As the first quarter of 2025 wrapped up, the initial wave of optimism that carried markets into the new year had largely faded. Stocks opened strong, fueled by momentum from the late 2024 post-election rally, but the broader market lost ground as trade war fears and economic uncertainty weighed heavily on sentiment.
By the end of March, not a single S&P 500 sector delivered double-digit gains, though energy managed to lead with an 8.08% rise. Still, despite the underwhelming overall performance, pockets of strength emerged particularly in healthcare, consumer staples, and gold helping a select group of stocks surge well above the index average.
Top performers that defied the trend
CVS Health (NYSE: CVS) emerged as the top-performing S&P 500 stock in the first quarter of 2025, surging 52.8% with much of the momentum coming after the release of its stronger-than-expected fourth-quarter earnings in February.
The company exceeded Wall Street estimates on both revenue and adjusted earnings per share, fueling hopes of a turnaround under CEO David Joyner. The rally came despite continued pressure in its insurance segment, which has faced rising medical costs. At the time of writing, CVS shares are trading at $66.79.
Philip Morris International (NYSE: PM) followed with a 33.1% gain in the first quarter, fueled by strong growth in its smoke-free product segment and continued appeal as a high-yield dividend stock. The company currently offers a quarterly dividend of $1.35 per share, translating to an annualized payout of $5.40. As of press time, shares are trading at $161.75.
Newmont Corporation (NYSE: NEM) rose 30.5% in Q1 2025, boosted by rising gold prices amid growing market uncertainty. With mining operations spanning four continents, the company benefited from a surge in safe-haven demand. At the time of writing, the stock is trading at $47.60.
Meanwhile, AT&T Inc. (NYSE: T) gained nearly 26% in the first quarter, supported by its largely domestic business model, which helped insulate the telecom giant from the volatility triggered by President Trump’s newly imposed tariffs.
The stock is currently trading at $28.73, and with its strong dividend yield and relatively low valuation, AT&T has remained a favorite among income-focused investors.
Featured image via Shutterstock
