It’s a little hard to believe, but 2024 has been a great year for the stock market. Despite all the conflict and uncertainty around the world, the S&P 500 has notched a 26% gain year-to-date, far outstripping its long-term average annual return of around 10%.
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Passive investors, who try to replicate the performance of the total market by investing in index funds, have had a great year so far — but there are always some stocks that perform even better than the market average. Most investors who buy individual stocks typically are trying to beat the market and get those outsized returns.
When a stock does beat the market, fear of missing out can make it very tempting to invest, but past performance is no guarantee of future success. What has gone up can always come down, so should you buy? Here’s a look at four stocks that have done well in 2024.
RTX Corporation (RTX)
- YTD gain: 44.17%
Better known by its former name, Raytheon Technologies, RTX Corporation is the second largest defense contractor in the United States. As a large conglomerate, it is engaged in a variety of businesses that include aerospace products, aircraft engines and missile systems.
Given the amount of military aid that the U.S. is currently sending to several conflict zones, it shouldn’t come as a surprise that a defense contractor is doing well. Whether or not that success will continue is unclear. Dr. Peter C. Earle, senior economist with the American Institute for Economic Research, noted that a new presidential administration could have an impact on RTX’s business.
“Should the incoming Trump administration follow through on its pledges to force other nations to fend for themselves, the largest publicly traded defense contractors might be poised for a pullback,” Earle said.
Verdict: NO
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Walmart Inc (WMT)
- YTD gain: 83.12%
Investors have generally been very well rewarded for holding the stock of retail titan Walmart, and this year has been no exception, as the stock has seen more than double the return of the S&P 500. However, there are some possibly very troubling headwinds that have the potential to make a massive impact on Walmart’s operations.
“A cornerstone of the Trump campaign has been tariffs and other forms of trade protectionism. If tariffs of the type which have been discussed are put in place — 60%, 100%, 200%, and so on — retaliatory tariffs would follow. Those could, in turn, devastate companies that rely on imports, [such as] Walmart,” Earle said, citing the fact that Walmart imports many of its goods from Chinese suppliers.
Verdict: NO
Abercrombie & Fitch Co (ANF)
- YTD gain: 69.97%
Abercrombie & Fitch is a specialty retailer of apparel whose stock has been absolutely surging through 2024. Although down from its mid-year high share price of almost $200, it has still had eye-popping returns for the year so far.
Derrick Fung is the CEO of Signals, an investment intelligence platform that tracks consumer spending data to help investors anticipate market movements. His platform’s data indicates a down trend on companies that sell “nice to have” non-durable products — things like higher end cosmetics, apparel and home furnishings.
“Our data has been showing a down trend on [ANF] — i.e. we’ve gotten a SELL Signal on all these names in the last 45 days — and the signal has worked on all of them,” Fung said.
Verdict: NO
Nvidia Corporation (NVDA)
- YTD gain: 192.98%
Chipmaker Nvidia has made a lot of headlines over the last year, as it has skyrocketed to become the second largest company in the world, right behind Apple. Its specialty is in graphics processing units (GPUs), which are highly prized for artificial intelligence applications, and its business has surged along with the wave of hype surrounding generative AI.
It’s hard for a business to maintain such a stunning level of growth, so investors may be wondering if it’s time to get off of the rocket. However, for the stock analysts that cover Nvidia, there remains a high degree of enthusiasm for the business. Of the 63 analysts currently making recommendations, 57 of them rate NVDA as a Buy or a Strong Buy. That’s over 90%, and that level of consensus among analysts is often rare.
Verdict: YES
Editor’s note: Data was sourced from Yahoo Finance and is accurate as of Dec. 5, 2024.
Editor’s note on political coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on GOBankingRates.com.
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This article originally appeared on GOBankingRates.com: 4 Stocks That Have Surged in 2024 — Are They Really Worth the Investment?
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