2025’s first half has come to a close, and it was quite the thrilling ride! Despite the ups and downs, at this moment, the S&P 500, Nasdaq Composite, and Dow Jones Industrial Average are showing impressive gains – with the S&P 500 increasing by 7%, the Nasdaq Composite rising by 8%, and the Dow Jones Industrial Average climbing up by 5%.
However, many stocks have put those returns to shame.
Three analysts affiliated with CORP-DEPO have highlighted three stocks that have significantly outperformed the S&P 500 this year. These standout performers are Meta Platforms (META), International Business Machines (IBM), and Palantir Technologies (PLTR).
Is it time to load up on them?
Meta generates roughly $470 million in revenue every day
At present, the stocks of Meta Platforms have risen by approximately 20% so far this year, which is almost three times greater than the increase in the S&P 500 during the same time frame. (Jake Lerch, Meta Platforms)
Clearly, Meta is firing on all cylinders, but what is behind its big rally, and will it continue?
Initially, Meta’s shares are soaring due to the consistent value demonstrated by their business strategy. With over 3 billion daily active users across platforms such as Facebook and Instagram, Meta is able to display millions of ads daily, thereby earning approximately $470 million in daily revenue on average.
In simpler terms, it can be said that most of Meta’s earnings are transformed into profits, with an impressive operating margin of 43%. It’s important to note that a margin of 10% is generally considered healthy, while a margin of 20% is viewed as exceptionally high by many analysts.
Among the illustrious group known as the “Magnificent Seven,” Meta’s profit margin stands out. It ranks third, with only Nvidia (the world’s largest corporation in terms of market capitalization) and Microsoft (the world’s second-largest corporation in terms of market capitalization) ahead of it.
Looking towards the future, Meta seems well-prepared with its strong position. Given that a significant portion of the global population already uses its platforms daily, Meta has the financial means to pour resources into innovative projects. They’ve been investing substantially in artificial intelligence (AI) infrastructure, and it appears they are now poised to fully utilize this investment’s potential.
By the year 2026, the company intends to launch an AI-driven advertising system on all its platforms. This move might open up a profitable income source for the company, enhancing its existing revenue and profit figures even more.
This year, Meta Stock has surpassed the broader market’s performance, and it is expected to maintain this trend due to its massive user base, robust profitability, and cutting-edge artificial intelligence technologies.
Investors should not ignore the quiet comeback of this tech giant
Will Healy (IBM): It’s understandable that investors might have missed the recent recovery in IBM’s stock price.
In the 2010s, the esteemed tech titan faced challenges, as the expansion in its consultancy and technology infrastructure sectors decelerated significantly, causing many investors to shift their focus towards fresher, allegedly more innovative tech businesses.
The paradigm of this company started changing significantly when IBM acquired cloud leader Red Hat in 2019. Following this acquisition, IBM appointed Arvind Krishna, the executive responsible for the purchase, as its CEO in April 2020.
The strategic move propelled IBM into becoming a prominent figure in the hybrid cloud landscape. Furthermore, by separating its managed infrastructure operations into Kyndryl, IBM gained the liberty to dedicate more resources towards ventures in cloud computing, artificial intelligence, and supercomputing.
Following the conclusion of the 2022 bear market, investors once more showed interest in the stock, especially as its impressive growth resumed. This growth was so significant that it regained its former peak level by 2024, and has persisted since then. By 2025, the stock had increased by a substantial 30%.
It’s true that our company still has a lot to accomplish, as we saw a mere 1% increase in revenue during Q1 of 2025. However, it’s encouraging to note that the software segment, responsible for all our current growth, experienced a healthy 7% rise. This suggests there may be better growth on the horizon.
Furthermore, it raised its dividend for the 30th time in a row earlier this year, setting it at $6.72 per share annually. This equates to approximately a 2.4% yield, nearly double the average of the S&P 500 at 1.2%. This generous dividend could make the stock more enticing for income-focused investors.
Indeed, the case for buying IBM might seem less obvious to growth investors given its high P/E ratio of 49. However, a forward P/E ratio of 26 suggests potential financial improvement, implying that IBM could potentially match market performance. This factor likely makes IBM an attractive option for investors seeking both income and growth opportunities.
Palantir Technologies continued to soar, doubling already since January
Justin Pope from Palantir Technologies: Artificial intelligence programs are currently shaping our world significantly, and Palantir Technologies stands as a prominent symbol of this transformation.
This business creates tailored software solutions for both governmental and private sector customers, using a blend of artificial intelligence (AI), machine learning, and data analysis to tackle some of the world’s significant issues. They introduced their AI-focused platform, AIP, in 2023, and since then, Palantir has experienced consistent expansion.
In the U.S., there are approximately 20,000 large businesses, yet Palantir, serving less than 450 U.S. commercial clients, stands with a significant potential for expansion. This promising outlook has investors anticipating significant advancements in the company’s future, which continues to drive Palantir’s stock prices skyward. Over the past three years, shares have surged by an impressive 1,600%, and since the start of 2025, they’ve risen another 100%.
It might be unpredictable how far a stock like Palantir can rise, but considering its extremely high market valuation, it seems prudent not to invest now, as this inflated price could potentially hamper the stock’s future growth.
It’s projected that Palantir will experience rapid yearly earnings growth averaging 31% in the long term. Remarkably, despite this high growth rate, its forward Price-Earnings ratio stands at 261, compared to just 22 for the S&P 500, which has traditionally grown at around a 10% annualized pace.
Observing here, it seems Palantir, projected to expand three times quicker than the S&P 500, is valued almost twelve times more. This disparity appears rather puzzling, which leads me to advise caution when considering investment in this fiery stock. It might be prudent to wait until that valuation ratio cools down a bit before diving in.
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2025-07-22 13:50