This article looks at the 12 best S&P 500 stocks to invest in according to analysts.
2024 was a memorable year for the broad market index, which posted a gain of 23.31%, building on the 24.2% return in 2023. The two-year surge of over 53% is the best performance for the index since the 66% rally between 1997 and 1998.
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The stock market benefited from a resilient economy that avoided recession, declining interest rates, and waning inflation. Analysts are projecting continued growth in 2025 amid strong economic data and optimism about a business-friendly Trump administration returning to power.
The broader market rose 0.5% on January 23, going past its peak in December to a new record high. The gain added to the week-long winning momentum after data showed inflation slowing in the country more than economists had anticipated. With this rise, the index is up 4% since the start of the year.
Investor sentiment has also been bolstered with President Trump reiterating his commitment to lowering oil prices and further cutting interest rates. The 78-year-old is also taking his time over tariffs by holding them off until February. Analysts believe a less aggressive approach than some had expected has helped the market move higher. Here is what Larry Tentarelli, chief technical strategist at the Blue Chip Daily Trend Report, had to say:
“He really can’t control interest rates, but the market likes to hear that kind of stuff. So far, the market does seem to like what Trump’s policies are going to be, so we’ll just have to see if there’s some follow-through.”
A string of strong corporate earnings reports has also supported the gains in January. According to data from FactSet, earnings for companies listed on the index are on track to grow by over 12% for the fourth quarter compared to the same period in the prior year. If that happens, this would mark the best quarter for company profits since 2021.
While the overall outlook for the stock market looks encouraging, analysts are also cautious about the rally having gone too far, and a correction is in the offing this year. The threat of fierce trade wars sparked by tariffs, ongoing geopolitical conflicts, and broader inflationary pressures could also hurt the market.
Jurrien Timmer, Director of Global Macro for Fidelity Management & Research Company wrote the following in a note on December 18.
“Personally, I am bullish on stocks for 2025, though with valuations high and the bull market maturing, I don’t think investors should expect quite such spectacular returns next year as we have seen this past year. And I think there are important risks from inflation, and the market’s concentration, to be aware of.”
With that said, let’s now head over to the list of the best large cap stocks to invest in from the broader market index.
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Methodology
For this article, we went through the list of large cap stocks on the broader market index and picked the top 12 with the highest average share price upside potential. All data is as of the close of the day on Friday, January 31, 2025. The stocks are listed in ascending order of their share price upside potential.
Why are we interested in the stocks that hedge funds pile into? 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).
12. Dell Technologies Inc. (NYSE:DELL)
Average Share Price Upside Potential as of January 31: 44.45%
Market Cap: $72.28 billion
Dell Technologies Inc. (NYSE:DELL) is an American multinational technology company engaged in the design, manufacturing, and sale of a wide array of products and services, including desktops, laptops, monitors, servers, storage solutions, and more. The company operates through two segments: Infrastructure Solutions Group (ISG) and Client Solutions Group (CSG).
DELL’s shares surged 56% in 2024, driven by a growing realization among investors about the company’s significance in providing systems and tools for AI developers. The company was relisted on the S&P 500 index in September, marking a return to the benchmark index after it went private in 2013.
On November 26, Dell Technologies Inc. (NYSE:DELL) announced financial results for the third quarter of fiscal 2025. It reported a revenue of $24.4 billion, up 10% from last year, driven by strong ISG revenue growth. While CSG’s revenue was down 1% year-over-year, ISG’s figure soared 34% from last year to reach $11.4 billion, helped by a substantial increase in servers and networking revenue. EPS was logged at $2.15, growing 14% year-over-year, and beating estimates by 11 cents.
Dell Technologies Inc. (NYSE:DELL) is a major vendor for computer clusters that develop and deploy AI. Demand for AI accelerators from cloud providers, businesses, and governments is likely to remain high in 2025, which positions the company for continued growth ahead.
