In this article, we will look at the 10 High Growth Non-Tech Stocks That Are Profitable in 2024.
How Much Fuel Is Left for the Bull Market?
Analysts and investment strategists have been pointing towards caution factoring in seasonality, election volatility, and even a pullback. However, regardless of the caution call the market has demonstrated resilience against all challenges. Anastasia Amoroso, iCapital chief investment strategist, recently appeared on a CNBC interview to talk about the current market conditions.
She mentioned that investors had many reasons for caution to start October. Several outside moves had to be digested including yields spiking, the price of oil spiking, and some resurgence for the dollar. However, the market has been able to absorb all these moves quite impressively. She mentioned that the Fed is not likely going to cut rates by 50 basis points in the consecutive meetings and the markets have now repriced it to 25 basis points cut, which is now reflected in the yield prices.
Amoroso thinks that what could have been a bumpy start to the month has now paved the way for a soft landing momentum. While talking about how the rate cut is now a moving target for the Fed, she mentioned that it has always been known that the Fed reacts to data and it is not bad news that data is pointing towards an upside. Moreover, what’s more interesting is that not only is the Fed talking about the economy being on a strong footing but corporations including banks are calling it a soft landing, which is breathing new life into the market.
Amoroso also mentioned that the Citi surprise index was negative for some time and the earnings revisions were negative because of earlier data. However, now we have flipped to the positive side in terms of economic surprises. She showed optimism that earnings revisions will start to pick back up, given the solid economy.
She suggests that artificial intelligence remains one of the attractive sectors to look for growth. Amoroso explained that if we look at the AI theme performance there was not much outperformance in Q3. She thinks that due to this earnings growth expectations have stayed where they were, however, the multiple has declined as a result. She mentioned that price-to-earnings adjusted for growth in the AI/semiconductor sector is below 1, which is one of the cheapest levels in years.
Moreover, she also finds financials to be attractive as the earnings season has been solid for the sector. Amoroso pointed out that the financial sector is expecting higher net income margins in 2025 and the loan growth and fees for banks have been higher, which indicates good progress by the sector as a whole.
In addition to this we have also talked about how the mega caps are expected to lead the market in 10 High Growth NASDAQ Stocks That Are Profitable in 2024. Here’s a piece from the article:
Ethridge thinks otherwise, he believes that mega-cap stocks will continue to lead market growth, although not at the same pace as in recent years but still at a steady pace. He attributes this to the ongoing influence of artificial intelligence (AI) on various sectors, including real estate and manufacturing, which are becoming increasingly vital due to rising demands on infrastructure.
Moreover, while explaining why the mega caps will lead the growth, Ethridge pointed out that for the big tech stocks, Fed rate cuts were not necessary as they had significant cash on their balance sheets to reinvest into newer AI ventures. We have already seen Magnificent Seven invest heavily in AI despite the high rate of borrowing thereby leading the bull market in difficult times.
The rate cuts have now made it easy for other companies that didn’t have enough cash to borrow and invest in technology. However, he also pointed out that the pace of rate cuts might slow down moving forward, thereby making it hard for small caps to keep up the technology investment race. Ethridge suggests that investors may need to adjust their expectations regarding future Federal Reserve rate cuts.
Moreover, we are also entering earnings season, will the earnings derail the momentum or continue to boost the market? Drew Pettit, Citi Research Director of US Equity Strategy joined CNBC in another interview. He thinks that we are in for a decent quarter, although we are in an expensive market.
With that lets take a look at the 10 high growth non-tech stocks that are profitable in 2024.
A hand holding a tablet revealing a financial dashboard of assets and stocks.
Our Methodology
To compile the list of 10 high growth non-tech stocks that are profitable in 2024, we used the Finviz stock screener, Yahoo Finance, and Seeking Alpha. First, using the screener we got an initial list of stocks, sorted by their market capitalization with 5 years of sales growth of more than 15%. Next, using Yahoo Finance and Seeking Alpha we sourced the 5 year net income and revenue growth rates along with the TTN net income to ensure profitability in 2024. Lastly, we ranked our stocks based on the number of hedge fund holders in Q2 2024 as per the Insider Monkey’s database. The list is ranked in ascending order of the number of institutional holders.
