3 stocks that have tripled their market returns so far this year

The bull market that sent stocks soaring 24% in 2023 isn’t over yet.Benchmarks year-to-date S&P500 Wall Street is enthusiastic about the prospect that interest rates could soon start falling while the U.S. economy remains in growth mode.

Many stocks have benefited disproportionately from this bullish attitude among investors, and some have already tripled the market’s year-to-date returns. Let’s take a look at three of the biggest winners so far this year. meta platform (NASDAQ:Meta), deckers (NYSE:Deck)and Netflix (NASDAQ:NFLX).

1. Deckers

Deckers is riding a wave of strong demand for many popular shoe brands, including Hoka and Ugg. These wins allow us to stand out compared to competitors such as: Nikehas suffered from declining sales and prices recently.

Dekkers sees no such challenges. In fact, his sales increased by 16% in the third quarter of fiscal 2024 (ending December 31st). Compare this to the slight decline in Nike’s sales in the last reported quarter, and you can understand why investors have driven Deckers stock higher this year. The company also sells many of its products at full price, highlighting how this business differentiates itself from its competitors. Gross margin jumped to 53% of sales last quarter, compared to 48% of sales in the year-ago period.

Management raised its fiscal 2024 outlook for the second time last month. Inventory levels are also low, suggesting significant room for future revenue growth and price-to-earnings ratio upside.

2. Metaplatform

A year ago, investors were concerned about Metaplatforms’ slowing growth and ballooning expenses, but those concerns have completely dissipated in recent quarters. In addition to expanding its user base, the social media giant is also improving the economics around advertising.

Big advertisers are clinging to the Facebook and Instagram platforms while cutting back on spending elsewhere. The number of ad impressions in the fourth quarter increased by his 21% and contributed to his 25% increase in revenue. Combine that success with dramatic cost-cutting moves (his headcount was down 22% last quarter) and you have the ingredients needed for a sharp rise in revenue.

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Net income in 2023 increased 69% to $39.1 billion. As if that wasn’t enough to satisfy Wall Street, Meta also began paying dividends, with the first dividend paid to shareholder accounts in late March.

3. Netflix

Don’t look now. However, Netflix stock is finally climbing towards the all-time high it hit in late 2021. The streaming video giant has taken investors on a roller coaster ride in recent years. The stock price plummeted from about $690 to $170 as the fallout from pandemic growth began, and the company endured consecutive quarters of subscriber losses (Q1 and Q2 2022) for the first time in its history.

It turns out that the decline was only a temporary acceleration. Year-over-year subscriber growth accelerated for the fourth consecutive quarter, and in the fourth quarter he increased by 12.8%. Netflix currently has 260.3 million paid subscribers, up from 230.8 million at the beginning of 2023.

Wall Street is excited by the prospect of even faster growth as Netflix’s advertising business matures and the company continues to benefit from a crackdown on account sharing. As long as Netflix can continue to grow its subscriber base, cash flow, and operating margins, investors can expect to see this stock continue to deliver superior returns.

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When our analyst team has information about a stock, it’s worth listening to. After all, the newsletter they’ve been running for 20 years is Motley Fool Stock Advisorhas more than tripled its market. *

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*Stock Advisor returns as of March 21, 2024

Randi Zuckerberg is a former Facebook head of market development and spokesperson, sister of Meta Platforms CEO Mark Zuckerberg, and a member of the Motley Fool’s board of directors. Demitri Kalogeropoulos has held positions at the meta-girlfriend platform, Netflix, and Nike. The Motley Fool has positions in and recommends Meta Platforms, Netflix, and Nike. The Motley Fool recommends the following options: His January 2025 $47.50 long call against Nike. The Motley Fool has a disclosure policy.

3 stocks that have tripled their market returns so far this year was originally published by The Motley Fool