In this article, we’re going to talk about the 10 best-performing stocks in 2024.
Dow Breaks Record
The Dow Jones Industrial Average has recently made headlines by closing above the 42,000 mark for the first time, a significant milestone that reflects a surge in investor confidence following a substantial interest rate cut by the Fed. This momentous achievement occurred on September 19, when the Dow jumped over 500 points, closing at 42,063.36. This rise was part of a broader trend in the stock market, with major indices experiencing overall gains throughout the week, largely fueled by optimism surrounding the Fed’s decision to lower interest rates by 0.5%.
On September 21, Edward Yardeni, president of Yardeni Research, while acknowledging that the market tends to keep rising, also discussed the warning signs of a melt-up, in the context of the markets’ response to the September rate cut on CNBC’s ‘Closing Bell’. He doubted the necessity of such a large rate cut, suggesting that the economy is currently growing at about 3% year-over-year and could potentially grow even faster. Yardeni noted that while productivity gains are expected to be more pronounced shortly, he would have preferred to see the market stabilize for a while instead of continuing its upward trajectory.
Yardeni provided his forecast for the market’s potential growth. In his base case scenario, he predicted that the Dow could reach 5,800 possibly by next week. However, he also entertained an alternative scenario where the market might exceed 6,000 before experiencing a correction. Still, he does not foresee a bear market as a recession is unlikely.
While discussing investment strategies, Yardeni highlighted that with small-cap and mid-cap stocks showing signs of improvement in valuations, there is an indication that investors should consider diversifying their portfolios beyond large-cap stocks. However, concerns remain regarding mid-cap earnings, which have not shown significant growth recently. Lower interest rates might eventually provide some uplift to these earnings.
Chicago Fed President Austan Goolsbee has indicated that many more rate cuts may be necessary over the next year due to signs of weakness in the manufacturing sector. CNBC’s Rick Santelli, who was reporting on September 23, noted that while manufacturing has faced challenges, there are indications it might be recovering slightly, as evidenced by a recent production increase of 0.8%.
He referenced comments from Treasury Secretary Janet Yellen, who stated that the economy is experiencing strong growth and robust consumer spending, which he believed contradicted the concerns raised by Goolsbee. Santelli pointed out that the Dow Jones Industrial Average is currently at all-time highs, suggesting that market sentiment remains positive despite underlying economic weaknesses.
Further discussing the economic landscape, he remarked on the currency markets, noting that the US dollar has fallen to its lowest level since March 2022. In contrast, the euro has reached its strongest level since April 2022. This shift in currency dynamics reflects broader economic trends, with Santelli suggesting that Germany’s economic situation appears significantly weakened compared to its previous state.
On the topic of interest rates, Santelli reported that since Tuesday’s market close and following the Fed’s easing on Wednesday, two-year note yields have decreased by 3 basis points, while ten-year note yields have increased by ~9 basis points. He emphasized the importance of monitoring these changes closely as they could indicate shifting investor sentiment regarding future economic conditions.
While Santelli’s discussion underscores a complex economic environment where mixed signals from various sectors create uncertainty, the Dow continues to hover around its record highs and investor sentiment remains cautiously optimistic. Market participants are closely monitoring economic indicators and Fed policies to capture future trends. In this context, we’re here with a list of the 10 best-performing stocks in 2024.
Methodology
We used stock screeners to look for companies trading over $10 billion. We then selected the top 10 stocks with the best year-to-date performance and that were also the most popular among elite hedge funds. The stocks are ranked in ascending order of their year-to-date performance.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
10 Best Performing Stocks in 2024
10. Sprouts Farmers Market Inc. (NASDAQ:SFM)
Year-to-Date Performance as of September 23: 123.67%
Market Cap as of September 23: $10.77 billion
Number of Hedge Fund Holders: 35
Sprouts Farmers Market Inc. (NASDAQ:SFM) is a supermarket chain and specialty grocer that offers a wide selection of natural and organic foods, including fresh produce, bulk foods, and vitamins. It is known for its commitment to providing healthy and affordable food options to all of its customers.