Wall Street analysts are bullish on the stock, with a consensus Strong Buy rating and an average share price upside potential of 44.45%, making it one of the best large-cap stocks to invest in according to analysts.
11. Devon Energy Corporation (NYSE:DVN)
Average Share Price Upside Potential as of January 31: 47.24%
Market Cap: $22.40 billion
Devon Energy Corporation (NYSE:DVN) is a leading oil and gas company with a multi-basin portfolio. It is a key player in America’s energy sector, specializing in the exploration, development, and production of oil, natural gas, and NGLs.
On September 27, Devon Energy Corporation (NYSE:DVN) announced the completion of its $5 billion strategic acquisition of Grayson Mill Energy. The move has significantly enhanced Devon’s footprint in the Williston Basin, adding 307,000 net acres, 300 top-quality refrac candidates, and 500 undrilled gross locations. The acquired property is also likely to boost production by 100,000 barrels of oil equivalent per day next year.
During its recent Q3 2024 earnings call on November 6, Devon Energy Corporation (NYSE:DVN) announced $683 million of core earnings, or $1.10 per share. It also reached an all-time quarterly record of an average of 728,000 barrels of oil equivalent production per day. This included 335,000 barrels of oil production per day, which surpassed the guidance by 4%.
The company generated $1.7 billion of operating cash flow during the quarter, again exceeding expectations, and increasing 8% year-over-year. It also generated $786 million of free cash flow, a significant improvement from last year. Devon Energy Corporation (NYSE:DVN) is also committed to shareholder returns; during the quarter, it repurchased $295 million of common stock and declared a quarterly cash dividend of $0.22 per share.
Analysts expect Devon Energy Corporation (NYSE:DVN) to sustain its portfolio, further build on its financial strength, and deliver value to shareholders. They have a consensus Buy rating for the stock, with an average share price upside potential of 47.24%, making it one of the best large-cap stocks to invest in according to analysts.
10. Micron Technology, Inc. (NASDAQ:MU)
Average Share Price Upside Potential as of January 31: 50.20%
Market Cap: $101.66 billion
Micron Technology, Inc. (NASDAQ:MU) is an American manufacturer of computer memory and computer data storage, including random-access memory, flash memory, and USB drives. Its products and services are used in servers, smartphones, tablets, and laptops. The company is considered a major player in the memory market and is recognized for its technological advancements.
In October, Micron’s SSDs were added to NVIDIA’s recommended vendor list for the GB200 NVL72 system and its derivatives. A month later the company introduced the world’s fastest SSD, the Micron 6550 ION, with efficiency ramped to 67%. Similarly, in January, the company announced plans to expand its memory and storage portfolio, which reflected its commitment to innovation and improved performance.
Micron Technology, Inc. (NASDAQ:MU) has also announced plans to spend $7 billion over the next few years to build a new HBM advanced chip-packaging facility in Singapore, as demand for advanced memory chips rises. Operations for the new facility are slated to begin in 2026.
Additionally, the company is also investing $825 million in a new assembly and test facility in India, that will enable test manufacturing for NAND and DRAM products and also help in addressing local and international demand. Strategic investments like these are critical to maintaining Micron Technology, Inc. (NASDAQ:MU)’s leading position in the market and meeting the surging demand from data centers, AI, and other rapidly growing sectors.
Micron Technology, Inc. (NASDAQ:MU) is one of the best large-cap stocks to invest in according to analysts, with a consensus Strong Buy rating and an average share price upside potential of over 50%.
9. Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN)
Average Share Price Upside Potential as of January 31: 50.85%
Market Cap: $73.95 billion
Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) is an American biotechnology company that is focused on developing and commercializing medicines for patients with a range of diseases, including eye, cancer, cardiovascular, metabolic, and neurological conditions.
