If you're up 159% on Nvidia stock this year, you probably think you're the top dog. But outside the S&P 500 one major stock has done better.
Shares of networking equipment maker Lumen Technologies, which is a stock in the S&P 1500 but not the S&P 500, is up 185% this year, says an Investor's Business Daily analysis of data from S&P Global Market Intelligence and MarketSurge.
That makes Lumen the top performing stock in the broad index that includes smaller stocks, too. If you only own the S&P 500, like many investors do, you don't own Lumen. Yet.
Who The Heck Is Lumen?
If you haven't heard of Lumen, don't feel too bad. While the stock carries a strong 99 Relative Strength Rating, it's a small cap worth $6.2 billion. And yet, it's one of just seven S&P 1500 stocks to double — or more — this year.
The Monroe, La.-based firm has also morphed many times in its history dating back to 1968. It was formerly known as CenturyLink. But its line of business is the same. The company provides digital connectivity to businesses and consumers. It also has a cloud computing operation.
But what's powering the better-than-Nvidia stock performance? It's not the fundamentals. The company's adjusted earnings per share is seen falling 258% this year and 62% in 2025. Analysts think the company will lose money both years. The key, though, is investors are betting the company will lose less than feared. Last fiscal year, Lumen made 20 cents a share, topping views by nearly 18%.
The other factor propelling Lumen shares is a very low starting point. The stock entered the year at just 1.83 a share. So trading up to 5.22 is a massive jump. There's also strong short interest on Lumen, making the shares more volatile.
Waiting For Nvidia
Of course, everything could change Wednesday. That's the day Nvidia is expected to report its July quarter financial results. Analysts think it will make 64 cents a share, a jump of more than 137% from the same year-ago period.
Additionally, Nvidia has topped expectations in each of the past six-straight quarters. Another big upside surprise might be enough to push Nvidia back past Lumen.
Top S&P 1500 Stocks This Year
| Company | Ticker | Index | YTD % ch. | Sector |
|---|---|---|---|---|
| Lumen Technologies | S&P 600 | 185.3% | Communication Services | |
| Nvidia | S&P 500 | 159.1% | Information Technology | |
| Vistra | S&P 500 | 119.7% | Utilities | |
| Tenet Healthcare | S&P 400 | 116.8% | Health Care | |
| Sprouts Farmers Market | S&P 400 | 113.3% | Consumer Staples | |
| Powell Industries | S&P 600 | 107.0% | Industrials | |
| Carpenter Technology | S&P 600 | 102.9% | Materials |