Cymbiotika, a new line of supplements featured in the company’s Innovation Center, was a successful product that helped it educate customers about its benefits. The private label brand, Sprouts, also expanded with over 200 new products during the first half of the year, driving sales growth that outpaced the company average.
Two major business strides in the recent quarter include fully repaying the $125 million revolving loan and using $104 million to buy back approximately 1.6 million shares of stock. Now there’s $15 million left to spend under the new $600 million stock buyback program.
In the second quarter of 2024, the company made $1.89 billion in total sales, recording a revenue increase of 11.89% year-over-year. This growth was fueled by a 6.7% increase in sales from existing stores and the opening of new locations.
The performance was consistent across all key areas, including in-store traffic and average purchase amounts, e-commerce and brick-and-mortar sales, newer and older stores, and all geographic regions. Online sales rose by 30%, making up 14% of the total revenue. The private-label brand accounted for 22% of the sales during the quarter.
Management anticipates a total revenue growth of 9% to 10%, with same-store sales increasing by 4% to 5%. The company also plans to open around 35 new stores, mostly in the final quarter of this year. As Sprouts Farmers Market Inc. (NASDAQ:SFM) monetizes opportunities like the successful Cherry Festival in Q2, it positions itself well to use marketing and operations to make leaps in the industry.
FPA Queens Road Small Cap Value Fund stated the following regarding Sprouts Farmers Market, Inc. (NASDAQ:SFM) in its Q2 2024 investor letter:
“Sprouts Farmers Market, Inc. (NASDAQ:SFM) is a natural grocer with great merchandising and best-in-class gross margins.19 The company has attractive returns on capital, great new store economics, and they are accelerating their unit growth from 12 stores a year to 35 stores in 2024 on a base of roughly 400 stores. Over the past year, the stock has performed well after reporting strong operating results and from a low initial valuation. The stock price jumped when the company reported 2023Q4 results and gave strong 2024 guidance on February 22, 2024. We have maintained our position and allowed it to appreciate. Although SFM’s share price has increased faster than bottom line results, we believe SFM still trades in the “range of reasonableness” for a high-quality, non- cyclical franchise that can reinvest capital at attractive rates of return.”
9. Insmed Inc. (NASDAQ:INSM)
Year-to-Date Performance as of September 23: 131.04%
Market Cap as of September 23: $12.29 billion
Number of Hedge Fund Holders: 74
Insmed Inc. (NASDAQ:INSM) is a global biopharmaceutical company on a mission to transform the lives of patients living with serious and rare diseases by developing and commercializing innovative therapies for rare lung diseases. It has a pipeline of drug candidates that target specific pathways involved in lung inflammation and fibrosis.
The company is making progress on Brensocatib, a potential treatment for bronchiectasis and other inflammatory diseases. Recent clinical trial results were positive, and the company plans to submit a new drug application for Brensocatib by the end of 2024, potentially in Q4.
Its Phase 2 study for TPIP in pulmonary arterial hypertension (PAH) is progressing well, with over 75% of patients enrolled. Topline results are anticipated in the second half of 2025, and early data from the trial have shown promising improvements in pulmonary vascular resistance and exercise capacity, indicating the potential for TPIP to be a significant treatment option for PAH patients.
The ENCORE study of ARIKAYCE, conducted by this company is an ongoing clinical trial aimed at evaluating the efficacy and safety of ARIKAYCE in patients with newly diagnosed or recurrent Mycobacterium Avium complex (MAC) lung infections. The primary endpoint, agreed upon with the US FDA, focuses on measuring changes in respiratory symptom scores from baseline to Month 13 of treatment, ensuring the trial meets regulatory standards for demonstrating the drug’s effectiveness.
Overall, these developments resulted in a Q2 2024 revenue improvement of 16.98% year-over-year, primarily driven by the sales of ARIKAYCE, the company’s flagship product for treating refractory MAC lung disease.
Management has highlighted the company’s significant growth during the second quarter of 2024, as it transitions to a mid-sized biotechnology company, expressing optimism about Insmed Inc.’s (NASDAQ:INSM) strategic direction, making it a promising investment in the biopharmaceutical sector.
