If You Want to Beat the Market, Start With These 3 Stocks
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Quick Read
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Eli Lilly (LLY) posted Q1 revenue of $19.8B with 56% growth and EPS up 170% to $8.26, while securing approval for Foundayo, a weight-loss pill expected to drive growth; Chevron (CVX) generated $48.61B in Q1 revenue with $2.2B profit and raised its quarterly dividend by 4% to $1.78, maintaining 38 consecutive years of dividend increases.
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Alphabet (GOOGL) achieved 22% year-over-year revenue growth to $109.9B with Google Cloud revenue surging 63% to $20B and a backlog exceeding $460B. Strong fundamentals and growth catalysts across healthcare, energy, and technology sectors position these companies to outperform amid market uncertainty and geopolitical tensions.
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Investors are concerned about where the stock market is headed this year. The ongoing geopolitical tensions, inflation concerns, and economic uncertainties are weighing on the market. If you are worried about a market downturn in the near future, there are stocks that can continue to stand strong.
The S&P 500 has gained 5% this year, but there’s the risk of a crash later in the year. A crash could impact several industries and lead to higher inflation. But you could build a portfolio that reduces risk and continues to beat the market. It helps to choose businesses that have strong fundamentals, and here are three businesses that can beat the market. Let’s take a look at them.
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When the S&P 500 teeters, these three industry leaders offer a masterclass in resilience and explosive growth. © 24/7 Wall St.
Eli Lilly
If you’re concerned about the market, one solid healthcare business to own is Eli Lilly (NYSE:LLY | LLY Price Prediction). It has impressive fundamentals, a solid drug pipeline, and an ability to thrive even if the overall market is falling. The company recently reported first quarter results and beat expectations. The revenue jumped 56% to $19.8 billion, driven by volume growth. The EPS was up 170% to $8.26, and its pipeline progress shows positive Phase 3 results from several drugs.
Despite the impressive numbers, the stock has dropped and lost 10% year-to-date. This dip is an amazing opportunity to buy. Earlier in 2022, the stock soared with the approval of the GLP-1 injectable, Mounjaro, and the rally hasn’t stopped. It has gained over 390% in five years. There’s bullishness around its growth potential, which continues to attract investors.
Eli Lilly has recently received an approval for its next big growth driver, Foundayo, a weight-loss pill. Early results from its trials will give the stock a boost. The management has raised its full-year sales and profit outlook, showing confidence in the business.
Exchanging hands for $963, the stock is trading at a premium, but its strong growth potential could take it higher. The stock might also be ready for a split, considering it is inching closer to the 52-week high of $1,133. No matter what happens to the market this year, Eli Lilly will not disappoint.
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Chevron Corporation
A solid dividend stock and a hot stock today, Chevron (NYSE:CVX) is an oil and gas giant that has dominated the industry for years. The ongoing geopolitical tension has led to a surge in crude oil prices, and Chevron is one of the top beneficiaries of the same. It announced the first quarter results recently and posted an adjusted EPS of $1.41 per share, beating estimates. Since the company has upstream, midstream, and downstream businesses, it remains less exposed to the war than its peers.
Chevron posted a revenue of $48.61 billion and a profit of $2.2 billion. It has business in Kuwait, Israel, and Saudi Arabia, but it holds large positions in Asia, North and South America, and Africa. The global diversification keeps the business safe during global unrest. The company produced 3.9 million barrels per day, a 15% jump over the previous quarter, and its production segment reported a profit of $3.9 billion.
Exchanging hands for $190, the stock is up 22% year to date and is steadily increasing production. It has a dividend yield of 3.73% and makes an annual payment of $7.12 per share. It has raised dividends for 38 consecutive years. Chevron lifted the dividend payout by 4% to $1.78 in the first quarter. The management is aiming for $3 to $4 billion in structural cost reduction by the end of this year, which could boost the dividends.
Despite the market uncertainty and geopolitical issues, Chevron’s fundamentals remain impressive. This stock will continue to beat the market in the long term.
Alphabet
Tech company Alphabet (NASDAQ: GOOGL | GOOGL Price Prediction) is growing at an impressive rate, and the numbers are proof. Up 21.88% year-to-date, GOOG stock is exchanging hands for $384. It has gained over 100% in the past year. The biggest growth driver of the business is Google Cloud.
The first quarter results saw a 22% year-over-year jump in the total revenue to $109.9 billion. It is the company’s fastest growth since 2022, and I believe there’s no stopping the momentum. The Google Cloud revenue increased 63% year over year to $20 billion, and the segment’s backlog reached over $460 billion. These are the cloud sales already locked in.
Alphabet is firing on all cylinders, and this is one business that will continue to keep rewarding you. There was a time when investors thought Alphabet was too late to the AI race, but the management has proved them wrong. The service revenue climbed 16% to $89.6 billion, and the management announced a 5% dividend hike to reward shareholders.
The long-term picture for Google looks attractive. The stock’s journey from $165 in May 2025 to $384 today is impressive. Alphabet is planning to spend $180 billion to $190 billion in capex this year. It expects higher spending in 2027. While the stock is trading at a premium, it is worth the money. GOOG is a smart way to invest in AI, and I think the stock could reach $500 very soon.
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