The fact that Nvidia's business is on fire is no surprise — the AI stock was one of last year's best. But it's not alone in growing like crazy.
Eleven companies in the S&P 500 — including Nvidia, Las Vegas Sands and Wynn Resorts — are expected to post revenue growth of 3o% or more when they report their fourth-quarter results, says an Investor's Business Daily analysis of data from S&P Global Market Intelligence and Marketsmith.
Such growth is an utter standout. These firms' forecast quarterly growth is orders of magnitude higher than the 3.1% revenue growth expected from the S&P 500, says Nicholas Colas, co-founder of DataTrek Research citing data from FactSet.
"We know most S&P 500 companies will beat analysts' estimates when they report (fourth quarter) results, but it will be top-line growth that determines the quality of those beats," Colas said.
Nvidia Leads The Charge For Revenue Growth
Nvidia isn't alone in growing revenue rapidly, but it is the fastest.
Analysts think the maker of high-powered computer chips used in AI will post fourth-quarter revenue of $20.2 billion. If that's right it would mark a 234% jump from the same year-ago period.
No other S&P 500 company's fourth-quarter top-line growth is likely to come anywhere near that. The average S&P 500 company's forecast revenue growth is just 3.3%. Such off-the-hook growth explains investors' enthusiasm for NVDA stock. Shares of Nvidia jumped 15% this year already after soaring 239% in 2023. Nvidia is due to report results on Feb. 15.
Casinos On Nvidia's Tail
Following Nvidia in terms of revenue growth are large casino operators like Las Vegas Sands and Wynn Resorts. Both are benefiting from people's desire to travel and gamble after being quarantined for so long after the pandemic.
Analysts think Las Vegas Sands will post $2.9 billion in revenue in the fourth quarter. If that's right it would be nearly 159% higher than the same year-ago period. The company is due to report on Jan. 24. And then there's rival Wynn. It's expected to put up 71.9% higher fourth-quarter revenue of $1.7 billion. It's set to report on Feb. 2.
Investors are gradually shifting their chips into the casino stocks already. Shares of Las Vegas Sands and Wynn Resorts are up 0.9% and 3.1%, respectively, this year. The S&P 500 in contrast is up just 0.3%.
So, yes, Nvidia's growth is amazing. But it's not the only standout.
Fastest Growers In S&P 500
Based on estimates for fourth-quarter 2023 revenue
| Company | Ticker | Q4 revenue change (est.) | Sector | Stock change in 2024 |
|---|---|---|---|---|
| Nvidia | 233.5% | Information Technology | 15.0% | |
| Las Vegas Sands | 158.3% | Consumer Discretionary | 0.9% | |
| Wynn Resorts | 71.9% | Consumer Discretionary | 3.1% | |
| DTE Energy | 66.4% | Utilities | -4.1% | |
| Extra Space Storage | 57.5% | Real Estate | -8.7% | |
| Carnival | 37.5% | Consumer Discretionary | -7.7% | |
| Xylem | 36.3% | Industrials | -3.0% | |
| Qorvo | 34.9% | Information Technology | -8.1% | |
| Lamb Weston Holdings | 33.1% | Consumer Staples | 1.8% | |
| Broadcom | 31.3% | Information Technology | 2.3% | |
| First Solar | 30.9% | Information Technology | -14.7% |
