In 2025, the S&P 500 had a strong year, fueled by a tech rally and AI stocks. Despite a Santa Claus rally faltering in the final days, the index closed the year with four straight sessions of losses. However, it still ended the year with a 16.4% gain.

Investing in S&P 500 stocks like Amazon, Analog Devices, AppLovin, and Cadence Design Systems is recommended for 2026. These stocks have a Zacks Rank #1 or 2 and show promise for good returns. The S&P 500 index closed at 6,858.47 points on the first trading day of the year.

The index’s solid performance in 2025 was notable, starting with optimism over Trump’s pro-business agenda. Despite initial concerns over tariffs and a potential bear market, the index gained 16.4% in 2025. It marked its eighth consecutive month of gains and the eleventh quarter of gains in thirteen quarters.

Top S&P 500 stocks with growth potential include Amazon, Analog Devices, AppLovin, and Cadence Design Systems. These companies have strong earnings growth rates and Zacks Rank #1 or 2 designations. Amazon, for example, has a Zacks Rank #2 and a 29.7% expected earnings growth rate for the current year.

A research chief has named a “single best pick to double” in the stock market. This company targets millennial and Gen Z audiences and generated nearly $1 billion in revenue last quarter. With a recent pullback, it presents an ideal opportunity for investors looking for high potential stocks.

Read more at Nasdaq: S&P 500 Continues Its Stellar Run to Open New Year: 4 Solid Picks