Taking market share is crucial for companies and their stocks as a large market cap has numerous advantages.
Large-cap companies can secure cheaper financing and have a consistent stream of revenue while capitalizing on the recognition of their brand. This allows a company to operate on a greater scale which can increase profitability in correlation with economies of scale.
Typically for stocks, large-cap companies are valued at $10 billion or higher and tend to have the greatest trading liquidity. Higher trading liquidity allows large-cap stocks to be traded on the stock market quickly, without having a significant effect on their price.
Furthermore, market cap allows investors to compare the size, growth potential, income, and risk of different companies.
Let’s take a look at a few surging stocks that may be able to keep taking market share and boost investors' portfolios.
Technology Leaders with a Large Market Share
With this year’s surge in tech stocks, there are a number of companies that are retaining or growing their hefty valuations.
It's hard to not have this conversation without mentioning Apple AAPL or Nvidia NVDA with a market cap of roughly $3 trillion and $1.2 trillion respectively.
Apple is the highest-valued company on U.S. stock exchanges with Nvidia the fifth largest and continuing to take market share among chipmakers. Nvidia’s market cap is now 122% above the Zacks Semiconductor-General Markets' $54.82 billion average which alludes to why NVDA shares have kept climbing over the years.
Nvidia currently sports a Zacks Rank #1 (Strong Buy) and has soared +223% this year. More astonishing, NVDA shares are now up 12,000% over the last decade and this somewhat unending stellar performance could continue with Nvidia’s chips powering the AI revolution.
As for Apple, its stock has climbed +43% this year and currently lands a Zacks Rank #3 (Hold). Of course, Apple can only fall out of the top spot in terms of market cap but the company’s $48 billion cash pile is indicative of the benefits of taking market share. Furthermore, with a pipeline of famous tech products Apple stock is up +963% in the last 10 years and is usually a viable option for longer-term investors.
A Retail Company Poised to Take Market-Cap
Looking at smaller companies that may be on their way to taking market share or eventually achieving large-cap status is always beneficial. This could correlate with lofty stock market gains and Urban Outfitters URBN stands out in this regard.
With a Zacks Rank #1 (Strong Buy), Urban Outfitters is a popular fashion retailer that caters its apparel and merchandise to younger generations. Urban Outfitters has shown signs of taking market cap in the past hitting a peak of $6.25 billion back in 2018.
While Urban Outfitters' market cap is currently at $3 billion, we can see from the chart below that this is now on par with its Zacks industry further suggesting the company is a sound investment in the space and may have a chance at being a disrupter (and has already been so).
Plus, Urban Outfitters' steady growth is reason to believe it might be taking real market share along the way. Urban Outfitters' stock has climbed +39% YTD as earnings are forecasted to pop 82% in its current fiscal 2024 to $3.18 a share compared to $1.75 per share a year ago.
More importantly to seeing continued brand growth, sales are expected to be up 6% in FY24 and rise another 4% in FY25 to $5.30 billion. Better still, FY25 sales projections would represent 55% growth over the last five years with FY21 sales at $3.45 billion.
Bottom Line
Taking market share puts companies in a position to offer shareholders unprecedented returns in regard to their stocks. This makes keeping an eye on a stock's market cap beneficial to investors as well. To that point, Apple, Nvidia, and Urban Outfitters are three stocks to watch.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners Up
Taking market share is crucial for companies and their stocks as a large market cap has numerous advantages.
Large-cap companies can secure cheaper financing and have a consistent stream of revenue while capitalizing on the recognition of their brand. This allows a company to operate on a greater scale which can increase profitability in correlation with economies of scale.
Typically for stocks, large-cap companies are valued at $10 billion or higher and tend to have the greatest trading liquidity. Higher trading liquidity allows large-cap stocks to be traded on the stock market quickly, without having a significant effect on their price.
Furthermore, market cap allows investors to compare the size, growth potential, income, and risk of different companies.
Let’s take a look at a few surging stocks that may be able to keep taking market share and boost investors' portfolios.
Technology Leaders with a Large Market Share
With this year’s surge in tech stocks, there are a number of companies that are retaining or growing their hefty valuations.
It's hard to not have this conversation without mentioning Apple AAPL or Nvidia NVDA with a market cap of roughly $3 trillion and $1.2 trillion respectively.
Apple is the highest-valued company on U.S. stock exchanges with Nvidia the fifth largest and continuing to take market share among chipmakers. Nvidia’s market cap is now 122% above the Zacks Semiconductor-General Markets' $54.82 billion average which alludes to why NVDA shares have kept climbing over the years.
Nvidia currently sports a Zacks Rank #1 (Strong Buy) and has soared +223% this year. More astonishing, NVDA shares are now up 12,000% over the last decade and this somewhat unending stellar performance could continue with Nvidia’s chips powering the AI revolution.
As for Apple, its stock has climbed +43% this year and currently lands a Zacks Rank #3 (Hold). Of course, Apple can only fall out of the top spot in terms of market cap but the company’s $48 billion cash pile is indicative of the benefits of taking market share. Furthermore, with a pipeline of famous tech products Apple stock is up +963% in the last 10 years and is usually a viable option for longer-term investors.
A Retail Company Poised to Take Market-Cap
Looking at smaller companies that may be on their way to taking market share or eventually achieving large-cap status is always beneficial. This could correlate with lofty stock market gains and Urban Outfitters URBN stands out in this regard.
With a Zacks Rank #1 (Strong Buy), Urban Outfitters is a popular fashion retailer that caters its apparel and merchandise to younger generations. Urban Outfitters has shown signs of taking market cap in the past hitting a peak of $6.25 billion back in 2018.
While Urban Outfitters' market cap is currently at $3 billion, we can see from the chart below that this is now on par with its Zacks industry further suggesting the company is a sound investment in the space and may have a chance at being a disrupter (and has already been so).
Plus, Urban Outfitters' steady growth is reason to believe it might be taking real market share along the way. Urban Outfitters' stock has climbed +39% YTD as earnings are forecasted to pop 82% in its current fiscal 2024 to $3.18 a share compared to $1.75 per share a year ago.
More importantly to seeing continued brand growth, sales are expected to be up 6% in FY24 and rise another 4% in FY25 to $5.30 billion. Better still, FY25 sales projections would represent 55% growth over the last five years with FY21 sales at $3.45 billion.
Bottom Line
Taking market share puts companies in a position to offer shareholders unprecedented returns in regard to their stocks. This makes keeping an eye on a stock's market cap beneficial to investors as well. To that point, Apple, Nvidia, and Urban Outfitters are three stocks to watch.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners Up
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