During its recent Q3 2024 earnings call on October 31, the company announced that it has around 40 programs in clinical development, with pivotal data for itepekimab in COPD expected in 2025. Revenue for the quarter was posted at $3.7 billion, up 11% from last year, driven by a robust performance across its product portfolio. It was another strong quarter for Dupixent – a drug for inflammatory diseases that it develops with Sanofi – which saw a 24% year-over-year surge in global revenue.
Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) generated around $2.6 billion in free cash flow during the first nine months of 2024 and ended the quarter with $15.6 billion of cash and marketable securities less debt. The company also repurchased $1.6 billion of shares during the first nine months, including $738 million in Q3.
Wall Street analysts are bullish on the stock, with a consensus Buy rating and an average share price upside potential of 47.45%. Investor sentiment also remains strong. Baron Health Care Fund stated the following regarding Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) in its Q3 2024 investor letter:
“We purchased Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN), a biopharmaceutical company that was built on a foundation in basic scientific research and antibody development. The company has successfully developed several blockbuster medicines, including Eylea and Eylea HD for retinal diseases (such as wet age-related macular degeneration, diabetic macular edema, and diabetic retinopathy) and Dupixent for immunological and inflammatory diseases (such as atopic dermatitis, asthma, and COPD). While Eylea is nearing the end of its patent life and faces potential biosimilar competition, the company has been transitioning patients to Eylea HD, which is a higher dose, longer-acting formulation of Eylea, and Dupixent is growing rapidly through indication expansion. Beyond the current product portfolio, Regeneron has an exciting new product pipeline with over 35 candidates in various stages of development, including a novel treatment for treating severe food allergy, a combination checkpoint inhibitor therapy for melanoma, lung cancer and other solid tumors, biospecific antibodies for blood cancers, and Factor XI antibodies for blood clot prevention, among others. Based on Regeneron’s track record of success discovering and developing new drugs, we are optimistic the pipeline will deliver some successes, which we think will drive upside in the stock.”
8. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Average Share Price Upside Potential as of January 31: 51.52%
Market Cap: $188.17 billion
Advanced Micro Devices, Inc. (NASDAQ:AMD) is one of the world’s leading computer processors and related technologies manufacturers. Its main products include microprocessors, graphic processors, personal computers, workstations, and embedded system applications. The company has also recently expanded to new markets such as high-performance computing and data centers.
In January this year, AMD announced that its Ryzen AI PRO processors will power the new Dell Pro devices, offering improved efficiency, privacy, personalization, and connectivity, as the most recent generation of these processors are designed to enhance business productivity with Copilot+ features. This marked a significant milestone in the partnership between the two companies.
During Q3 2024, Advanced Micro Devices, Inc. (NASDAQ:AMD) generated a record $6.8 billion in revenue, up 18% from last year, driven by higher data center and client processor sales. It also expanded its gross margin by 2.5 percentage points and increased its EPS by 31% year-over-year.
AMD boasts major clients for its MI 300X accelerators, such as Microsoft and Meta. It is set to benefit ahead as more companies ramp up the development of data centers for AI. While DeepSeek sparked a massive AI stock selloff on January 27, AMD’s share price fell by only 6.4%, compared to double-digit losses by its peers. This has led to chatter about Advanced Micro Devices, Inc. (NASDAQ:AMD) being the biggest winner from the bloodbath.
Wall Street analysts see great potential in AMD and expect it to benefit from increased demand for its AI accelerators, which offer competitive pricing compared to its rivals. It is one of the best large-cap stocks to invest in according to analysts, with a consensus Buy rating and an average share price upside potential of 51.52%.
7. MGM Resorts International (NYSE:MGM)
Average Share Price Upside Potential as of January 31: 51.60%
Market Cap: $10.27 billion
MGM Resorts International (NYSE:MGM) is an American hospitality, sports, and entertainment company with a significant presence in domestic and international locations. Its segments include Las Vegas Strip Resorts, Regional Operations, and MGM China. The company’s properties offer hotels, casinos, meetings and conference spaces, dining, gaming, nightlife and other facilities.
