Yahoo Finance Top Old Economy Stocks that are Soaring in 2024
(0:30) - Can You Find Strong Stocks Within The Old Economy?
(4:00) - Top Stock Picks To Keep On Your Radar Right Now
(26:50) - Episode Roundup: URI, XOM, BRK.B, SBGSY, CEG
Podcast@Zacks.com
Welcome to Episode #443 of the Zacks Market Edge 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 look at stocks that have hit new highs in 2024 but that aren’t technology companies. These companies are the “old economy.” Several have been in business over 100 years. But they’ve managed to adapt their business model to the modern era.
These stocks may not be the most popular on Stocktwits but earnings are growing and the stocks have momentum.
5 Top Old Economy Stocks for 2024
1. United Rentals, Inc. (URI)
United Rentals is one of the largest equipment rental companies in the world. Shares of United Rentals hit new all-time highs earlier this year and are up 409% over the last 5 years.
But in the last 3 months, the shares have pulled back 11%. United Rentals remains cheap. It trades with a forward P/E of 14.6.
Should United Rentals be on your short list?
2. Exxon Mobil Corp. (XOM)
Exxon Mobil, the big cap energy company, has been in business for 148 years. Exxon Mobil is oil and chemicals, two “old economy” products. Shares of Exxon Mobil hit new highs in 2024 but have fallen 3.4% over the last 3 months.
Exxon Mobil is cheap. it trades at just 11.9x forward earnings. Shareholders also get a dividend, paying a 3.4% yield.
Is it time to buy big oil stocks like Exxon Mobil again?
3. Berkshire Hathaway (BRK.B)
Nothing says “old economy” like Berkshire Hathaway. Founded in 1839 as a textile manufacturer, it owns Burlington Northern Santa Fe, one of the largest railroads in the United States, as well as insurance companies, furniture retailers and See’s Candies.
Shares of Berkshire Hathaway hit new highs this year but have fallen off those highs. Shares are up in the last 3 months, but just 2.5%.
Is it time to buy Warren Buffett’s life work, Berkshire Hathaway, this year?
4. Schneider Electric S.E. (SBGSY)
Schneider Electric was founded in France in 1836. It’s now 188 years old. Schneider has changed its focus over the years but it’s now one of the largest energy management companies in the world. This old economy company saw revenue grow 5% in the first quarter, to an all-time high for any first quarter.
Due to the demand from AI, shares of Schneider have soared 195.5% over the last 5 years. But over the last 3 months, shares of Schneider have retreated from those highs, falling 7%. Schneider Electric trades at 28x forward earnings.
With data centers being built globally for the AI revolution, should Schneider Electric be on your short list?
5. Constellation Energy (CEG)
Constellation Energy is an old economy utility company. But it’s also one of the largest using nuclear energy. Constellation Energy powers more than 20 million homes and businesses.
Shares of Constellation Energy have soared over the last two years, rising 209%. But it’s off the recent all-time highs. Constellation Energy is shareholder friendly. It has bought back $1.5 billion in shares since 2023.
Is it time to consider buying a carbon-free energy provider, like Constellation Energy, for your portfolio?
What Else Should You Know About Red-Hot Old Economy Stocks?
Watch this week’s Market Edge Podcast to find out.
[In full disclosure, Tracey owns shares of XOM in her personal portfolio.]
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Exxon Mobil Corporation (XOM) : Free Stock Analysis Report
Constellation Energy Corporation (CEG) : Free Stock Analysis Report
Berkshire Hathaway Inc. (BRK.B) : Free Stock Analysis Report
Schneider Electric SE (SBGSY) : Free Stock Analysis Report
United Rentals, Inc. (URI) : Free Stock Analysis Report
