Despite uncertainties about the Federal Reserve’s interest rate actions, a possible US recession, and the US election, 2024 has been a positive year for the stock market.
Concerns about inflation and high interest rates led to a 4.2% drop in the S&P 500 Index in April, while fears about a possible US recession and the unwinding of major trades like the yen carry trade saw a 3% drop on August 5.
The usual September drop happened as the index fell by 2.12% on September 3 even as uncertainties about the election also caused a 2% drop between October 29 and 31.
Yet, the S&P 500 Index is up 27% year-to-date (YTD) as of November 29, 2024. Electronic Technology (70.95%), Retail Trade (40.93%), and Technology Services (40.71%) were the three top-growing sectors with some stocks in these sectors boasting more than 1,000% YTD.
Interestingly, though health technology only posted 16.70% YTD (lower than the S&P 500), four of the best performing stocks in 2024 are in that sector. Two of these stocks also come from the thriving fintech sector, although finance is currently ranked eighth by YTD.
In this article, we will highlight the best performing stocks in 2024, try to understand the fundamentals behind their incredible performance, and consider what the future holds for them.
This will help you comprehend the diverse reasons why a stock’s price surges and provide you with a better understanding of the stock market.
[Note: The stocks on this list are not recommendations. Do your own research before purchasing any stock, for trading or investing purposes. Read Stock Picking Made Simple if you are a trader and Key Lessons From Warren Buffett’s Top 10 Stock Holdings if you are an investor. ]
1. Total Site Solutions Incorporated (TSSI)
Summary
The first on our list of the top 10 best performing stocks in 2024 is Total Site Solutions, Inc.
This company operates in the technology services sector, providing integration technology services to enterprises and end users. These services help to operate and maintain information technology services in data centers, operation centers, network facilities, and server rooms, among others.
TSSI’s stock price has grown by a whopping 3,674%, from $0.27 on January 2 to $10.19 on November 29.
Darryll Dewan, CEO of Total Site Solutions, Inc.
Fundamentals
The rise in TSSI’s stock price has been driven by improved financial performance as revenue, operating income, and net income soared in 2024.
In Q2, 2024, revenue and net income grew by 41% and 345% year-on-year (YoY), respectively, according to Stock Titan. They attributed this to expanded production capacity due to rising demand for AI-related server rack builds.
The latest quarterly results (Q3, 2024) also showed strong performance.
Revenue and net income grew by 689% and 1,166% YoY, respectively, according to NASDAQ. This incredible performance was attributed to expansion into AI-enabled rack integration services and an increase in procurement revenues.
Future expectation
As we have seen, the growth of TSSI has been connected to the growing importance of AI. The more important AI becomes, the greater the scope of growth possible for TSS.
The company was uplisted to the Nasdaq Capital Market in November and it has plans to open an expanded production facility by 2025 to meet increased demand for AI-enabled technologies, according to NASDAQ.
Other highlights
TSSI currently has 22.47 million outstanding shares, with a market cap of $229 million.
Only a small portion (15.78%) of these shares are held by institutional investors. Vestor Capital is the major institutional holder of TSSI.
2. GeneDx Holdings Corporation (WGS)
Summary
GeneDX Holdings is a genomics company that provides advanced genetic testing and diagnostic services to help identify rare and inherited diseases. They offer clinical exome sequencing, genetic counseling, and diagnostic solutions for individuals and healthcare providers.
WGS’ price went from $2.70 on January 2 to $78.39 on November 29, a 2,803% growth.
Sample genetic testing kits from GeneDx
Source: GeneDx Holdings
Fundamentals
The shift to precision medicine in healthcare has bolstered demand for GeneDx genomic testing. In Q2, 2024, there was a 52% increase in the number of exome and genome tests conducted by the company, according to Gene Edge, a biotechnology news platform.
Its exome and genome business, which now constitutes 74% of its revenue, grew by 125% YoY in Q2, 2024, according to Seeking Alpha.
Future expectation
Expanding Medicaid coverage, reduced cash burn, and a strong skill set in rare disease data and diagnostics will fuel further growth, according to Seeking Alpha.
Gene Edge also points to the company’s interest in rare diseases among children and newborns as catalysts for future growth.
The growing interest in precision medicine in the healthcare sector will continue to make GeneDx relevant.
Other highlights
WGS has 27.47 million outstanding shares and a market cap of $2.18 billion.
Institutional investors, including household names like Vanguard Group, Blackrock Inc., and Goldman Sachs, own 70.27% of WGS shares.
3. Sezzle Incorporated (SEZL)
Summary
Sezzle Incorporated is a fintech company that provides a Buy Now, Pay Later (BNPL) service. It allows consumers to make purchases and split the payment into interest-fee installments typically over six weeks.
The stock of Sezzle Incorporated has grown by 1,919%, from $21 on January 2 to $424.03 on November 29.
Sezzle’s BNPL solution
Source: Shift 4 Shop
Fundamentals
This growth in the stock’s price has been driven by rising revenue and net income. The company recorded a 71.3% growth in revenue in Q3, 2024 and net income grew YoY by more than 1,000%, according to GuruFocus.
