In this article, we will take a look at the best-performing S&P 500 stocks in the last 2 years.
Given the current geopolitical tensions, it has become difficult for markets to find a clear direction. Investors hope for minimal lasting impact whilst navigating developments in the Middle East.
According to CNBC, stocks resumed their decline on March 5. While the Dow Jones Industrial Average dropped 1,034 points, the S&P 500 declined 1.3%, and the Nasdaq Composite fell 1.1%, CNBC’s publication noted. Crude oil prices surged after Iran’s announcement of hitting an oil tanker with a missile.
As stated by Savita Subramanian, Head of U.S. Equity and Quantitative Strategy at Bank of America Securities, on CNBC’s “Closing Bell: Overtime,”
“Things are changing around the edges. We have a geopolitical shock, obviously, and we’re still parsing that in terms of how it could impact the risk premium for equities.”
A separate publication by CNN, titled “US stocks rise, Asian markets get rocked as Middle East conflict intensifies,” published on March 4, outlines that diversifying risk through investments in European and Asian markets emerged as a popular strategy across the last year, since international stocks outperformed the S&P 500. This approach has been tested this week, with Asian markets leading the decline, the author asserted.
Against this global backdrop, we have compiled a list of the best-performing S&P 500 stocks in the last 2 years.
Image by Sergei Tokmakov Terms.Law from Pixabay
Our methodology
For this article, we filtered for S&P 500 stocks and shortlisted the stocks with the highest number of hedge fund holdings, based on Insider Monkey’s database, as of Q4 2025. Next, we analyzed their 2-year performance and shortlisted stocks with over 100% returns. We limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. Our finalized list of stocks is ranked by 2-year performance, from highest to lowest.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
10. Texas Pacific Land Corporation (NYSE:TPL)
On February 23, KeyBanc lifted the price target on Texas Pacific Land Corporation (NYSE:TPL) to $639 from $350 and maintained an Overweight rating. Analyst Tim Rezvan from KeyBanc highlighted the water segment’s solid dynamics, as well as meaningful developments in power generation and data center opportunities.
While noting a 30-plus-gigawatt Permian power generation build-out, the firm said that power and data center build-outs are now seen as matters of timing rather than probability. The firm added that the development seems closer to materializing than previously thought. Texas Pacific Land Corporation (NYSE:TPL) is well-positioned from both land and water aspects, KeyBanc asserted, suggesting additional upside potential.
As outlined by Texas Pacific Land Corporation (NYSE:TPL) during its earnings call on February 19, the company aims for capital expenditures for the year in the range of $65 million to $75 million. The company plans to sustain its investments in water management and desalination technologies, with a long-term goal of building multiple multi-gigawatt energy campuses.
Texas Pacific Land Corporation (NYSE:TPL), founded in 1888, is a Texas-based company specializing in land and resource management, water services, and operations businesses.
9. Newmont Corporation (NYSE:NEM)
On February 26, BofA lifted the price target on Newmont Corporation (NYSE:NEM) from $134 to $151 and reiterated a Buy rating. According to TheFly, this is part of the firm’s price target readjustment for North American Metals & Mining stocks following the revised estimates for metal prices in 2026.
A day later, Bernstein SocGen Group upgraded Newmont Corporation (NYSE:NEM) to Outperform from Market Perform and raised its price target from $121 to $157. Bob Brackett from Bernstein believes this upward revision in outlook represents a bullish view on gold. According to the firm, there are many alpha catalysts for the company, including a new CEO with a solid plan, attainable guidance, and a reasoned agreement with the company’s largest joint venture partner.
Overall, Newmont Corporation (NYSE:NEM) is a buy according to 81% of analysts covering the stock as of March 5. While the median price target of $140 reflects an upside potential of 21.52%, the highest and lowest price targets translate to an upside potential of 53.63% and a downside potential of 7.13%, respectively.
Newmont Corporation (NYSE:NEM), founded in 1916, is a Colorado-based gold producer that also explores for copper, silver, lead, zinc, and other metals.
8. Carvana Co. (NYSE:CVNA)
On March 2, Carvana Co. (NYSE:CVNA) presented at the Morgan Stanley Technology, Media & Telecom Conference 2026, outlining its strategic roadmap, given both opportunities and challenges. The conference featured CEO Ernie Garcia, who highlighted the company’s growth ambitions, navigated operational challenges, and discussed the changing automotive market landscape.
While targeting 3 million unit sales and a 13.5% Adjusted EBITDA margin within 4 to 9 years, Carvana Co. (NYSE:CVNA) is massively investing in electrification, focusing on systems for reconditioning and charging electric vehicles. The company’s main operational hurdles include reconditioning expenses, with steps being taken to improve efficiency.
Looking ahead, Carvana Co. (NYSE:CVNA) is working towards broadening its Total Addressable Market (TAM) and exploring vertical integration carefully. Management believes that the company is currently in a great spot, and can even get better in the times ahead. As said by Garcia,
“We think that we’ve got tons of cushion to be in a good spot in tough environments. I think there’s still room for lots of fundamental gains, some of which are, I think, very straightforward and easy for investors to buy into, and some of which are less straightforward, but we’ll be working on both types.”
