U.S. stock markets witnessed an impressive rally in 2024 after an astonishing bull run in 2023. Following the 24.2% ascent in 2023, the S&P 500 rallied 23.3% last year. The benchmark jumped 53% in the last two years recording its best performance since the nearly 66% rally in 1997-98. The broad-market index posted 57 all-time highs in 2024. The Dow and the Nasdaq Composite rallied 12.9% and 28.6%, respectively, last year.
Wall Street’s rally of 2023 was predominantly dominated by the technology sector, especially by the giant generative artificial intelligence (AI)-centric stocks. Though the rally of 2024 was also driven by AI bigwigs, several non-tech sectors such as financials, industrials, utilities and consumer discretionary stocks also participated, making the rally broad-based.
At this stage, it will be prudent to invest in non-tech stocks that outperformed the three major indexes — the Dow, the S&P 500 and the Nasdaq Composite — last year with more upside potential in early 2025. Five such stocks with a favorable Zacks Rank are: Chipotle Mexican Grill Inc. CMG, Interactive Brokers Group Inc. IBKR, KKR & Co. Inc. KKR, Fiserv Inc. FI and Boston Scientific Corp. BSX.
Buy 5 Non-Tech Outperformers of 2024
These five non-technology high-flyers of 2024 have the potential to fly higher in the short-term. These stocks have strong revenues and earnings growth potential for 2025 and have seen positive earnings estimate revisions in the last 30 days. Each of our picks currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Chipotle Mexican Grill Inc.
Chipotle Mexican Grill is benefiting from its focus on service digitization, new menu offerings or bringing back customers’ favorites, and new restaurant openings, especially with Chipotlanes. During the third quarter of 2024, CMG opened 86 new restaurants, with 73 locations having a Chipotlane.
CMG expects that at least 80% of its new openings to have a Chipotlane going forward. Further, anticipations regarding the Augmented Make line by Hyphen and Autocado are encouraging for CMG’s future sales growth.
Solid Price Upside Potential for CMG Shares
Chipotle Mexican Grill has expected revenue and earnings growth rates of 12.8% and 17.9%, respectively, for 2025. The Zacks Consensus Estimate for 2025 earnings has improved 0.8% over the last 30 days.
The average short-term price target of brokerage firms represents an increase of 12.5% from the last closing price of $59.89. The brokerage target price is currently in the range of $54 -$75. This indicates a maximum upside of 25.2% and a downside of 9.8%.
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Interactive Brokers Group Inc.
Interactive Brokers Group’s efforts to develop proprietary software, lower compensation expenses relative to net revenues, enhance emerging market customers and global footprint, and relatively high rates are expected to continue to support revenue growth.
We project IBKR’s total net revenues (GAAP) to see a CAGR of 7.6% by 2026. IBKR’s initiatives to expand its product suite and reach of services will support financials. IBKR’s capital distributions seem sustainable, given a solid liquidity position.
Strong Price Upside Potential for IBKR Stock
Interactive Brokers Group has expected revenue and earnings growth rates of 2.1% and 3.6%, respectively, for 2025. The Zacks Consensus Estimate for 2025 earnings has improved 0.1% over the last seven days.
The average short-term price target of brokerage firms represents an increase of 11% from the last closing price of $182.50. The brokerage target price is currently in the range of $145 -$288. This indicates a maximum upside of 57.8% and a downside of 20.6%.
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KKR & Co. Inc.
KKR & Co. has been benefiting from impressive growth in assets under management (AUM) and record transaction fees for the capital markets business. KKR’s efforts to improve and add investment strategies will continue to support AUM growth.
The addition of new capabilities to capture a growing set of opportunities from infrastructure, real estate, growth and core investing activities will likely aid KKR’s revenue growth. KKR’s solid liquidity position will aid capital distribution activities.
Attractive Price Upside Potential for KKR Shares
KKR & Co. has expected revenue and earnings growth rates of 18.6% and 30%, respectively, for 2025. The Zacks Consensus Estimate for 2025 earnings has improved 0.5% over the last 30 days.
The average short-term price target of brokerage firms represents an increase of 13.1% from the last closing price of $149.19. The brokerage target price is currently in the range of $114 -$214. This indicates a maximum upside of 43.4% and a downside of 23.6%.
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Fiserv Inc.
Fiserv’s growth is driven by Clover’s strong performance. FI is optimistic about Clover’s performance, given the notable rise in revenues across the preceding quarters. FI is not shy of making buyouts to expand its product portfolio and enhance its performance.
FI’s business model has coupled recurring revenues and high incremental margins. Fiserv maintains a consistent share repurchase program. FI’s current ratio of more than 1 is suitable for its growth.
Short-Term Price Potential of FI Stock on the Rise
Fiserv has expected revenue and earnings growth rates of 8.8% and 16.4%, respectively, for 2025. The Zacks Consensus Estimate for 2025 earnings has improved 0.01% over the last 30 days.
The average short-term price target of brokerage firms represents an increase of 11.3% from the last closing price of $205.98. The brokerage target price is currently in the range of $155 -$278. This indicates a maximum upside of 35% and a downside of 24.8%.
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Boston Scientific Corp.
Boston Scientific is seeing strength across target markets. Strong worldwide demand for its MedSurg and Structural Heart lines, traction in United States and outside for its the next generation WATCHMAN FLX and FLX Pro, as well as contribution from accretive acquisitions are important drivers.
The Pain and Brain franchisees of BSX are expected to gain solid traction in 2024 banking on strong execution of core growth strategies. The Electrophysiology arm of BSX continues to gain momentum on sustained adoption of FARAPULSE PFA. The 2024 guidance indicating strong growth over 2023 builds confidence in the BSX stock.
Nice Price Upside Potential for BSX Stock
Boston Scientific has expected revenue and earnings growth rates of 12.9% and 12.7%, respectively, for 2025. The Zacks Consensus Estimate for 2025 earnings has improved 2.2% over the last 30 days.
The average short-term price target of brokerage firms represents an increase of 12.8% from the last closing price of $89.38. The brokerage target price is currently in the range of $86 -$110. This indicates a maximum upside of 23.1% and a downside of 3.8%.
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