Why do we care about what hedge funds do? 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 High Growth Non-Tech Stocks That Are Profitable in 2024
10. Realty Income Corporation (NYSE:O)
5-Year Net Income Growth: 16.67%
5-Year Revenue Growth: 27.50%
TTM Net Income: $838.38 Million
Number of Hedge Fund Holders: 19
Realty Income Corporation (NYSE:O) ranks 10th on our list of high-growth non-tech stocks that are profitable in 2024. It is a real estate investment trust which focuses on buying and managing commercial properties. The company operates through the acquisition and management of freestanding commercial properties and then renting them out to businesses on long-term contracts to earn rental revenue.
It owns more than 15,400 properties across 50 states in the United States and has a presence in the United Kingdom, Europe, and Puerto Rico.
Realty Income Corporation (NYSE:O) has done well during the past 5 years by growing its net income and revenue by around 17% and 28% respectively. It continued to show financial strength in the latest, fiscal second quarter of 2024. The company achieved Adjusted Funds from Operations (AFFO) per share of $1.06, reflecting a 6% increase from the previous year. This growth, combined with an annualized dividend yield exceeding 5%, resulted in an overall operational return of over 11% for shareholders.
During the quarter, Realty Income Corporation (NYSE:O) successfully invested $805.8 million in high-quality real estate opportunities across the United States and Europe, targeting sectors including retail, industrial, and data centers. The investments yielded an initial cash yield of 7.9%, with the US investments at 7.6% and European investments at 8%. Notably, a significant investment of $377.5 million was made by the company in a secured note from Asda, a major UK grocery operator. Management has strategically pursued credit investments to mitigate interest rate exposure while enhancing access to quality real estate opportunities.
It was held by 19 hedge funds in Q2 2024, with total stakes amounting to $135.36 million as per Insider Monkey’s database.
9. VICI Properties Inc. (NYSE:VICI)
5-Year Net Income Growth: 35.58%
5-Year Revenue Growth: 33.19%
TTM Net Income: $2.64 Billion
Number of Hedge Fund Holders: 33
VICI Properties Inc. (NYSE:VICI) is another real estate investment trust (REIT) that specializes in owning and acquiring properties related to hospitality, gaming, and entertainment. They have properties in well-known locations including Caesars Palace, MGM Grand, and The Venetian Resort in Las Vegas.
The company manages a total of 93 properties across the U.S. and Canada, including 54 gaming properties (casinos) and 39 other experiential locations (including entertainment venues and hotels). Their total real estate spans over 127 million square feet, featuring around 60,300 hotel rooms and more than 500 restaurants and bars.
During the second quarter 2024 earnings call release management disclosed that it has committed up to $950 million for investments in key experiential properties, notably the Venetian Resort and several Great Wolf Resorts. They expect these investments to yield a 7.9% return.
VICI Properties Inc. (NYSE:VICI) is focused on generating future growth in Adjusted Funds From Operations (AFFO) while diversifying its portfolio. They aim to allocate capital to both gaming and non-gaming ventures. Moreover, Las Vegas is turning out to be a successful market for the company. It plans to invest up to $700 million in renovations at the Venetian, which will allow for increased rent. For context, the company collects more than 45% of its rent from the Las Vegas market.
Financially speaking, VICI Properties Inc.’s (NYSE:VICI) second-quarter revenue increased 6.6% year-over-year to $957.0 million. Whereas, the net income attributable to common shareholders was up 7.3% year-over-year to $741.3 million. It is one of the high-growth non-tech stocks that is profitable in 2024.
Here is what Baron Real Estate Income Fund has to say about VICI Properties Inc. (NYSE:VICI) in its Q2 2023 investor letter:
“We have slightly decreased our already modest exposure to the triple net gaming REIT VICI Properties Inc. (NYSE:VICI), an owner of quality gaming, hospitality, and entertainment properties. The company pays a 6% dividend that is well covered, has a strong track record of making accretive acquisitions, and has additional opportunities for growth in the years ahead.”
