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5 Top-Performing Stocks From the Best Sectors of 2023
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2023 has turned out to be a banner year for the U.S. stock market driven by the artificial intelligence (AI) boom, surge in "Magnificent Seven" stocks, cooling inflation and the optimism that the Fed is done with interest rate hikes.
The winners are broad-based across the sectors, building up massive gains. We have presented a bunch of five top-performing stocks from various sectors of the market that have more than doubled this year and have a Zacks Rank #1 (Strong Buy), #2 (Buy), or #3 (Hold). These are Nvidia (NVDA - Free Report) , Dream Finders Homes (DFH - Free Report) , Blue Bird Corp. (BLBD - Free Report) , Carrols Restaurant Group (TAST - Free Report) , and Marathon Digital Holdings (MARA - Free Report) . You can see the complete list of today’s Zacks #1 Rank stocks here.
The Dow Jones Industrial Average has been hitting a series of record highs, while the S&P 500 is just 0.3% shy from the peak reached in January 2022. Both indices are set to conclude the year with impressive gains of 13% and 24%, respectively. Leading the charge is the Nasdaq Composite Index, which is on track for the biggest annual gain since 2003. The index soared 44%, benefiting significantly from the resurgence in mega-cap technology stocks and the fervor surrounding AI.
The economy has withstood the worst of the Fed’s policy tightening and is now expected to enjoy a major policy shift. Federal Reserve Chair Jerome Powell, in the latest meeting, hinted at three rate cuts of 75 bps for the next year as inflation is easing and the economy is holding up better.
Further, recent indicators suggest that economic activity has been expanding at a moderate pace, buoyed by robust consumer spending, strong job gains and a low unemployment rate. Corporate earnings have also improved. The S&P 500 index witnessed earnings growth in the third quarter after three back-to-back quarters of decline.
Best Sectors & Their Stocks
Technology
Technology has been the most profitable sector of 2023, rising nearly 54%, buoyed by the AI craze and surge in “Magnificent Seven” stocks. The semiconductor industry took charge, with Nvidia emerging as the top performer, skyrocketing about 237%.
Nvidia is the worldwide leader in visual computing technologies and the inventor of graphic processing unit or GPU. The stock has seen a solid earnings estimate revision of 14 cents for the fiscal year ending January 2025 over the past 30 days, and has an estimated growth of 61.5%. Nvidia currently has a Zacks Rank #2 and a Growth Score of A.
Construction
The construction sector also gained more than 50%, driven by homebuilder stocks, which saw an increase of about 80% in 2023. The major catalyst is the shortage of inventory in the resale market, which has boosted the demand for new homes. Recent mortgage rate reductions and signals from the Fed about upcoming rate cuts have reignited the housing market.
Dream Finders surged 317% in 2023 with more room for upside in 2024, given its top Zacks Rank #1 and a Momentum Score of B. The stock saw a positive earnings estimate revision of 19 cents for the next year over the past 30 days and has an estimated growth rate of 12.1%. This homebuilding company operates principally in Florida, Texas, North Carolina, South Carolina, Georgia, Colorado, Virginia and Maryland.
Automotive
The automotive sector has been boosted by an increased adoption of electric vehicles (EVs). The drive for a sustainable future has been the major catalyst for the growing EV market. As more consumers embrace electric vehicles, the transformation of the auto market is well underway, promising exciting developments in the years ahead. Blue Bird, which is engaged in the designing, engineering, manufacturing, and sale of school buses and related parts, soared 159%.
The stock saw a solid earnings estimate revision of 61 cents for the fiscal year ending September 2024 over the past 30 days. It has an estimated growth rate of 86%. BLBD has a Zacks Rank #3 and a VGM Score of A.
Retail
The retail space saw an impressive rally of more than 28% on increased consumer confidence and solid spending. Among the companies in the sector, Carrols Restaurant surged 464% and is expected to continue its solid trend given its solid Zacks Rank #1 and a VGM Score of A. With a market cap of $418 million, the stock saw a positive earnings estimate revision of 7 cents for the next year over the past 30 days and has an estimated earnings growth of 8.3%.
Carrols Restaurant is the largest BURGER KING franchisee in the United States, with over 800 restaurants.
Business Services
This sector has risen 22.5% this year, with all the industries under the business service sector performing remarkably well. In particular, bitcoin mining stocks have outperformed. Bitcoin gained strong momentum on the broad enthusiasm about U.S. interest rate cuts and the imminent regulatory approval for Bitcoin ETFs.
Marathon Digital is a digital asset technology company that mines cryptocurrencies. It is focused on the blockchain ecosystem and the generation of digital assets. The stock has jumped 688% and has a Zacks Rank #3. Marathon Digital saw a positive earnings estimate revision of a couple of cents over the past 30 days for 2024 and has an estimated earnings growth rate of 55.6%.
