Forget Nvidia FOMO: 8 Underdog Stocks With Greater Earnings Growth Potential
The technology sector has been a key driver of the S&P 500's strength, led by the Magnificent 7.
Nvidia (NASDAQ:NVDA) has stood out among the Magnificent 7, not just as the biggest gainer, but also in terms of the wide margin by which it beat other major stocks' performance.
After all seven companies presented results, the comparison is striking.
The other six stocks saw an average revenue increase of +15% (Apple (NASDAQ:AAPL) +2%, Meta (NASDAQ:META) +25%), while Nvidia boasted an impressive +265%.
Will the chipmaker continue to post staggering gains? Only time will tell. However, as investors, we should keep an eye out for alternative stocks that could perform even better this year.
While Nvidia has stolen all the headlines, over the past four years, some stocks have outperformed even Nvidia's +963% growth since February 19, 2020.
Examples include Celsius (NASDAQ:CELH) (+3,030%), Antero Resources (NYSE:AR) (+1,232%), Range Resources (NYSE:RRC) (+871%), Builders FirstSource (NYSE:BLDR) (+557%), Shockwave Medical (NASDAQ:SWAV) (+514%), and EQT (NYSE:EQT) (+509%).
Additionally, Advanced Micro Devices (NASDAQ:AMD), not part of the Magnificent 7 but noteworthy, has climbed to the 25th position in the S&P 500 and the 10th spot on the Nasdaq 100.
Looking at the earnings growth expectations for 2024, only a select group of companies is projected to outpace Nvidia:
The Roundhill Magnificent Seven ETF (NASDAQ:MAGS) provides exposure to the Magnificent Seven stocks.
It started trading on April 11, 2023, under the name Roundhill BIG Tech (BIGT) and was later renamed Roundhill Magnificent Seven on November 9, 2023.
It has 4 advantages:
The exposure as of today is as follows:
Bullish sentiment, i.e. expectations that stock prices
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