8. Ares Management Corporation (NYSE:ARES)
5-Year Net Income Growth: 30.93%
5-Year Revenue Growth: 18.99%
TTM Net Income: $378.2 Million
Number of Hedge Fund Holders: 35
Ares Management Corporation (NYSE:ARES) is an international investment management company specializing in alternative investment management, meaning they manage investments in a variety of assets other than traditional stocks and bonds.
It operates through various segments including Credit Group, Private Equity Group, and Real Assets Group. The company aims to provide flexible capital to support businesses and generate returns for their investors.
Ares Management Corporation (NYSE:ARES) reported a strong performance in the second quarter of 2024, benefiting from an improved economic environment characterized by stable credit trends and a recovering real estate market. The company experienced significant activity in its investment strategies, deploying $26 billion, which was the second highest in its history and over 70% more than the same quarter last year.
The company also raised $26 billion in gross capital during Q2, marking its best fundraising quarter ever, with total funds raised for the year reaching $43 billion. This contributed to a record total of $447 billion in assets under management (AUM), an 18% increase year-over-year.
Ares Management Corporation (NYSE:ARES) has grown its net income by 31% and revenue by 19% over 5 years making it one of the high-growth non-tech stocks that are profitable in 2024.
ClearBridge Growth Strategy stated the following regarding Ares Management Corporation (NYSE:ARES) in its Q3 2024 investor letter:
“We took action in the quarter to shore up our financials exposure with two new buys in the sector. Ares Management Corporation (NYSE:ARES) is an alternative asset manager and leading player in private credit, a large and growing market that continues to be supported by secular tailwinds such as increased bank regulation, rising retail penetration and the migration of insurance assets. With its scale, Ares should take outsize share of industry asset growth and drive fee-related earnings and margin expansion over time. The company’s high underwriting standards and performance in past downturns position it well to not only manage through a future credit cycle but also emerge stronger versus peers.”
7. HDFC Bank Limited (NYSE:HDB)
5-Year Net Income Growth: 24.06%
5-Year Revenue Growth: 32.72%
TTM Net Income: $681.67 Billion
Number of Hedge Fund Holders: 40
HDFC Bank Limited (NYSE:HDB) is a major private banking and financial services company based in India. The bank engages in Retail Banking, Wholesale Banking, Treasury Operations, and Insurance and Asset Management. It is recognized as the largest private sector bank in India and has around 11% market share in deposits. The bank also benefits from the largest credit card businesses in the country. Its diverse revenue streams and deep presence in both urban and rural markets reinforce its leadership position in the banking sector.
HDFC Bank Limited (NYSE:HDB) has been facing a series of challenges following the merger with Housing Development Finance Company in July 2023. The merger initially sparked a positive market reaction due to its potential for cross-selling services and leveraging the bank’s mortgage expertise. However, management soon found that the merger was dilutive to both book value and earnings per share in the short term.
On top of this, the December 2023 earnings report showed sluggish deposit growth and a higher loan-to-deposit ratio, raising doubts about the timely realization of merger benefits. Regardless, HDFC Bank Limited (NYSE:HDB) remains a strong player in the Indian Banking sector and benefits from a less competitive market and a strong corporate culture that emphasizes credit risk management.
During the most recent quarter, the fiscal first quarter of 2025, the bank showed significant improvement. Average advances under management grew 0.8% subsequently to reach INR 25, 327 billion ($301.32 million). Whereas the average deposits were up 4.6% during the same time to reach INR 22,831 billion ($271.63 million).
Over the past 5 years, the bank has grown its top line by around 33% indicating that it is one of the high-growth non-tech stocks that is profitable in 2024.
Artisan Developing World Fund stated the following regarding HDFC Bank Limited (NYSE:HDB) in its Q2 2024 investor letter:
“To reduce the range of investment outcomes further, we may seek investments not only with low revenue variability but with low incremental margin structures. For example, HDFC Bank Limited (NYSE:HDB) in India will have to fund every loan it makes with deposits, and will have to invest incremental profitability in acquiring and servicing customers.”