Currently, MGM Resorts International (NYSE:MGM) is pursuing targeted expansion in Asia, particularly in Japan, where the Ministry of Land, Infrastructure, Transport, and Tourism in 2023 approved the company’s plans for a $10 billion casino resort project in Osaka, which is expected to transform the city into a premier gaming and entertainment destination. It is also exploring opportunities in other markets in the region, including the United Arab Emirates and Thailand.
MGM Resorts International (NYSE:MGM) is also capitalizing on the online sports betting and iGaming markets through BetMGM, its 50% joint venture with Entain. BetMGM had an impressive third quarter of fiscal 2024, during which it achieved profitability, record iGaming results, and a 70% increase in first-time depositors.
Moreover, MGM boasts a healthy return on equity in the high teens and generates substantial free cash flow, which allows the company to reinvest in its business, execute share repurchase programs, and enhance shareholder value. This has resulted in a general bullish sentiment around the stock.
Wall Street analysts have a consensus Strong Buy rating for MGM Resorts International (NYSE:MGM) with an average share price upside potential of nearly 52%, making it one of the best large-cap stocks to invest in according to analysts. Investor sentiment is seeing an improvement as well. According to Insider Monkey’s database for Q3 2024, 46 hedge funds held a stake in the company, up from 44 at the end of the second quarter.
6. Edison International (NYSE:EIX)
Average Share Price Upside Potential as of January 31: 53.48%
Market Cap: $20.91 billion
Edison International (NYSE:EIX) is a California-based public utility holding company that engages in the generation and distribution of electric power to approximately 15 million people in the state.
As of the close of the day on January 23, the company’s shares have declined by 24% due to the adverse impact of the LA wildfires. Current estimates project the blaze is set to cause severe financial damages to Edison International (NYSE:EIX) as it is losing out on revenue by not being able to supply electricity in the destructive areas.
Edison International (NYSE:EIX) is also facing legal repercussions from the ongoing crisis. Its subsidiary, Southern California Edison, has been hit with multiple lawsuits claiming that its equipment caused one of the major wildfires that struck the Los Angeles area. According to the lawsuit, the company was unable to manage its electrical equipment properly, resulting in damage to private property.
Despite ongoing challenges, analysts believe EIX’s stock valuation is attractive, with the share price expected to bounce back once the headwinds are over. Wall Street analysts have a consensus Buy rating for the stock, with an average share price upside potential of over 53%, making it one of the best large-cap stocks to invest in according to analysts. On January 23, Barclays analyst, Nicholas Campanella, cut Edison International’s (NYSE:EIX) price target from $76 to $67, while maintaining the Buy rating.
Edison International (NYSE:EIX) is also a generous dividend payer. On December 12, the company declared a 6.1% hike in its quarterly dividend to $0.8275 per share, which has stretched its dividend-paying growth streak to 21 years. It was recently named on Insider Monkey’s list of the 10 Best January Dividend Stocks To Buy.
5. ON Semiconductor Corporation (NASDAQ:ON)
Average Share Price Upside Potential as of January 31: 55.58%
Market Cap: $22.29 billion
ON Semiconductor Corporation (NASDAQ:ON) is an American semiconductor supplier company that provides intelligent power and sensing solutions. Its key revenue streams include automotive, industrial, energy, and other industries.
The company’s share price plunged 22% in 2024 due to slower demand and broader macroeconomic challenges. While the short-term outlook may appear less promising, ON Semiconductor Corporation (NASDAQ:ON)’s long-term trajectory remains solid. It ended its most recent quarter (Q3 2024) with $2.8 billion in cash and short-term investments, which allow the company to make further strategic acquisitions and bolster its leadership in high-demand sectors.
In July last year, the company enhanced its intelligent sensing portfolio with the acquisition of SWIR Vision Systems, a leading provider of CQD short wavelength infrared (SWIR) technology, that allows one to see through objects and capture images that were not previously possible. ON Semiconductor Corporation (NASDAQ:ON) is optimistic that the new technology will enable the company to expand its industrial offerings into agriculture, aerospace, medical imaging, and inspection.
