The S&P 500, known as the world’s most popular stock index, may not include all the top-performing stocks. A recent analysis by Investor’s Business Daily found that eight giant stocks, including Dell Technologies, The Trade Desk, and Apollo Global Management, are outperforming the S&P 500 by an average of more than 40% this year. These companies have market values of at least $30 billion and have posted profits in the past 12 months. While the S&P 500 captures over 95% of the value of large U.S. stocks, these omissions highlight the potential missed opportunities for investors.
Among the companies left out of the S&P 500, Dell Technologies stands out. Despite having a market value of $50 billion, it is not included in the index. However, its shares have surged over 74% this year, outperforming the S&P 500 by a wide margin. Similarly, VMware, with a market value of $72 billion and a profitable track record, has also been excluded from the index despite its 35% gain this year. The Trade Desk, Apollo Global Management, and KKR are other notable strong performers that are not part of the S&P 500.
These findings shed light on the potential missed opportunities for investors who solely focus on the S&P 500. While the index encompasses most big stocks, there are still significant winners outside of it. This suggests that investors should consider looking beyond the S&P 500 to identify and capitalize on these outperforming companies.