6. Diamondback Energy, Inc. (NASDAQ:FANG)
5-Year Net Income Growth: 33.42%
5-Year Revenue Growth: 25.01%
TTM Net Income: $3.46 Billion
Number of Hedge Fund Holders: 44
Diamondback Energy, Inc. (NASDAQ:FANG) ranks 6th on our list of high-growth non-tech stocks that are profitable in 2024. It is an independent oil and natural gas company that operates in the oil-rich area of the Permian Basin. It engages in acquiring and developing land for oil and gas exploration and production. The company has significant holdings in the Permian Basin, with more than 607,800 acres of land, including more than 428,000 acres in the Midland Basin and around 174,800 acres in the Delaware Basin.
Recently, the company announced a significant merger with Endeavor Energy Resources in a deal valued at $26 billion. The merger is expected to add to the operational footprint of Diamondback Energy, Inc. (NASDAQ:FANG) and is expected to produce 816,000 barrels of oil equivalent (boe) daily.
The company is already producing significant volumes of oil. During the second quarter of 2024, it produced 271.6 Mbo/d which was up 1% subsequently. Moreover, it also generates significant cash flow from its operations and returns most of it to its investors. During the quarter it generated $816 million free cash flow, moreover, the recent merger is expected to further boost the annualized synergies by $550 million.
Its differentiating factor lies in its ability to emphasize increasing its production to generate more revenue and net income each quarter. The second quarter revenue for Diamondback Energy, Inc. (NASDAQ:FANG) was up more than 25% year-over-year. Whereas, its net income of $837 million indicated a 50.54% increase during the same time.
Looking ahead, management expects net production between 462 MBOE/d and 470 MBOE/d for the full year.
ClearBridge Select Strategy stated the following regarding Diamondback Energy, Inc. (NASDAQ:FANG) in its first quarter 2024 investor letter:
Our final addition was Diamondback Energy, Inc. (NASDAQ:FANG), a leading oil and gas producer that agreed to acquire fellow exploration and production company Endeavor Energy Resources in the quarter. The deal should allow Diamondback to capture operating synergies and streamline costs by reducing rig redundancies and optimizing production techniques. Endeavor has previously prioritized double-digit production growth over capital discipline, leading to the quick depletion of its core inventory in the oil-rich Midland Basin. Diamondback’s focus on free cash flow generation should allow the combined entity, which we consider an evolving opportunity, to rein back its production levels and extend the longevity of this high-quality acreage to fund cash returns. Diamondback replaces the energy exposure the portfolio will lose with the pending acquisition of top 15 holding Pioneer Natural Resources by Exxon Mobil.
5. Cenovus Energy Inc. (NYSE:CVE)
5-Year Net Income Growth: 74.34%
5-Year Revenue Growth: 21.66%
TTM Net Income: $4.75 Billion
Number of Hedge Fund Holders: 46
Cenovus Energy Inc. (NYSE:CVE) is an integrated oil and natural gas company with operations in Canada and the Asia Pacific Region. Its key operations include extracting oil and gas from oil sands in Alberta, conventional wells in Western Canada, and offshore sites in Newfoundland, China, and Indonesia. It also engages in refining the extracted sources to sell them in the Canadian and US markets.
Cenovus Energy Inc. (NYSE:CVE) has been achieving significant milestones. It recently completed the largest turnaround in the history of its Lloydminster Upgrader, which involved around 1 million man-hours and a peak workforce of 3,200 contractors, all without safety incidents.
Moreover, in July the company reached its net debt target of $4 billion and plans to return 100% of excess free funds flow to shareholders, marking a substantial increase in shareholder returns.
This all becomes more impressive with the fact that management is achieving this while maintaining strong production levels.
During the second quarter of 2024, Cenovus Energy Inc. (NYSE:CVE) achieved a production level of over 800,000 barrels of oil equivalent per day (BOE/d), with oil sand production at approximately 610,000 barrels per day.
Looking ahead, the company is preparing for a turnaround at Christina Lake in September, which will temporarily reduce production. However, they are on track with growth projects like the Narrows Lake tie-back pipeline, expected to deliver the first oil by mid-2025.
Cenovus Energy Inc. (NYSE:CVE) ranks as the 6th high-growth non-tech stock that is profitable in 2024.
