5 Must-Buy Thriving Non-Tech Behemoths of Q1 Set to Tap More Gains

Zacks Investment Research highlights five non-tech stocks (Howmet Aerospace, Newmont, Philip Morris International, NatWest Group, and Deutsche Bank) with market caps exceeding $50 billion that have delivered over 40% year-to-date returns, outperforming the broader market's focus on technology; each stock holds a Zacks Rank #1 (Strong Buy), indicating potential for continued near-term growth driven by factors like strong aerospace demand (Howmet), strategic acquisitions (Newmont), innovative product portfolios (Philip Morris), and diversified banking operations (NatWest and Deutsche Bank).

Analysis

Amidst a broader market rally, with the S&P 500 near all-time highs and positive sentiment fueled by trade negotiations, labor market stability, and declining inflation, this report identifies five non-technology behemoths that have demonstrated significant year-to-date returns exceeding 40%. Each company, with a market capitalization over $50 billion, holds a Zacks Rank #1 (Strong Buy), suggesting continued near-term upside. Howmet Aerospace (HWM) is capitalizing on robust commercial aerospace demand, driven by increased build rates and wide-body aircraft recovery, alongside strength in its defense segment due to rising defense budgets; HWM projects 8.5% revenue growth and 28.6% earnings growth for the current year, with its consensus earnings estimate up 4.2% in the last 30 days. Newmont Corporation (NEM) is advancing through growth projects like the Tanami expansion and the Newcrest acquisition, which offers significant synergy potential, and the Ahafo North project, expected to commence commercial production in H2 2025; NEM forecasts 2% revenue growth and 20.1% earnings growth, with its consensus earnings estimate improving 9.7% recently. Philip Morris International (PM) benefits from strong pricing power and its expanding smoke-free product portfolio, including IQOS and ZYN, aiming to be substantially smoke-free by 2030 and anticipating a 2% volume growth in 2025, with smoke-free products projected to grow 12-14%; PM expects 8.1% revenue growth and 13.7% earnings growth, with a 4.6% upward revision in its consensus earnings estimate over 60 days. NatWest Group (NWG) leverages its diversified banking operations across retail, private, and commercial segments, projecting substantial current-year revenue growth of 20.1% and earnings growth of 17.3%, with its consensus earnings estimate up 6.8% in 30 days. Deutsche Bank (DB) showed positive Q1 2025 results due to increased revenues and lower expenses, benefiting from a diversified deposit base and a strategic shift to more stable businesses; DB anticipates 12% revenue growth and over 100% earnings growth for the current year, with its consensus earnings estimate increasing 4.2% in the last 60 days. These companies represent overlooked opportunities outside the dominant tech narrative, supported by strong fundamentals and positive analyst revisions.

Key Decisions for Investors

• Investors should consider these non-technology sector leaders for portfolio diversification, given their strong year-to-date performance and favorable Zacks Rank #1 ratings.
• Evaluate each company based on its specific catalysts and risk factors: Howmet Aerospace for aerospace cycle exposure, Newmont for commodity price sensitivity and project execution, Philip Morris for regulatory developments in smoke-free products, and NatWest and Deutsche Bank for sensitivity to interest rate environments and regional economic conditions.
• Monitor the ongoing positive earnings estimate revisions and stated growth drivers, such as Howmet's order book, Newmont's Ahafo North progress, Philip Morris's smoke-free product adoption, and the banking sector's revenue trends, as indicators for sustained momentum.