In this article, we will take a look at the 10 S&P 500 Stocks That Outperformed Bitcoin in 2024.
Bitcoin’s price has fluctuated dramatically since U.S. President Donald Trump’s inauguration, with the cryptocurrency staying around $100,000 since achieving the milestone in December. Trump’s ascension as the president has fueled more Bitcoin optimism, with many expecting a more favorable regulatory environment for digital assets. After the SEC approved the first U.S. spot Bitcoin ETF last year, Bitcoin surpassed the $70,000 price milestone set for 2021. The acceptance was largely regarded as a watershed event for the cryptocurrency, increasing its attractiveness to more mainstream investors. This year, Bitcoin’s price has more than doubled. The token is widely projected to see even stronger price movement in 2025, with numerous industry analysts estimating a doubling in value to $200,000.
In an interview with CNBC, James Butterfill, head of research for crypto-focused asset management CoinShares, stated that Bitcoin values in 2025 might range between $80,000 and $150,000. Butterfill stated that in the long run, it would not be “unreasonable” to anticipate Bitcoin to be worth around 25% of gold’s market share, up from roughly 10% presently. Should Butterfill’s $80,000 call be met, it will be due to President Trump’s failure to implement his promised pro-crypto measures.
Hedge Fund Managers’ Stance on Bitcoin
Of course, a few hedge fund managers have joined to claim a piece of the Bitcoin pie as well. ARK Invest’s Cathie Wood, for example, remains unwavering in her prediction that Bitcoin will reach $1.5 million by 2030. Known for her ambitious tech projections, the financial expert outlined the scenario at Ark’s Big Ideas 2025 conference, revealing that the chances of attaining this massive sum had actually grown. The investor has proposed three options: a middle-ground of $710,000, a cautious estimate of $300,000, and the bull scenario of $1.5 million.
Given all of this, is Bitcoin a worthwhile investment? Even the most popular cryptocurrencies, such as Bitcoin, have fluctuated in value, the market isn’t as transparent as it is for stocks, transactions are irreversible, and consumer safeguards are low or nonexistent. According to Charles Schwab, as long as Bitcoin is extremely volatile and susceptible to large transaction fees, it appears that it will have little utility as a means of trade or a store of wealth. With that in mind, it is understandable that equities tend to be less volatile than cryptocurrencies, including Bitcoin.
Our Methodology
For this list, we focused on stocks in the S&P 500 with a price performance greater than that of BTC (92.73%) as of February 17. These stocks are ranked in ascending order according to their 1-year price performance. In addition, we mentioned hedge fund sentiment around each stock to provide further insight into their market standing.
Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
10. 3M Company (NYSE:MMM)
1-Year Price Performance: 93.59%
Number of Hedge Fund Holders: 82
3M Company (NYSE:MMM) is a multinational industrial conglomerate that is involved in manufacturing adhesives, abrasives, ceramics, and nanotechnology.
On January 22, Wells Fargo upgraded 3M Company (NYSE:MMM) to Overweight and boosted its price target to $170 from $140, noting improved margins and the company’s proactive approach to capital deployment. Analysts at the bank cited strong efficiency potential and management’s trust in operational execution as important motivators for the upgrade. Looking ahead, Wells Fargo anticipates more precise targets during 3M’s investor day on February 27. The firm anticipates organic growth of 3-5%, as well as operational leverage and efficiency gains, resulting in a low double-digit to low-teens EPS CAGR over the medium term.
3M Company (NYSE:MMM) recently reported fourth-quarter earnings that surpassed analyst estimates. The industrial giant reported an adjusted EPS of $1.68 in the fourth quarter, above analyst expectations of $1.67. Revenue came in at $6.01 billion, crossing the average estimate of $5.78 billion and indicating a 0.1% rise year-over-year. 3M’s adjusted sales, excluding produced PFAS products, increased 2.2% year-over-year to $5.8 billion, while adjusted organic sales increased by 2.1% year-over-year, despite a 70 basis point headwind from product portfolio initiatives.
9. NVIDIA Corporation (NASDAQ:NVDA)
1-Year Price Performance: 99.93%
Number of Hedge Fund Holders: 193
NVIDIA Corporation (NASDAQ:NVDA) is a world leader in the design and sale of Graphics Processing Units (GPUs), a sector that has grown significantly in response to increased demand for artificial intelligence models. Despite increased competition in the technology sector, NVIDIA remains a Wall Street darling.
