In 2024, technology giants certainly stole the spotlight by driving the stock market to remarkable heights. Especially noteworthy was the impact of megacap tech stocks, with companies like Nvidia, a leader in the artificial intelligence sector, making headlines. The chipmaker exceeded a market capitalization of $3 trillion in June and wrapped up the year with an astounding 171% increase. This tech-powered surge ensured a phenomenal year for the market, pushing all three major indexes to reach new intraday and closing records by December. The Nasdaq Composite, dominated by tech firms, soared over 28%, with the S&P 500 not far behind, climbing over 23%. Meanwhile, the Dow Jones Industrial Average saw a respectable rise of nearly 13%. However, the year wasn’t solely about tech. Several non-tech companies also turned heads with impressive performances.
Let’s delve into some standout names from the indexes, as reported by FactSet for 2024. A major theme of the year was the AI race, which sent demand for data centers through the roof. Tech companies sought to harness clean energy by connecting these centers to nuclear power, but this drive created pressure on existing land and power resources. Consequently, new markets, like Texas, became pivotal, drawing data centers away from traditional hubs like northern Virginia. In this scenario, Vistra, a Texan power company with six reactors, emerged as the second-best performer in the S&P 500, boasting a 258% leap. Analysts remain optimistic for 2025, evidenced by unanimous strong buy or buy ratings from 14 covering analysts and a target price of around $163, suggesting an 18% potential upside.
But Vistra wasn’t alone in riding the AI wave. Texas Pacific Land, a Dallas-based landowner with vast holdings of 873,000 acres in West Texas, most notably in the Permian Basin, became a hot topic. As tech firms expand into Texas, Tyler Glover, the company’s CEO, noted in a recent earnings call the burgeoning interest in leasing land for data centers. He emphasized, “There’s a lot of conversations taking place within the industry and definitely within TPL.” Since the start of the year, Texas Pacific Land’s stock has more than doubled, rising 111%. Despite its late entrance to the broad market index in November, the sole analyst covering it holds a neutral view for the future, pegging the stock’s price target at $565, which implies a 49% downside from the current level.
The airline industry also saw significant developments in 2024. United Airlines’ executives reported a steady recovery of travel demand post-COVID-19. CEO Scott Kirby highlighted an “inflection point” in the industry, predicting margin growth over the coming years. This optimism led United Airlines to plan new international routes for 2025, venturing into less crowded skies over countries like Mongolia, Greenland, and northern Spain. Following the Federal Aviation Administration’s green light for new routes and aircraft, United’s stock soared to become the fourth-best performer in the S&P 500, with over 135% gains this year. Among the 23 analysts covering the stock, 22 echo a strong buy sentiment, while one suggests holding, with an average price target of approximately $113, hinting at a 16% potential uplift.
Meanwhile, retail giant Walmart faced a social media storm as it introduced digital shelf labels. Despite this, Walmart remained a go-to for value-conscious shoppers amid persistent inflation, thanks to ample promotions. Back in August, the firm reported 7,200 “rollbacks,” or temporary discounts, across various categories for the quarter ending July 31. Such a focus on affordability led to robust earnings, with comparable sales up 5.3% and e-commerce sales jumping 22%. Walmart’s stock appreciated by about 72% this year, and expectations are high for continued growth, with 41 out of 44 analysts favoring a strong buy or buy stance, although three suggest holding. The average target price is around $99, indicating a 6% potential increase as of Tuesday’s close.
Lastly, Deckers Outdoor, propelled by its trendy Hoka shoe brand, experienced significant growth. With Hoka’s rising appeal, net sales soared nearly 35% year-over-year in the recent quarter, contributing to the stock’s 82.3% ascent in 2024. As we look toward 2025, more than half of analysts covering Deckers maintain a positive outlook, with 14 out of 24 rating it a strong buy or buy. Despite this, the average price target of about $202 implies a slight downside of 0.5% going forward.