Columbia Acorn Fund stated the following regarding Insmed Incorporated (NASDAQ:INSM) in its Q2 2024 investor letter:
“Insmed Incorporated (NASDAQ:INSM) is a commercial-stage biopharmaceutical company focused primarily on treatments for pulmonary disease. The stock meaningfully outperformed during the quarter following positive Phase III data for its Brensocatib (Brenso) drug in treating non -cystic fibrosis bronchiectasis (NCFB). While the stock has roughly doubled since the beginning of the year, we are maintaining the overweight position as Brenso could be a potential game changer for the company, given a multi-billion-dollar total addressable market and no other approved NCFB therapies on the market.”
8. Makemytrip Ltd. (NASDAQ:MMYT)
Year-to-Date Performance as of September 23: 133.78%
Market Cap as of September 23: $12.05 billion
Number of Hedge Fund Holders: 22
Makemytrip Ltd. (NASDAQ:MMYT) is an Indian travel company that provides online travel services including airline tickets, domestic and international holiday packages, hotel reservations, and rail and bus tickets. It is one of the largest online travel agencies in the country, with a total of 75 million lifetime users across its 3 brands.
In late July, the company relaunched its flagship MMT Black loyalty program with simplified tiers and new benefits, such as guaranteed upgrades and meal credits, instant myCash credit, and unlimited discounts on flight add-ons. While the program is still new, it has already seen improvements in key metrics.
The company started fiscal 2025 with record-high gross bookings, revenue, and adjusted operating profit. Gross bookings exhibited a 22% rise year-over-year in FQ1. The total revenue generated in this period was $243.66 million. International outbound travel grew by 25% year-over-year, accounting for over 37% of the air ticketing revenue.
The company is poised to capitalize on the increased demand for vacations in the Indian travel market. Its focus on AI and data analytics allows it to provide personalized travel experiences, supporting future growth. Wall Street maintains a positive outlook on its corporate travel business and UAE operations.
According to a McKinsey report, India’s domestic travel market is the 6th largest globally, driven by a growing middle class and expanding at approximately 9% annually. By 2030, India’s domestic market could surpass Japan and Mexico to become the world’s 4th largest. Government initiatives to improve infrastructure and connect underserved airports are expected to double domestic air passenger traffic in India by 2030.
In the second half of the calendar year 2024, Makemytrip Ltd. (NASDAQ:MMYT) expects an improvement in the domestic air market supply. Overall, it’s well-positioned for success.
Artisan Developing World Fund made the following comment about MakeMyTrip Limited (NASDAQ:MMYT) in its Q3 2023 investor letter:
“Top contributors to performance for the quarter included Indian online travel company MakeMyTrip Limited (NASDAQ:MMYT). MakeMyTrip benefited from strong domestic travel demand in India against a relatively fixed cost structure, and from an improved competitive backdrop that has allowed it to accelerate profitability.”
7. MicroStrategy Inc. (NASDAQ:MSTR)
Year-to-Date Performance as of September 23: 137.22%
Market Cap as of September 23: $27.58 billion
Number of Hedge Fund Holders: 26
MicroStrategy Inc. (NASDAQ:MSTR) is a business intelligence software company that provides enterprise analytics software and service, known for its enterprise data warehousing platform, which helps businesses collect, analyze, and report on data. It also has a significant investment in Bitcoin, making it one of the largest corporate holders of the cryptocurrency.
Its Bitcoin acquisitions have had a mixed impact on the company. While they have generated substantial returns, they have also led to a significant increase in net debt, from $531 million to $3.8 billion. Moreover, in the second quarter of 2024, there was a 7.44% year-over-year drop in revenue, with a loss per share of $0.57. Some of this decline was offset by the 21% year-over-year increase in subscription services revenue due to cloud migrations and new customers.
The company had a strong performance so far this year, with its stock price increasing by nearly 100% by July 11. The company announced a 10-for-1 stock split on that date, which was distributed as a stock dividend on August 7 to shareholders of record on August 1. Given that Bitcoin makes up most of its value, the stock is likely to be volatile, reflecting the inherent volatility of cryptocurrencies.
