Small-cap stocks emerged as the standout performers of 2024, significantly outpacing their blue-chip counterparts amid a broader market rally.
What Happened: The disparity was particularly striking in the year's top performers, with small-cap leader KULR Technology Group (NASDAQ:KULR) delivering an extraordinary 2,494% return, while blue-chip frontrunner NVIDIA Corporation (NASDAQ:NVDA) gained a still-impressive 184%.
Traditional blue-chip stocks, typically components of the Dow Jones Industrial Average, demonstrated their characteristic stability while still posting notable gains.
Historically, small-cap stocks, typically valued between $250 million and $3 billion, have shown potential to outperform the S&P 500 despite higher volatility. The Russell 2000, which tracks this segment, serves as a key benchmark for small-cap performance.
Market Performance Comparison 2024, according to data from Benzinga Pro:
Category
Company
Performance (2024)
Price
Blue-Chip Stocks
NVIDIA Corp
184.36%
$137
Walmart Inc (NYSE:WMT)
77.79%
$91.66
American Express Co (NYSE:AXP)
59.87%
$301.05
Wells Fargo & Co (NYSE:WFC)
44.50%
$71.11
Costco Wholesale Corp (NASDAQ:COST)
44.42%
$939
Small-Cap Stocks
KULR Tech
2494.59%
$4.80
Red Cat Holdings Inc (NASDAQ:RCAT)
1423.86%
$13.41
Sezzle Inc (NASDAQ:SEZL)
1227.05%
$272.31
Dave Inc (NASDAQ:DAVE)
1099.17%
$100.55
Quantum Corp (NASDAQ:QMCO)
909.57%
$67.37
Why It Matters: The exceptional performance of small-caps aligns with ARK Invest CEO Cathie Wood's mid-2024 prediction of smaller companies outperforming the "Magnificent Seven" tech giants. Wood attributed this shift to the Federal Reserve's restrictive monetary policy, suggesting it could create opportunities beyond mega-cap stocks.
This shift comes as veteran Wall Street investor Ed Yardeni projects the S&P 500 to reach 7,000 by the end of 2025, citing a "Roaring 2020s" scenario driven by productivity gains and cooling inflation. Yardeni forecasts S&P 500 operating earnings per share to hit $285 in 2025, an 18.8% year-over-year increase.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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オーストラリアでは、moomooの投資商品及びサービスはMoomoo Securities Australia Limitedによって提供され、オーストラリア証券投資委員会（ASIC）の管理を受けております（AFSL No. 224663）。「金融サービスガイド」、「利用規約」、「プライバシーポリシー」などの詳細は、Moomoo Securities Australia Limitedのウェブサイトhttps://www.moomoo.com/auでご確認いただけます。
Historically, small-cap stocks, typically valued between $250 million and $3 billion, have shown potential to outperform the S&P 500 despite higher volatility. The Russell 2000, which tracks this segment, serves as a key benchmark for small-cap performance.
歴史的に、小型株は通常$25000万から$30億の間で評価され、高い変動にもかかわらずS&P 500をアウトパフォームする可能性を示しました。このセグメントを追跡するラッセル2000は、小型株パフォーマンスの重要なベンチマークとしています。