The Russell 1000 Index is a market-capitalization-weighted index of the 1000 largest publicly traded companies in the U.S. It represents approximately 92% of the total market capitalization of all listed stocks in the U.S. equity market. For that reason, it is considered a bellwether for large-cap investing. Some of the largest companies in the index include Apple Inc. (AAPL), Johnson & Johnson (JNJ), and The Walt Disney Co. (DIS). The Russell 1000's total return is 21.0% over the past 12 months. All figures throughout this story are as of February 22, 2021.
Here are the top 5 stocks with the best value, the fastest growth, and the most momentum.
Best Value Stocks
Value investing is a factor-based investing strategy in which you pick stocks that you believe are trading for less than what they are intrinsically worth, usually by measuring the ratio of the stock's price to one or more fundamental business metrics. A widely accepted value metric is the price-to-earnings ratio (P/E Ratio). Value investors believe that if a business is cheap compared to its intrinsic value, in this case as measured by its P/E ratio, the stock price may rise faster than others as the price comes back in line with the worth of the company. These are the stocks with the lowest 12-month trailing price-to-earnings (P/E) ratio.
|Best Value Stocks|
|Market Cap ($B)||12-Month Trailing P/E Ratio|
|NRG Energy Inc. (NRG)||36.90||9.0||2.4|
|Bio-Rad Laboratories Inc. (BIO)||603.54||18.0||4.8|
|Virtu Financial Inc. (VIRT)||26.97||5.2||5.2|
|White Mountains Insurance Group Ltd. (WTM)||1267.52||3.9||5.5|
|Allstate Corp. (ALL)||105.31||32.0||6.0|
- NRG Energy Inc.: NRG Energy is an integrated power utility company that produces, sells, and distributes energy and energy services to approximately 3.7 million retail customers. The company generates about 23,000 megawatts of electricity, of which 43% derives from natural gas, 34% from coal, with the remaining percentage coming from oil, renewables, and nuclear. NRG Energy announced in early February that Kirkland Andrews was stepping down as chief financial officer (CFO). Gaetan Frotte, the company's senior vice president and treasurer, was appointed to serve as interim CFO while a search is conducted for a permanent CFO.
- Bio-Rad Laboratories Inc.: Bio-Rad is a healthcare company focused on life science research and the provision of clinical diagnostics products. The company offers a range of products including instruments, software, reagents, and consumables for use in cell biology, gene expression, protein purification and quantitation, and drug discovery and manufacture. Bio-Rad has global offices in 36 countries and annual sales in 2019 of more than $2.2 billion.
- Virtu Financial Inc.: Virtu Financial offers a broad range of financial services. The company operates as a market maker, providing liquidity in more than 25,000 securities, at over 235 venues, in 36 countries across the globe.
- White Mountains Insurance Group Ltd.: White Mountains Insurance is a diversified insurance and related financial services holding company. It provides a range of insurance services, including property and casualty insurance as well as reinsurance products. Its portfolio of businesses and subsidiaries includes: Ark, a U.K.-based provider of property and casualty insurance; NSM Insurance Group, an insurance distributor; MediaAlpha, a provider of insurance services and technology; and others.
- Allstate Corp.: Allstate provides a range of insurance products and services through its subsidiaries. It offers auto, home, life, renters, business, identity, and other types of insurance through its Allstate, Esurance, Encompass, SquareTrade, and Answer Financial brands. The company announced in early January that it had completed its $4 billion acquisition of National General Holdings Corp., a specialty personal lines insurance holding company.
Fastest Growing Stocks
Growth investing is a factor-based investing strategy in which you invest in businesses that you believe will grow significantly faster than the market as a whole. There are different growth metrics, but one of the most widely used is growth in profits, as measured by earnings per share (EPS). Growth investors believe that if a company consistently grows profits faster than the market as a whole, its stock price will rise as investors seek to get a share of future profits. These are the stocks with the highest year-over-year (YOY) EPS growth for the most recent quarter.
|Fastest Growing Stocks|
|Price ($)||Market Cap ($B)||EPS Growth (%)|
|Mattel Inc. (MAT)||19.46||6.8||64,360|
|Freeport-McMoRan Inc. (FCX)||38.08||55.6||7,670|
|Zoom Video Communications Inc. (ZM)||394.34||115.1||6,500|
|Celanese Corp. (CE)||137.52||15.7||3,370|
- Mattel Inc.: Mattel owns a portfolio of children's and family entertainment franchises that design, manufacture, and market dolls, action figures, toy cars, games, and more. Its popular brands include Barbie, Hot Wheels, Fisher-Price, DC Comics, and Apples to Apples. The company operates in 35 locations and its products are available in over 150 countries. Mattel announced in early February financial results for its 2020 fiscal year (FY), which ended December 31, 2020. The company posted annual net income of $126.6 million, a significant improvement from a net loss of $213.5 million in FY 2019. Net sales rose 1.8%.
- Freeport-McMoRan Inc.: Freeport-McMoRan is an international mining company that operates and owns assets with significant proven and probable reserves of copper, gold, and molybdenum. Its assets include: the Grasberg minerals district in Indonesia, one of the largest copper and gold deposits in the world; and significant mining operations in the Americas, including the large-scale Morenci minerals district in North America and the Cerro Verde operation in South America.