Analysts anticipate the company’s end markets to recover by the end of 2025, with the EV sector benefiting from regulatory pressures and subsidies. Its current forward P/E of 12.89, as of January 27, also presents an attractive entry point for investors. Wall Street analysts are bullish on ON Semiconductor Corporation (NASDAQ:ON) with a consensus Buy rating and an average share price upside potential of nearly 56%, making it one of the best large-cap stocks to invest in according to analysts.
4. Microchip Technology Incorporated (NASDAQ:MCHP)
Average Share Price Upside Potential as of January 31: 57.51%
Market Cap: $29.16 billion
Microchip Technology Incorporated (NASDAQ:MCHP) is an American semiconductor company that provides smart, connected, and secure embedded control and processing solutions, serving around 123,000 customers across various industries.
On January 27, the company unveiled its second generation Low-Noise Chip-Scale Atomic Clock (LN-CSAC), model SA65-LN. The new design offers atomic clock stability, low phase noise, and can operate in a wider temperature range. The device has specifically been developed for use in aerospace and defense applications, such as IED jamming systems, unmanned vehicles, mobile radars, dismounted radios, and autonomous sensor networks.
Microchip Technology Incorporated (NASDAQ:MCHP) is also investing in strategic innovative technologies, which is positioning the company to drive long-term value creation. Its new dsPIC33A DSC core, introduced in July 2024, is driving innovation in various critical sectors, including industrial automation, where it is enabling more energy-efficient and precise motor control for smart factories and renewable energy systems. It is also powering advanced grid inverters, solar installations, and power supplies for GPU and CPU-based data centers.
Microchip Technology Incorporated (NASDAQ:MCHP) has also made notable strategic acquisitions lately, which have boosted investor confidence. On April 11 last year, it completed the acquisition of VSI Co. Ltd., a Korea-based industry pioneer in Advanced Driver-Assistance Systems (ADAS) and digital cockpit connectivity. Later in the month, it acquired Neuronix AI Labs to enhance its capabilities for AI-enabled, power-efficient solutions deployed on field programmable gate arrays.
On November 5, Microchip Technology Incorporated (NASDAQ:MCHP) declared financial results for Q2 FY25. It reported net sales of $1.164 billion, which were down 6.2% sequentially. Non-GAAP net income for the quarter stood at $250.2 million, translating into an EPS of $0.46, surpassing the guidance by three cents.
MCHP is one of the best large-cap stocks to invest in according to analysts, with a consensus Buy rating and an average share price upside potential of 57.51%.
3. Biogen Inc. (NASDAQ:BIIB)
Average Share Price Upside Potential as of January 31: 62.26%
Market Cap: $20.97 billion
Biogen Inc. (NASDAQ:BIIB) is a global biopharmaceutical company specializing in delivering advanced therapies for patients with complex diseases. Its wide portfolio of medicines addresses conditions like Alzheimer’s, multiple sclerosis (MS), spinal muscular atrophy (SMA), and amyotrophic lateral sclerosis (ALS).
On January 26, Eisai Co., Ltd. and Biogen announced that the U.S. Food and Drug Administration (FDA) has approved once every four weeks maintenance dosing of Alzheimer’s drug, LEQEMBI. The treatment helps in slowing disease progression, allowing the patients to maintain their current state for longer.
The approval comes as a positive development for the company, which saw its share price decline by 44% in 2024 due to pipeline setbacks and a slowdown in sales. Late last year, the European Medicines Agency (EMA) also reversed its decision and recommended the approval of LEQEMBI for marketing in Europe. This decision is seen as a significant opportunity, as Europe could account for a substantial chunk of the drug’s global sales.
