- In 2024, the U.S. stock market experienced robust growth, with the S&P 500 achieving a +23.3% gain, marking its second consecutive year of over 20% returns. This performance was driven by strong consumer spending, a resilient economy, and significant advancements in artificial intelligence (AI), which bolstered technology sector valuations.
- Despite this incredible market performance, the Everest Formula managed to outperform the index by recording an average of +30% for the entire year in its strategies. From July 1 to December 31, the Everest Strategy registered a solid average gain of +25.6%, compared to the +7.5% of the S&P500 index.
- This article reviews the 2024 performance, crunching numbers for the two most popular Everest Strategies: the 3-stock strategy and the 10-stock strategy. Furthermore, we are going to analyze the best stocks that the Formula discovered in the second half of 2024.
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Performance over the last six months
In the second half of 2024, the Everest Formula 3-stock strategy had a performance of +31.7%, turning a hypothetical portfolio of $10,000 invested on July 1, 2024, into $13,165 on January 1, 2025. The 10-stock Everest Formula strategy follows closely, registering a gain of +19.4% and turning the same amount into $11,939. In the same period, the S&P500 index registered a performance of +7.5%, a solid performance, but which even for this semester lags behind the results of the Everest Formula.
Even if the performance of the Everest Formula is strong and steady, we need to outline that the volatility and drawdowns that it brings to investors are significantly higher than an index, like the S&P500. As we highlighted many times, any strategy that uses only a few stocks (like the Everest Formula) has a remarkable volatility, that can worry less risk-tolerant investors. For this reason, we suggest applying our strategy to the risky part of your overall portfolio, the one that aims towards greater profits.
2024 consolidated performance
Totaling up together the performance of the two semesters of 2024, the Everest Formula 3-stock strategy returned to its investors a gain of +40.3%, transforming a hypothetical portfolio of 10,000$ at the beginning of 2024 into 14,028$ at the end of 2024. The Everest Formula 10-stock strategy instead registered a gain of +20.2%, transforming the same amount into 12,019$. Over the same period, the S&P500 had a strong bull run and registered a gain of +23.3%, but lower than the average of the Everest Formula strategies.
The Everest Formula continues year after year to confirm the exceptional value that brings to investors who decide to get the opportunity to apply the strategy. Over the last 23 years, Everest Formula’s strategies had an average compound annual growth rate of 29.3%, and last year the performance was even better.
Everest Top Picks
Most of the stocks that the Everest Formula chose in 2024 have had a significant increase in their price, but some of them performed exceptionally well. We are going to review those and evaluate whether they are still a bargain to buy now.
ZM – Zoom Communications Inc.
Zoom Video Communications is a technology company primarily known for its video conferencing software. Its business model revolves around providing communication and collaboration tools to businesses, educational institutions, and individuals. The company offers a range of services, including video meetings, webinars, phone systems, and team messaging, all available via cloud-based platforms.
ZM experienced a boom in stock price due to the COVID-19 pandemic, reaching an all-time high on October 2020. After the exuberance phase, the stock underwent a prolonged decline, and the overly pessimistic investor sentiment put the company on the radar of the Everest Formula, which included it in its top 10 list in February 2024. The stock has long been at the first position in the ranking. Since then, the stock price has begun to rise again, registering nearly 47% in just over six months.
ZM’s current outlook: ZM exited from the Everest Formula top 10 stocks in January 2025. The rise of its valuation makes Zoom stock less attractive, given its P/E of 27.7 and P/S of over 5. Zoom stock is currently on position 12 of the Everest Formula. It is still a good stock to own, but there are better bargains in the market right now.
MLI – Mueller Industries Inc.
Mueller Industries, Inc. is a basic industrial manufacturer. It manufactures and sells copper, brass, aluminum, and plastic products in the United States and internationally. It operates through three segments: Piping Systems, Industrial Metals, and Climate.
The company has experienced massive growth in its segments since 2020, managing to sixfold its profits in the last four years. Despite this, the market has been slow to recognize the company’s actual value due to a complicated and pessimistic macroeconomic situation, which led to the company being placed by Everest Formula in the top 10 as of February 2023. Since then, the stock has posted an outstanding +120% in almost 2 years.
MLI’s current outlook: MLI is still a good buy, being still in the top 10, at position 9. Although the price has increased a lot recently, the valuation metrics are still very good, with a P/E of 15, a stable and consistent free cash flow, and an amazing balance sheet. The management is strong and has grown ROIC from 19.5% in 2020 to 43.2% in the TTM period.
The Bottom Line
The Everest Formula has discovered outstanding companies in 2024, reaching performance that even goes beyond the average annual 30% that has been accomplished over the last 23 years. We don’t know whether the Everest Formula will continue to beat itself year after year, but we firmly believe that selecting good businesses at a bargain price will always be a good investment strategy.
