In this article, we will take a look at the 5 most profitable industries in the US in 2024. You can read our detailed discussion on 16 Most Profitable Industries in the US in 2024.
5. Oil/Gas Distribution
Industry Net Margin (2024): 23.59%
The oil and gas distribution industry ranks fifth on our list with an industry net margin of 23.59%. As the name suggests, the industry deals with the distribution and transportation of oil and gas. Enterprise Products Partners L.P. (NYSE:EPD) is one of the biggest oil and gas distribution companies in the United States. The company is a leading provider of midstream energy services to producers and consumers of crude oil and natural gas. Enterprise Products Partners L.P. (NYSE:EPD) had a trailing 12-month net income and revenue of $5.6 billion and $52.03 billion, respectively, as of March 31. With a market capitalization of $63.31 billion, as of August 16, Enterprise Products Partners (NYSE:EPD) is considered one of the largest distributors of oil and gas in the United States.
4. Tobacco
Industry Net Margin (2024): 27.52%
The tobacco industry has an industry net margin of 27.52%, contributing to its ranking as one of the most profitable industries in the United States. Philip Morris International Inc. (NYSE:PM) is one of the largest tobacco companies in the United States and globally. The company logged a trailing 12-month net income and revenue of $7.94 billion and $35.95 billion, respectively, as of March 31. Philip Morris International Inc. (NYSE:PM) sells its products in more than 180 countries and is the company behind the famous cigarette brand, Marlboro. Philip Morris International Inc. (NYSE:PM) has a market capitalization of $183.56 billion, as of August 16.
3. Oil/Gas (Production and Exploration)
Industry Net Margin (2024): 28.26%
The oil and gas production and exploration industry ranks third on our list of the most profitable industries in the United States with an industry net margin of 28.26%. Exxon Mobil Corporation (NYSE:XOM), with a market capitalization of $525.01 billion, as of August 16, is one of the biggest oil and gas exploration companies in the United States. Exxon (NYSE:XOM) operates through a variety of segments, of which, its upstream segment deals with the exploration and production of crude oil and natural gas. Exxon Mobil Corporation (NYSE:XOM) has a trailing 12-month net income and revenue of $32.8 billion and $341.1 billion, respectively, as of March 31.
2. Banks (Regional)
Industry Net Margin (2024): 29.67%
Second on our list with an industry net margin of 29.67%, is the banking industry (regional). The banks (regional) industry, unlike money centers, offer specified commercial banking services to customers. These banks are relatively smaller than money centers. The PNC Financial Services Group, Inc. (NYSE:PNC) is a popular financial service and banking company with a market capitalization of $68.77 billion, as of August 16. PNC Financial Services (NYSE:PNC) operates in 28 states and has 2,500 branches across the country. PNC Financial Services (NYSE:PNC) logged $4.78 billion and $33.54 billion in trailing 12-month net income and revenue, as of June 30.
1. Banks (Money Center)
Industry Net Margin (2024): 30.89%
The banking industry (money center) ranks first on our list of the most profitable industries in the United States in 2024. Money centers are diversified large banks often located in economic hubs. These banks primarily cater to the government, other banks, and large corporations. One of the biggest companies in this industry is JPMorgan Chase & Co. (NYSE:JPM), to name a few. The company is one of the largest banks in the United States and is headquartered in New York City and Delaware. It provides investment banking solutions, foreign exchange services, wealth planning, and commercial banking services to millions of customers, businesses of all sizes, institutions, and the government. JPMorgan Chase & Co. (NYSE:JPM) has a trailing 12-month net income of $52.22 billion and a trailing 12-month revenue of $265.87 billion, as of June 30. As of August 16, JPMorgan Chase & Co. (NYSE:JPM) has a market capitalization of $607.93 billion.
To learn about other profitable industries in the United States, you can check out our detailed report 16 Most Profitable Industries in the US in 2024. At Insider Monkey, we delve into a variety of topics, ranging from the most profitable industries to business aspects; however, our expertise lies in identifying the top-performing stocks. Currently, Artificial Intelligence (AI) technology stands out as one of the most promising fields. If you are looking for an AI stock that is more promising than NVDA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: $30 Trillion Opportunity: 15 Best Humanoid Robot Stocks to Buy According to Morgan Stanley and Jim Cramer Says NVIDIA ‘Has Become A Wasteland’
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
