2024 has come to a close and left most investors (especially if you’re in large-cap growth stocks or tech stocks) sitting pretty.
The S&P 500 finished the year more than 24% higher, the Nasdaq rose by nearly 32%, and the Dow closed the year higher by almost 13%.
Of course, it’s been a slightly different story if you’re a small-cap investor, as the Russell 2000 finished the year up only 11%, significantly lagging its large-cap peer index (and marking another year in which the small-cap performance premium was nowhere to be found).
And as much as the credit for this stellar year may lie at the feet of the Magnificent Seven stocks, you may be interested to learn that they didn’t even crack the top 10 in terms of total performance by large-cap (or larger) stocks.
Unsurprisingly, Nvidia (NVDA), which was up 184% this year, was the best-performing Magnificent Seven stock, but that was only good enough to make it the 12th best-performing large-cap stock of 2024.
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So, with a nod to the Magnificent Seven (our 401(k)s thank you!), let’s look past the financial headlines and recognize the biggest winners in big-cap land.
The 5 Best Performing Large-Cap Stocks This Year
1. AppLovin (APP)
2024 Return: 740%
If you’re a subscriber to Cabot Growth Investor, you’ve certainly seen this name before. AppLovin is both a hot commodity on Wall Street and the best-performing large-cap stock of 2024. And although the tech is complicated, the rationale is pretty simple. AppLovin is all about data and, more importantly, monetizing that data.
The firm began in the mobile application space, using its automation tools to better connect advertisers to app users. But it’s taken off in a big way this year due to its AI-powered advertising engine dubbed “Axon,” which uses machine learning to improve advertising results.
Mike Cintolo has been singing the company’s praises for a long time now, so if you’re keen to follow AppLovin, I highly recommend a subscription to Cabot Growth Investor.
2. Summit Therapeutics (SMMT)
2024 Return: 587%
Summit Therapeutics isn’t a name that we’ve written about before, but with a 587% year-to-date return, perhaps it should have been. The company is a biotech research outfit whose big run-up is due to a new drug that’s in the midst of Phase III trials now: Ivonescimab.
The drug is being investigated as a second-line treatment for advanced non-small-cell lung cancer (NSCLC), has already received Fast-Track Designation from the FDA, and outperformed Keytruda (the world’s top-selling drug last year) in a Phase III trial by Chinese partner company Akeso, who tested it as a first-line treatment for NSCLC.
Of course, novel drugs are notoriously high risk/high reward, but if you’re interested in following the name, Summit expects to announce Phase III trial results in mid-2025.
3. Rocket Lab (RKLB)
2024 Return: 397%
Rocket Lab is a name that we’ve covered not only in the pages of the Cabot Wealth Daily (you can see a more expansive write-up of the business here) but also one that we’ve discussed in the Street Check podcast.
But, in a nutshell, the company is a smaller, precision-oriented competitor to privately held SpaceX and is one of the best plays on a burgeoning commercial space race.
Not only is the company working on a new larger rocket (Neutron; aiming to conduct the first launch next year) that will help them scale in an attempt to increase their share of low-Earth-orbit upmass, but their vertically integrated space systems make them a dominant player in the small-rocket space, where they field their Electron rocket.
Assuming that the new space race is more than just a flash in the pan (and that Elon Musk’s role in the new administration doesn’t put a thumb on the scale), the sky seems to be the limit for Rocket Lab.
4. Palantir (PLTR)
2024 Return: 363%
Next up on our list is another company that you may have read about here, as Jacob Mintz wrote about this name all the way back in February when he questioned whether Palantir could be the “next Nvidia.”
Jacob highlighted the really impressive call-buying that he was seeing in Palantir and quoted Mike Cintolo, who’d written up the stock as well, saying:
Palantir has seemed perfectly positioned for the AI boom for about a year now: The company’s history as a provider of advanced software and analytical/security platforms for government entities (especially U.S. and friendly militaries) means it’s been leveraging various forms of AI and machine learning for years, putting it way ahead of others when it comes to developing a platform that can be mass adopted not just by governments, but by big companies looking to dramatically streamline operations.
Whether or not it is, in fact, the “next Nvidia,” Palantir has had a phenomenal run this year and made a lot of money for early investors.
5. MicroStrategy (MSTR)
2024 Return: 351%
MicroStrategy, unlike some entries on this list, is likely a name you’re familiar with. The company is ostensibly a small software outfit but has made a name for itself as a de facto play on bitcoin.
Helmed by vocal bitcoiner Michael Saylor, the company sells shares and debt to public investors to add bitcoin to its treasury. Of course, we’ve written before about how much of a premium investors pay when using MicroStrategy as a bitcoin proxy, but, at this point, it seems like MicroStrategy will continue to demand a premium (and remain in the headlines) for as long as bitcoin is rising.
If you’re interested in finding more of the best growth stocks before they make this list in 2025, we’d recommend a subscription to Cabot Top Ten Trader, where Chief Analyst Mike Cintolo highlights 10 of the market’s best-looking stocks every week.
Of course, you can also sign up for a complimentary subscription to Cabot Wealth Daily by entering your email address in the “Subscribe Now” box below.
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