Separately, the company has recently seen several downward price target revisions by analysts following its weaker-than-expected earnings report. These revisions included lowering the target to $490 from $510 by JPMorgan analyst Rajat Gupta, and to $400 from $460 by BofA analyst Michael McGovern, both of whom maintained their Buy or equivalent ratings on February 19.
Carvana Co. (NYSE:CVNA) is an Arizona-based e-commerce platform that deals in the buying and selling of used cars. Founded in 2012, the company offers vehicle acquisition, inspection, and reconditioning, financing, and post-sale customer support services, among others.
7. Micron Technology, Inc. (NASDAQ:MU)
On March 2, Stifel elevated the price target on Micron Technology, Inc. (NASDAQ:MU) to $550 from $360 and maintained a Buy rating. This upward revision in target was driven by memory prices hitting high levels unexpectedly, reflecting a growing supply-demand imbalance. The firm views server DDR5 as a promising opportunity alongside high-bandwidth memory, which it believes will accelerate server RDIMM gross margins by over 80%.
According to Stifel, consumer memory pricing has surged in recent months, doubling to more than $1 per gigabyte. With that said, the firm now projects blended gross margins to reach software-like levels by mid-year, in the mid-to-upper 70% range, sustaining through the end of this year. Moreover, the firm views the consensus estimate as too low.
UBS analyst Timothy Arcuri says that industry checks signal favorable pricing trends across both core DRAM and NAND, with shortages existing through the latter half of next year and into 2028, mainly for DRAM. The firm lifted its price target on Micron Technology, Inc. (NASDAQ:MU) from $450 to $475 and reaffirmed a Buy rating on March 2.
Micron Technology, Inc. (NASDAQ:MU) is an Idaho-based company specializing in memory and storage products. Incorporated in 1978, the company operates through four segments, including the Cloud Memory Business Unit and Core Data Center Business Unit.
6. Comfort Systems USA, Inc. (NYSE:FIX)
On February 23, DA Davidson boosted the price target on Comfort Systems USA, Inc. (NYSE:FIX) to $1,800 from $1,200, and reiterated a Buy rating. This price target hike is due to what the firm describes as a blockbuster quarter across earnings, cash flow, and bookings.
While raising its estimates, DA Davidson discussed earnings prospects for 2027, including a supplemental long-term analysis outlining EPS and cash flow potential. The firm sees Comfort Systems USA, Inc. (NYSE:FIX) as a core holding due to a range of factors, particularly the company’s market presence, data center customers, expert trade personnel, and strong management. These catalysts will lead to sustained shareholder returns.
On the same day, Stifel also lifted the price target on Comfort Systems USA, Inc. (NYSE:FIX) to $1,611 from $1,196 and maintained a Buy rating, according to TheFly. This follows the company’s fourth-quarter results, after which the firm said that it still likes the company’s solid Texas footprint. Texas is among the fastest-growing and largest states for data center development, the firm noted.
Comfort Systems USA, Inc. (NYSE:FIX) is a Texas-based provider of a range of services, including installation, maintenance, repair, and replacement, for the mechanical and electrical services industry. From building developers and general contractors to architects and consulting engineers, the company serves a wide range of clients.
5. Corning Incorporated (NYSE:GLW)
On February 27, UBS lifted the price target on Corning Incorporated (NYSE:GLW) to $171, up from $160, and reiterated a Buy rating. This upward price revision is driven by Nvidia’s earnings report, which is a favorable factor for the company’s performance in the times ahead. The firm lowered its long-term projections for 2027 and 2028 to better present a cautious outlook on the ramp-up of CPO and scale-up fiber.
While stating that it could update its estimates if Corning Incorporated (NYSE:GLW) provides a revised framework at the OFC conference, UBS noted that the previous forecasts may have exaggerated the scale-up sales prospects during the early ramp phase.
Just a week earlier, UBS had elevated the price target on Corning Incorporated (NYSE:GLW) to $160 from $125 because of the substantial capex revision from leading data center hyperscalers. The firm believed that the company is well-positioned to benefit from the AI infrastructure buildout, with the accelerating demand for fiber-optic cables. The firm maintained a Buy rating on the company.
Corning Incorporated (NYSE:GLW) is a New York-based company that operates various businesses, including optical communications, specialty materials, automotive, and life sciences. Founded in 1851, the company also provides laboratory products, general labware, polysilicon products, and glassware and equipment.
4. Robinhood Markets, Inc. (NASDAQ:HOOD)
On March 2, Robinhood Markets, Inc. (NASDAQ:HOOD) outlined its strategic plan at Citizens JMP Technology Conference 2026, highlighting a bold growth strategy that focuses on product innovation and market expansion.
