Top Performing Stocks in 2024: Nvidia and Palantir's Compañeros Delivered Superior Results - Set to Repeat the Success
In the dynamic world of finance, 2024 has been a year of significant growth for the S&P 500 Index. Among the standout performers, besides Nvidia and Palantir, are Vistra, Targa Resources, Constellation Energy, and a fifth unspecified stock, with Palantir leading the pack with a potential upside of around 12% and a price target of $57, according to Wedbush.
The success of these energy companies can be attributed to the increasing demand for electricity driven by technological advancements, such as AI, and the growing interest in renewable energy sources. This trend has also boosted the performance of other sectors, with Financials, Consumer Discretionary, and Communication Services reporting gains of 26.1%, 21.7%, and 20.9% respectively, over the past 12 months.
Notable gainers from the technology sector include Robinhood, Coinbase Global, Roblox, Vertiv, and Cloudflare, with respective year-to-date gains of approximately 312.3%, 57.7%, 182.7%, 48.5%, and 136.4% as of mid-2025. However, these stocks are trading substantially above their Morningstar fair value estimates, suggesting potentially stretched valuations.
Morningstar's fair value estimates for these tech stocks are as follows: Robinhood, with a year-to-date gain of 312.3%, does not have an explicitly mentioned fair value estimate; Coinbase Global, with a gain of 57.7%, has a fair value estimate of $170 per share; Roblox, with a gain of 182.7%, has a fair value estimate of $45 per share; Vertiv, with a gain of 48.5%, has a fair value estimate of $103 per share; and Cloudflare, with a gain of 136.4%, has a fair value estimate of $130 per share.
While these stocks are trading at a premium, there is still significant upside potential for the best-performing stocks of 2024. However, it remains to be seen if they can repeat their stellar performances in the coming months.
Meanwhile, more traditional blue-chip or value-oriented large caps like Nike and Campbell are trading at significant discounts to their fair value estimates, according to Morningstar, but have not been among the very top gainers for the year.
It's important to note that the CEO and majority shareholder of the publisher Börsenmedien AG, Mr. Bernd Förtsch, holds positions in Nvidia and Palantir Technologies. Similarly, the board of the publisher Börsenmedien AG, Mr. Leon Müller, holds positions in Nvidia.
As the year 2024 draws to a close, major indices like the U.S. S&P 500 Index and the German DAX are up double digits since the beginning of the year, reflecting the overall positive market sentiment. With the end of the year approaching, investors may want to consider the performance and potential valuations of these top-performing stocks as they make their investment decisions.
All five companies are in growth-oriented, future-relevant industries, suggesting they may continue to perform well in the coming years. As always, it's essential to conduct thorough research and consider multiple factors before making investment decisions.
Artificial intelligence and technological advancements have contributed to the increased demand for electricity, benefiting energy companies like Vistra, Targa Resources, and Constellation Energy, which have seen significant growth in the S&P 500 Index.
Investors looking towards technology sector might find opportunities in stocks like Robinhood, Coinbase Global, Roblox, Vertiv, and Cloudflare, which have shown impressive year-to-date gains and Morningstar fair value estimates, despite trading at a premium.