On February 14, Jefferies analyst Blayne Curtis reiterated his Buy rating on NVIDIA Corporation (NASDAQ:NVDA) and set a $185 price target for the company. Curtis pointed to a favorable shift in expectations following Foxconn’s last revenue report, which showed a 3% increase. The update to Foxconn’s projection, which predicts that first-quarter sales growth in 2025 would likely exceed average estimates, is viewed as good news for NVIDIA Corporation (NASDAQ:NVDA), especially given worries about potential delays in the company’s Blackwell product launch.
Manole Capital Management stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its Q3 2024 investor letter:
“As of this publication, Nvidia is up roughly 150% year-to-date. NVIDIA Corporation (NASDAQ:NVDA) was the largest gainer in the S&P 500 last year and has more than tripled in value over the last year. It hit an eye-opening market capitalization of $3 trillion in June, less than four months after it eclipsed the $2 trillion mark. Enthusiasm for everything AI-related, especially for the primary chip maker whose products are essential to powering AI technology, continues to fuel the market. Last quarter, and for the fifth consecutive quarter, Nvidia reported sales and profits that blew past Wall Street expectations. The stock rose +37% in the second quarter alone.”
8. NRG Energy, Inc. (NYSE:NRG)
1-Year Price Performance: 108.12%
Number of Hedge Fund Holders: 49
NRG Energy, Inc. (NYSE:NRG) is a fully integrated power company that produces electricity and provides retail energy services. NRG has a diverse energy portfolio that includes natural gas, coal, nuclear, solar, and wind.
On January 21, Evercore ISI upgraded NRG Energy, Inc. (NYSE:NRG) from In-Line to Outperform, raising the price target from $74 to $126. The firm’s analysts emphasize NRG Energy’s potential as the market expects 2025 trends, citing opportunities created by the discrepancy between the expansion of power-generating assets and load growth.
In another vein, NRG Energy, Inc. (NYSE:NRG) recently formed strategic partnerships with Renew Home and Google Cloud to expand its Virtual Power Plant effort, planning to reach a GW of capacity within a decade.
7. Howmet Aerospace Inc. (NYSE:HWM)
1-Year Price Performance: 111.41%
Number of Hedge Fund Holders: 45
Howmet Aerospace Inc. (NYSE:HWM) is an American aerospace company that develops critical solutions for the aerospace, defense, and transportation sectors. Its diversified range includes engine components, fastening systems, engineering structures, and forged wheels, which play an important role in military applications.
On February 14, BofA reaffirmed its Buy rating on Howmet Aerospace, with a price objective of $135. The firm assigned its rating based on a number of factors influencing Howmet Aerospace’s financial performance and market outlook, including the company exceeding expectations with an adjusted EPS of $0.74, owing primarily to strong operating profits in key segments such as Fastening Systems and Engineered Structures. Furthermore, the company anticipates sustained growth in the aftermarket and engine spares markets, as well as a cautious increase in production rates. Moreover, Howmet’s decision to raise its dividend by 25%, from $0.08 to $0.10 per share, shows confidence in its future cash flow generation.
Delaware Ivy Core Equity Fund stated the following regarding Howmet Aerospace Inc. (NYSE:HWM) in its Q3 2024 investor letter:
“Howmet Aerospace Inc. (NYSE:HWM) – Though recovery in large airplane manufacturing is uneven due to supply constraints (affecting both Boeing and Airbus), this manufacturer of airframe and jet-engine components was a prime beneficiary of higher production rates across the industry in addition to higher content per engine. Second-quarter earnings surprised materially to the upside.”
6. Royal Caribbean Cruises Ltd. (NYSE:RCL)
1-Year Price Performance: 128.50%
Number of Hedge Fund Holders: 52
Royal Caribbean Cruises Ltd. (NYSE:RCL) is a global cruise business that provides cruises under the Royal Caribbean International, Celebrity Cruises, and Silversea Cruises brands, among others, covering a variety of itineraries. As of this year, the company operates 68 ships under these brands.
On February 7, Tigress Financial maintained its Buy rating on Royal Caribbean Cruises Ltd. (NYSE:RCL) and raised its 12-month price target to $330, noting the company’s strong Q4 performance as a driver of its bullish view. In the fourth quarter, RCL reported an adjusted EPS of $1.63, above analysts’ forecasts of $1.50. It also reported a 13% rise in revenue to $3.8 billion. The company’s development of its fleet and land-based resort facilities, as well as strong cruise demand, have contributed to revenue and cash flow increases. Looking ahead, it anticipates net yields to climb by 2.5% to 4.5%.
The company’s investments in additional ships and land-based resorts are also intended to boost its share of the vacation travel industry. In that vein, Royal Caribbean Cruises Ltd. (NYSE:RCL) recently announced the development of its exclusive destination portfolio, including Perfect Day Mexico, which will open in 2027, and the upcoming Royal Beach Club projects in the Bahamas and Cozumel, Mexico.
