The S&P 500 is a widely recognized benchmark for portfolio diversification, consisting of 500 profitable publicly traded companies with allocations based on market capitalization. Companies are added or removed based on financial performance and other criteria, making it a prestigious index to be included in.
While many investors aim to match the market through index investing, some stocks have outperformed the S&P 500. Walmart (WMT) is one such stock, offering solid earnings and resilience during economic downturns. With a 30% year-to-date gain and a recent dividend hike, Walmart has shown promising growth potential.
Amazon (AMZN) is another standout performer, with a 30% year-to-date return driven by strong online marketplace sales and revenue growth in various segments. The company’s success in e-commerce, cloud computing, and advertising indicates long-term growth potential for patient investors.
Nu Holdings (NU), a Brazilian digital bank, has seen a 65% year-to-date return, fueled by a growing user base and strong revenue growth from various financial products. Analysts project further upside for the stock, making it an attractive option for investors.
Chipotle (CMG) has been a consistent outperformer in the stock market, with a 28% year-to-date gain and solid revenue growth driven by new restaurant openings and strong comparable sales. The company’s focus on expansion and customer satisfaction bodes well for future growth.
Meta Platforms (META), the parent company of Facebook, has delivered a 44% year-to-date gain, supported by a large user base and strong revenue growth. As the company explores new products and AI offerings, analysts expect continued success and potential stock price appreciation.
Texas Roadhouse (TXRH), a steakhouse chain, has shown impressive growth with a 42% year-to-date gain and strong revenue and net income growth. The company’s expansion efforts and growing customer base position it well for future success.
Crowdstrike (CRWD), a cybersecurity firm, has surged in the stock market with a 50% year-to-date gain and robust revenue growth. The company’s subscription-based business model and strong profits make it a compelling choice for investors in the cybersecurity industry.
Overall, these growth stocks have demonstrated the potential to outperform the S&P 500, offering investors opportunities for significant returns.