Chicago, IL – December 9, 2024 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include including Sprouts Farmers Market Inc. SFM, Vistra Corp. VST, EMCOR Group Inc. EME, Carvana Co. CVNA and Comfort Systems USA Inc. FIX.
Wall Street ended November on a solid note maintaining an impressive rally since January 2023. Last year, the Dow, the S&P 500 and the Nasdaq Composite — rallied 13.7%, 23.9% and 43.4%, respectively. After this astonishing performance, year to date, the Dow, the S&P 500 and the Nasdaq Composite — have advanced 18.7%, 28.1% and 33.4%, respectively.
However, this astonishing rally has been predominantly one-sided with the technology sector being the predominant gainer and undisputed leader. The massive adoption of generative artificial intelligence technology worldwide has resulted in soaring stock prices in this space. Stock prices of several technology behemoths have skyrocketed by 300-400% in less than two years.
Nevertheless, situations have changed to some extent in 2024. A strong U.S. economy, the Fed’s low-interest rate regime and a significant reduction in inflation rate have shifted market participants’ preference from technology to other non-tech cyclical sectors. Consequently, various non-tech stocks have also surged this year.
Here we recommend five non-tech stocks with a top Zacks Rank for 2025 that have given triple-digit returns in 2024. These are: Sprouts Farmers Market Inc., Vistra Corp., EMCOR Group Inc., Carvana Co. and Comfort Systems USA Inc.
These five non-tech stocks have more room to grow in 2025 despite triple-digit returns in 2024. These stocks have strong revenue and earnings growth potential for 2025 and have seen positive earnings estimate revisions in the last 30 days. Each of our picks sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Sprouts Farmers Market’s focus on product innovation, emphasis on e-commerce, expansion of private label offerings and targeted marketing with great pricing every day bodes well. SFM has been lowering operational complexity, optimizing production, improving in-stock position and updating to smaller format stores.
Buoyed by the performance, SFM has provided decent 2024 guidance. SFM anticipates a 7% year-over-year increase in comparable store sales for the year, contributing to expected net sales growth of 12%.
Sprouts Farmers Market has an expected revenue and earnings growth rate of 10% and 14.4%, respectively, for next year. The Zacks Consensus Estimate for next-year earnings has improved 4% in the past 30 days. The stock price of SFM has jumped 215.3% year to date.
Vistra operates as an integrated retail electricity and power generation company. VST retails electricity and natural gas to residential, commercial, and industrial customers across 20 states in the United States and the District of Columbia. VST operates through six segments: Retail, Texas, East, West, Sunset, and Asset Closure.
VST announced that it would acquire its remaining 15% interest in Vistra Vision LLC. Utility operators are looking for new avenues to increase their clean electricity generation assets and lower emissions. Vistra’s decision to become the 100% owner of Vistra Vision with a portfolio of highly-valuable, carbon-free assets in the key growing markets across the United States, should be immensely fruitful for it going forward.
Vistra has an expected revenue and earnings growth rate of 12.6% and 26.4%, respectively, for next year. The Zacks Consensus Estimate for next-year earnings has improved 5.2% in the last 30 days. The stock price of VST has soared 317.4% year to date.
EMCOR Group reported impressive third-quarter 2024 results, with earnings and revenues surpassing the Zacks Consensus Estimate by 16.2% and 0.4%, respectively. On a year-over-year basis, both top and bottom lines increased 15.3% and 60.7%, respectively. The upside was backed by EME’s innovation and high-demand projects, particularly in data centers, semiconductor plants and institutional sectors.
In the last reported quarter, RPOs approached record levels of $9.8 billion and the pipeline remained robust. EME has strengthened its capabilities across regions and sectors by investing in comprehensive employee training, greenfield expansions and strategic acquisitions.
EMCOR Group has an expected revenue and earnings growth rate of 6.6% and 7.2%, respectively, for next year. The Zacks Consensus Estimate for next-year earnings has improved 0.1% in the last 30 days. The stock price of EME has surged 138.3% year to date.
Carvana’s acquisition of ADESA's U.S. operations has bolstered its logistics, auction capabilities, and reconditioning efforts. Most importantly, management has shifted focus from growth to operational efficiency. CVNA’s three-step plan—achieving positive adjusted EBITDA, boosting EBITDA per unit, and resuming growth with an efficient model—is driving its turnaround.
For that, CVNA is focusing on enhancing operational efficiency across the business, with several technology, process and product initiatives underway. Also, CVNA has managed to reduce retail reconditioning and inbound transport costs. In the last reported quarter, CVNA reported record gross profit per unit and adjusted EBITDA margin. A positive outlook for unit sales growth and EBITDA adds confidence.
Carvana has an expected revenue and earnings growth rate of 20.1% and more than 100%, respectively, for next year. The Zacks Consensus Estimate for next-year earnings has improved 8.6% in the last 30 days. The stock price of CVNA has witnessed an astonishing 383% rally year to date.
Comfort Systems USA is actively refining its operational and strategic approach across merchandising, pricing, and logistics, aiming for efficiency and margin growth. SFIX has significantly reduced its inventory from a peak, reflecting disciplined management that is expected to continue.
SFIX’s efforts to expand gross margins are evident in cost negotiations and logistical optimizations, with an anticipated increase in margins. SFIX’s strategic priorities include operational excellence, enriching client interactions for higher lifetime value and adapting to evolving needs for sustainable growth.
Comfort Systems USA has an expected revenue and earnings growth rate of 7.9% and 20.8%, respectively, for next year. The Zacks Consensus Estimate for next-year earnings has improved 5.4% in the last 30 days. The stock price of FIX has climbed 141.7% year to date.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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