This article looks at the 12 best S&P 500 stocks to invest in according to analysts.

2024 was a memorable year for the broad market index, which posted a gain of 23.31%, building on the 24.2% return in 2023. The two-year surge of over 53% is the best performance for the index since the 66% rally between 1997 and 1998.

READ ALSO: 15 Stocks ChatGPT Predicts Could Make You Wealthy in 10 Years and 10 Under-the-Radar Stocks with Massive Upside for 2025.

The stock market benefited from a resilient economy that avoided recession, declining interest rates, and waning inflation. Analysts are projecting continued growth in 2025 amid strong economic data and optimism about a business-friendly Trump administration returning to power.

The broader market rose 0.5% on January 23, going past its peak in December to a new record high. The gain added to the week-long winning momentum after data showed inflation slowing in the country more than economists had anticipated. With this rise, the index is up 4% since the start of the year.

Investor sentiment has also been bolstered with President Trump reiterating his commitment to lowering oil prices and further cutting interest rates. The 78-year-old is also taking his time over tariffs by holding them off until February. Analysts believe a less aggressive approach than some had expected has helped the market move higher. Here is what Larry Tentarelli, chief technical strategist at the Blue Chip Daily Trend Report, had to say:

“He really can’t control interest rates, but the market likes to hear that kind of stuff. So far, the market does seem to like what Trump’s policies are going to be, so we’ll just have to see if there’s some follow-through.”

A string of strong corporate earnings reports has also supported the gains in January. According to data from FactSet, earnings for companies listed on the index are on track to grow by over 12% for the fourth quarter compared to the same period in the prior year. If that happens, this would mark the best quarter for company profits since 2021.

While the overall outlook for the stock market looks encouraging, analysts are also cautious about the rally having gone too far, and a correction is in the offing this year. The threat of fierce trade wars sparked by tariffs, ongoing geopolitical conflicts, and broader inflationary pressures could also hurt the market.

Jurrien Timmer, Director of Global Macro for Fidelity Management & Research Company wrote the following in a note on December 18.

“Personally, I am bullish on stocks for 2025, though with valuations high and the bull market maturing, I don’t think investors should expect quite such spectacular returns next year as we have seen this past year. And I think there are important risks from inflation, and the market’s concentration, to be aware of.”

With that said, let’s now head over to the list of the best large cap stocks to invest in from the broader market index.

Methodology

For this article, we went through the list of large cap stocks on the broader market index and picked the top 12 with the highest average share price upside potential. All data is as of the close of the day on Friday, January 31, 2025. The stocks are listed in ascending order of their share price upside potential.

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12. Dell Technologies Inc. (NYSE:DELL)

Average Share Price Upside Potential as of January 31: 44.45%

Market Cap: $72.28 billion

Dell Technologies Inc. (NYSE:DELL) is an American multinational technology company engaged in the design, manufacturing, and sale of a wide array of products and services, including desktops, laptops, monitors, servers, storage solutions, and more. The company operates through two segments: Infrastructure Solutions Group (ISG) and Client Solutions Group (CSG).

DELL’s shares surged 56% in 2024, driven by a growing realization among investors about the company’s significance in providing systems and tools for AI developers. The company was relisted on the S&P 500 index in September, marking a return to the benchmark index after it went private in 2013.

On November 26, Dell Technologies Inc. (NYSE:DELL) announced financial results for the third quarter of fiscal 2025. It reported a revenue of $24.4 billion, up 10% from last year, driven by strong ISG revenue growth. While CSG’s revenue was down 1% year-over-year, ISG’s figure soared 34% from last year to reach $11.4 billion, helped by a substantial increase in servers and networking revenue. EPS was logged at $2.15, growing 14% year-over-year, and beating estimates by 11 cents.

Dell Technologies Inc. (NYSE:DELL) is a major vendor for computer clusters that develop and deploy AI. Demand for AI accelerators from cloud providers, businesses, and governments is likely to remain high in 2025, which positions the company for continued growth ahead.

Wall Street analysts are bullish on the stock, with a consensus Strong Buy rating and an average share price upside potential of 44.45%, making it one of the best large-cap stocks to invest in according to analysts.

11. Devon Energy Corporation (NYSE:DVN)

Average Share Price Upside Potential as of January 31: 47.24%

Market Cap: $22.40 billion

Devon Energy Corporation (NYSE:DVN) is a leading oil and gas company with a multi-basin portfolio. It is a key player in America’s energy sector, specializing in the exploration, development, and production of oil, natural gas, and NGLs.

On September 27, Devon Energy Corporation (NYSE:DVN) announced the completion of its $5 billion strategic acquisition of Grayson Mill Energy. The move has significantly enhanced Devon’s footprint in the Williston Basin, adding 307,000 net acres, 300 top-quality refrac candidates, and 500 undrilled gross locations. The acquired property is also likely to boost production by 100,000 barrels of oil equivalent per day next year.

During its recent Q3 2024 earnings call on November 6, Devon Energy Corporation (NYSE:DVN) announced $683 million of core earnings, or $1.10 per share. It also reached an all-time quarterly record of an average of 728,000 barrels of oil equivalent production per day. This included 335,000 barrels of oil production per day, which surpassed the guidance by 4%.

The company generated $1.7 billion of operating cash flow during the quarter, again exceeding expectations, and increasing 8% year-over-year. It also generated $786 million of free cash flow, a significant improvement from last year. Devon Energy Corporation (NYSE:DVN)  is also committed to shareholder returns; during the quarter, it repurchased $295 million of common stock and declared a quarterly cash dividend of $0.22 per share.

Analysts expect Devon Energy Corporation (NYSE:DVN) to sustain its portfolio, further build on its financial strength, and deliver value to shareholders. They have a consensus Buy rating for the stock, with an average share price upside potential of 47.24%, making it one of the best large-cap stocks to invest in according to analysts.