4 Solid Stocks to Grab as S&P 500 Hits New All-Time Closing High
The S&P 500 has had a roller-coaster ride this year. Geopolitical tensions, high inflation and tariff pressures have seen volatility return to markets. All major indexes gave up early gains in March as the U.S.-Iran conflict intensified.
However, stocks rebounded in April following a ceasefire between the two warring nations. Hopes of the war ending soon and the economy getting back on its feet saw the S&P bounce back this month and hit an all-time closing high on April 22.
The solid rebound is led by an impressive performance by mega-cap tech stocks and a turnaround in energy stocks.
Given the index’s solid bull run, it would be ideal to invest in S&P 500 stocks, such as Analog Devices, Inc. ADI, Amphenol Corporation APH, Autodesk, Inc. ADSK and Broadcom Inc. AVGO, which have strong potential in 2026. These stocks have a Zacks Rank #1 (Strong Buy) or 2 (Buy) and assure good returns. You can see the complete list of today’s Zacks #1 Rank stocks here.
The S&P 500 jumped 1.1% on Tuesday to end at 7,137.90 points, an all-time closing high as President Donald Trump extended the ceasefire with Iran. With this, the S&P 500 erased all its losses suffered last week owing to the ongoing Iran war.
The index started on an impressive note this year but gave up all its gains in March as the war intensified. The Middle East conflict saw the S&P 500 shed more than 8% in March and early April. However, it bounced back after Trump announced a two-week ceasefire.
The Iran conflict has been weighing on Wall Street, and the S&P 500 has been one of the major sufferers. Oil prices have surged more than 30% since the beginning of the war, and despite the ceasefire, tensions persist.
However, a turnaround in the energy sector and a solid tech rally saw the index pare all its losses. Mega-cap tech companies have been investing aggressively in artificial intelligence (AI) infrastructure as the bullish sentiment continues to fuel the rally.
Year to date, the S&P 500 has gained 3.6%, while major brokerages have upwardly revised their forecasts. Goldman Sachs (GS) projected the index to grow rapidly this year. According to a Goldman Sachs report, the index is expected to grow 12% in 2026. Also, JPMorgan Chase & Co. (JPM) has upwardly revised the outlook for the index. According to a JPMorgan report, the S&P 500 is expected to surpass 7,600 this year.
Analog Devices, Inc. is an original equipment manufacturer of semiconductor devices, specifically, analog, mixed-signal and digital signal processing (DSP) integrated circuits. ADI’s product line is composed of amplifiers and comparators; analog to digital converters; digital to analog converters; video encoders and decoders; embedded processing products and DSPs; MEMS and temperature sensors; RF/IF components and converters; power and thermal management ICs, audio/video converters, amplifiers, CODECs, filters and processors.
Analog Devices’ expected earnings growth rate for the current year is 46.1%. The Zacks Consensus Estimate for the current year’s earnings has improved 1.4% over the past 60 days. ADI currently has a Zacks Rank #2.
Amphenol Corporation designs, manufactures and markets electrical, electronic and fiber optic connectors, interconnect systems, antennas, sensors and sensor-based products and coaxial and high-speed specialty cable. APH’s manufacturing facilities are generally vertically integrated operations from the initial design stage through final design and manufacturing.
Amphenol’s expected earnings growth rate for the current year is 29.9%. The Zacks Consensus Estimate for the current-year earnings has improved 0.5% over the past 60 days. APH currently has a Zacks Rank #2.
Autodesk, Inc. develops model-based design, engineering and documentation software. ADSK serves customers in architecture, engineering and construction; product design and manufacturing; and digital media and entertainment industries.
Autodesk’s expected earnings growth for the current year is 18.7%. The Zacks Consensus Estimate for current-year earnings has improved 8% over the past 60 days. ADSK has a Zacks Rank # 2.
Broadcom Inc. is a premier designer, developer and global supplier of a broad range of semiconductor devices, with a focus on complex digital and mixed signal complementary metal oxide semiconductor-based devices and analog III-V-based products. AVGO’s semiconductor solutions are used in end products such as enterprise and data center networking, home connectivity, set-top boxes, broadband access, telecommunication equipment, smartphones and base stations, data center servers and storage systems, factory automation, power generation and alternative energy systems, and electronic displays.
Broadcom’s expected earnings growth rate for the current year is 67.9%. The Zacks Consensus Estimate for the current-year earnings has improved 13.7% over the past 60 days. AVGO currently has a Zacks Rank #1.
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Analog Devices, Inc. (ADI) : Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).