The Magnificent Seven stocks in the S&P 500 get lots of attention — for some good reasons. But top profit growth isn't one of them.
Turns out that 15 S&P 500 stocks, including Allstate, Merck and Uber Technologies, all posted 2024 profit growth that outstripped even the fastest growing Magnificent Seven stock: Meta Platforms.
All these stocks' adjusted profit per share rose 63% or higher in calendar year 2024. That tops Meta's EPS growth in that time period of 60.5%.
Sizing Up S&P 500 Earnings
Fourth-quarter S&P 500 earnings reporting is in full swing. More than 280 stocks in the index have reported their results for the quarter and year, says an Investor's Business Daily analysis of data from S&P Global Market Intelligence and MarketSurge.
And analysts are expecting a solid quarter for profit. Companies in the S&P 500 are on pace to report an average earnings growth rate of 13.2% in the fourth quarter. That "would mark the highest earnings growth rate for the index since the fourth quarter of 2021," said John Butters of FactSet.
For the full year, analysts are calling for 9.4% earnings growth. But many S&P 500 firms are doing much better than that.
Big Profit Growth
Insurer Allstate is driving more profit growth than any other S&P 500 company in 2024. Its profit was up more than 1,828% on the year.
Just to put that into perspective, Allstate's profit growth blows away the 407% gain by the No. 2 fastest grower in the S&P 500: drugmaker Merck. Insurance premiums are rising across the country for most types of coverage.
Allstate's stock, though, is cooling off a bit despite its blistering 2024 profit growth. It sports an RS Rating of just 71 and EPS Rating of 77. Analysts think the company's profit will be flat in 2025. Shares are consolidating around the current price of 191.88
What about Merck? It's a similar story. Shares are 35% off their 52-week high despite huge 2024 profit gains. The stock's RS Rating is just 12. Analysts just think the company can't repeat its stellar 2024 gains. Profit is only expected to rise 19% in 2025 and 9% in 2026.
Other Sectors Of Profit Growth
The financial sector is home to most of the companies with Magnificent Seven-beating profits. But there's a tech play, too.
AI play and security software firm Palantir Technologies put up 64% earnings growth last year. And the stock is on fire, shooting to a new high of 111.28 with an RS Rating of 99. Analysts don't expect a repeat of 2024's insane growth, but more solid growth. The company's profit is seen rising 29% in 2025 and 27% in 2026.
That's even better than magnificent.
Top S&P 500 Profit Growth In 2024
| Company | Ticker | 2024 EPS % ch. | Sector |
|---|---|---|---|
| Allstate | ALL | 1,828.4% | Financials |
| Merck | MRK | 406.6% | Health Care |
| Uber Technologies | UBER | 227.4% | Industrials |
| Tyson Foods | TSN | 203.4% | Consumer Staples |
| Stanley Black & Decker | SWK | 200.7% | Industrials |
| Progressive | PGR | 128.3% | Financials |
| Eli Lilly | LLY | 105.5% | Health Care |
| Hess | HES | 91.7% | Energy |
| Goldman Sachs | GS | 77.3% | Financials |
| Royal Caribbean Cruises | RCL | 74.3% | Consumer Discretionary |
| Pfizer | PFE | 69.0% | Health Care |
| Netflix | NFLX | 64.8% | Communication Services |
| Travelers | TRV | 64.4% | Financials |
| Palantir Technologies | PLTR | 64.0% | Information Technology |
| General Electric | GE | 63.7% | Industrials |
Follow Matt Krantz on X (Twitter) @mattkrantz
