The S&P 500 delivered impressive returns in 2024, climbing over 20%1 for the second consecutive year. This strong performance reinforced investor confidence, but a closer look reveals that the rally was far from evenly distributed. A handful of mega-caps were the primary drivers of these gains. Often referred to as the "Magnificent Seven Stocks," these include Apple, Microsoft, Alphabet, Amazon, Nvidia, Tesla, and Meta. While their outsized contributions boosted the index, they also highlighted a growing disparity between these tech giants and the rest of the market2.
Despite this imbalance, not all seven ranked among the S&P 500’s share price winners for 2024. This article takes a closer look at the year's dynamics, analyzing the 10 best and worst-performing stocks in the index. By examining these extremes, we uncover the trends and challenges that defined the market, highlighting where investors found opportunities and where pitfalls emerged.
Top Ten S&P 500 Stocks 2024
The two Magnificent Seven stocks that appear in the S&P 500’s top ten winners of 2024 include NVIDIA Corp (NASDAQ: NVDA) and Netflix Inc (NASDAQ: NFLX). Accompanying them are United Airlines Holdings Inc (NASDAQ: UAL), GE Vernova Inc (NYSE: GEV), Axon Enterprise Inc (NASDAQ: AXON), Broadcom Inc (NASDAQ: AVGO), Targa Resources Corp (NYSE: TRGP), Howmet Aerospace Inc (NYSE: HWM), Constellation Energy Corp (NASDAQ: CEG), and Arista Networks Inc (NYSE: ANET).
NVIDIA soared by 171.25%3 in 2024, driven by the explosive growth in demand for its AI chips used in everything from data centers to autonomous vehicles. United Airlines also took flight, posting a 135.34% gain fueled by strong travel demand, an increase in corporate travel, and impressive earnings results.
GE Vernova, a spinoff of General Electric, began trading on the NYSE in April 2024. During the year, GE Vernova achieved record orders and revenue growth, driven by strong demand in its Power and Electrification segments, leading to significant margin expansion and increased cash generation. The GEV share price climbed 131.78 % during 2024.
A beneficiary of public safety concerns, Axon Enterprise, saw its share price climb 130.06% last year, fueled by its pivot to AI-driven solutions and global expansion. Once known for tasers and body cameras, Axon now leads in public safety technology with innovations like Redaction Assistant and drone tracking systems. A major contract with the Royal Canadian Mounted Police underscores its international growth. As demand for AI tools in law enforcement surges, Axon’s advanced offerings and strong financial performance position it for sustained growth, solidifying its role as a leader in public safety innovation.
Broadcom delivered a robust 110.49% share price return, bolstered by strong demand for its semiconductors. The company achieved a record revenue of $51.6 billion, driven by the integration of VMware, 220% growth in AI-related semiconductor sales, and strong profitability.
Targa Resources benefited from rising energy prices which increased demand for its midstream services and improved margins on NGL sales. This price environment, along with strategic investments in high-demand infrastructure and operational efficiency, contributed to its financial performance and a 110.12% share price increase during the year.
Howmet Aerospace's share price rose by 102.71% in 2024, driven by strong revenue growth, particularly in commercial aerospace, alongside improved profitability and operational efficiency. Share repurchases and a dividend increase bolstered investor confidence, supported by the aviation industry's recovery and solid performance across key markets, including aerospace and industrial sectors.
Constellation Energy delivered a 92.71% return, benefiting from a 20-year power purchase agreement with Microsoft to supply clean energy for data centers. Arista Networks enjoyed strong financial performance driving its stock 87.73% higher. The surge in demand for high-performance networking equipment to support artificial intelligence (AI) applications, especially from major clients like Meta Platforms and Microsoft, also supported the price rise.
Netflix stock did well in 2024 due to popular content releases, such as Squid Game season 2 and successful live events, including NFL games on Christmas Day. The NFLX share price rose 83.07% in 2024.
