Top S&P500 Stocks Near 52-Week Highs

With the reopening of the US government, the S&P500 is just shy of all-time highs amid renewed optimism and a resurgence of confidence in the AI space. AMD gave the tech sector a boost on Wednesday after providing a strong outlook. The surge has sent many major names above their 52-week highs, while others still trade below but near the level, suggesting further upside to the technical level and perhaps beyond.

3 S&P500 Stocks Near 52-Week Highs

• Bank of America (BAC): A price of $54.10 places it ~1% away from its 52-week high of $54.69
• Alphabet (GOOG): A price of $287.39 places it ~1.4% away from $292.34
• Eli Lilly (LLY): A price of $1,018.33 places it half a percent from its 52-week high of $1,022.42

Bank of America: Still a Safe Bet?

After the stock closed at an all-time high on Wednesday, traders are looking to see if Bank of America has further upside. As a bank, it's a more defensive play, and it's also a favourite of Warren Buffett, as featured in the top holdings of Berkshire Hathaway. Last week, BAC held its investor day, during which it, aiming for EPS to grow at a rate of 12% per year. However, the presentation didn't impress investors, as its outlook was similar to that of other large US banks. Interestingly, the other banks (JPMorgan, Citigroup, and Morgan Stanley) rate Bank of America a buy. Investors may be setting high expectations, as the bank's shares have risen over 23% this year. The companyr, with earnings growing 31% compared to the same period a year ago.

Of the major US banks, BAC and Wells Fargo are the most exposed to Fed rate decisions and could see further gains if interest rates continue to ease. BAC has been on a campaign to refinance its debt, as interest rates in the US have fallen, with CEO Brian Moynihan continuing to focus on efficiency. The, implying a potential 8.9% upside.

Alphabet Riding the AI Wave

Google parent Alphabet is one of the stocks seeing gains this week after AMD raised its outlook for AI demand. The company recently announced plans to invest $6.5 billion in expanding its data centre infrastructure in Germany and an additional $5.5 billion in Turkey as it continues to build its fastest-growing segment. Moving even further away from its main search engine business, what could have many investors excited is the developments in its robotaxi unit, Waymo. The company is ahead of Tesla in the rollout of its service area, having recently announced that it, as well as plans to expand to Tokyo and London soon.

Alphabet is another stock benefiting from the dovish shift in the Fed outlook, as lower rates would likely increase ad spend. Analysts remain bullish on Google, with none of the 67 calling to sell. The average price target is $309.92, implying a potential 7.9% upside.

Eli Lilly's Most Favoured Status

The drugmaker's stock price has surged by nearly 30% in the past few weeks. The first event in that period driving the prices was its, well above the $5.69 forecast. Sales grew 54% from the year earlier, primarily driven by its obesity drugs. Zepbound sales rose 184%, and Mounjaro's revenue more than doubled. The company also boosted its profit and sales outlook for the year. The second significant event during this period was the, which provided GLP-1 drugs to Medicare and Medicaid beneficiaries at a reduced cost in exchange for increased volume.

Analysts appear bullish on the company's prospects, and it has even received a particular mention from CNBC's Jim Cramer, who pointed toof its star weight-loss drug. He suggested the company could cross the $1 trillion valuation mark. Additionally, the company may decide to conduct a stock split to make its shares more attractive to investors. However, the company's run-up has left it with a PE ratio of 50x, which might make some traders nervous.