The Zacks Analyst Blog SPY, Palantir, Vistra, NVIDIA and United Airlines

Market Performance and Drivers - The S&P 500 achieved a 23.3% gain in 2024, following a 24.2% increase in 2023, marking the best two-year cumulative gain of 53.2% since 1997-98 [2] - The SPDR S&P 500 ETF Trust (SPY), a proxy for the S&P 500 Index, gained 25.5% in 2024 [3] - The "Magnificent Seven" tech stocks, with a combined market-cap valuation surpassing $18 trillion, drove the broad market rally, accounting for 31% of the S&P 500's weightage [4] - The Federal Reserve cut interest rates three times in 2024, reducing borrowing costs and stimulating economic growth, which boosted the stock market [5] - President-elect Donald Trump's win in November 2024 fueled market optimism due to expectations of deregulation, lower corporate tax rates, and a focus on the resilient U.S. economy [6] Top-Performing Stocks in SPY - Palantir Technologies Inc. (PLTR) soared 340.5% in 2024, accounting for 0.32% of SPY's assets, with an estimated earnings growth rate of 24% for 2025 and a Zacks Rank 2 [11] - Vistra Energy Corp. (VST) surged 258% in 2024, making up 0.09% of SPY's assets, with an estimated earnings growth of 36.8% and a Zacks Rank 1 [12] - NVIDIA Corp. (NVDA) jumped 171.2% in 2024, representing 6.7% of SPY's assets, with an estimated earnings growth of 41.5% and a Zacks Rank 2 [13] - United Airlines Holdings, Inc. (UAL) rose 135.3% in 2024, accounting for 0.06% of SPY's assets, with an estimated earnings growth of 15.20% and a Zacks Rank 2 [14][15] SPDR S&P 500 ETF Trust (SPY) Overview - SPY holds 503 stocks, with no single stock accounting for more than 8% of its assets, ensuring balanced exposure across sectors [9] - The fund is widely diversified, with significant allocations to information technology, financials, consumer discretionary, and healthcare sectors [9] - SPY has an AUM of $626.4 billion, charges 9 bps in annual fees, and trades an average daily volume of 38 million shares [10] Market Outlook for 2025 - Wall Street strategists expect strong trends to continue in 2025, with the median year-end target for the S&P 500 at 6,600, representing a 12% increase from current levels [7] - The targets range from Oppenheimer's 7,100 to Stifel's 5,500, reflecting varying expectations for the market's performance [7]