Its introduction of Auto Express, availability of MicroStrategy ONE on Google Cloud Marketplace, and joining Azure and AWS also places the company as a major player in the AI industry.
While AI companies have faced challenges recently, MicroStrategy Inc. (NASDAQ:MSTR) offers significant growth potential, particularly given its substantial returns from Bitcoin acquisitions.
Artisan Small Cap Fund stated the following regarding MicroStrategy Incorporated (NASDAQ:MSTR) in its Q2 2024 investor letter:
“Regarding MicroStrategy Incorporated (NASDAQ:MSTR), our decision to avoid this company comes down to a lack of conviction in its franchise characteristics. The stock has worked this year due to a rebound in the price of bitcoin. Since 2020, MicroStrategy has been focused on converting its cash and cash equivalent holdings, as well as issuing debt, to fund the purchase of bitcoin, which now makes up most of the company’s value.”
6. FTAI Aviation Ltd. (NASDAQ:FTAI)
Year-to-Date Performance as of September 23: 180.04%
Market Cap as of September 23: $13.28 billion
Number of Hedge Fund Holders: 33
FTAI Aviation Ltd. (NASDAQ:FTAI) is an aerospace company that provides a complete suite of aviation products that include aircraft leasing, engine leasing, and engine repairs, as well as CFM56 engines, modules, and materials. It leases these aircraft to airlines around the world, providing them with the flexibility to expand their operations without having to purchase the aircraft outright.
The company’s Module Factory is a key competitive advantage that could position the company for success in the future. With Boeing’s production challenges reducing the global supply of commercial jets, it can benefit from airlines extending the life of their existing fleets. The company can further strengthen its position by expanding its support for additional engines and partnering with more engine manufacturers. To maintain its market share, FTAI Aviation Ltd. (NASDAQ:FTAI) will need to cultivate strong industry relationships and develop innovative factory processes.
It made $443.59 million in Q2 2024 revenue, up 61.69% from a year-ago period. Despite major growth, there was a loss per share of $2.26. EBITDA reached $213.9 million, with $125 million from Leasing, $91.2 million from Aerospace Products, and a negative $2.3 million from Corporate and Other.
Excluding asset sales, pure leasing EBITDA increased to $112 million in Q2. It sold assets worth $59 million for a gain of $13.5 million. Aerospace Products delivered $91.2 million in EBITDA with a 37% margin. Strong demand for refurbished modules and engines, coupled with increased efficiency at maintenance facilities, is driving margin expansion.
FTAI Aviation Ltd. (NASDAQ:FTAI) is well-positioned for long-term growth due to its strategic focus on the aerospace industry and strong financial performance. The company’s Module Factory offers a competitive advantage in the face of global supply chain challenges.
Columbia Acorn Fund stated the following regarding FTAI Aviation Ltd. (NASDAQ:FTAI) in its Q2 2024 investor letter:
“FTAI Aviation Ltd. (NASDAQ:FTAI) is an aviation leasing, maintenance and repair company that has built a unique business model, with exposure to the most attractive part of the aerospace aftermarket today — the CFM56 jet engine (sole-sourced engine for the Boeing 737 family and one of the two engine options for the Airbus A320 family). CFM56 engines are the largest engine market, with more than 22,000 engines manufactured and more than 21,000 in service today. FTAI’s strategic partnerships with Lockheed Martin and other engine manufacturers provide a significant moat. The company is well positioned to take advantage of the utilization of engine leasing assets due to strong demand, as airline traffic continues to pick up amid asset scarcity.”
5. Vistra Corp. (NYSE:VST)
Year-to-Date Performance as of September 23: 188.06%
Market Cap as of September 23: $38.06 billion
Number of Hedge Fund Holders: 92
Vistra Corp. (NYSE:VST) is a Fortune 500 integrated retail electricity and power generation company, focused on providing essential energy services. It operates a diverse portfolio of power generation assets, including coal, natural gas, nuclear, and renewable energy sources, playing a vital role in meeting the energy needs of millions of people and businesses across the US.
