5 Non-Tech Outperformers of 2024 Set to Fly Higher in the Near Term

Market Performance - US stock markets experienced a significant rally in 2024, with the S&P 500 rising 23.3% following a 24.2% increase in 2023, marking a 53% gain over two years, the best since 1997-98 [1] - The Dow and Nasdaq Composite rose 12.9% and 28.6% respectively in 2024, with the S&P 500 hitting 57 all-time highs [1] Sector Performance - The 2023 rally was led by the technology sector, particularly AI-focused stocks, while the 2024 rally saw broader participation from financials, industrials, utilities, and consumer discretionary sectors [2] Investment Opportunities - Non-tech stocks that outperformed major indexes in 2024 are recommended for investment, with five highlighted stocks: Chipotle Mexican Grill, Interactive Brokers Group, KKR & Co, Fiserv, and Boston Scientific [3][4] Chipotle Mexican Grill (CMG) - CMG benefits from service digitization, new menu offerings, and restaurant openings, with 86 new restaurants opened in Q3 2024, 73 featuring Chipotlanes [5] - CMG expects 80% of new openings to include Chipotlanes, with future sales growth supported by innovations like the Augmented Make line [6] - CMG has expected revenue and earnings growth rates of 12.8% and 17.9% for 2025, with a 12.5% average price target increase from $59.89 [7] Interactive Brokers Group (IBKR) - IBKR's revenue growth is supported by proprietary software development, lower compensation expenses, and expansion in emerging markets [8] - Total net revenues are projected to grow at a CAGR of 7.6$182.50 [10] KKR & Co (KKR) - KKR benefits from growth in assets under management (AUM) and record transaction fees, with new capabilities in infrastructure, real estate, and growth investing aiding revenue growth [12] - KKR has expected revenue and earnings growth rates of 18.6% and 30% for 2025, with a 13.1% average price target increase from $149.19 [13] Fiserv (FI) - FI's growth is driven by Clover's strong performance and strategic buyouts, with a business model featuring recurring revenues and high incremental margins [15] - FI has expected revenue and earnings growth rates of 8.8$205.98 [16] Boston Scientific (BSX) - BSX sees strength in MedSurg and Structural Heart lines, with strong demand for WATCHMAN FLX and FLX Pro, and contributions from accretive acquisitions [18] - The Pain and Brain franchises and Electrophysiology arm are expected to gain traction in 2024, with 2025 revenue and earnings growth rates of 12.9% and 12.7% [19][20]