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Top 5 Non-Tech Nasdaq Composite Winners With More Upside Left
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Wall Street rebounded in 2023 after a highly disappointing 2022. The rally was primarily led by growth stocks, especially, technology stocks. Consequently, the tech-heavy Nasdaq Composite Index took the lead role in enabling U.S. stock markets to resume their northward journey. Year to date, the tech-heavy index has rallied 36.7%.
Moreover, the tech rally in 2023 was led by a massive thrust toward artificial intelligence (AI), especially generative AI. The rapid penetration of digital technologies and the Internet worldwide during the lockdown, ushered in significant adoption of AI.
Despite being a tech-laden index, the Nasdaq Composite also carries a diversified structure. Several stocks from non-technology sectors like consumer discretionary, consumer staples, medical, business services and industrials are included in the index. Several stocks from these non-technology sectors have also popped in 2023.
Our Top Picks
We have narrowed our search to five Nasdaq Composite listed non-technology stocks that have provided more than 40% returns year to date and have more potential for growth. These stocks have seen positive earnings estimate revisions in the last 30 days. Each of our picks carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The chart below shows the price performance of our five picks year to date.
Image Source: Zacks Investment Research
Copart Inc. (CPRT - Free Report) enjoys a leadership position in the automotive auction market, commanding roughly 40% of the market share. CPRT’s competitiveness is supported by its multiple locations and the size of its new facility openings. Expansion initiatives, along with a digital ramp-up, will aid Copart in a fast pickup across the country.
The launch of Copart Max has further stepped up its digital game. Salvage auction volumes are likely to remain elevated amid an increase in vehicle miles traveled and a higher collision frequency. Additionally, aging vehicles and technologically advanced auto parts are proving to be a boon for CPRT. A strong balance sheet with low leverage and high liquidity provides CPRT with financial flexibility.
Copart has an expected revenue and earnings growth rate of 8.9% and 15.1%, respectively, for the current year (ending July 2024). The Zacks Consensus Estimate for current-year earnings has improved 0.7% over the last seven days.
Celsius Holdings Inc. (CELH - Free Report) specializes in commercializing healthier, nutritional functional foods, beverages and dietary supplements. CELH markets Celsius, the calorie burner, through its wholly-owned operating subsidiary, Celsius Inc. CELH sells its products through grocery, drug, convenience, club and mass, and health and fitness channels.
Celsius Holdings has an expected revenue and earnings growth rate of 39.4% and 29.1%, respectively, for next year. The Zacks Consensus Estimate for next-year earnings has improved 1.1% over the last 30 days.
Coinbase Global Inc. (COIN - Free Report) provides financial infrastructure and technology for the crypto economy in the United States and internationally. COIN offers the primary financial account in the crypto space for consumers, a marketplace with a pool of liquidity for transacting in crypto assets for institutions; and technology and services that enable developers to build crypto-based applications and securely accept crypto assets as payment.
Coinbase Global has an expected revenue and earnings growth rate of 5.3% and 29.3%, respectively, for next year. The Zacks Consensus Estimate for next-year earnings has improved more than 100% over the last 30 days.
Affirm Holdings Inc. (AFRM - Free Report) is an emerging growth company. AFRM is building the next-generation platform for digital and mobile-first commerce. AFRM believes that it can reinvent the payment experience. AFRM’s platform is comprised of three core elements: a point-of-sale payment solution for consumers, merchant commerce solutions, and a consumer-focused app.
Affirm Holdings has an expected revenue and earnings growth rate of 25.4% and more than 100%, respectively, for next year. The Zacks Consensus Estimate for next-year earnings has improved more than 100% over the last 30 days.
PACCAR Inc. (PCAR - Free Report) is one of the leading names in the trucking business, with reputed brands like Kenworth, Peterbilt and DAF. The DAF lineup, comprising the XF, XG and XD models, augurs well. PCAR’s low leverage and investor-friendly moves instill confidence. Accelerated efforts toward electrification, connected vehicle services and advanced driver-assistance system options are set to bolster PCAR’s prospects.
PACCAR has an expected revenue and earnings growth rate of 20.1% and 56.4%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.8% over the last 30 days.