The company is acquiring an additional 15% equity interest in its subsidiary, Vistra Vision LLC, for $3.2 billion. The purchase will be completed through 5 transactions over 2 years. Vistra Vision owns nuclear generation facilities (6.4 GW), renewables, energy storage, and retail businesses.
It expanded its nuclear power capacity and retail customer base in March by acquiring Energy Harbor for $3.43 billion. Additionally, the company received approval to extend the operation of its Comanche Peak Nuclear Power Plant through 2053, securing reliable zero-carbon electricity generation for another 20 years. Building on such expansions, the company was able to grow revenue by 20.57% year-over-year in Q2 2024.
Its AI-powered Heat Rate Optimizer has been implemented in 67 power-generation units, improving efficiency by an average of 1% and saving over $23 million annually. It has helped reduce carbon emissions, contributing to the company’s goals of a 60% reduction by 2030 and net-zero emissions by 2050.
US data center electricity consumption is projected to increase by 30% from 2022 to 2026, contributing to a 6% rise in the nation’s overall power consumption. Globally, data center energy use is expected to double in the same period. This represents a significant increase in the energy share of data centers, ranging from 3% to 10%. This growth will greatly benefit Vistra Corp. (NYSE:VST), and position it as an industry leader as data centers look for signing power purchase deals with nuclear power providers.
Meridian Hedged Equity Fund stated the following regarding Vistra Corp. (NYSE:VST) in its Q2 2024 investor letter:
“Vistra Corp. (NYSE:VST) is an integrated retail electricity and power generation company with operations across 20 U.S. states and Washington D.C. We identified Vistra as a likely beneficiary of the projected growth of power-hungry data centers, spurred by the rise of generative AI, increasing electricity demand, and higher power prices. The stock performed well after the company delivered stronger than expected earnings. Management also provided forward guidance that exceeded investors’ expectations and reaffirmed shareholder-friendly plans for sizable share repurchases through 2025. We trimmed our position in the quarter following the strong performance and continue to see strong long-term prospects for the company.”
4. CAVA Group Inc. (NYSE:CAVA)
Year-to-Date Performance as of September 23: 203.23%
Market Cap as of September 23: $14.85 billion
Number of Hedge Fund Holders: 33
CAVA Group Inc. (NYSE:CAVA) operates a category-defining Mediterranean fast-casual restaurant brand that operates approximately 309 fast-casual CAVA restaurants across the US, excluding two locations operating under a licensing arrangement and digital kitchens. It’s known for its fresh, flavorful dishes, including customizable bowls, pita sandwiches, and salads.
The company expanded its US presence with 18 new locations in the second quarter (ending Q2 with 341 restaurants), driving a 14.40% increase in overall same-store sales, and plans to open 54-57 more by the end of the year. Despite the challenges faced by many restaurant stocks, it has demonstrated strong profitability, with a 27% profit margin in the second quarter. Overall, Q2 2024 recorded $233.50 million in revenue, up 35.05% from the year-ago period.
Its recent expansion into Chicago has been particularly successful, with three locations now open, contributing significantly to its overall growth. The recent launch of grilled steak has exceeded expectations and is driving sales growth. The social media campaign for this launch generated 8.6 million+ social impressions and 300 million+ PR impressions. The company offers high-quality Mediterranean cuisine at affordable prices and has differentiated itself from traditional restaurants.
Analysts anticipate that the company will achieve an 18.6% increase in earnings next year, highlighting the company’s strong market position and appeal to health-conscious consumers. CAVA Group Inc.’s (NYSE:CAVA) strategic focus on customer loyalty, operational efficiency, and team development positions it for continued growth and success.
Next Century Growth Small Cap Strategy stated the following regarding CAVA Group, Inc. (NYSE:CAVA) in its first quarter 2024 investor letter:
“CAVA Group, Inc. (NYSE:CAVA) is a fast casual restaurant chain serving authentic Mediterranean cuisine, featuring customizable bowls and pitas. CAVA currently owns and operates >300 stores, and the company targets a 15% plus new store growth rate. The intermediate goal is to have 1,000 stores by 2032 with plenty of opportunity to grow beyond that level. The company already delivers solid restaurant level margins >20% and they believe 3-5% same store sales growth is achievable over time. As the business matures, they should be able to leverage G&A expense which should lead to strong earnings growth over many years.”
