Barring a global economic catastrophe, it's very likely the Dow Jones Industrial Average will land in positive territory for 2024. Year to date, the storied index is up by 18.7%. Much of that rise was provided by the top five gainers (so far) among its 30 components. Here's what each of them has done to win so much investor love over the past 11 months.
A high-quality quintet
Most investors will be familiar with these blue chip giants. In descending order of their percentage gains this year, they are Nvidia (NVDA -2.85%), Walmart (WMT 1.61%), American Express (AXP -0.43%), Goldman Sachs (GS -0.25%), and JPMorgan Chase (JPM -0.11%).
| Company | Sector | Share Price Gain (YTD) |
|---|---|---|
| Nvidia | Technology | 173% |
| Walmart | Retail | 75% |
| American Express | Finance | 62% |
| Goldman Sachs | Finance | 57% |
| JPMorgan Chase | Finance | 47% |
DATA SOURCE: SLICKCHARTS.COM. NOTE: YTD PRICE GAIN AS OF MARKET CLOSE NOV. 27.
Nvidia is the hot tech stock now, as many have flagged it as the best way to play the artificial intelligence (AI) boom that most of us anticipate will continue. It helps that the company has cutting-edge products and a strong culture of innovation.
Walmart, meanwhile, has fully and aggressively embraced online shopping. This is making a real difference, and there has been phenomenal growth in the company's key fundamentals lately.
The other three are finance sector mainstays that have tended to outperform in good economic times. The economy is looking up, especially as inflation seems to have been put back in check. Lower interest rates draw consumers to bank loans and credit cards, while investment banking services are in demand thanks to still-frothy securities markets.
The drive to 2025
Some might worry that these high flyers are now overvalued. I don't feel that way. AI is certain to experience explosive growth, and Nvidia should remain a crucial chip supplier. Walmart can still grow its online business, both via its established customers shifting some purchases to e-commerce from in-person shopping and by wooing customers away from other e-merchants.
Finally, many economists predict continued macroeconomic growth and declines in inflation -- at least in the U.S.
