3 shares ahead of the magnificent 7 in 2025 News ad

As the earnings season is growing, a noticeable trend has appeared in the markets: several shares of the megalist have not worked since the beginning of the year (YTD). On the contrary, several shares from the middle to the force with strong retail followers provided excellent profit. This shift in the dynamics of the market is significant, given the influence of megalists on basic indices and exchange funds (ETF).

While the market width improved in 2024, the profit was more evenly distributed over several sectors, which sharply contrasts with the previous years, when the technological sector led to the market above.

This year, most sectors gradually increased, consolidating to a higher level of break and channel. The result was a changeable trade activity, with many of the most noticeable movements taking place in medium and modest promotions with great capitalization, in contrast to the shares of the megalist, which can be seen in previous years.

Gorgeous struggle 7

One of the most amazing conclusions in the YTD performance market is the relative stagnation of the so -called magnificent seven shares. Apple, Microsoft, Amazon, Alphabet, Nvidia, Tesla and Meta Platforms. It is noteworthy that if Meta is removed from this group, the remaining shares would be close to the flat YTD.

Of these seven, only meta, alphabet and NVIDIA are positive YTD, while others are in a negative territory. Tesla, in particular, as of Thursday, February 20, led to the transition by almost 12%. This insufficient performance is important, because in previous years these shares promoted a common market higher, offering investors strong profit through ETF widely market ones.

Nevertheless, in 2024 there was a different trend: small shares of market capitalization provided better profitability with a correction for risk, turning off the narrative from the support to the magnificent seven.

Promotions of average capitalization that provide superiority

While many shares from the middle to the force surpassed YTD, three outstanding examples emphasize this trend:

Dutch Bros Inc. NYSE: BrosConsumer cyclic company in the amount of 12.7 billion dollars. USA, has grown by 56% since the end of February 20.

The coffee chain has been a tendency higher since November, and its last report on the income on February 12 was catalyzed by almost 30%. The company announced a 75% increase in profit by 4 quarters per share up to $ 0.07, and sales increased by 35% to $ 343 million. USA.

Sales in the same store increased by 4.4%, which much exceeded the expected 1.5% profit.

A strong income and the subsequent rally emphasize a wider trend: the market rewards companies in average capitalization for the results of income with more significant growth than the shares of mega-capitalization, which with all their might tried to maintain profit after receiving benefits.

DOXIMITY Inc. NASDAQ: DOCSA digital platform company of $ 14 billion for medical workers has already received 40% YTD.

Like BROS, DOCS shares were in a constant ascending trend leading to profit, and then grew by almost 25% after its report on February 6.

The company provided mass profits, reporting adjusted profit per share in the amount of $ 0.45 against $ 0.34, as well as income in the amount of 168.6 million US dollars against $ 152.8 million.

In addition, his financial leadership for income for 4 quarter in the amount of 132.5 to 133.5 million dollars. The United States exceeded analysts estimates in the amount of $ 123.8 million. USA, which caused further optimism of investors.

Robinhood Markets Inc. Nasdak: KapkyushonDespite the fact that it is larger in market capitalization than in the two -above with a market capitalization of $ 49.7 billion. The USA, was also an outstanding performer, gaining 50% YTD.

Since the beginning of the year, the shares were in trends higher, and after its profit report from February 12, the shares increased from 55 to 67 dollars before retreating.

The company published a huge EPS rhythm exceeding the estimates by 141% and additionally strengthened the trend of shares with medium and greater capital, receiving a stronger reaction of the profit market than their megapolos colleagues.

Capital rotation in 2025

Strong performances at YTD Bros, Docs and Hood suggest that risk and capital come to the side with the middle and a large number of shares, and not to a magnificent family. Unlike previous years, when to hold the leading technologies oriented on technology was enough to make a strong profit, some investors can now see the best opportunities in individual promotions.

As the revenue season concludes, the market reaction to these shares indicates a potential shift in the mood of investors. The insufficient efficiency of large keys suggests that megalista shares may approach growth depletion, while the selected CAP names in the middle to force continue to provide convincing potential for growth.

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