You'd think Palantir Technologies' 107% stock gain would lock it in as the year's best stock in the S&P 500. But it just got passed up by a stock on a surprising rally.
Shares of computer storage maker Seagate Technology are now up 113% this year. That beats Palantir, but also the rest of the other big-cap darlings like Nvidia, up just 28%, and Microsoft, up 20.5%, says an Investor's Business Daily analysis of data from S&P Global Market Intelligence and MarketSurge.
Seagate is benefiting from the massive buildout of AI data centers. It's seeing strong demand from its giant tech clients for "build to order" storage equipment. "BTO and customer mix is giving STX a longer view on demand trends and will help manage capacity in a downcycle," says Bank of America.
S&P 500 Leadership Shifting A Bit
Big runs in less-obvious S&P 500 stocks are marking important shifts in the market.
Only three of the top 10 S&P 500 stocks this year so far are in the tech sector. There are just as many that hail from the industrials sector. And as Seagate's rally shows, the nature of winning tech stocks is changing, too.
Seagate is in the unglamorous space of making hard drives and other computer storage devices. The stock's RS Rating has vaulted to 95. Meanwhile, its EPS Rating hit 82. Analysts think the company's profit will rise 528% this year.
How does that compare with Palantir? Shares of the data security firm carry an RS Rating of 98 and an EPS Rating of 98. Analysts think Palantir's profit will rise 57% this year.
Beating Palantir stock isn't easy. But Seagate investors show it's possible.
Top S&P 500 Stocks This Year So Far
| Company | Ticker | YTD change | Sector |
|---|---|---|---|
| Seagate Technology | STX | 113.2% | Information Technology |
| Palantir Technologies | PLTR | 106.5% | Information Technology |
| Newmont | NEM | 101.2% | Materials |
| GE Vernova | GEV | 82.0% | Industrials |
| GE Aerospace | GE | 69.2% | Industrials |
| CVS Health | CVS | 64.2% | Health Care |
| Howmet Aerospace | HWM | 64.1% | Industrials |
| NRG Energy | NRG | 64.0% | Utilities |
| Amphenol | APH | 62.3% | Information Technology |
| Tapestry | TPR | 62.0% | Consumer Discretionary |