L1 Long Short Fund stated the following regarding Cenovus Energy Inc. (NYSE:CVE) in its first quarter 2024 investor letter:
“Cenovus Energy Inc. (NYSE:CVE) (Long +20%) shares performed strongly as the WTI oil price increased 16% to ~US$83/bbl, while refining margins in the U.S. Midwest improved dramatically from a low base. During March, Cenovus’s 2024 investor day was well received, where its 5-year outlook for the business included growth in upstream production of around 150m bbl/d above the current 800m bbl/d and a material turnaround of its downstream refining business. Over the next five years, the company expects to generate C$32b of cumulative free cash flow based on a US$75/bbl WTI oil price, a highly attractive prospect given its current market cap of ~C$51b. Furthermore, it has committed to return 100% of excess cash flow back to investors once it reaches its C$4b net debt target (expected in 2024). Cenovus’s strong cash flow generation, combined with the long-life nature of its oil sands assets and its low cost of production, make it one of our preferred Energy exposures.”
4. First Citizens BancShares, Inc. (NASDAQ:FCNCA)
5-Year Net Income Growth: 43.95%
5-Year Revenue Growth: 42.02%
TTM Net Income: $2.64 Billion
Number of Hedge Fund Holders: 46
First Citizens BancShares, Inc. (NASDAQ:FCNCA) is a financial holding company that oversees several banking-related activities through its subsidiaries. Standing amongst the Fortune 500 companies the bank engages in providing various banking services including General Banking and Commercial Banking.
Notably, it also serves major commercial clients in Silicon Valley, particularly those related to healthcare and technology.
First Citizens BancShares, Inc. (NASDAQ:FCNCA) delivered significant financial improvement during the second quarter. Its performance was driven by a strong Net Interest Margin (NIM), controlled expenses, and continued stabilization of credit.
The loan and deposit was strong across General Banking, Commercial Banking, and SVB Commercial segments. The General Banking and Commercial Banking loans grew by 9.29% and 10.10%, year-over-year, respectively. Whereas the SVB segment saw a 5.33% increase subsequently.
On the deposit side, the Direct Banking segment took the lead by growing deposits by more than 35.73% year-over-year. The board has also approved a $3.5 billion share repurchase plan, signaling confidence in the firm’s financial health.
The company was held by 46 hedge funds in Q2 2024 and has grown its revenue by more than 42% during the past 5 years making it one of the high-growth non-tech stocks that are profitable in 2024.
Greenlight Capital stated the following regarding First Citizens BancShares, Inc. (NASDAQ:FCNCA) in its Q2 2024 investor letter:
“We exited a few positions during the quarter, including, First Citizens BancShares, Inc. (NASDAQ:FCNCA): The bargain acquisition of the corpse of Silicon Valley Bank worked out well. The shares appreciated more than 80% and no longer appear cheap.”
3. NRG Energy, Inc. (NYSE:NRG)
5-Year Net Income Growth: 28.15%
5-Year Revenue Growth: 24.66%
TTM Net Income: $2.01 Billion
Number of Hedge Fund Holders: 56
NRG Energy, Inc. (NYSE:NRG) is an energy and home services company that sells electricity and natural gas to homes and businesses across the United States and Canada. It generates electricity from both renewable and fossil fuels and has a total generation capacity of almost 13 gigawatts.
The company is on track to meet its financial guidance and is experiencing strong performance across all business segments. In the second quarter, NRG Energy, Inc. (NYSE:NRG) achieved $935 million in adjusted EBITDA, marking a 14% increase from the previous year. This was a result of an 8% increase in home energy subscribers, a 5% increase in smart home subscribers, and a 7% growth in smart home revenue.
Management is also making significant progress on its Virtual Power Plant offerings, which aim to optimize energy use through aggregated resources. It is also enjoying strong demand from data center customers especially in Texas, which has seen over 3% weather-normalized load growth, with ERCOT projecting significant demand. Management is advancing its development of 1.5 gigawatts of natural gas projects in Texas to meet this growing demand.
NRG Energy, Inc. (NYSE:NRG) is a high-growth non-tech stock that is profitable in 2024. We say this because it not only has grown its net income by more than 28% during the past 5 years but also exhibited strong free cash flow generation during the second quarter. It grew its cash flow by $663 million, which bested the previous year’s results by $238 million.