Recurve Capital stated the following regarding Royal Caribbean Cruises Ltd. (NYSE:RCL) in its Q4 2024 investor letter:
“Cruise companies (Royal Caribbean Cruises Ltd. (NYSE:RCL) and NCLH) – 12% of assets as of 12/31/2024
The cruise lines are disruptive in the vacation market. They offer extraordinary, high-satisfaction experiences at great value compared to land-based alternatives. The scale of demand they generate in their businesses allows them to build bigger and better assets, including new portfolios of private destinations which elevate satisfaction while keeping customers (and their wallets) captive within the cruise ecosystem all day. These private destinations magnify the returns of all the vessels that visit these destinations and improve ROIC across their asset portfolios. They have meaningful opportunities to continue these and other innovative expansions over the coming decades. I recommend reading our recent Insight about RCL’s private resorts.
With only 2% market share in vacations and less than 10% of all Americans ever having taken a cruise (but with high repeat rates), the sector has a long way to go before it reaches maturity – especially as the operators keep elevating the quality of the assets and the experiences they can deliver to guests. There remains a significant price differential between cruise vacations and their land-based alternatives, but cruising is not just a value play. The experience is unique and compelling outside of its superior economic value. These are not like customers looking to trade down from a Ritz Carlton to a Marriott to save money – these are vacationers looking for a unique experience that only cruising can deliver.
RCL and NCLH trade at relatively modest P/E multiples. They have highly visible future capacity growth since newbuild pipelines are contracted years in advance. Their normalized growth algorithm is straightforward and reminds me of the old cable equity algorithm (back when there was growth in cable!): modest capacity growth + modest pricing growth + cost growth below inflation = HSD/LDD revenue growth and LDD-mid-teens earnings growth. If we layer on accretive balance sheet actions that are now opening up in the post-Covid recovery period (reducing interest expense and returning capital to shareholders), we can get to >20% medium-term EPS CAGRs.
Both RCL and NCLH trade at undemanding valuations because most investors treat them as cyclicals trading at or near peak earnings or peak pricing power. There will always be periods of relative strength and weakness, but the long-term trendline on pricing is up – well above inflation. It would take a severe recession for pricing to turn negative.”
5. Constellation Energy Corporation (NASDAQ:CEG)
1-Year Price Performance: 140.74%
Number of Hedge Fund Holders: 78
Constellation Energy Corporation (NASDAQ:CEG) is a prominent energy company with a strong clean energy portfolio of over 33,000 megawatts, which includes nuclear, solar, wind, and hydroelectric power facilities. It works across five regions: the Mid-Atlantic, the Midwest, New York, ERCOT, and Other Power Regions.
Constellation Energy Corporation (NASDAQ:CEG) agreed to purchase Calpine Corporation in January for about $16.4 billion in shares. In addition to $4.5 billion in cash and the assumption of approximately $12.7 billion in Calpine net debt, the acquisition included 50 million CEG shares. Following the merger, Constellation Energy Corporation (NASDAQ:CEG) will become the country’s largest clean energy supplier.
On January 3, Jefferies maintained a Hold rating on Constellation Energy (NASDAQ:CEG) shares, with a $234 price target. The firm’s report highlighted Constellation Energy’s new U.S. General Services Administration contract, which is estimated to contribute around $55 million in EBITDA and $44 million in free cash flow annually as a result of nuclear uprates. The contract, worth around $84 per MWh over a 10-year period, includes 75% existing and 25% new energy suppliers.
4. Axon Enterprise, Inc. (NASDAQ:AXON)
1-Year Price Performance: 155.29%
Number of Hedge Fund Holders: 46
Axon Enterprise, Inc. (NASDAQ:AXON) is a prominent provider of law enforcement technology solutions, including less-lethal weaponry, body cameras, and cloud-based software. The company’s target market is law enforcement agencies in the United States and beyond.
On February 4, JMP Securities analyst Trevor Walsh increased Axon Enterprise’s price target to $725 from $610, while maintaining his Market Outperform rating for the AXON stock, indicating confidence in the company’s growth trajectory. Walsh emphasized the usefulness of Axon’s products in increasing police officer productivity and the potential for considerable time savings, especially through the company’s software solutions. According to the analyst, Axon Enterprise, Inc. (NASDAQ:AXON) will leverage its product story even further in 2025 with the release of the AI Era Plan package, which offers a $1.8 billion market potential.
