The US stock markets have gone up leading up to the day of President Donald Trump’s inauguration. All the major indices are set to continue their optimism from last week, when the Dow, the S&P, and the Nasdaq all reported gains of over 3.7%.
Even though the S&P had hardly moved from its early November levels when the election happened, many mega-cap stocks continue to register 52-week highs. We looked at some of these stocks and why they are expected to continue surging up with the earnings season already underway.
To come up with our list of 10 mega-cap stocks that could continue surging post 52-week highs, we only considered stocks that have recently hit their 52-week highs and have a market cap of at least $150 billion.
An aerial shot of a regional bank with its numerous branches situated in a city.
10. Citigroup Inc. (NYSE:C)
Citigroup Inc. is a worldwide financial and banking services provider to institutions, governments, consumers, and corporations. It operates through markets, wealth, U.S. personal banking, and other segments. The company’s shares have just reached a 52-week high boosting investors’ confidence.
The company’s Q4 report showed a 12% rise in revenue, making it one of the strongest quarters in a decade. The company wants to buy back shares worth $1.5 billion in the 1st quarter of 2025, which should add further value to the stock. It shows the company is confident in its financial position, which should also help it in its aim of becoming one of the world’s top investment banks.
After the price surge, the valuation gap is reduced from 0.4 tangible book value to 0.8 reaching a more reasonable level. The overall performance of the company was quite good as its stock had already gained over 50% in the past year. With a continuous upward trend in the stock performance, it continues to attract investors’ attention.
9. Arista Networks Inc. (NYSE:ANET)
Arista Networks Inc. is a cloud networking solution provider for campus, data center, and routing environments. The firm is a major player in high-speed AI networking, being one of the top suppliers in the market. The company’s stock hit a 52-week high indicating a positive trend.
Since late 2022 ANET has recorded a 280% price surge. This isn’t as impressive as some of the AI stocks but it still comfortably outperformed the S&P 500. The company is expected to create a mid-teens growth cadence by 2026. Even though the valuation seems high, keeping in mind the future growth of AI, the price is justified considering the long-term investment potential of the firm.
The share price continued its momentum in 2024, going up 90% to end another successful year. It is likely to follow the upward trend in 2025 as well making it an ideal long-term option for investors.
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