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3 Stocks That Could Join the Trillion-Dollar Market Cap Club Next Year
JPMJP MORGAN CHASE(JPM) The Motley Fool·2024-12-22 10:34

Group 1: Market Cap Potential - The article discusses the potential for several companies to reach a 1trillionmarketcap,drivenbytheAIboom,aresilientU.S.economy,andfallinginterestrates[1]Walmartwouldneeda311 trillion market cap, driven by the AI boom, a resilient U.S. economy, and falling interest rates [1] - Walmart would need a 31% increase in market cap to reach 1 trillion, which may be challenging given its current valuation compared to competitors like Costco [3] - Eli Lilly's revenue rose 20% to 11.4billioninQ3,withadjustednetincomeincreasingover1,00011.4 billion in Q3, with adjusted net income increasing over 1,000% year-over-year, indicating strong potential for reaching a 1 trillion market cap [5][6] - JPMorgan Chase, with a current market cap of 648.6billion,wouldneeda54648.6 billion, would need a 54% increase to reach 1 trillion, but favorable economic conditions could support this growth [8][9] Group 2: Company Performance - Walmart's market cap has more than doubled in the last three years, reaching 763.8billion,drivenbyitssuccessfulomnichannelstrategyandstronggrocerysales[12][13]EliLillyisnowthemostvaluablepharmaceuticalcompanyintheU.S.,withamarketcapof763.8 billion, driven by its successful omnichannel strategy and strong grocery sales [12][13] - Eli Lilly is now the most valuable pharmaceutical company in the U.S., with a market cap of 689.5 billion, needing a 45% growth to hit 1trillion[14][15]JPMorganChaseisthelargestbankbyassets,benefitingfromadiversifiedbusinessmodelandafavorableregulatoryenvironmentthatcouldenhanceitsgrowthprospects[7][18]Group3:CurrentMarketLandscapeTherearecurrentlyninepubliclytradedU.S.companieswithamarketcapof1 trillion [14][15] - JPMorgan Chase is the largest bank by assets, benefiting from a diversified business model and a favorable regulatory environment that could enhance its growth prospects [7][18] Group 3: Current Market Landscape - There are currently nine publicly traded U.S. companies with a market cap of 1 trillion or more, with Berkshire Hathaway briefly dipping below this threshold [10][11] - The article notes that just a few years ago, there were no U.S. companies worth more than $1 trillion, highlighting the rapid growth in this segment [11]