Yahoo Finance Will 2024 be a Year of "Fab Four" ETFs Instead of "Magnificent Seven"?
In 2023, the "Magnificent Seven" stocks, namely Apple AAPL, Microsoft MSFT, Alphabet GOOGL, Amazon AMZN, Nvidia NVDA, Meta Platforms META, and Tesla TSLA, dominated the S&P 500, accounting for nearly two-thirds of its total return.
Potential Market Leaders for 2024: The "Fab Four"
However, the focus now shifts to whether these companies will continue to lead in 2024 or if other stocks, such as the "Fab Four," will take the forefront, per a Motley Fool article, published on Yahoo Finance.
1. Visa (V)
Visa has demonstrated impressive growth since its IPO in 2008, with a 21% CAGR. The company thrives on a simple yet effective model of charging fees for transactions on its vast payment network. In fiscal year 2023, Visa processed transactions worth over $12 trillion, leading to substantial revenues and net income. Visa has been rewarding shareholders with significant repurchases and dividends.
Visa comes from a top-ranked Zacks sector (top 19%) and industry (top 31%). The stock’s past four quarter’s average earnings surprise stood at 5.35%. The stock has exposure to iShares U.S. Financial Services ETF IYG (about 9% focus) and Financial Select Sector SPDR Fund XLF (about 7.96% focus).
2. CrowdStrike Holdings (CRWD)
As a prominent cybersecurity provider, CrowdStrike's relevance has soared with the increase in cyberattacks. The company reported a 35% revenue growth recently, with a subscription-based model that's highly scalable. The growing need for cybersecurity solutions positions CrowdStrike for continued success.
The company hails from a top-ranked Zacks sector (top 31%) and industry (top 12%). The stock’s past four quarter’s average earnings surprise stood at 16.56%. The stock has exposure to Global X Cybersecurity ETF BUG (about 6.61% focus) and TrueShares Technology, AI & Deep Learning ETF LRNZ (about 6.53% focus).
3. Shopify (SHOP)
Despite setbacks in 2022, Shopify has rebounded strongly, showing substantial revenue growth. The company has improved its financial health by reducing costs and increasing free cash flow. Shopify is becoming a preferred e-commerce platform for influencers and emerging brands.
The company belongs to a top-ranked Zacks sector (top 31%) and industry (top 12%). The stock’s past four quarter’s average earnings surprise stood at 106.11%. The stock has exposure to First Trust Dow Jones International Internet ETF FDNI (about 10% focus) and ARK Fintech Innovation ETF ARKF (about 8.66% focus).
4. Nvidia (NVDA)
Nvidia benefits from the growing demand in AI technologies and applications. The company's revenue and earnings are increasing, with analysts raising their future earnings estimates. Given its role in the AI revolution, Nvidia is expected to have a strong performance in 2024.
The company comes from a top-ranked Zacks sector (top 31%). The stock’s past four quarter’s average earnings surprise stood at 18.99%. The stock has exposure to VanEck Semiconductor ETF SMH (about 19.4% focus) and AXS Esoterica NextG Economy ETF WUGI (about 18.8% focus).
(Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.)
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Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Visa Inc. (V) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Tesla, Inc. (TSLA) : Free Stock Analysis Report
Financial Select Sector SPDR ETF (XLF): ETF Research Reports
VanEck Semiconductor ETF (SMH): ETF Research Reports
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
Shopify Inc. (SHOP) : Free Stock Analysis Report
iShares U.S. Financial Services ETF (IYG): ETF Research Reports
First Trust Dow Jones International Internet ETF (FDNI): ETF Research Reports
ARK Fintech Innovation ETF (ARKF): ETF Research Reports
CrowdStrike (CRWD) : Free Stock Analysis Report
Global X Cybersecurity ETF (BUG): ETF Research Reports
TrueShares Technology, AI and Deep Learning ETF (LRNZ): ETF Research Reports
AXS Esoterica NextG Economy ETF (WUGI): ETF Research Reports
Meta Platforms, Inc. (META) : Free Stock Analysis Report
