Selloff or Market Correction? Either Way, Here's What to Do NextSee Overvalued Stocks

S&P 500's Q1 Standouts: Energy, Communication Sectors In The Lead — 10 Top-Performing Stocks

Published 02/04/2024, 15:56
Updated 02/04/2024, 17:11
© Reuters.  S&P 500's Q1 Standouts: Energy, Communication Sectors In The Lead — 10 Top-Performing Stocks

© Reuters. S&P 500's Q1 Standouts: Energy, Communication Sectors In The Lead — 10 Top-Performing Stocks

US500
1.09%
DIS
0.59%
SPY
0.86%
VZ
-0.10%
OMC
1.92%
VLO
-0.29%
NFLX
0.78%
MPC
1.31%
TRGP
2.47%
META
-1.73%
PSX
0.02%
ITOT
1.17%
FANG
1.23%

Benzinga - by Surbhi Jain, .

The first quarter of 2024 proved to be an eventful period for investors as the S&P 500 Index exhibited significant growth, surging by 9.94%. Among the various sectors comprising the index, two sectors stood out for their remarkable performance: energy and communication services.

The S&P 500 Index is widely tracked by the SPDR S&P 500 ETF (NYSE:SPY), the iShares Core S&P 500 ETF (NYSE:IVV) and the Vanguard S&P 500 ETF (NYSE:VOO).

Also Read: Goldman Sachs Predicts 15% Upside For S&P 500, AI Boom Could Drive Market To 6,000

Let’s delve deeper into the standout sectors and the top-performing stocks within each.

Energy Sector: A Strong Rally (+13.47%)

The energy sector, represented by the SPDR Energy Select Sector Fund (NYSE:XLE), experienced a notable upswing with a growth rate of 13.47% during Q1. This surge can be attributed to multiple factors, including the ongoing global economic recovery, increased demand for oil and gas, and supply chain disruptions impacting the sector.

Chart: Benzinga Pro

Leading the charge in the energy sector were several key stocks that significantly contributed to its impressive performance:

  • Marathon Petroleum Corp. (NYSE:MPC): With a remarkable surge of 37.78%, Marathon Petroleum stock has emerged as one of the top-performing stocks in the energy sector. The company, which engages in refining, marketing, and transportation of petroleum products, benefited from rising oil prices and strong demand for refined products.
  • Valero Energy Corp (NYSE:VLO): Valero Energy stock recorded a substantial gain of 32.80% during Q1. As one of the largest independent petroleum refining and marketing companies, Valero capitalized on favorable market conditions, robust refining margins, and operational efficiencies to drive its impressive performance.
  • 3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads.
  • Targa Resources Corp (NYSE:TRGP): Targa Resources’ stock witnessed a solid growth rate of 29.19% in Q1. The company, specializing in the gathering, processing, and storage of natural gas and natural gas liquids, benefited from increased demand for natural gas and higher commodity prices.
  • Diamondback Energy Inc (NYSE:FANG): Diamondback Energy, an independent oil and natural gas company, saw its stock price surge by 28.61% during the first quarter. The company’s focus on efficient operations, cost discipline, and strategic asset development contributed to its strong performance amid favorable market conditions.
  • Phillips 66 (NYSE:PSX): Phillips 66 is a diversified energy manufacturing and logistics company. Its stock delivered a solid performance with a growth rate of 22.68% in Q1. The company’s integrated business model, along with its focus on operational excellence and capital discipline, positioned it well to capitalize on improving market dynamics.
  • Communication Services: Riding High (+13.25%)

    While the energy sector led the pack, communication services emerged as a close second in terms of performance. The Communication Services Select Sector SPDR Fund (NYSE:XLC), which adequately represents the sector’s equity, posted a return of 13.25% over the past 3 months. This sector, encompassing companies involved in telecommunications, media, and entertainment, benefited from various factors driving demand for digital services and content consumption.

    Chart: Benzinga Pro

    Here are the top-performing stocks within the communication services sector:

  • Meta Platforms, Inc. Class A (NASDAQ:META): Formerly known as Facebook, Meta Platforms’ stock witnessed an impressive surge of 38.82% in Q1. The company’s strategic focus on the metaverse, virtual reality technologies, and digital advertising propelled its stock to new heights, despite regulatory challenges and controversies.
  • 3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads.
  • Walt Disney Co (NYSE:DIS): Walt Disney stock experienced robust growth of 34.60% during the first quarter. The entertainment giant’s diversified portfolio of media networks, theme parks, and streaming services, coupled with successful content releases and the gradual recovery of the global tourism industry, contributed to its stellar performance.
  • Netflix Inc (NASDAQ:NFLX): Netflix is a leading streaming service provider. Netflix stock’s performance during the past quarter was solid, recording a growth rate of 26.17% in Q1. The company continued to benefit from the secular shift towards digital streaming, the success of its original content, and its expanding international subscriber base.
  • Verizon Communications Inc (NYSE:VZ): Verizon Communications is a well-known telecommunications company. Its stock posted a respectable gain of 12.15% during the first quarter. The company’s focus on expanding its 5G network infrastructure, improving customer experiences, and diversifying its revenue streams contributed to its steady growth.
  • Omnicom Group Inc (NYSE:OMC): Leading global marketing and corporate communications company, Omnicom Group’s stock price rose by 11.64% in Q1. The company’s diverse range of advertising, marketing, and public relations services, combined with its ability to adapt to evolving consumer trends, supported its solid performance.
  • The first quarter of 2024 witnessed robust performance across various sectors of the S&P 500 index. The energy sector emerged as the top performer, while communication services followed closely behind. The financials sector, as represented by the SPDR Select Sector Fund – Financial (NYSE:XLF), was up 11.30% while the industrials sector came in fourth at 9.65%. The industrials sector is tracked by the
    3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads.
    SPDR Select Sector Fund – Industrial (NYSE:XLI).

    Read Next: ‘Bizarrely Overvalued’: S&P 500 Could Plummet 49% If Recession Strikes, Warns Top Strategist

    Image generated using artificial intelligence via Midjourney.

    © 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

    Read the original article on Benzinga

    Is DIS truely undervalued?

    With DIS making headlines, investors are asking: Is it truly valued fairly? InvestingPro's advanced AI algorithms have analyzed DIS alongside thousands of other stocks to uncover hidden gems with massive upside. And guess what? DIS wasn't at the top of the list.

    Unlock ProPicks AI

    Latest comments

    Loading next article…
    Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
    Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
    Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
    It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
    Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
    © 2007-2024 - Fusion Media Limited. All Rights Reserved.