10 Best Performing S&P 500 Stocks in 2025

Market Overview - The market is currently trading above the midpoint of Wells Fargo's year-end target range, indicating a strong desire for upward movement [1] - The NASDAQ and S&P 500 have experienced a cooling-off period after significant gains, with the tech sector rising 70% from its lows [2] - Historical data suggests that bull markets that reach three years old typically see gains in the following year, and Fed rate cuts near all-time highs have historically led to positive market performance [2] Sector Rotation - Wells Fargo has adjusted its positions by downgrading Communication Services and Information Technology to even weight, reallocating funds into Financials, Utilities, and Industrials [1] - The adjustments aim to maintain an AI theme from a different perspective while managing exposure to sectors that represent nearly 50% of the S&P 500's market cap [1] Tapestry Inc. (NYSE:TPR) - Tapestry Inc. has shown a year-to-date performance of 97.41% as of December 22, 2025, with multiple analysts raising price targets, indicating bullish sentiment [8][9] - Analysts from Baird, Wells Fargo, and Jefferies have all increased their price targets for Tapestry, reflecting expectations of robust revenue and earnings growth due to favorable consumer conditions and potential tariff changes [8][9][10] - Tapestry operates in three segments: Coach, Kate Spade, and Stuart Weitzman, providing accessories and lifestyle brand products globally [11] KLA Corporation (NASDAQ:KLAC) - KLA Corporation has achieved a year-to-date performance of 100.86% as of December 22, 2025, with analysts raising price targets amid a favorable outlook for the semiconductor sector [12][13] - Bank of America and Cantor Fitzgerald have both upgraded KLA's price targets, citing the company's strong position in AI-driven infrastructure and the expected demand for advanced chips and technologies [12][13][14] - KLA designs and manufactures solutions for the semiconductor industry, positioning itself as a key player in the ongoing transition towards AI workloads [15]