Conestoga Capital Advisors stated the following regarding Axon in its Q4 2024 investor letter:
Axon Enterprise, Inc. (NASDAQ:AXON) continued to see robust demand for its products and services, from TASERs to body cameras to the software that powers many applications within public safety operations. Shares jumped on third-quarter results, which saw revenue grow 32%, EBITDA 58%, and backlog 33% to $7.7 billion. In addition, AXON continued to expand adjusted EBITDA margins, which were above 25% in the third quarter. AXON was a leader in three of the four quarters in 2024.
3. Texas Pacific Land Corporation (NYSE:TPL)
1-Year Price Performance: 176.14%
Number of Hedge Fund Holders: 20
Texas Pacific Land Corporation (NYSE:TPL) operates in the land and resource management, water services, and operations industries. The company is one of Texas’ largest landowners, owning approximately 900,000 acres in West Texas, the majority of which is centered in the Permian Basin.
Texas Pacific Land Corporation (NYSE:TPL) hit record oil and gas royalty production in the third quarter of 2024, reaching 28,300 barrels of oil equivalent per day. This growth was driven by substantial activity in the Midland and Northern Delaware basins. TPL’s water-related segment came as another growth driver, with water royalties increasing 46% YoY in the same quarter.
2. Vistra Corp. (NYSE:VST)
1-Year Price Performance: 263.29%
Number of Hedge Fund Holders: 97
Located in Texas, Vistra Corp (NYSE:VST) is a vertically integrated energy corporation with a wide range of businesses, including fuel manufacturing, wholesale energy sales, logistics, and power generating. The company supplies natural gas and electricity to its commercial, industrial, and residential clients.
On January 21, BMO Capital Markets raised its price target for Vistra Corp. (NYSE:VST) shares to $191 from $151, while maintaining an Outperform rating. The adjustment comes following a fire at the company’s Moss Landing BESS facility in January. Despite the possibility of an extended schedule to restart the facility, the analyst believes the impact on Vistra Energy’s performance in 2025 and 2026 will be tolerable.
Vistra Corp (NYSE:VST) announced revenues of $6.29 billion in the third quarter of 2024, up 54% from the previous year and above expert projections of $5.01 billion. Earnings per share were $1.24, more than the expected $1.16. In addition, Vistra’s Board authorized an extra $1 billion for repurchases, with $2.2 billion remaining, which is projected to be completed by the end of 2026.
1. Palantir Technologies Inc (NASDAQ:PLTR)
1-Year Price Performance: 409.23%
Number of Hedge Fund Holders: 43
Palantir Technologies Inc. (NASDAQ:PLTR) is a data analytics and software company that creates and installs software platforms that help intelligence agencies and other companies comprehend large data sets.
Palantir Technologies (NASDAQ:PLTR) announced results that came above forecasts in the fourth quarter. The data analytics company reported adjusted earnings of $0.14 per share on $827.5 million in revenue for the fourth quarter, above analysts’ expectations of $0.11 per share and $778.2 million. Total revenue for the quarter climbed by 36% year-over-year, with CEO Alex Karp citing growing demand for AI.
Following Palantir’s Q4 earnings beat, Morgan Stanley analyst Sanjit Singh raised the stock to Equal Weight from Underweight, with a price target of $95, up from $60. Despite an “ultra premium” price, Morgan Stanley expects no downside triggers for the stock over the next four quarters. Given Palantir’s strong forecast, the firm believes it was incorrect to predict growth to dip below 30% in 2025 due to tougher comparisons.
Alger Mid Cap Focus Fund stated the following regarding Palantir Technologies Inc. (NASDAQ:PLTR) in its Q4 2024 investor letter:
“Palantir Technologies Inc. (NASDAQ:PLTR) builds advanced platforms for data integration, management, and security, enabling interactive, AI-assisted analysis for its users. Its core offerings include Palantir Gotham, designed for government clients, and Palantir Foundry, tailored for commercial customers. Originally focused on U.S. intelligence agencies, Palantir has expanded into defense contracts with western governments and entered the commercial market in 2016. During the quarter, shares contributed to performance after the company reported better-than-expected fiscal third quarter operating results, along with management raising its full year 2024 revenue guidance. Management noted that the recent launch of its AI platform (AIP), which leverages generative AI to optimize business operations, has driven significant growth and investor interest. Additionally, we believe Palantir could be a key partner for the U.S. government’s new Department of Government Efficiency (DOGE), as its AI-driven platforms are ideally suited to help identify inefficiencies, allocate resources effectively, and achieve cost reductions.”
While we acknowledge the potential of PLTR as an investment, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than PLTR but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