2. KKR & Co. Inc. (NYSE:KKR)
5-Year Net Income Growth: 21.00%
5-Year Revenue Growth: 36.17%
TTM Net Income: $ 3.86 Billion
Number of Hedge Fund Holders: 75
KKR & Co. Inc. (NYSE:KKR) is one of the largest alternative asset management companies in the world having more than $578 billion of assets under management (AUM). It operates in three main areas including asset management, insurance, and strategic holdings. In simple terms, the company helps clients invest money wisely across different sectors while also providing insurance products to protect their financial futures.
The most recent quarter, which is the second quarter of 2024 came in with record earnings of $0.84 per share which is the highest in its history, marking a 25% increase from the previous year. Adjusted net income was $1.09 per share, up about 50% year-over-year.
The investment company did well across the board. Its total management fees reached $847 million, a 13% increase compared to the same quarter last year, driven by successful fundraising and deployment activities. Moreover, its capital markets transaction fees were robust at $192 million, benefiting from activities in private equity and infrastructure.
KKR & Co. Inc. (NYSE:KKR) did well in terms of investments as well. The traditional private equity portfolio appreciated by 4% in the quarter and 18% over the past year, while other asset classes like infrastructure and credit also showed positive growth.
The company has also successfully made it to the S&P 500 index recently, which depicts its strong market position. It is one of the high-growth non-tech stocks that are profitable in 2024.
Alphyn Capital Management stated the following regarding KKR & Co. Inc. (NYSE:KKR) in its Q3 2024 investor letter:
“KKR continues to deliver strong performance this year. The company has reported an uptick in capital markets activity, which had previously slowed, leading to increased fees from transactions and the potential for more realizations and carried interest as M&A activity resumes.
Additionally, KKR has entered a new fundraising cycle, recently securing a $10 billion first close on its Infrastructure V fund. In recent years, KKR has strategically emphasized infrastructure, credit, and real estate, with its core flagship strategies representing only 6% of total AUM fundraising. Now, the company is refocusing efforts on raising capital for its flagship North American and Asian buyout funds, positioning itself for continued growth in earnings and carried interest moving forward.”
1. Apollo Global Management, Inc. (NYSE:APO)
5-Year Net Income Growth: 80.53%
5-Year Revenue Growth: 73.64%
TTM Net Income: $5.44 Billion
Number of Hedge Fund Holders: 79
Apollo Global Management, Inc. (NYSE:APO) is another asset management firm that also operates in retirement services. It helps clients make money through yield investments, hybrid investments, and equity investments. It manages retirement services through its subsidiary, Athene.
Investors already like the double revenue mix of the company that comes from its asset management and annuity provider role in the market. The second quarter results demonstrated strong growth making it an attractive investment opportunity. It reached a record quarterly debt origination of $52 billion, with $11 billion coming from a single deal with Intel. Thereby placing the company close to its $150 billion origination target for 2026.
The quarter also marked record fee-related earnings of $516 million and $710 million spread-related earnings indicating that Apollo Global Management, Inc. (NYSE:APO) doing well in both asset and retirement services. Moreover, in terms of assets, the assets under management of $696 billion, with total inflows reaching $144 billion were also at record highs indicating a 13%, year-over-year.
Apollo Global Management, Inc. (NYSE:APO) is capitalizing on major tailwinds including a growing need for capital, increasing retirement planning demands, and expansion into individual markets. It was held by 79 hedge funds in Q2 2024 with total stakes worth more than $5.79 billion.
Baron FinTech Fund stated the following regarding Apollo Global Management, Inc. (NYSE:APO) in its Q2 2024 investor letter:
“Strength in Tech-Enabled Financials was broad based, led by gains from alternative asset manager Apollo Global Management, Inc. (NYSE:APO) and specialty insurer Arch Capital Group Ltd. Apollo continues to benefit from disruptive trends in financial services, most notably the shift of retirement assets into higher-yielding private credit given the company’s dual role as an asset manager and an annuity provider. “
While we acknowledge the potential of Apollo Global Management, Inc. (NYSE:APO) to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for a promising AI stock that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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