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Welcome to Episode #385 of the Value Investor Podcast.
Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds, and ETFs and how it impacts your life.
This week, Tracey is going solo to discuss if it is “easy” to beat the S&P 500. Warren Buffett has infamously said that after he is gone, he wishes for his wife’s investments to be put in simple indexes, like the S&P 500.
While HE may be able to “beat” the returns of the S&P 500, other mere investing mortals may not be so lucky.
How “Easy” is it to Beat the S&P 500 in 2024?
But in 2024, it seems like there have been a lot of hot stocks. After all, thanks to the AI Revolution, NVIDIA has soared 174% year-to-date. That is easily outperforming even the red-hot S&P 500, which is up 23.2% year-to-date.
Leaving aside NVIDIA, how easy is it to beat the S&P 500 return by owning individual stocks?
You might think you can just buy the other Mag 7’s and easily do it. But Microsoft, for example, is up just 13% year-to-date. Even Alphabet is not beating the S&P 500. It’s up 19.4%.
If even some of the Mag 7’s aren’t beating it, what is?
Tracey picked some random stocks that she knew were red hot to find out.
5 Hot Stocks: Are They Beating the S&P 500 in 2024?
Costco has been a retail favorite and an investor favorite for years. Shares continue to outperform, adding another 36.2% in 2024. That is easily beating the S&P 500, which is up 23.2%.
But investors won’t get Costco on the cheap. It trades with a forward P/E of 49.
Should you make a bet on Costco continuing to rally in 2024?
CAVA Group operates fast casual restaurants with Mediterranean food. It is often called the “Chipotle” of Mediterranean food. CAVA Group went public in June of 2023, so it is a relatively new publicly-traded company.
Shares of CAVA Group have exploded higher in 2024, hitting new all-time highs. It is up 216.5% year-to-date. That is outperforming even NVIDIA.
Earnings are expected to rise 104.7% this year and another 18.9% next year.
Eli Lilly is one of the drug companies with weight loss drugs. Shares of Eli Lilly have been soaring, adding another 47.2% this year.
Earnings are soaring too. Analysts expect Eli Lilly’s 2024 earnings to jump 160.9% and another 45.4% in 2025. Shares of Eli Lilly are trading at “just” 55x forward earnings.
Toll Brothers is the largest publicly traded luxury homebuilder in America. With the Federal Reserve now cutting interest rates, many believe mortgage rates will soon follow. That’s going to be a plus for homebuilder earnings as many were offering rate buydown programs.
Shares of Toll Brothers are up 49.4% this year and are hitting new highs. Analysts are bullish on the earnings, with earnings expected to rise another 17.5% in fiscal 2024. Toll Brothers is still cheap, with a forward P/E of 10.4.
Constellation Energy provides power and energy to more than 20 million homes and businesses in the United States. It operates the nation’s largest carbon-free nuclear fleet. This makes Constellation Energy a player in the alternative energy space.
Shares of Constellation Energy are up 125.7% year-to-date. But earnings are on the rise too. Analysts expect Constellation Energy’s earnings to jump 58.7% this year. It trades with a forward P/E of 33.
If you are interested in nuclear energy, should Constellation Energy be on your watch list?
What else do you need to know about stocks beating the S&P 500 this year?
Tune into this week’s video podcast to find out.
[In full disclosure, Tracey owns shares of TOL in her personal portfolio and in Zacks Value Investor portfolio.]
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Stocks Beating the S&P 500 in 2024 (Excluding NVIDIA)
Welcome to Episode #385 of the Value Investor Podcast.
Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds, and ETFs and how it impacts your life.
This week, Tracey is going solo to discuss if it is “easy” to beat the S&P 500. Warren Buffett has infamously said that after he is gone, he wishes for his wife’s investments to be put in simple indexes, like the S&P 500.
While HE may be able to “beat” the returns of the S&P 500, other mere investing mortals may not be so lucky.
How “Easy” is it to Beat the S&P 500 in 2024?
But in 2024, it seems like there have been a lot of hot stocks. After all, thanks to the AI Revolution, NVIDIA has soared 174% year-to-date. That is easily outperforming even the red-hot S&P 500, which is up 23.2% year-to-date.
Leaving aside NVIDIA, how easy is it to beat the S&P 500 return by owning individual stocks?
You might think you can just buy the other Mag 7’s and easily do it. But Microsoft, for example, is up just 13% year-to-date. Even Alphabet is not beating the S&P 500. It’s up 19.4%.
If even some of the Mag 7’s aren’t beating it, what is?
Tracey picked some random stocks that she knew were red hot to find out.
5 Hot Stocks: Are They Beating the S&P 500 in 2024?
1. Costco Wholesale Corp. (COST - Free Report)
Costco has been a retail favorite and an investor favorite for years. Shares continue to outperform, adding another 36.2% in 2024. That is easily beating the S&P 500, which is up 23.2%.
But investors won’t get Costco on the cheap. It trades with a forward P/E of 49.
Should you make a bet on Costco continuing to rally in 2024?
2. CAVA Group, Inc. (CAVA - Free Report)
CAVA Group operates fast casual restaurants with Mediterranean food. It is often called the “Chipotle” of Mediterranean food. CAVA Group went public in June of 2023, so it is a relatively new publicly-traded company.
Shares of CAVA Group have exploded higher in 2024, hitting new all-time highs. It is up 216.5% year-to-date. That is outperforming even NVIDIA.
Earnings are expected to rise 104.7% this year and another 18.9% next year.
Is CAVA Group too hot to handle?
3. Eli Lilly & Company (LLY - Free Report)
Eli Lilly is one of the drug companies with weight loss drugs. Shares of Eli Lilly have been soaring, adding another 47.2% this year.
Earnings are soaring too. Analysts expect Eli Lilly’s 2024 earnings to jump 160.9% and another 45.4% in 2025. Shares of Eli Lilly are trading at “just” 55x forward earnings.
Is it too late to get on the Eli Lilly bandwagon?
4. Toll Brothers (TOL - Free Report)
Toll Brothers is the largest publicly traded luxury homebuilder in America. With the Federal Reserve now cutting interest rates, many believe mortgage rates will soon follow. That’s going to be a plus for homebuilder earnings as many were offering rate buydown programs.
Shares of Toll Brothers are up 49.4% this year and are hitting new highs. Analysts are bullish on the earnings, with earnings expected to rise another 17.5% in fiscal 2024. Toll Brothers is still cheap, with a forward P/E of 10.4.
Should Toll Brothers be on your short list?
5. Constellation Energy Corp. (CEG - Free Report)
Constellation Energy provides power and energy to more than 20 million homes and businesses in the United States. It operates the nation’s largest carbon-free nuclear fleet. This makes Constellation Energy a player in the alternative energy space.
Shares of Constellation Energy are up 125.7% year-to-date. But earnings are on the rise too. Analysts expect Constellation Energy’s earnings to jump 58.7% this year. It trades with a forward P/E of 33.
If you are interested in nuclear energy, should Constellation Energy be on your watch list?
What else do you need to know about stocks beating the S&P 500 this year?
Tune into this week’s video podcast to find out.
[In full disclosure, Tracey owns shares of TOL in her personal portfolio and in Zacks Value Investor portfolio.]