Merchant sales have been growing and Sezzle’s partnership with WebBank, a credit card issuer, has been a game changer. Its $15 million stock buyback has also reinforced investors’ confidence in the company.
Future expectation
Sezzle sits on $80 million in unrestricted cash which it can use to fund more innovation (new product rollouts) and partnerships.
The company’s strong and growing margins provide a competitive advantage that will continue to make it a strong player in the fintech market.
Other highlights
SEZL has 5.61 million outstanding shares and a market cap of $2.38 billion.
Institutional investors hold 17.67% of its shares with Vanguard, BlackRock, Morgan Stanley, and State Street Corporation being the most popular holders.
4. Fitell Corporation (FTEL)
Summary
Fitell Corporation is an online retailer of gym and fitness equipment. It sells different types of gym equipment for both personal training studios and gym chains in Australia and Southeast Asia. Fitell Corporation is also actively involved in the fitness club licensing business.
Its stock price grew by 1,784%, from $1.52 to $28.63.
Fitell Corporation’s products
Source: Gym Direct
Fundamentals
Unlike all the companies we have seen so far, Fitell Corporation does not have strong financials behind its stock price growth.
Though the company has expanded its presence into Southeast Asian markets, this has not translated into strong earnings.
While revenue and gross profit grew by 21.66% and 401%, respectively, between H2, 2023 (second half of last year), and H1, 2024 (first half of 2024), net income fell by 73.86% from -$1.53m to -$2.66m as operating expenses increased.
Also, return on equity (ROE), return on assets (ROA), and net profit margin, which were all negative in H2, 2023, further worsened in H1, 2024.
It seems then that investors are optimistic about a turnaround or a strategic move that will improve margins and reduce operating expenses. Said differently, current growth in stock price may be based on future potential rather than past or current financial performance.
Future expectation
Since current growth is based more on future potential than current performance, it remains to be seen how long investors in this company are willing to wait to see improving and strong financials.
Other highlights
FTEL currently has 20.12 million outstanding shares and a market cap of $576.13 million.
Institutional ownership of FTEL is negligible – just 0.20%. Geode Capital Management and the Bank of Montreal are the two institutional owners.
5. Monopar Therapeutics Incorporated (MNPR)
Summary
The fifth company in our list of best performing stocks in 2024 is Monopar Therapeutics, a biopharmaceutical company that specializes in innovative cancer treatments.
Its stock price grew by 1,261%, from $1.65 on January 2 to $22.53 on November 29.
Chandler Robinson, CEO of Monopar Therapeutics
Fundamentals
A recent licensing agreement and its exciting pipeline are behind the surge in stock price, according to Forbes.
The licensing agreement was with Alexion and it gave Monopar Therapeutics the license to develop and sell ALXN1840, a drug for the treatment of Wilson Disease that is in late-stage clinical trials.
Its MNPR-101, an antibody that targets cancers expressing the urokinase plasminogen activator receptor (uPAR), has shown great potential in preclinical studies and imaging trials. It is now in phase 1a clinical trial.
Future expectation
Monopar Therapeutics also has Camsirubicin and MNPR-202 in the pipeline.
As long as these drugs and antibodies continue to show great potential, investors will continue to bet on MNPR.
Other highlights
MNPR has 5.28 million outstanding shares and a market cap of $118.91 million.
Only 24.47% of its shares are held by institutions, of which Geode Capital, Wells Fargo, and NewEdge Advisors are the top three.
6. Red Cat Holdings (RCAT)
Summary
Red Cat Holdings specializes in drones and unmanned aerial systems. It develops robotic hardware and software solutions for government, military, and commercial use.
Its share price went from $0.89 on January 2 to $11.77 on November 29, a 1,222.47% growth.
Drones from Red Cat Holdings
Source: Red Cat Holdings
Fundamentals
Red Cat Holdings recently secured contracts with the US Army and the Royal Australian Navy, benefitting from the global rise in the demand for advanced drone technology.
The endorsement of its products by the National Defense Authorization Act (NDAA) has also increased its value in the drone technology industry.
Red Cat Holdings increased its revenue by 286% in the past 12 months, according to Investing.com.
Future expectation
Red Cat Holdings’ prospects depend on whether it can expand its product offerings, close more important projects, and secure relevant endorsements.
One important consideration is its financials. Its revenue growth has not yet translated into positive net income and higher margins. Whether things will change will depend on its ability to combine operational efficiency with a strong interest in research and development (R&D).
Other highlights
RCAT has 75.47 million outstanding shares and a market cap of $888.23 million.
Institutional investors hold 17.75% of its shares with AWM Investment Company, Vanguard Group, and Bleichroeder LP being the top three holders.
7. Dave Incorporated (DAVE)
Summary
Dave Incorporated is a financial technology company that seeks to improve financial access for its users through its suite of services: cash advance, budgeting tools, digital banking, and a side hustle marketplace.
DAVE grew by 1110.80%, moving from $8.15 on January 2 to $98.68 on November 29.
