Casey’s General Stores has shown remarkable growth and profitability. The Iowa-based company, founded in 1968, operates over 2,500 stores in 17 Midwestern states. With a market cap just shy of $14 billion, it ranks above 48 companies currently in the S&P 500.
In early June 2024, Casey’s reported outstanding Q4 earnings, markedly surpassing analyst expectations due to strong food and beverage sales. The company earned $2.34 per share — 57% higher than Q4 2023 and 38% above consensus estimates. Revenue hit $3.60 billion, exceeding Wall Street forecasts by $130 million and improving 8.1% year-over-year.
Following these results, shares reached an all-time high of $389.44 before a slight decline. Additionally, Casey’s increased its quarterly dividend by 16% to $0.50, yielding 0.53% annually, marking the 25th consecutive year of dividend hikes. Apollo Global Management, founded in 1990, went public in 2011 and has since appreciated by 552%.
It boasts a market cap exceeding $70 billion, positioning it above 129 companies in the current S&P 500. While KKR and Blackstone remain prominent competitors, Apollo has attracted favorable analyst support.
Casey’s Q4 earnings exceed expectations
Of the covering analysts, 11 rate it a “buy” with a target price of $126, around 7% above its current trading value. In June, Apollo entered into a deal to acquire a 49% interest in Intel’s Fab 34 facility in Ireland, with Intel maintaining 51% control. This strategic investment highlights Apollo’s growth trajectory, backed by substantial capital reserves, known as dry powder, ready for deployment.
Palantir Technologies, founded by CEO Alex Karp and venture capitalist Peter Thiel, went public via a direct listing in September 2020. Since then, its shares have climbed by 158%, driven by the launch of its Artificial Intelligence Platform (AIP) in 2023. AIP integrates advanced machine learning and natural language processing capabilities with Palantir’s existing platforms, Foundry and Gotham.
This strategic focus on artificial intelligence has significantly propelled the company’s market performance. Recently, Argus Research analyst Joseph Bonner rated Palantir stock a “buy,” with a target price of $29, forecasting 19% annual earnings growth over the next five years. Palantir’s market cap now exceeds $57 billion, which puts it ahead of 157 companies currently in the S&P 500, underscoring its eligibility for future inclusion.
Each of these companies has demonstrated strong financial performance and growth potential, making them prime candidates for eventual inclusion in the S&P 500. As institutional managers prepare for potential changes in the index, these three stocks are worthy of consideration.
