Nvidia and Warren Buffett's Berkshire Hathaway were among four stocks that pushed their sectors to equal or beat the S&P 500 Index so far this year, according to DataTrek Research. Meta Platforms and Eli Lilly also lifted their sectors to outperform the S&P 500.
Four out of the 11 sectors beat the S&P 500 Indexes' 6.7% year-to-date gain through Friday's close, according to DataTrek Research. Communication services are up 9.7%, health care gained 8.4%, financials increased 7.2%, and technology matched the S&P's 6.7% rise.
It's not unusual or alarming to see one leader outshine and lift a sector, according to Nicholas Colas, Co-founder of DataTrek Research. These four names did just that.
Nvidia Stock Lifts Technology Sector
Nvidia stock has rallied 59% thus far this year through Friday — with several days still to go in February — and helped push the technology sector higher. The company comprised about 5.5% of the total tech sector weight and its robust performance added 3.3% of the sector's 6.7% increase. Excluding the artificial intelligence and chip leader, the sector would be lagging the S&P considerably.
Nvidia stock gapped up 16.4% in heavy volume after the company's robust January-ended quarterly earnings report on Feb. 21. Shares are extended from a flat base with a 505.48 buy point. Further, shares reached an all-time high on Friday and now trade around the 800 level.
Warren Buffett's Berkshire Stock Lifts Financial Sector
Class B shares of Warren Buffett's Berkshire Hathaway stock climbed nearly 17% through Friday. The conglomerate's stock makes up around 13.5% of the financial services sector. Berkshire stock added 2.3% of the sector's 7.2% gain this year and without it the sector would have risen only 4.9%.
Berkshire stock reached an all-time high Monday morning before retreating. The company reported its fourth-quarter results and annual shareholder letter on Saturday.
Investors may have been disappointed, especially after Buffett's letter to shareholders said: "All in all, we have no possibility of eye-popping performance."
Still, Berkshire is sitting on a record $167.6 billion in cash as it searches for possible acquisitions that meet its stringent criteria. Berkshire owns a variety of holdings, including Geico insurance, utilities, railroads and a candy company.
Meta Platforms, Eli Lilly Reward Investors
Meta Platforms popped around 38% this year and makes up a hefty 27% of the communication services sector. Its hearty weighting added 10.5% to the sector's total gain of 9.7% for the year. Without Meta, the sector would be lagging badly.
Meta stock gapped up after the social media giant topped fourth-quarter profit and sales estimates on Feb. 1. The Facebook and Instagram parent's quarterly sales grew 25% over last year's quarter with outstanding 203% earnings growth. Meta also surprised shareholders by announcing its first-ever dividend of 50 cents per share.
Finally, outside of highflying Nvidia and Meta Platforms stocks, Eli Lilly stock rallied a handsome 32% this year and is near its all-time high reached on Feb. 16. Its performance gave a 3.2% boost to the health care group's overall 8.4% gain. Without its 10% weighting, the sector would only show a more modest 5.2% increase.
The stock is in the 20% profit zone from a flat base with a 629.97 buy point. Shares rallied since the drugmaker reported fourth-quarter earnings and sales results on Feb. 6 that beat Wall Street views. Eli Lilly specializes in weight loss and diabetes treatments.
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