While aiming for an over 20% annualized growth rate in net deposits, Robinhood Markets, Inc. (NASDAQ:HOOD) is working to become a “financial super app” by combining four key factors: trading, investing, spending, and saving. What’s truly impressive is the company’s diversification into prediction and private markets, which is considered a promising opportunity. The company is improving its services and reach internationally through the power of AI and crypto technology.
In 2026, Robinhood Markets, Inc. (NASDAQ:HOOD) is targeting product velocity and international expansion to accelerate growth. Additionally, the company intends to prioritize its banking services, expecting deposits to surpass $400 million and a 50% direct deposit rate.
On the same day, Investing.com reported that Piper Sandler has selected five fintech stocks with an Overweight rating and price targets well above the current level. The firm has set a price target of $155 for the company, suggesting an upside potential of approximately 95%, despite risks such as regulatory uncertainty and legal headwinds.
Robinhood Markets, Inc. (NASDAQ:HOOD) is a California-based financial services platform facilitating investments in stocks, ETFs, and American depository receipts. Incorporated in 2013, the company also provides credit cards, cash cards, spending accounts, and wallets.
3. Western Digital Corporation (NASDAQ:WDC)
Wells Fargo notes that the CFO and CEO of Western Digital Corporation (NASDAQ:WDC) maintained an optimistic tone at an investor conference, as reported by TheFly on March 4. Management views the $20-plus/share EPS projection as a floor, as it believes the company can outperform these targets, moving to an impressive 50%-plus gross margin and 40%-plus EBIT. While emphasizing the acceleration of AI-generated video, the firm says that it will be a clear driver. Wells Fargo has an Overweight rating on the company and a $335 price target.
On March 3, Western Digital Corporation (NASDAQ:WDC) participated in the Morgan Stanley Technology, Media & Telecom Conference 2026, presenting a strategic overview. Management highlighted the company’s transition to a growth-focused business, driven by the rise of AI and the growing significance of data. Over a period of three to five years, the company aims to achieve an EPS of $20, with contracts from leading hyperscalers extending through 2028.
Regarding the financial aspect of Western Digital Corporation (NASDAQ:WDC), the CFO said,
“In addition to that, we have now transformed the company into a strong balance sheet company with some of the monetization of our SanDisk shares and in combination with strong free cash flow.”
Western Digital Corporation (NASDAQ:WDC) is a California-based company that provides data storage devices and solutions based on hard disk drive technology. Founded in 1970, the company offers its products through its computer manufacturers, distributors, and retailers.
2. Palantir Technologies Inc. (NASDAQ:PLTR)
With the U.S. government mandating a six-month phase-out period for Anthropic’s LLMs, Rosenblatt believes it will provide “ample time” to transition to one of the many LLMs that are backed by Palantir Technologies Inc. (NASDAQ:PLTR).
The firm notes that global uncertainty and the dire need for wartime solutions will initiate agreements like the July U.S. Army deal that consolidated 75 separate contracts into a single agreement with the company. In the long term, the firm said that Middle East tensions possibly “highlight the strength and leverage of Palantir’s solution vs. just another LLM.” With that said, Rosenblatt lifted the price target on Palantir Technologies Inc. (NASDAQ:PLTR) from $150 to $200 and reiterated a Buy rating on March 3, according to TheFly.
On the same day, Piper Sandler reaffirmed an Overweight rating and a price target of $230 on Palantir Technologies Inc. (NASDAQ:PLTR). The firm pointed out that the public dispute over the Pentagon’s decision to end contracts with Anthropic due to national security risks will result in near-term operational setbacks for Palantir.
Palantir Technologies Inc. (NASDAQ:PLTR), incorporated in 2003, is a Florida-based software platform provider for the intelligence community, supporting counterterrorism investigations and operations.
1. AppLovin Corporation (NASDAQ:APP)
On March 2, Investing.com reported that Bank of America has named its top picks across the internet and e-commerce sector for the first half of the year. The bank identified companies that it believes are well-positioned for growth through AI exposure, operational enhancements, and market share increases. AppLovin Corporation (NASDAQ:APP) has been identified as an AdTech pick by analyst Omar Dessouky, who highlights an appealing risk/reward position.
The company’s eCommerce advertising platform is creating a second growth curve alongside its mobile gaming ads franchise. Additionally, earlier third-party data points indicate accelerated market presence and a broadening merchant base.
Earlier on February 12, Benchmark maintained a Buy rating on AppLovin Corporation (NASDAQ:APP) with a price target of $775. This reaffirmation came after the company’s Q4 2025 results, in which it delivered revenue of $1,658 million, reflecting 66% YoY growth and 18% sequential growth. The company’s $1,399 million adjusted EBITDA was up 82% YoY, exceeding consensus by approximately 5%.
AppLovin Corporation (NASDAQ:APP) is a California-based company that provides software platforms for developers to enhance the marketing and monetization of their content. Founded in 2011, the company operates through two segments: Advertising and Apps.
While we acknowledge the potential of APP to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than APP and that has 100x upside potential, check out our report about this cheapest AI stock.
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Disclosure: None.
