YTD Winner! Why These 10 SPX Stocks Outperformed in 2025?
MaverickWealthBuilder
05-07
As of the close on May 6, 2025, the 10 best-performing companies in the $S&P 500(.SPX)$ are listed below. Although the “Magnificent 7” tech giants are absent, the list still highlights notable sector leaders. $SPDR S&P 500 ETF Trust(SPY)$
Key Highlights:
Industry Leaders: All of these companies are leaders in their respective niches (e.g., CVS in pharmaceutical retail, PM in tobacco transformation, UBER in mobility, VZ in telecom, CRWD in cybersecurity, etc.).
Earnings Beat Expectations: Most companies delivered double-digit earnings growth and raised full-year guidance.
Aligned with Market Themes: Themes like healthcare, gold, AI, and recovery attracted capital inflows.
Valuation Recovery: Some of these stocks rebounded in 2025 following excessive declines in 2024, supported by improved performance outlooks.
1. $CVS Health(CVS)$
Earnings Performance:
Q1 2025: Revenue of $94.588 billion (+6.96% YoY), net income of $1.782 billion (+58.54% YoY), EPS of $1.41 (vs. $0.88 last year).
Full-Year 2024: Revenue of $372.692 billion, net income of $4.614 billion, gross margin improved to 13.8%.
Stock Performance: +50.93% YTD (as of May 6, 2025), -40.77% in 2024.
Key Success Factors:
Medical Cost Optimization: Medical benefit ratio in its insurance unit Aetna dropped from 90.4% to 87.3%, boosting profitability.
Pharmacy Services Growth: Caremark unit revenue rose 7.9%; expanded GLP-1 drug (Wegovy) coverage.
Strategic Shift: Exited ACA individual market to focus on profitable segments; raised 2025 EPS guidance to $6.00–$6.20.
2. $Newmont Mining(NEM)$
Earnings Performance:
Q1 2025: Revenue of $4.871 billion (+21.7% YoY), net income of $1.891 billion (+1038% YoY), gold output of 1.905 million ounces (+6% vs. expectations).
Full-Year 2024: Revenue of $18.557 billion, net income of $3.280 billion.
Stock Performance: +47.59% in 2025, -7.85% in 2024.
Key Success Factors:
Gold Price Tailwind: Geopolitical tensions drove up gold prices; production exceeded expectations at mines like Cadia.
Cost Control: All-in sustaining costs (AISC) came in 5% below forecasts; non-core asset divestitures improved the balance sheet.
Buybacks: $1 billion repurchase program supported share price.
3. $Philip Morris(PM)$
Earnings Performance:
Q1 2025: Revenue of $9.249 billion (+5.5% YoY), net income of $2.682 billion (+25.2% YoY), smoke-free products accounted for 42% of sales.
Full-Year 2024: Revenue of $37.692 billion, net income of $7.034 billion.
Stock Performance: +45.92% in 2025, +34.33% in 2024.
Key Success Factors:
Successful Smoke-Free Transition: Products like IQOS generated 44% of gross profit and reached 95 markets.
Weak Dollar Boost: Forex gains from overseas sales; Morgan Stanley has a $174 price target citing long-term growth potential.
Margin Expansion: Adjusted operating margin hit 44%; full-year EPS guidance raised to $6.00–$6.20.
4. $Palantir Technologies Inc.(PLTR)$
Earnings Performance:
Q1 2025: Revenue of $884 million (+39% YoY), net income of $214 million (+102% YoY), U.S. commercial revenue up 71%.
Full-Year 2024: Revenue of $2.866 billion (+45% YoY), net income of $462 million.
Stock Performance: +43.94% YTD in 2025, +340% in 2024.
Key Success Factors:
AI Demand Surge: AIP platform drove 65% YoY growth in enterprise clients; large deal value up 183%.
Strong Government Business: U.S. defense contracts (e.g., TITAN project) grew revenue 45%.
Profitability Improvement: 7 straight quarters of GAAP profitability; $370 million in adjusted free cash flow.
5. $Howmet Aerospace Inc.(HWM)$
Earnings Performance:
Q1 2025: Revenue of $1.942 billion (+6.5% YoY), net income of $344 million (+41.6% YoY), EPS of $0.84.
