While large-cap tech stocks will propel the stock market to new heights in 2024, there are some outperformers outside of the tech space. Last year was a record-breaking year for markets, with a bull run in key tech companies like artificial intelligence darling Nvidia helping to propel the market higher and become one of the year’s most compelling stories. The chipmaker’s market capitalization topped $3 trillion for the first time in June and ended the year up more than 171%. Along with these gains, the market has had a banner year, with all three major stock indexes setting new intraday and closing records in December alone. Not surprisingly, the tech-heavy Nasdaq had the biggest gain among the three indexes, rising more than 28%. The S&P 500 closed not far behind, up more than 23%. Meanwhile, the blue-chip Dow Jones Industrial Average rose nearly 13%. Still, some non-tech companies are making their mark on the market with their performance. With that in mind, here are the top 25 names on the index in 2024, according to FactSet. The race for artificial intelligence is a dominant topic in 2024, leading to a surge in demand for data centers as technology companies look to connect them to nuclear power plants as a way to obtain clean energy to meet their artificial intelligence needs. But because of this demand, land and power have become more limited, and data centers are now moving out of the global hub of northern Virginia and into new markets in places like Texas. For Vistra, a Texas power company with six reactors, the boom has been a huge boost. The stock is the second-best performer in the S&P 500 this year, up about 258%. This trend is likely to continue into 2025 as Wall Street is fully bullish on this trend. In fact, all 14 analysts covering the stock have a Strong Buy or Buy rating, with an average price target of about $163, implying more than 18% upside potential, according to LSEG. VST 1Y mountain VST, 1 year However, Vistra is not the only company on the list to benefit from the AI data center boom. As more tech companies move into Texas, given the state’s less stringent regulations and abundant energy resources, Dallas-based landowner Texas Pacific Land is investing in Texas. The West, with about 873,000 acres of land, most of it in the Permian Basin, has stepped up to the plate. Asked about opportunities to lease land for data centers, CEO Tyler Glover said on the company’s latest earnings call, “There are a lot of conversations going on within the industry, especially within TPL. “We believe that as these opportunities arise, we are as well positioned as anyone in West Texas to provide land and water solutions,” he continued. The stock has more than doubled since the beginning of the year, rising 111%. Still, the only analyst covering TPL (which joined the broader index in late November) takes a neutral stance for next year, with a price target of $565, which would imply a downside of about 49% from now. TPL 1Y mountain TPL, 1 year The airline industry has continued to see a recovery in travel demand this year since the Covid-19 pandemic hit, according to United Airlines executives. Chief Executive Scott Kirby said on the latest earnings call that the industry has reached an “inflection point” and predicted margins will expand in the coming years. The demand has prompted the airline to plan new international routes in 2025, including to relatively remote destinations such as Mongolia, Greenland and northern Spain. A few months ago, the Federal Aviation Administration approved the addition of new routes and aircraft. At this point, the stock becomes the fourth-best performer in the S&P 500, up more than 135% year to date, and most Wall Street expects its gains to continue. Of the 23 analysts covering the company, 22 have assigned it a Strong Buy or Buy rating, while 1 analyst has assigned a Hold rating. Additionally, its average target of about $113 implies upside of more than 16%. UAL 1Y mountain UAL, 1-Year While customers took to social media to criticize Walmart’s decision to roll out digital shelf labels, the retail giant remains where many shoppers turn for its hefty discounts in a time of stubborn inflation. Specifically, the company said in August that it conducted 7,200 “rollbacks,” or short-term transactions, across various categories in the quarter ended July 31. In its latest quarterly results, the company’s comparable sales rose 5.3%, while e-commerce sales increased 22%. That performance has helped the stock rise about 72% this year, and most Wall Street believes there’s more gains to come. To be sure, 41 of the 44 analysts covering the retailer have a Strong Buy or Buy rating, but 3 rate the stock a Hold. The average price target on the stock is about $99, which suggests upside potential of more than 6% as of Tuesday’s close. WMT 1Y mountain WMT, the 1-year Deckers Outdoor, owner of breakout footwear brand Hoka, also rose sharply. The shoe has grown in popularity this year, with the company’s most recent quarterly results showing net sales increasing nearly 35% year over year. This has helped the stock rise 82.3% in 2024. Enter or buy rating. However, its average target of about $202 implies room for about 0.5% downside ahead.