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Top 5 Non-Tech Nasdaq Composite Winners With More Upside Left
Wall Street rebounded in 2023 after a highly disappointing 2022. The rally was primarily led by growth stocks, especially, technology stocks. Consequently, the tech-heavy Nasdaq Composite Index took the lead role in enabling U.S. stock markets to resume their northward journey. Year to date, the tech-heavy index has rallied 36.7%.
Moreover, the tech rally in 2023 was led by a massive thrust toward artificial intelligence (AI), especially generative AI. The rapid penetration of digital technologies and the Internet worldwide during the lockdown, ushered in significant adoption of AI.
Despite being a tech-laden index, the Nasdaq Composite also carries a diversified structure. Several stocks from non-technology sectors like consumer discretionary, consumer staples, medical, business services and industrials are included in the index. Several stocks from these non-technology sectors have also popped in 2023.
Our Top Picks
We have narrowed our search to five Nasdaq Composite listed non-technology stocks that have provided more than 40% returns year to date and have more potential for growth. These stocks have seen positive earnings estimate revisions in the last 30 days. Each of our picks carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The chart below shows the price performance of our five picks year to date.
Image Source: Zacks Investment Research
Copart Inc. (CPRT - Free Report) enjoys a leadership position in the automotive auction market, commanding roughly 40% of the market share. CPRT’s competitiveness is supported by its multiple locations and the size of its new facility openings. Expansion initiatives, along with a digital ramp-up, will aid Copart in a fast pickup across the country.
The launch of Copart Max has further stepped up its digital game. Salvage auction volumes are likely to remain elevated amid an increase in vehicle miles traveled and a higher collision frequency. Additionally, aging vehicles and technologically advanced auto parts are proving to be a boon for CPRT. A strong balance sheet with low leverage and high liquidity provides CPRT with financial flexibility.
Copart has an expected revenue and earnings growth rate of 8.9% and 15.1%, respectively, for the current year (ending July 2024). The Zacks Consensus Estimate for current-year earnings has improved 0.7% over the last seven days.
Celsius Holdings Inc. (CELH - Free Report) specializes in commercializing healthier, nutritional functional foods, beverages and dietary supplements. CELH markets Celsius, the calorie burner, through its wholly-owned operating subsidiary, Celsius Inc. CELH sells its products through grocery, drug, convenience, club and mass, and health and fitness channels.
Celsius Holdings has an expected revenue and earnings growth rate of 39.4% and 29.1%, respectively, for next year. The Zacks Consensus Estimate for next-year earnings has improved 1.1% over the last 30 days.
Coinbase Global Inc. (COIN - Free Report) provides financial infrastructure and technology for the crypto economy in the United States and internationally. COIN offers the primary financial account in the crypto space for consumers, a marketplace with a pool of liquidity for transacting in crypto assets for institutions; and technology and services that enable developers to build crypto-based applications and securely accept crypto assets as payment.
Coinbase Global has an expected revenue and earnings growth rate of 5.3% and 29.3%, respectively, for next year. The Zacks Consensus Estimate for next-year earnings has improved more than 100% over the last 30 days.
Affirm Holdings Inc. (AFRM - Free Report) is an emerging growth company. AFRM is building the next-generation platform for digital and mobile-first commerce. AFRM believes that it can reinvent the payment experience. AFRM’s platform is comprised of three core elements: a point-of-sale payment solution for consumers, merchant commerce solutions, and a consumer-focused app.
Affirm Holdings has an expected revenue and earnings growth rate of 25.4% and more than 100%, respectively, for next year. The Zacks Consensus Estimate for next-year earnings has improved more than 100% over the last 30 days.
PACCAR Inc. (PCAR - Free Report) is one of the leading names in the trucking business, with reputed brands like Kenworth, Peterbilt and DAF. The DAF lineup, comprising the XF, XG and XD models, augurs well. PCAR’s low leverage and investor-friendly moves instill confidence. Accelerated efforts toward electrification, connected vehicle services and advanced driver-assistance system options are set to bolster PCAR’s prospects.
PACCAR has an expected revenue and earnings growth rate of 20.1% and 56.4%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.8% over the last 30 days.