Best and Worst US Stocks of 2024

Traders work on the floor of the New York Stock Exchange during morning trading, on Nov. 26, 2024. (Michael M. Santiago/Getty Images

The bears sat on the sidelines and the bulls ran wild on Wall Street as the stock market registered record highs in 2024.

It was a year fueled by the presidential election, the AI craze, and the Federal Reserve cutting interest rates.

Over the past 12 months, U.S. exceptionalism has been on display, outperforming European financial markets. Investors took notice, too, with the global stock market dominated by at least 50 percent of U.S. stocks.

The blue-chip Dow Jones Industrial Average rose by 13 percent, the tech-heavy Nasdaq Composite Index soared by 30 percent, and the benchmark S&P 500 Index advanced by 24 percent.

By comparison, the STOXX Europe 50 Index increased by 5 percent, and the UK FTSE 100 Index jumped by about 6 percent.

While the equities arena witnessed enormous gains, the U.S. stock market is intensely concentrated. According to an analysis by Russell Investments, just 10 stocks generated nearly 70 percent of the increase in the S&P 500.

Traders have been heavily investing in technology titans such as Tesla Motors and Nvidia.

“At the start of the year, the Big Tech rally was expected to broaden to the other sectors—which it did—but the broadening of the rally didn’t prevent the Magnificent 7 stocks to contribute to much of the S&P 500’s performance this year,” Ipek Ozkardeskaya, senior analyst at Swissquote Bank, said in a note emailed to The Epoch Times.

Other sectors were primarily flat, she says, and equal-weighted indexes have tried to catch up.

“But investors gave in since the beginning of December, where we started seeing the Big Tech appetite take over,” Ozkardeskaya said.

It was not all sunshine and lollipops on Wall Street, as many big names suffered sharp losses.

So which were the best of the best and the worst of the worst?

Best Stocks of 2024

AppLovin Corp.

2024 gain: 735 percent

AppLovin is a mobile marketing platform that allows application developers to monetize their apps.

A sizable share of the stock’s rally occurred later in the year when the California-based tech company delivered investors a blockbuster third-quarter earnings report. AppLovin reported earnings soaring by 317 percent year over year and sales rising by 39 percent.

In November, it was announced that AppLovin would join the Nasdaq 100 Index.

Shares finished the year above $300, and its market cap surged beyond $100 billion.

AppLovin may not be a fly-by-night stock.

Based on 19 Wall Street analysts, 14 reported a “Buy” rating. Many top Wall Street companies, including Oppenheimer, Macquarie, and Loop Capital, also lifted their price targets.

Palantir Technologies

2024 gain: 362 percent

The artificial intelligence (AI) and machine-learning platform was flat for most of the year. It was not until President-elect Donald Trump’s victory that Palantir Technologies spiked, driven by expectations that the government would embrace AI automation.

Palantir shares ended the year at around $76, sending the company’s market value to approximately $175 billion.

Analysts do not believe Palantir can sustain its momentum. Eleven of the 19 Wall Street analysts who have issued ratings maintain a “Hold” rating. Moreover, the stock has a consensus rating of “Reduce,” as the price target suggests a 46 percent downside.

However, according to Joe Tigay, a portfolio manager at Rational Equity Armor Fund, the software side of the AI ecosystem presents substantial potential for new and old companies.

“Companies like Palantir demonstrate what pure AI software can achieve, and we’re seeing an intriguing convergence between hardware and software,” Tigay said in a note emailed to The Epoch Times.

“The software sector is still in its early stages, with opportunities for new companies, adaptations, and IPOs to drive the next wave of AI innovation. We’re only beginning to scratch the surface of what’s possible with AI.”

Vistra

2024 gain: 264 percent

Vistra Corp. became the first utility stock to stand on top of the S&P 500 since 2001.

The Texas retail electricity and power generation firm surged to $140 due to rising energy demand driven by the expansion of artificial intelligence and data centers.

Matt Sallee, the president of Tortoise Capital, says many of the top companies in the S&P 500 that have delivered impressive returns are in the energy sector.

“Vistra is the top performer. It’s outperformed Nvidia this year,” Sallee said in a note emailed to The Epoch Times. “Utilities and midstream infrastructure are going to be secondary beneficiaries of the AI theme.”

The Street thinks there are more gains ahead, with 100 percent of analysts issuing a “Buy” rating and a consensus 7 percent upside.

Worst Stocks of 2024

Walgreens Boots Alliance

2024 loss: negative 64 percent

Walgreens endured an abysmal 2024 as it struggles amid lower prescription reimbursement rates and growing competition from Amazon and other discount chains.

A sign informs customers that a Walgreens pharmacy and convenience store would soon be closing in New York City. Spencer Platt/Getty Images

The pharmacy chain operator will close 1,200 U.S. stores, lowered its full fiscal-year earnings outlook, and cut its dividend by 50 percent.

Market analysts turned bearish on the company. In recent months, the Royal Bank of Canada, Jefferies Financial Group, and TD Cowen lowered their targets. In addition, based on 15 Wall Street analysts who have presented ratings for the stock, just two maintain a “Buy” rating.

The stock ended the year below $10 for the first time since 1996.

Moderna

2024 loss: negative 63 percent

What a few years can make for the pharmaceutical giant.

Due to declining sales of coronavirus vaccines, increasing losses, and postponed profitability expectations to 2028 from 2026, Moderna’s shares are now trading at about $40, a level not seen since before the pandemic.

The biotechnology industry is highly volatile because of the risks of Food and Drug Administration (FDA) outcomes and real-world reactions to these products. However, Moderna maintains a diverse product inventory, including cancer treatments and respiratory vaccines, which contribute to its $3 billion annual revenues.

Market watchers may be playing the waiting game for Moderna for the year ahead.

Based on 22 analyst ratings, 12 have a “Hold” consensus rating, and six have a “Buy” consensus rating. The consensus price target is close to $80, giving Moderna shares a potential 94 percent upside.

Intel

2024 loss: negative 58 percent

Did Intel miss the AI boom?

Intel, a half-century-old chipmaker, suffered its worst year ever, losing 60 percent of its value in 2024.

This has been mainly due to the company’s failure to catch up with industry rivals, including Nvidia and Advanced Micro Devices.

Investors cheered when CEO Pat Gelsinger submitted his resignation on Dec. 1. However, Hendi Susanto, a portfolio manager at Gabelli Funds, says the tech company’s challenges, such as advancing its manufacturing technology and steering gross margins, will persist into 2025.

“Intel’s interim leaders and next CEO must address the primary question of who can lead and help Intel’s manufacturing technology catch-up,” Susanto said in a note emailed to The Epoch Times. “The state of Intel’s manufacturing technology execution is a giant centerpiece of the underlying challenge that dictates Intel’s outlook, sales, profitability, and cash flow.”