3. Applovin Corp. (NASDAQ:APP)
Year-to-Date Performance as of September 23: 217.93%
Market Cap as of September 23: $42.31 billion
Number of Hedge Fund Holders: 54
Applovin Corp. (NASDAQ:APP) is an American mobile technology company that operated in stealth mode until 2014. It has a mobile platform that provides a suite of tools and services to help app developers grow their businesses, offering a variety of services, including advertising, analytics, and monetization solutions.
In the second quarter of 2024, this company was able to make $1.08 billion in revenue, up 43.98% year-over-year. Most of this growth was driven by the company’s software platform generating $711 million in revenue, while app revenue recorded $369 million.
The company’s platform is attracting more advertisers and higher spending, but it’s still working to find users who meet advertisers’ revenue targets. Management aims for long-term software business growth of 20-30%. In-app advertising offers significant growth potential. Management highlighted the MAX platform’s role in driving this growth by transitioning from inefficient waterfall methods to programmatic bidding, maintaining steady quarter-over-quarter growth of 5-7% in the software business.
Its contextual tracking engine enables advertisers to target ads based on user behavior. While currently focused on the video game industry, the company has the potential to expand into the growing connected television market. This industry is booming due to the internet replacing traditional television systems. Its engine is well-suited for internet-based platforms, offering advertisers valuable insights for targeted advertising.
AppLovin Corp. (NASDAQ:APP) is poised for growth in the mobile advertising market, leveraging its AI-powered platform and strong partnerships. The company plans to invest in organic growth, focusing on engineering and business development to support its AXON technology and e-commerce expansion.
Carillon Scout Mid Cap Fund stated the following regarding AppLovin Corporation (NASDAQ:APP) in its Q2 2024 investor letter:
“AppLovin Corporation (NASDAQ:APP) was another top contributor. The advertising technology platform, focused on mobile applications, reported strong earnings results in early May. Its AI-driven Axon 2.0 mobile advertising platform continues to produce strong returns for customers, which is leading to more than expected spending on the platform. Although the one-year anniversary of Axon 2.0’s release occurs this year, the company is already working to expand beyond mobile applications with opportunities in e-commerce and connected television. We believe AppLovin’s valuation, free cash flow, and leading market share remain attractive.”
2. Carvana Co. (NYSE:CVNA)
Year-to-Date Performance as of September 23: 229.58%
Market Cap as of September 23: $21.61 billion
Number of Hedge Fund Holders: 61
Carvana Co. (NYSE:CVNA) is an online used car retailer, and the fastest-growing online used car dealer in the US, known for its glass tower “car vending machines”. It offers a fully online platform where customers can browse, select, finance, and purchase a used car without ever stepping foot in a dealership. It is also known for its signature “as-seen-on-TV” car vending machines, where customers can drive off the lot with their new car, making the car-buying process transparent, convenient, and hassle-free.
The company’s slowdown in retail sales growth was a strategic move to focus on more profitable sales. This strategy has resulted in a significant increase in Gross Profit Per Unit (GPU), reaching a new record of $5,500 in 2023, which is $1,000 higher than the previous record set in 2021. While the company may have expanded too rapidly in the past, this strategic shift has proven effective in improving profitability.
Overall, it generated $3.41 billion in Q2 2024 revenue, recording a 14.89% year-over-year improvement, primarily impacted by industry-wide declines in vehicle average selling prices. Despite prioritizing unit economics and profitability, retail unit sales increased by 33%. The operational teams successfully increased production capacity to improve customer selection, but inventory levels remain below target due to ongoing high demand.
The company cut over $1.1 billion in annualized Selling, General, and Administrative expenses in 2024 and restructured its debt to save $430 million in annual interest.
