Top Performing S&P 500 Stocks: Philip Morris, CVS, Newmont Lead Q1
As we approach the close of Q1 in the calendar year, many S&P 500 stocks have demonstrated robust performances despite recent market fluctuations linked to tariff discussions and other economic changes. Notably, Philip Morris (PM), CVS Health (CVS), and Newmont Corporation (NEM) stand out as leading performers. Let’s delve deeper into the factors fueling their success.
Philip Morris Delivers Solid Returns for Shareholders
Philip Morris has experienced significant gains, with its latest results surpassing analysts’ expectations. The company reported a 14% increase in earnings per share (EPS) and a 7% rise in sales. The demand for its products remains strong, with innovation in smoke-free categories playing a crucial role in its future growth.
In a historic milestone, smoke-free product sales exceeded 40 billion units during FY24. Additionally, the revenues from its Smoke-free Business (SFB) soared by 14.2%, while gross profits rose by 18.7%.
Adding to its appeal, PM offers shareholders a market-leading annual yield of 3.5%. The company’s consistent dividend growth reinforces its status as a Dividend King, reflecting its dedication to returning value to investors. The chart below showcases PM’s annual dividends.
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CVS Health Stages a Major Comeback
In 2025, CVS Health shares have rebounded significantly, soaring 50% year-to-date, effectively breaking a multi-year slump. Recent quarterly results have bolstered confidence, despite reporting a 4% increase in sales year-over-year and a notable drop of 44% in EPS.
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Rising operational costs have posed challenges, yet analysts remain optimistic about CVS’s upcoming quarterly report anticipated in early May. The current consensus estimate for EPS sits at $1.62 per share, up 12% in recent months. This figure implies a potential growth of 23% year-over-year, with a projected 5% increase in sales compared to the previous period.
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Newmont Capitalizes on Rising Gold Prices
Newmont, based in Colorado, ranks among the world’s largest gold producers, with active mines in Nevada, Peru, Australia, and Ghana. The surge in gold prices has significantly contributed to its strong year-to-date performance, increasing nearly 30%.
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The average gold price per ounce skyrocketed to $2,643, up from $2,004 during the same period last year. Newmont also reported an impressive free cash flow of $1.6 billion, marking its highest quarterly total to date. This enhanced cash flow enables the company to manage dividend payments and reduce debt effectively.
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Conclusion
As we conclude Q1 of 2025, several stocks have shown outstanding performance, particularly Philip Morris, CVS Health, and Newmont. Notably, none of these strong performers belong to the technology sector, likely a result of market hesitance fueled by recent developments surrounding AI.
Zacks Highlights Top Semiconductor Stock
This emerging semiconductor stock is only 1/9,000th the size of NVIDIA, which has surged over 800% since Zacks’ initial recommendation. Despite NVIDIA’s ongoing strength, this new chip company has significant growth potential.
With its strong earnings trajectory and expanding customer base, it is well-positioned to meet the rising demand for artificial intelligence, machine learning, and IoT applications. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Nasdaq, Inc.
