The U.S. stock market, as measured by the S&P 500 index, has experienced significant volatility so far this year.
That benchmark, which ended up at 5,861.57 on Feb. 27, closed at a 2025 low of 5,827.04 on Jan. 10 and peaked at 6,144.15 on Feb. 19. The S&P is down 0.34% so far this year.
That doesn’t mean index investing is dead — buying the market and holding for the long run is still a good idea — but at least temporarily, we appear to be in a stock picker’s market. In other words, when you can’t depend on the major market indexes to deliver consistent returns, the best strategy might be to identify trending stocks and invest in them before they peak. Fortunately, the market is full of opportunity, and some standout stocks are trending strongly to the upside.
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Several factors can cause a stock to trend. Trends can begin for fundamental or technical reasons.
A trend driven by fundamental factors often starts when Wall Street realizes that it underestimated the financial strength or relative market position of a stock. This happens when news breaks or a company reports earnings or revenue numbers much higher than the street expected. Analysts scramble to adjust their estimates and stock price targets, and investors start buying based on those better numbers. A stock can shoot up dramatically and a trend can begin quickly.
A technical trend can begin and be sustained by factors that might not have anything to do with changes in the company’s financial position or strength in its industry. A stock chart pattern might emerge that indicates a dramatic move is about to happen, or short interest might increase to a point where a short squeeze is anticipated. That’s when buying pressure comes in and a trend is established.
Once a trend is identified, it tends to become self-fulfilling. As more people realize a stock is trending, more buyers jump in and perpetuate the trend. Fundamental trends end when a stock trades up to what Wall Street believes is a proper valuation. The stock will generally level off and trade in line with the market from there. On the other hand, technical trends end more abruptly. Stock prices that rose for purely technical reasons can fall just as quickly as they revert to the mean.
The five stocks on this updated list are trending for all the right reasons. Namely, they are beating their competition in their given industries, delivering outstanding financial results and dramatically outperforming the market. If you see the potential in trending stocks, consider buying these stocks before their trends slow down.
| Stock | Year-to-date gain as of Feb. 27 |
| CVS Health Corp. (ticker: CVS) | 45.5% |
| GE Aerospace (GE) | 20.8% |
| F5 Inc. (FFIV) | 15.7% |
| Starbucks Corp. (SBUX) | 26.1% |
| 3M Co. (MMM) | 17.2% |
CVS Health Corp. (CVS)
CVS is a major player in the big-chain pharmacy space and is steadily gaining ground in the pharmacy benefits management and health insurance industries. The company is based in Woonsocket, Rhode Island, and has a market cap of over $81 billion.
The stock has been trending since the beginning of 2025. Investors were further encouraged on Feb. 12, when the company beat Wall Street’s expectations by reporting $98 billion in fourth-quarter 2024 revenue. CVS is up 14% in February and has climbed 45.5% year to date.
The company’s diversified business model makes it attractive to investors. It has more than 9,000 brick-and-mortar locations, which feature a full-service pharmacy and a convenience-store-style retail outlet. In addition, CVS makes money by managing health care benefits, health insurance services, and providing Medicare and Medicaid management services.
The stock pays an annual forward dividend of $2.66 a share. That works out to a dividend yield of more than 4% for shareholders.
GE Aerospace (GE)
Previously a division of General Electric, GE Aerospace became an independent entity when it was spun off from its parent company in 2024 in a major restructuring. The company engineers, manufactures and distributes advanced jet engines, engine components, and related aerospace and defense technology products.
The stock has been on a well-established upward trend for about two years. Year to date, it has appreciated by more than 20%. Jefferies, Deutsche Bank, Citigroup and UBS all maintain a “buy” rating on the company.
Many factors sustain this stock’s impressive trend, but investors are particularly enthusiastic about GE’s expansion into artificial intelligence (AI)-driven digital weapons and aircraft navigation systems. Wall Street believes the new high-tech navigation systems will have both commercial and military applications.
Additionally, the stock is currently paying a forward annual dividend of $1.44 a share, which equates to a yield of 0.71%.
F5 Inc. (FFIV)
At its core, F5 is a cybersecurity firm, but there’s more to this company than antivirus software and scanning for malware. FFIV is a roughly $17 billion company that’s leading the way in application and cloud computing security. The company has clients in the U.S., Europe, Africa, the Middle East and the Asia-Pacific region.
F5’s innovative platforms allow its customers — which include the biggest names in the tech industry, including Amazon.com Inc. (AMZN), Alphabet Inc. (GOOG, GOOGL) and Microsoft Corp. (MSFT) — to conduct network and cloud-based business securely and with confidence. The company offers its products separately or in a comprehensive security suite.
The stock’s upward trend started in late January. Though it slipped by about 2% in February, FFIV has gained 15.7% year to date.
[Read: 5 Rising Stocks in 2025]
Starbucks Corp. (SBUX)
Starbucks’ performance has been exceptional in 2025. The stock is up more than 26% year to date and about 32% since Dec. 23.
Wall Street likes what it’s seeing from new CEO Brian Niccol, who took the reins of Starbucks in September. Niccol is committed to restructuring the company. He’s simplifying operations, cutting underperforming menu items and generally boosting cost efficiency wherever he can. Niccol set a savings goal of $500 million, and investors believe in his ability to execute.
Starbucks began in 1971 as a single store at the Pike Place Market along the waterfront in Seattle. The company’s growth trajectory steepened in 1987 when Howard Schultz bought Starbucks and turned it into a household name. Today, the company operates more than 38,000 café-style stores worldwide. The stores sell espresso drinks, hot and iced coffee, pastries, food, ground and whole bean coffee, and coffee-themed accessories.
SBUX has a market cap of $130 billion, generates about $9 billion per quarter in revenue and has a dividend yield of 2.1%.
3M Co. (MMM)
3M has been around for 123 years. It started as a low-tech business products company, but has evolved into a high-tech firm offering both products and services. It has established itself as a leader in health care, digital electronics, transportation logistics and material science.
From a stock performance standpoint, 2025 has been a banner year for MMM, with a year-to-date gain of 17.2%. MMM has a market capitalization of about $83 billion and a current dividend yield of 2%.
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5 Trending Stocks to Buy Right Now originally appeared on usnews.com
Update 02/28/25: This story was previously published at an earlier date and has been updated with new information.
