require power from critical areas in Texas. Analysts predict the company will report higher profits of 35% and 48% for 2024 and 2025 respectively.
Constellation Energy is another top-performing utility stock this year, with a 12.8% gain. The company’s RS Rating of 88 indicates strong fundamentals, with analysts predicting earnings per share to leap 86% in 2024 and another 10% in 2025.
Energy firms are also seeing significant gains, with Texas Pacific Land leading the charge at 9.5% this year. Its stock has an already impressive RS Rating of 96, indicating strong potential for future growth.
While technology stocks like Nvidia are doing well, with a 7.9% gain so far in 2025, utilities and energy firms are taking center stage this year. The S&P 500 energy sector is the year’s best performer, with the Energy Select Sector SPDR ETF (XLE) up 2.3%, followed closely by Utilities Select Sector SPDR (XLU), which has a 2% gain.
These top-performing stocks will be worth keeping an eye on as we head into 2025.
Source: https://www.investors.com/etfs-and-funds/sectors/sp500-year-just-started-3-surprising-stocks-already-ahead