- IAC/InterActiveCorp: IAC/InterActiveCorp (Dotdash, including Investopedia.com, is a wholly-owned business of IAC/InteractiveCorp) is a media holding company that, through its subsidiaries, provides media and Internet services. Its five business segments include ANGI Homeservices, Vimeo, Search, Emerging & Other, and Dotdash, the latter of which operates a portfolio of digital brands, including Investopedia. IAC announced in late January that Vimeo, the world's leading video software company, had raised $300 million in primary equity at a valuation in excess of $5 billion. The announcement follows an earlier announcement in November 2020 of IAC's planned spinoff of Vimeo into an independent, separately-traded public company.
- Zoom Video Communications Inc.: Zoom Video Communications is a communications technology company that provides a video-first communication platform and Web conferencing services. Its cloud platform offers video, voice, content sharing, and chat for mobile devices, desktops, telephones, and room systems. Customers can engage in one-on-one chats or conduct large-scale online events with up to 10,000 view-only attendees.
- Celanese Corp.: Celanese is a global chemical and specialty materials company that makes and designs a broad range of products. This includes materials that are critical to the global paints and coatings industries, and materials solutions that improve the quality of automotive, medical, food and beverage products. It operates through six business segments: Engineered Materials; Acetate Tow; Intermediate Chemistry; Food Ingredients; EVA Polymers; and Emulsion Polymers. The company employs approximately 7,500 people and serves a range of different industries.
Stocks with the Most Momentum
Momentum investing is a factor-based investing strategy in which you invest in a stock whose price has risen faster than the market as a whole. Momentum investors believe that stocks which have outperformed the market will often continue to do so, because the factors that caused them to outperform will not suddenly disappear. In addition, other investors, seeking to benefit from the stock's outperformance, will often purchase the stock, further bidding its price higher and pushing the stock higher still. These are the stocks that had the highest total return over the last 12 months.
|Stocks with the Most Momentum|
|Price ($)||Market Cap ($B)||12-Month Trailing Total Return (%)|
|Moderna Inc. (MRNA)||159.37||63.1||774.2|
|Peloton Interactive Inc. (PTON)||125.75||37.0||393.3|
|Etsy Inc. (ETSY)||213.12||26.9||296.9|
|Tesla Inc. (TSLA)||714.50||685.8||296.5|
|Zscaler Inc. (ZS)||213.45||28.6||291.6|
- Moderna Inc.: Moderna is a clinical stage biotechnology company focused on the discovery and development of messenger RNA (mRNA) therapeutics and vaccines. It develops mRNA medicines for infectious, immuno-oncology, autoimmune, and cardiovascular diseases. The company has multiple clinical trials underway, including the commercial stage of mRNA-1273, a COVID-19 vaccine. Moderna announced on February 16 that it has supplied 45.5 million doses of its COVID-19 vaccine to the U.S. government as of that date. It expects to deliver another 100 million doses to the U.S. government by the end of March, another 100 million by the end of May, and another 100 million by the end of July 2021.
- Peloton Interactive Inc.: Peloton Interactive is an interactive exercise and media company that sells workout bikes for indoor use and other recreational services and products. Peloton is the largest interactive fitness platform in the world and serves approximately 4.4 million members. The company's instructors offer classes in fitness and wellness disciplines such as cycling, running, walking, yoga, stretching, and strength training. Peloton announced in late December that it had agreed to acquire Precor Inc., one of the largest global commercial fitness equipment providers with a significant U.S. manufacturing presence. The transaction, which is valued at $420 million, is expected to close early in the current calendar year.
- Etsy Inc.: Etsy provides an online global marketplace catering to customers looking for unique handcrafted pieces, vintage treasures, and other creative goods. The company provides a platform with a set of tools and support to help creative entrepreneurs manage and scale their businesses. It also provides search tools to help customers find one-of-a-kind items offered by Etsy's sellers.
- Tesla Inc.: Tesla is the world's largest automaker by market value, with a market cap of about $671 billion, and is one of the world's leading makers of electric vehicles. It designs and manufactures fully electric vehicles, including luxury and mass market sedans and trucks. It also is a clean energy company and produces solar energy generation and energy storage products. Tesla's stock was added to the S&P 500 Index with a weighting of 1.7% on December 21, 2020. Tesla reported in early January that it produced 509,737 vehicles and delivered 499,550 vehicles in 2020.
- Zscaler Inc.: Zscaler is a global security software company. Its cloud-based platform provides web and mobile security, threat protection, cloud application visibility, and networking solutions. The company provides security solutions to over 400 of the Forbes Global 2000 companies. Its platform handles 140 billion transactions and detects 100 million threats in 185 countries each day.
The comments, opinions and analyses expressed herein are for informational purposes only and should not be considered individual investment advice or recommendations to invest in any security or to adopt any investment strategy. While we believe the information provided herein is reliable, we do not warrant its accuracy or completeness. The views and strategies described on our content may not be suitable for all investors. Because market and economic conditions are subject to rapid change, all comments, opinions, and analyses contained within our content are rendered as of the date of the posting and may change without notice. The material is not intended as a complete analysis of every material fact regarding any country, region, market, industry, investment, or strategy.
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