economy
January 8, 2026
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.
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