In the second quarter, it bought back $250 million of its 2028 senior secured notes and raised $350 million in new equity. These efforts contributed to a strong first-quarter performance, making it a promising investment opportunity.
Kerrisdale Capital made the following comment about Carvana Co. (NYSE:CVNA) in the investor letter:
“We are short shares of Carvana Co. (NYSE:CVNA), a $4bn market cap online platform for buying and selling used cars. Originally hyped up as an innovative disruptor, Carvana is now recognized to be just a poorly run auto retailer struggling under the challenges of a severe industry downturn and the unsustainable burden of $6.5bn in debt. While many have shared concerns over Carvana’s business before, we voice ours at a time when shares have risen 165% in only a month on misguided optimism for profits that amount to little more than buffing the paint job on a totaled car.
Over its history of burning billions of dollars of investor capital to manufacture topline growth, Carvana has never generated sustainable profits or free cash flow. Even during the pandemic, when Carvana was virtually the only online option for scores of desperate car buyers willing to pay any price, the company failed to turn an annual profit. As the prospect of bankruptcy loomed, last year management began slashing costs, shrinking its operations and finessing working capital to try to generate positive free cash flow, and still failed. The company is pursuing a last-ditch attempt to sell markets on a new narrative, but ultimately, the business can’t escape the following reality: 1) whether a small local dealer or a tech-driven online platform, flipping used cars is a tough, capital-intensive business with lousy margins and, 2) any company can grow quickly and take share if run irresponsibly on costs, especially if capital markets are willing to foot the bill. Rather than representing true disruptive change, Carvana is a flawed player, armed with tools no better than the competition it seeks to disrupt and led by a management team which lacks seasoned automotive, operational experience. Carvana didn’t make money even when cars sold themselves, interest rates were low and used car prices were skyrocketing. Today, none of that is true anymore, and the company has no hope but to eventually restructure its massive debt load…” (Click here to read the full text)
1. Summit Therapeutics Inc. (NASDAQ:SMMT)
Year-to-Date Performance as of September 23: 722.61%
Market Cap as of September 23: $15.35 billion
Number of Hedge Fund Holders: 17
Summit Therapeutics Inc. (NASDAQ:SMMT) is a biopharmaceutical oncology company focused on the discovery, development, and commercialization of patient, physician, caregiver, and societal-friendly medicinal therapies intended to improve quality of life and increase the potential duration of life, with a mission to address unmet medical needs in rare genetic diseases.
Over the past few months, Summit Therapeutics Inc. (NASDAQ:SMMT) has made significant progress in raising awareness of ivonescimab and its mission to develop innovative treatments for serious oncology needs. Its partner Akeso conducted two successful Phase 3 clinical trials, HARMONi-A and HARMONi-2, for ivonescimab in non-small cell lung cancer, yielding positive data.
The company announced a 5-year strategic collaboration with MD Anderson to accelerate ivonescimab’s development, complementing its ongoing collaboration with Akeso, which continues to generate positive patient data in lung cancer and other solid tumors.
Over 1,800 patients worldwide have been treated with ivonescimab in clinical studies conducted by Summit and Akeso. There are currently 20 ongoing clinical trials evaluating ivonescimab globally. While the current Phase 3 programs focus on non-small cell lung cancer, seven trials are exploring its potential in other solid tumors.
The partnership with Akeso has been instrumental in advancing ivonescimab’s development. Since the collaboration began in early 2023, the company has successfully enrolled patients in HARMONi and HARMONi-3 clinical trials and secured presentations at several medical conferences.
The R&D expenses remained relatively stable in Q2 2024, with GAAP spending at $30.8 million. Acquired IP R&D expenses increased to $15 million in Q2 due to a licensing agreement amendment. G&A expenses rose to $14 million (GAAP) in Q2. Overall, non-GAAP operating expenses remained consistent at $33.7 million.
The company repurchased $250 million of its 2028 senior secured notes, raised $350 million in equity capital, and received $200 million in unsolicited capital. These actions have improved the company’s financial outlook and extended its cash runway.
While we acknowledge the growth potential of Summit Therapeutics Inc. (NASDAQ:SMMT), our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than SMMT but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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