If you’ve been paying attention over the last few weeks, all you’ve heard is how the large mega-cap tech stocks have been keeping the market afloat. The five largest stocks in the US (Microsoft, Apple, Amazon, Alphabet, and Facebook) have done extraordinarily well this year and since the March lows, but to say they’ve been doing all the lifting would be inaccurate. Take for example the fact that of the 2,052 US stocks with market caps above $500 million, 101 (4.9%) have hit 52-week highs so far in May and none of them are named Microsoft, Apple, Amazon, Alphabet, or Facebook. The table below lists the 19 US stocks with market caps above $20 billion that have hit 52-week highs so far this month. Looking at the list, only one of the names listed (PayPal) has a market cap above $100 billion and just four others have market caps above $50 billion. Not only are these names not mega-caps, but many of them are also stocks that most people have probably never heard of.
While mega-cap stocks may not be the ones hitting 52-week highs this month, one part of the argument behind which factors are driving the market that is partially accurate is that tech stocks are leading. Breaking out the table below by sectors 8 of the 19 names listed are from the Technology sector. Behind Technology, the next most heavily represented sector is Health Care with 6. However, when we expand the universe to all stocks hitting 52-week highs with market caps above $500 million, Technology doesn’t even top the list. With 49 stocks from the Health Care sector hitting 52-week highs this month, it tops the list followed by Technology with 26. Behind these two, no other sector accounts for even 10 names. These days, if you’re a company that’s not involved in Health Care or Technology, you’re dead to investors. Start a two-week free trial to Bespoke Institutional for full access to our research and interactive tools.