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4 Nasdaq Stocks Outperforming the S&P 500 in the Year to Date

Nasdaq hits new record on strong 3rd-quarter company earnings

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Oct 28, 2021
Summary
  • Nasdaq Composite Index surges to a record on strong 3rd-quarter company earnings.
  • Investors can consider stocks that have outperformed the benchmark, yet are not highly overvalued.
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As the Nasdaq Composite Index hits a new record on strong third-quarter company earnings, four stocks that have outperformed the Standard & Poor’s 500 Index in the year to date yet are not highly overvalued based on GF Value are eBay Inc. (

EBAY, Financial), O’Reilly Automotive Inc. (ORLY, Financial), Cisco Systems Inc. (CSCO, Financial) and Lululemon Athletica Inc. (LULU, Financial) according to the All-in-One Screener, a Premium feature of GuruFocus.

Nasdaq hits new record on the back of strong third-quarter company earnings

On Thursday, the Nasdaq Composite Index closed at 15,448.12, a new record and up 212.28 points from Wednesday’s close of 15,235.84 on the back of strong third-quarter earnings from companies like Ford Motor Co. (

F, Financial) and Tesla Inc. (TSLA, Financial).

Shares of Ford climbed more than 8% on the heels of reporting earnings that smashed consensus estimates and raising vehicle guidance. Likewise, shares of Tesla increased more than 3%, continuing its strong gains following last week’s earnings beat.

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Shares of Facebook Inc. (

FB, Financial) increased approximately 3% on reports that it is rebranding its company name to Meta to reflect the social media giant’s ambitions in the metaverse landscape. Effective Dec. 1, the company will trade under stock ticker MVRS.

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As such, investors may find opportunties in stocks that have outperformed the benchmark in the year to date but are not highly overvalued based on the GF Value. Patterned after the Peter Lynch earnings line, GuruFocus’ exclusive valuation method considers a company’s historical price valuations and adjusts for past performance and future growth estimates. Since a ratio of 1.30 or higher signals a significantly overvalued stock, we will consider stocks where the price-to-GF Value ratio is at most 1.20.

EBay

Shares of eBay (

EBAY, Financial) traded around $71.95, showing the stock is fairly valued based on Thursday’s price-to-GF Value ratio of 1.09. The stock has outperformed the S&P 500 by approximately 33.02% year to date.

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GuruFocus ranks the San Jose, California-based e-commerce company’s profitability 8 out of 10 on several positive investing signs, which include a high Piotroski F-score of 7 and profit margins and returns that outperform more than 90% of global competitors.

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Gurus with holdings in eBay include

Seth Klarman (Trades, Portfolio)’s Baupost Group and Bill Nygren (Trades, Portfolio)’s Oakmark Fund.

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O’Reilly Automotive

Shares of O’Reilly Automotive (

ORLY, Financial) traded around $619.49, showing the stock is fairly valued based on Thursday’s price-to-GF Value ratio of 1.09. The stock outperformed the S&P 500 by approximately 21.23% year to date.

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GuruFocus ranks the Springfield, Missouri-based auto parts company’s profitability 9 out of 10 on several positive investing signs, which include a five-star business predictability rank, a high Piotroski F-score of 7 and profit margins and returns that outperform more than 94% of global competitors.

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Gurus with holdings in O’Reilly include

Chuck Akre (Trades, Portfolio)’s Akre Capital Management and Pioneer Investments.

Cisco Systems

Shares of Cisco Systems (

CSCO, Financial) traded around $55.98, showing that the stock is modestly overvalued based on Thursday’s price-to-GF Value ratio of 1.12. The stock has outperformed the S&P 500 by approximately 6.23% year to date.

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GuruFocus ranks the San Jose, California-based networking hardware company’s profitability 8 out of 10 on several positive investing signs, which include a 4.5-star business predictability rank and an operating margin that has increased approximately 1.6% per year on average over the past five years and outperforms more than 95% of global competitors.

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Lululemon Athletica

Shares of Lululemon Athletica (

LULU, Financial) traded around $442.94, showing the stock is modestly overvalued based on Thursday’s price-to-GF Value ratio of 1.18. The stock has outperformed the S&P 500 by approximately 2.02%.

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GuruFocus ranks the Vancouver-based apparel retail company’s profitability 9 out of 10 on several positive investing signs, which include a 4.5-star business predictability rank, a high Piotroski F-score of 9 and profit margins and returns that outperform more than 90% of global competitors.

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Disclosures

I am/we are Long ORLY and CSCO.
The views of this author are solely their own opinion and are not endorsed or guaranteed by GuruFocus.com
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