Morningstar.com recently discussed how GE Aerospace (NYSE:GE) stock has skyrocketed over the past 12 months, gaining 86%, with more than half the gains in 2024. Apparently momentum plays like GE have become the stocks to buy entering the second half of the year.
It’s hard to believe that GE’s become a momentum stock after lying dormant for so many years. Kudos to CEO Larry Culp for the job he’s done delivering value for long-suffering shareholders.
GE isn’t the only stock that skyrocketed over the past year. According to Finviz.com, there are 67 U.S.-listed stocks (market cap of $2 billion or higher) that have achieved a 100% retunrn or more over the past 52 weeks.
The stock with the largest market capitalization that doubled its money over the past year is NVIDIA (NASDAQ:NVDA), the AI superstar. The stock with the smallest market cap to do so is Amneal Pharmaceuticals (NASDAQ:AMRX), a producer of more than 280 generic and specialty pharmaceuticals.
Here are three more to add to your list of stocks to buy.
Modine Manufacturing (MOD)
Modine Manufacturing (NYSE:MOD) has a $4.92 billion market cap as I write this with a 201% gain over the past 52 weeks.
Most investors would never think it’s possible for a company that’s over a hundred years old to be able to triple its market cap in a single year, but that’s precisely what Modine has done since last June.
Founded in 1916 by Arthur B. Modine, the company started by manufacturing thermal solutions for the emerging automobile industry. Since then it’s taken its business global, providing thermal solutions in many different markets including HVAC, data centers, and automotive.
In May, it reported its Q4 2024 and full-year results. In 2024, its sales increased 5% to $2.4 billion, while its adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) jumped 48% to $314 million, a healthy EBITDA margin of 13.1%.
It has two operating segments: Climate Solutions (43% of sales) and Performance Technologies (57%).
In 2025, it expects sales to grow by 7.5% at the midpoint of its guidance with an adjusted EBITDA of $375 million, nearly 20% higher than in 2024.
In November 2023, I recommended investors consider buying MOD stock because it was growing its free cash flow by focusing on higher-margin markets. So far, it’s working like a charm.
Arista Networks (ANET)
Arista Networks (NYSE:ANET) has a $105.72 billion market cap with a 124% gain over the past 52 weeks. Since it went public in June 2014 at $43, its stock has appreciated by 3,038%, which includes a four-for-one stock split in November 2021.
The cloud networking stock has done well in 2024 due to the emergence of AI. Its networking products help AI leaders such as Microsoft (NASDAQ:MSFT) and Meta Platforms (NASDAQ:META) — the two companies account for approximately 39% of its overall revenue — carry out AI workloads requiring efficient data-throughput for its GPU networks.
Its Q1 2024 revenue increased 16.3% year-over-year to $1.57 billion. Sequentially, its sales grew 2.0% from Q4 2023. Meanwhile, its non-GAAP net income jumped 40.9% to $637.7 million. Its earnings per share rose at a slightly slower rate of 39.2% due to more shares outstanding.
Of the 27 analysts covering ANET stock, 18 rate it a Buy, with a $327.50 target price, below where it’s currently trading.
The company’s steady-as-she-goes performance should continue to deliver solid long-term returns for its shareholders. If you are looking for the top stocks to buy, start here.
Sterling Infrastructure (STRL)
Sterling Infrastructure (NYSE:STRL) has a $3.59 billion market cap with a 123% gain over the past 52 weeks.
In the same November 2023 article recommendeding Modine, I also recommended Sterling Infrastructure. My rationale was simple: It continues to benefit from rebuilding America’s infrastructure.
It finished the first quarter with a $2.35 billion backlog. Due to the strong start to 2024, it now expects revenues to grow by 12% year over year, net income to increase by 23%, and a 16% increase in EBITDA.
Most importantly, its cash flow has grown considerably, from $25 million in 2017, to $479 million in 2023, a compound annual growth rate of 64%. Based on 2023 free cash flow of $428 million and an enterprise value of $3.50 billion, it has a free cash flow yield of 12.2%. Anything above 8% is value territory.
Investors can expect its free cash flow to continue to grow given its focus on strategic acquisitions.
“We continue to believe that the best use of our cash is strategic acquisitions that expand our suite of services, enhance our competitive position, or expand our geographic reach,” stated its 2023 annual report.
“We remain very active in the pursuit of potential targets, with particular focus in E-Infrastructure Solutions and Building Solutions.”
On the date of publication, Will Ashworth did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