The company has also made some recent strategic acquisitions, which have been well-received by investors and are already creating value. In July 2024, Biogen Inc. (NASDAQ:BIIB) completed the acquisition of Human Immunology Biosciences (HI-Bio), a biotechnology company focused on treating severe immune-mediated diseases (IMDs). In 2023, it acquired Reata Pharmaceuticals and bolstered its rare disease portfolio with the addition of SKYCLARYS, the FDA-approved treatment for Friedreich’s ataxia in the United States.
Wall Street analysts are bullish on Biogen Inc. (NASDAQ:BIIB), with a consensus Buy rating and an average share price upside potential of 62.26%. It is one of the best large-cap stocks to invest in according to analysts.
2. First Solar, Inc. (NASDAQ:FSLR)
Average Share Price Upside Potential as of January 31: 66.33%
Market Cap: $17.93 billion
First Solar, Inc. (NASDAQ:FSLR) is a leading provider of solar technology solutions, specializing in thin-film photovoltaic (PV) technology. The company has manufacturing facilities in the United States, Malaysia, and Vietnam. It is one of the best large-cap stocks to invest in according to analysts.
In September last year, First Solar, Inc. (NASDAQ:FSLR) expanded its solar manufacturing capacity with the inauguration of its new $1.1 billion facility in Lawrence County, Alabama. The facility is expected to add 3.5 gigawatts of vertically integrated solar production capacity in the United States. The company is also constructing a facility in Louisiana, which is slated for completion during the second half of 2025. This has put FSLR on track to achieve over 14 gigawatts of annual U.S. capacity and more than 25 gigawatts of global capacity by 2026.
Besides capacity expansion, the company is also at the forefront of technology development, which positions it well for the future. It is preparing to launch CuRe production during the ongoing fiscal year at its Ohio facility, to produce and sell 0.4 gigawatts of the product through Q1 2025. First Solar, Inc. (NASDAQ:FSLR) is also advancing work on perovskite technology at its development line in Perrysburg.
During Q3 2024, the company generated net sales of $0.9 billion, with a robust gross margin of 50%. Wall Street analysts are bullish on the stock, with a consensus Strong Buy rating and an average share price upside potential of over 66%.
1. Moderna, Inc. (NASDAQ:MRNA)
Average Share Price Upside Potential as of January 31: 70.12%
Market Cap: $15.17 billion
Moderna, Inc. (NASDAQ:MRNA) is a biotechnology company renowned for its groundbreaking mRNA technology and expertise in developing vaccines and therapeutics for complex diseases.
On January 17, the U.S. government awarded Moderna a $590 million contract to accelerate the development of its bird flu vaccine. The company’s share price has surged 33% since the announcement, as of the close of the day on January 28. Last year, Moderna, Inc. (NASDAQ:MRNA) also received a $176 million award from the U.S. Department of Health and Human Services (HHS) for an mRNA-based vaccine against the H5N1 avian influenza.
In another positive development, Moderna, Inc. (NASDAQ:MRNA)’s cancer-fighting jab, called mRNA-4359, has shown early promise in trials. It has been designed to prepare the body to identify and fight cancer cells. According to a report, 19 patients with advanced tumors were tested in the jab’s first-in-human study. They were given between one and nine doses of the mRNA-4359. Results showed that eight of the trial’s participants did not experience tumor progression or the emergence of new tumors. Moreover, the company claimed that there were no significant negative effects and that the treatment was well tolerated.
Moderna, Inc. (NASDAQ:MRNA) reported strong results for the third quarter of fiscal 2024, with revenue posted at $1.9 billion, up 5.6% from last year and primarily driven by higher sales in the U.S. market. GAAP net income stood at $13 million, a notable improvement from a net loss of $3.6 billion during Q3 2023.
Wall Street analysts anticipate a 70.12% uptick, on average, in Moderna’s share price, making it the best large-cap stock to invest in according to analysts.
Overall, MRNA ranks first among the 12 Best S&P 500 Stocks to Invest in According to Analysts. While we acknowledge the potential of MRNA, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than MRNA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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