How Steven Cress' Top 10 2024 Picks Have Fared

Market Overview - The Magnificent 7 stocks drove the S&P 500's performance in 2023, with a 25% return, while the median return for the S&P 500 was negative 16% [3] - In 2024, the market saw a rotation from the Magnificent 7 to value and small-cap stocks, with utilities and consumer staples performing well [4] - The market experienced volatility in August, with the VIX hitting 60, but stabilized as investors anticipated Fed rate cuts [4] - The market normalized post-August, with a focus on fundamentals and a broadening participation across sectors [4] Top 10 Stocks of 2024 - AppLovin (APP) was the top performer, up 907% YTD, followed by Celestica (CLS) up 223%, Modine Manufacturing (MOD) up 134%, and Rolls-Royce (RYCEY) up 95% [4] - Meta (META) returned 76%, Abercrombie & Fitch (ANF) returned 71.5%, Banca Intesa (ISNPY) returned 51%, and GigaCloud Technology (GCT) returned 21% [4] - M/I Homes (MHO) returned 15.7%, while Dorian (LPG) was the only underperformer, down 42% [4] - The top 10 stocks collectively returned 155.7%, outperforming the S&P 500's 27% return [4] Quant Methodology - The quantitative process evaluates stocks based on value, growth, profitability, momentum, and EPS revisions, using over 100 metrics [4] - Stocks are rated as Strong Buy, Buy, Hold, or Sell, with daily updates to reflect the latest data [4] - The system compares each stock's metrics to its sector, providing a relative strength assessment [4] Magnificent 7 and Mega Tech Stocks - The Magnificent 7 stocks, including Meta, Tesla, NVIDIA, and Google, have seen strong growth but face valuation challenges [7][8] - Forward growth rates for these stocks are lower than their year-over-year growth rates, indicating potential slowing momentum [7][8] - Apple is the only mega tech stock with a forward growth rate higher than its year-over-year growth rate [8] Future Market Outlook - The market is expected to broaden in 2025, with small-cap, industrial, and consumer discretionary stocks likely to perform well [9] - Equal-weight S&P 500 (RSP) is seen as more attractive for 2025 due to reduced concentration risk in mega tech stocks [9] - The Quant system's Alpha Picks product has delivered a 178% return since inception, outperforming the S&P 500's 60% return [10]