The 10 best performing stocks of 2025—Alphabet and Nvidia didn't make the cut
Investing pros advise against buying stocks on the basis of recent performance alone.
TL;DR
- The S&P 500 returned 16% in 2025, marking its third consecutive year of double-digit gains.
- Lumentum Holdings was a top performer in 2025, with its stock rising 339% due to AI data center growth.
- Experts suggest it's generally a bad idea to buy last year's biggest stock winners based on their recent performance alone.
- Investing in individual stocks should be based on underlying fundamentals like earnings growth and cash flows, not market timing.
- It is advisable to hold onto existing high-performing stocks rather than selling them.
- Historically, stocks in the best-performing sectors from the previous year have outpaced the S&P 500.