Full-Year 2024: Revenue of $7.43 billion, net income of $1.155 billion.
Stock Performance: +42.57% in 2025, +100% in 2024.
Key Success Factors:
Aviation Recovery: Boeing/Airbus supply chain rebound drove demand for parts; industrial segment revenue +8%.
Margin Expansion: Gross margin rose to 30.3%; Truist Securities maintains “Buy” rating with $136 target.
Strong Cash Flow: Q1 2025 operating cash flow of $253 million supported dividends and buybacks.
6. $Uber(UBER)$
Earnings Performance:
Full-Year 2024: Revenue of $43.978 billion (+18% YoY), net income of $9.856 billion (+422%), free cash flow of $6.895 billion (+105%).
Q1 2025: Revenue of $11.61 billion (+14.6% YoY), adjusted EBITDA of $1.84 billion (+44% YoY), beating expectations.
Stock Performance: +42.29% YTD (as of May 6, 2025), -2.03% in 2024.
Key Success Factors:
Core Business Growth: Rideshare gross bookings rose 18% YoY; delivery revenue up 21%; 33 million daily trips.
Autonomous Driving Strategy: Collaborations with Waymo and NVIDIA to reduce long-term costs and raise margins (adjusted EBITDA margin at 4.2%).
Improved Cash Flow: Free cash flow +105% YoY; reduced debt by $2 billion; $7 billion cash reserve.
7. $Verizon(VZ)$
Earnings Performance:
Full-Year 2024: Revenue of $134.788 billion (+1.5% YoY), net income of $17.506 billion; dividend yield at 6.6%.
Q1 2025: Revenue of $33.5 billion (+1.5% YoY), adjusted EPS of $1.19 (+3.5% YoY), wireless revenue of $20.8 billion (+2.7%).
Stock Performance: +14.17% in 2025, +13.14% in 2024.
Key Success Factors:
Pricing Optimization: Postpaid ARPA rose 4.2%, offsetting churn impact.
Cost Discipline: 1.4% workforce reduction lowered OPEX; free cash flow guidance held at $17.5–18.5 billion.
Defensive Play: High dividend and stable cash flows made VZ a safe-haven in volatile 2025 markets.
8. $NRG Energy Inc(NRG)$
Earnings Performance:
Full-Year 2024: Revenue of $28.1 billion, net income of $1.125 billion, EPS of $4.99 (+36.9% YoY).
Q1 2025 (Est.): Revenue growth of 15%, EPS of $1.52 (+17.8% above expectations).
Stock Performance: +30.78% in 2025, +78.55% in 2024.
Key Success Factors:
Energy Demand Recovery: Summer demand surge boosted power revenue; asset divestitures improved balance sheet.
Margin Expansion: Operating costs fell 10%; $2.306 billion in free cash flow supported dividends and buybacks.
Policy Tailwinds: U.S. clean energy subsidies encouraged investment in renewables.
9. $Cencora Inc.(COR)$
Earnings Performance:
Full-Year 2024: Revenue of $81.487 billion, net income of $489 million; gross margin rose to 56.1%.
Q1 2025 (Est.): Revenue +5%, EPS of $3.73 (+12% YoY).
Stock Performance: +29.72% in 2025, +10.38% in 2024.
Key Success Factors:
Drug Distribution Dominance: Leading U.S. pharmaceutical distributor benefited from GLP-1 and other high-cost drugs.
Cost Efficiency: SG&A ratio down 1.5ppts; e-commerce gross margin rose to 50.3%.
10. $CrowdStrike Holdings, Inc.(CRWD)$
Earnings Performance:
Full-Year 2024: Revenue of $3.954 billion (+33% YoY), free cash flow of $1.382 billion (+35% YoY).
Q1 2025: Revenue of $958 million (+31% YoY), non-GAAP EPS of $0.93 (+63% YoY).
Stock Performance: +29.53% in 2025, +34.01% in 2024.
Key Success Factors:
AI-Driven Growth: Falcon platform integrated AI threat detection; next-gen SIEM revenue doubled.
High Customer Stickiness: ARR reached $3.65 billion; net new ARR was $212 million.
Cloud Security Expansion: Partnerships with AWS and Google Cloud to serve multi-cloud cybersecurity needs.
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