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5 Top-Performing Stocks From the Best Sectors of 2023
2023 has turned out to be a banner year for the U.S. stock market driven by the artificial intelligence (AI) boom, surge in "Magnificent Seven" stocks, cooling inflation and the optimism that the Fed is done with interest rate hikes.
The winners are broad-based across the sectors, building up massive gains. We have presented a bunch of five top-performing stocks from various sectors of the market that have more than doubled this year and have a Zacks Rank #1 (Strong Buy), #2 (Buy), or #3 (Hold). These are Nvidia (NVDA - Free Report) , Dream Finders Homes (DFH - Free Report) , Blue Bird Corp. (BLBD - Free Report) , Carrols Restaurant Group (TAST - Free Report) , and Marathon Digital Holdings (MARA - Free Report) . You can see the complete list of today’s Zacks #1 Rank stocks here.
The Dow Jones Industrial Average has been hitting a series of record highs, while the S&P 500 is just 0.3% shy from the peak reached in January 2022. Both indices are set to conclude the year with impressive gains of 13% and 24%, respectively. Leading the charge is the Nasdaq Composite Index, which is on track for the biggest annual gain since 2003. The index soared 44%, benefiting significantly from the resurgence in mega-cap technology stocks and the fervor surrounding AI.
The economy has withstood the worst of the Fed’s policy tightening and is now expected to enjoy a major policy shift. Federal Reserve Chair Jerome Powell, in the latest meeting, hinted at three rate cuts of 75 bps for the next year as inflation is easing and the economy is holding up better.
Further, recent indicators suggest that economic activity has been expanding at a moderate pace, buoyed by robust consumer spending, strong job gains and a low unemployment rate. Corporate earnings have also improved. The S&P 500 index witnessed earnings growth in the third quarter after three back-to-back quarters of decline.
Best Sectors & Their Stocks
Technology
Technology has been the most profitable sector of 2023, rising nearly 54%, buoyed by the AI craze and surge in “Magnificent Seven” stocks. The semiconductor industry took charge, with Nvidia emerging as the top performer, skyrocketing about 237%.
Nvidia is the worldwide leader in visual computing technologies and the inventor of graphic processing unit or GPU. The stock has seen a solid earnings estimate revision of 14 cents for the fiscal year ending January 2025 over the past 30 days, and has an estimated growth of 61.5%. Nvidia currently has a Zacks Rank #2 and a Growth Score of A.
Construction
The construction sector also gained more than 50%, driven by homebuilder stocks, which saw an increase of about 80% in 2023. The major catalyst is the shortage of inventory in the resale market, which has boosted the demand for new homes. Recent mortgage rate reductions and signals from the Fed about upcoming rate cuts have reignited the housing market.
Dream Finders surged 317% in 2023 with more room for upside in 2024, given its top Zacks Rank #1 and a Momentum Score of B. The stock saw a positive earnings estimate revision of 19 cents for the next year over the past 30 days and has an estimated growth rate of 12.1%. This homebuilding company operates principally in Florida, Texas, North Carolina, South Carolina, Georgia, Colorado, Virginia and Maryland.
Automotive
The automotive sector has been boosted by an increased adoption of electric vehicles (EVs). The drive for a sustainable future has been the major catalyst for the growing EV market. As more consumers embrace electric vehicles, the transformation of the auto market is well underway, promising exciting developments in the years ahead. Blue Bird, which is engaged in the designing, engineering, manufacturing, and sale of school buses and related parts, soared 159%.
The stock saw a solid earnings estimate revision of 61 cents for the fiscal year ending September 2024 over the past 30 days. It has an estimated growth rate of 86%. BLBD has a Zacks Rank #3 and a VGM Score of A.
Retail
The retail space saw an impressive rally of more than 28% on increased consumer confidence and solid spending. Among the companies in the sector, Carrols Restaurant surged 464% and is expected to continue its solid trend given its solid Zacks Rank #1 and a VGM Score of A. With a market cap of $418 million, the stock saw a positive earnings estimate revision of 7 cents for the next year over the past 30 days and has an estimated earnings growth of 8.3%.
Carrols Restaurant is the largest BURGER KING franchisee in the United States, with over 800 restaurants.
Business Services
This sector has risen 22.5% this year, with all the industries under the business service sector performing remarkably well. In particular, bitcoin mining stocks have outperformed. Bitcoin gained strong momentum on the broad enthusiasm about U.S. interest rate cuts and the imminent regulatory approval for Bitcoin ETFs.
Marathon Digital is a digital asset technology company that mines cryptocurrencies. It is focused on the blockchain ecosystem and the generation of digital assets. The stock has jumped 688% and has a Zacks Rank #3. Marathon Digital saw a positive earnings estimate revision of a couple of cents over the past 30 days for 2024 and has an estimated earnings growth rate of 55.6%.