Dave Incorporated’s digital banking platform
Source: Dave Incorporated
Fundamentals
The rise in DAVE’s stock price has been backed by its financial performance.
Growth in users and average revenue per user culminated in revenue growing by 31% YoY in Q2,2024, according to Yahoo Finance, and by 41% YoY in Q3,2024, according to Stock Titan. Q3 results also show that net income and EBITDA are now positive (compared to Q3, 2023).
This financial performance combined with innovative product offerings and sustainable growth are the reasons behind the surge in the stock’s price.
Future expectation
The combination of innovative products with a growing user base bodes well for the future.
DAVE is also big on partnerships with other financial institutions and this can help diversify its revenue stream and improve its operational efficiency.
Other highlights
DAVE has 11.19 million outstanding shares and a market cap of $1.15 billion.
Institutional investors hold 52.45% of its shares with NVP Associates, Blackrock Inc., and Vanguard Group being the three top holders.
8. Exicure Incorporated (XCUR)
Summary
Exicure was founded as a biotechnology company specializing in nucleic acid therapies.
Though it showed early promise in treating skin diseases and cancer immunotherapy, the company started restructuring in 2022. It announced a new CEO and CFO in 2023.
XCUR moved from $2.88 on January 2 to $29.49 on November 29, a 904.09% growth.
Paul Kang, Interim CEO of Exicure Incorporated
Fundamentals
Exicure made some progress on its restructuring efforts when it appointed a new CEO and CFO. They are now exploring new collaborations, of which a patent licensing agreement with Bluejay Therapeutics to develop treatments for hepatitis is the most significant.
The surge in its price implies that investors are positive about these changes and are willing to bet on the future stability of the company.
Future expectation
Like all biotechnology companies, the future of Exicure depends on the success of the projects it has in its pipeline. Positive results from clinical trials can sustain the growth in its stock’s price.
Other highlights
XCUR has 2.17 million outstanding shares and a market cap of $75.41 million.
Institutional investors hold a paltry 4.28% of its shares with Morgan Stanley, Bank of America, and Blackrock being the most popular holders.
9. Nexalin Technology Incorporated (NXL)
Summary
Nexaline Technology is a medical device company that produces neurostimulation products used for the treatment of mental health issues. Their major product is the Nexalin device, a treatment for anxiety, insomnia, and substance abuse.
NXL’s price went from $0.419 on January 2 to $4.18 on November 29, an 897.61% growth.
Nexalin’s insomnia neurostimulator
Source: Nexalin Technology
Fundamentals
Some of the factors that have contributed to this growth include management changes, approval of its Generation 2 neurostimulation device in international markets, and a regaining of its compliance with the NASDAQ minimum bid price requirement, according to Investing.com.
However, none of these has translated into sound financials. This implies that investors are betting on the prospect of the company rather than its past or current financial performance.
Future expectation
Nexalin Technology is also developing Generation 3 devices that will help in the treatment of Alzheimer’s and dementia. These are currently in clinical trials; a positive result can spur further growth in the stock’s price.
Other highlights
NXL has 12.86 million outstanding shares and a market cap of $52.55 million.
Institutional investors hold 2.41% of its shares, with Renaissance Technologies, Geode Capital Management, and Citadel Advisors as the top three holders.
10. Dogness (International) Corporation (DOGZ)
Summary
The last in our list of best performing stocks in 2024 is Dogness Corporation.
Dogness manufactures and distributes various fashionable products for dogs and cats. These include leashes, collars, GPS trackers, harnesses, automated feeders, and smart fountains, among others.
DOGZ’s price grew by 871.53%, moving from $5.48 on January 2 to $53.24 on November 29.
Dogness’ smart GPS tracker for pets
Source: Dogness
Fundamentals
Rising revenue, increased profit margins, a new partnership with a top pet brand, innovative products, and prudent management of resources are behind Dogness’ rise, according to Timothy Skyes.
Financial stability due to moderate levels of debt is another factor in its favor, according to Investing.com.
Future expectation
The major concern for investors is the price volatility of this stock. This is often the result of fluctuation in its financials – occasional losses in some quarters.
Whether financials will become more stable in the future depends on the expansion of its product lines (especially tech-related pet products), operational efficiency, and growing market share.
Other highlights
DOGZ has 3.66 million outstanding shares and a market cap of $641.73 million.
Only a paltry 3.02% of its shares are held by institutional investors, led by Citadel Advisors, Sciencetech Research, and Morgan Stanley.
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Takeaways
- Despite periods of volatility due to concerns over inflation, potential recessions, and political uncertainties, the S&P 500 Index has shown strong performance in 2024, with a remarkable 27% YTD increase as of November 29.
- The list of the best performing stocks cuts across sectors like health technology, finance, retail trade, and technology services.
- Some of these companies grew on the back of strong financial performance while some are thriving based on investors’ perception of their potential.
- UAE-based investors can capitalize on the US stock market’s potential through platforms like Sarwa Trade, which provides access to thousands of US stocks with low fees, advanced tools, and fractional investing options, making it accessible even to those with limited capital.