Rally Rockets: 3 Stocks Benefitting From the Market's Unstoppable Surge

Market Overview - Major indices are climbing despite concerns over inflation, high interest rates, and geopolitical tensions, leading investors to seek stocks that can benefit from the ongoing equity surge [1][3] - The S&P 500 Index has experienced 27 bull markets from 1928 to 2023, with an average gain of nearly 115% over 2.7 years, and recently re-entered bull market territory in June 2023 [2] Eli Lilly (LLY) - Eli Lilly reported a 26% increase in revenue for Q1 2024, driven by new product launches like Mounjaro and Zepbound [6] - The company's gross margin rose from 78.4% in Q1 2023 to 82.5% in Q1 2024, with operating income growing by 63% and earnings per share increasing by 59% [7] - Eli Lilly raised its full-year 2024 revenue guidance to between $42.4 billion and $43.6 billion, indicating potential for further margin expansion [7][8] Fabrinet (FN) - Fabrinet's market cap is $8.4 billion, with Q3 fiscal year 2024 revenue reported at $731.5 million, up from $665.3 million year-over-year [11] - The company saw a 150% year-over-year growth in datacom revenue, reflecting strong performance in optical communications [12] - FN stock has returned 22% year-to-date, trading at 26.2 times forward earnings and 3.1 times sales, with potential for continued growth [13] Vanguard Growth ETF (VUG) - The Vanguard Growth ETF provides exposure to large-cap U.S. growth stocks, with over half of its holdings in technology [15][17] - Since January, VUG has gained over 11%, outperforming the Nasdaq 100 index (9%), S&P 500 (10%), and Dow Jones Industrial Average (5%) [19] - The fund trades at 38 times trailing earnings and 10 times book value, with a competitive expense ratio of 0.04% and a modest 0.5% dividend yield [19]