Palantir’s Brief Appearance in the S&P 500
You may wonder why Palantir isn’t ranked at number one, given its remarkable 394% rise in 2024. However, it only featured in the S&P 500 briefly from late September to late November 2024 before being removed following its transition from the NYSE to the NASDAQ. During its time in the index, Palantir's stock climbed approximately 73%, which would place it at 16th among the S&P 500’s top performers.
Underperforming Stocks in the S&P 500
The worst-performing S&P 500 stocks in 2024 were Super Micro Computer Inc (NASDAQ: SMCI), Walgreens Boots Alliance Inc (NASDAQ: WBA), Intel Corp (NASDAQ: INTC), Moderna Inc (NASDAQ: MRNA), Celanese Corp (NYSE: CE), Enphase Energy Inc (NASDAQ: ENPH), Estee Lauder Cos Inc (NYSE: EL), Dollar Tree Inc (NASDAQ: DLTR), Humana Inc (NYSE: HUM), and Dollar General Corp (NYSE: DG).
Super Micro Computer faced a difficult year in 2024, with its stock plunging 71.48%. The decline was primarily due to concerns over its financial reporting and corporate governance. Allegations of accounting manipulation by a short-seller and the resignation of its auditor raised serious investor concerns.
Walgreens' stock declined by 61.34% due to shrinking demand for COVID-19 vaccines, heightened competition, and operational challenges. Dividend cuts, store closures, and legal issues further eroded investor confidence.
Intel's stock fell 59.57% in 2024 due to CPU instability issues, a weak Arrow Lake launch, market share losses to AMD, and layoffs amid financial struggles. Its removal from the Dow Jones Industrial Average and CEO Pat Gelsinger's retirement added to uncertainty.
Moderna saw its stock drop 58.19% as demand for its COVID-19 vaccine tapered off and it implemented cost-cutting measures affecting some of its pipeline programs. Celanese experienced a 54.57% decline due to weaker demand for its chemical products amid a slowing global economy and rising input costs. Enphase Energy also struggled, with its stock down 48.02%, as the solar energy market experienced volatility.
Estee Lauder faced challenges in the luxury cosmetics market as it succumbed to market weakness in Asia, with its stock dropping 47.59%. Dollar Tree fell 47.24% as inflation and shifting consumer habits reduced spending.
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Humana saw its stock decline by 43.96%, reflecting concerns about rising healthcare costs and growing competition in the managed care sector. Finally, Dollar General faced a similar fate, with its stock falling 43.12% as inflation and increased competition from discount rivals weighed on its performance.
Mega-Caps Prove to Be a Driving Force
The Magnificent Seven drove the S&P 500's gains due to their substantial weight in the index. These mega-cap stocks hold outsized influence because the S&P 500 is weighted by market capitalization. Even moderate price increases in these companies significantly impact the index's overall performance. While not all seven ranked among the top gainers by share price percentage, their collective market value was large enough to account for a significant portion of the index's growth. This shows how a few dominant companies can heavily influence the index, even if most other stocks perform differently.
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Stock Market Trends 2024
The stock market in 2024 displayed a strong but uneven performance, with the S&P 500 gaining 23.3%1. This marked a second year of impressive performance after rising 24.2%1 in 2023.
Artificial intelligence continued as a key growth driver, boosting demand for AI-related products and services across multiple sectors. Clean energy and aerospace also gained momentum, supported by sustainability initiatives and a recovering travel market.
Conversely, some sectors faced significant challenges. Retailers and healthcare companies struggled with inflation, shifting consumer habits, and rising costs, while semiconductor firms faced mixed fortunes in 2024. Broader market disparities emphasized opportunities in emerging technologies and clean energy while exposing vulnerabilities in traditional retail and healthcare industries.
The market's focus on innovation, sustainable growth, and post-pandemic recovery underscored evolving investor priorities, but the uneven distribution of gains signaled potential risks in relying on a narrow set of outperformers.