Our summary of the standout stocks in the primary half of 2024, with large cap and tech stocks flourishing particularly
The primary half of 2024 saw the market exceed the expectations of most Wall Street analysts. Through July 2, the S&P 500 is up 15.3% while the Nasdaq has gained 19.9%, signaling that the bull market that began in late 2022 continues to be running.
In the primary half of 2024, large caps and tech stocks have dominated, while smaller caps and value stocks haven’t performed as well. The Dow Jones Industrial Average has risen 4.3% 12 months to this point YTD while the S&P MidCap 400 is up 4.6%, and the small cap Russell 2000 is down 2.5% YTD.
There had been a trend within the fourth quarter of 2023 toward the bull market broadening out beyond large caps to mid and small-cap stocks. Nonetheless, that didn’t materialize in 2024 as large caps proceed to dominate, specifically tech stocks.
Here’s a have a look at a few of the most effective stocks in the primary half of 2024.
Tech stocks cleared the path
Given the performance of the Nasdaq, it should come as no surprise that technology stocks are leading the best way once more.
Inside the S&P 500, the knowledge technology sector returned 29.5% in the primary half through July 2, while tech-adjacent communication services rose 26.2%.
Financials were the most effective non-tech sector, rising 9.5%, followed by energy with a 9.1% gain. Utilities and consumer staples have each climbed 6.8% YTD, while healthcare stocks have risen 6.3%. Further, the patron discretionary sector is up 6%, while industrials are up 5.8%.
The 2 worst-performing sectors up to now this 12 months are materials, up 1.5%, and real estate, down 5.1% YTD. Real estate is the one sector within the red at this point.
Overall, one in every of the important thing investment themes is AI stocks, which proceed to outperform. As was the case in 2023, stocks that deal with artificial intelligence are driving the markets higher.
The truth is, the highest two stocks to this point in 2024 are AI-related.
The three best stocks in H1 2024
The perfect-performing stock up to now this 12 months is Super Micro Computer (NASDAQ:SMCI), which is up 194.5% YTD.
Super Micro Computer, or Supermicro because it is commonly called, provides software for high-performance computing servers at data centers. The corporate’s software will be customized to handle different workloads, including AI computing. The truth is, one in every of its biggest partners is NVIDIA.
NVIDIA (NASDAQ:NVDA) is the second-best performer this 12 months, as its stock has risen 147.7% through July 2.
NVIDIA is a semiconductor company that develops graphics processing unit (GPU) chips for computers, video games and high-performance computing data centers. It’s by far the dominant player in AI-enabled chips for data centers, with an enormous 98% market share. This area of NVIDIA’s business has driven its success over the past 10 years.
The third-best performer in 2024 is Vistra (NYSE:VST), which has seen its stock price rise 127.7% YTD.
Vistra is a Texas-based energy company that gives electric power to some 5 million customers throughout the U.S., specializing in nuclear, natural gas and solar energy.
While not an AI stock, Vistra can be expected to learn from the AI boom by powering data centers that require loads of electricity to handle high-performance computing and AI-related tasks.
Amongst several Wall Street analysts, Vistra is viewed as well-positioned to reap the benefits of this trend.
Will they keep winning?
After all, while these stocks were winners in the primary half, it doesn’t mean they may proceed to outperform. Investors should do their very own research on valuations, earnings history and potential catalysts for growth.
Analysts are bullish on all three of those stocks, particularly Supermicro and Vistra, which have more reasonable forward P/E ratios.
NVIDIA has a better P/E ratio because it has been the most well liked stock available on the market for 2 years, and investors keep piling in. Nonetheless, it continues to be an excellent long-term holding with massive benefits in a growing industry.
Although these were the most effective stocks from the primary half of 2024, it could be smart to do a deeper dive into all three of them before investing.