S&P 500 Stocks That Could Rise As Much As 50% in 2025

Wall Street analysts often identify their favorite stocks within the S&P 500, offering insights into companies they believe have strong potential. However, while these top-rated stocks share a high percentage of buy ratings, their appeal stems from different factors, including valuation metrics and growth expectations.

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Understanding Wall Street's Favorites

A screen of S&P 500 stocks reveals the companies with the highest percentage of buy or equivalent ratings from analysts surveyed by FactSet. Analysts, often referred to as “sell-side,” work for brokerage firms or research organizations providing insights to brokers and their clients. Among the 492 companies covered by at least nine analysts, the following 10 emerged as the most highly recommended:

These stocks collectively outperformed the broader S&P 500 index, which has delivered a total return of 28.2% in 2024. Total returns include reinvested dividends, reflecting each company’s overall performance this year.

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Diverse Valuation Metrics and Growth Expectations

While these stocks share strong buy ratings, their valuations and expected growth rates vary significantly. Analysts use metrics like price-to-earnings (P/E) and price-to-sales (P/S) ratios, along with projected earnings and revenue growth, to gauge each company’s investment appeal. The consensus estimates for these metrics are based on calendar-year adjustments, accommodating companies like Microsoft and Nvidia, whose fiscal years differ from the standard calendar.

Axon Enterprise (AXON) leads the list as the only stock with 100% buy ratings. Its impressive 147% return in 2024 ranks second only to Nvidia’s 173%. Axon specializes in products for law enforcement, including tasers, body cameras, and cloud-based AI systems. A key growth driver is its new "AI Era" bundle, which Jefferies analyst George Notter described as a “blockbuster.” The bundle includes Draft One, a tool that leverages body-camera footage to provide automated transcriptions, saving police officers significant time. Axon’s high growth expectations come with lofty valuations, including the highest P/E and P/S ratios among the listed companies.

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In contrast, value-oriented stocks like Delta Air Lines (DAL), Schlumberger (SLB), Micron Technology (MU), and Becton Dickinson (BDX) feature relatively low P/E ratios compared to the broader S&P 500. Delta, for instance, stands out with its strong expected returns and a 25% upside potential, driven by its global expansion plans. Similarly, Walmart (WMT) trades at a modest P/S ratio, indicating a lower premium compared to its peers.

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Highlights from Individual Stocks

• Microsoft (MSFT) and Amazon (AMZN) benefit from robust business models and consistent growth, maintaining high buy ratings and moderate valuation ratios.
• Nvidia (NVDA) continues to dominate the semiconductor space, leveraging advancements in artificial intelligence to achieve a 173% return in 2024. Its growth potential remains a significant draw for investors.
• Schlumberger (SLB) and Micron Technology (MU) represent opportunities in industrial and tech sectors, respectively, with substantial upside potential of 40% and 50% based on their price targets.

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A high percentage of buy ratings can provide a sense of confidence for potential investors. However, these recommendations should not replace thorough individual research. Understanding each company’s business strategy, growth prospects, and valuation metrics is crucial before making investment decisions.

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For instance, Axon’s strong buy ratings reflect its innovation in AI-enabled law enforcement tools, but its high valuations may not appeal to value-oriented investors. Conversely, Delta’s lower valuations and strong growth prospects may make it more attractive to those seeking stability and long-term gains.

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The stocks topping Wall Street’s favorites list demonstrate diverse characteristics, ranging from high-growth innovators like Axon and Nvidia to value-oriented plays such as Delta and Walmart. While these companies share the distinction of high buy ratings, their investment appeal depends on individual preferences and risk tolerance. Investors should delve deeper into the metrics and strategies behind these recommendations, using them as a starting point to inform their decisions.

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