Buy 5 High-Flying Non-Tech Nasdaq-Listed Stocks of H1 to Gain in H2

Despite the Nasdaq Composite's modest 0.9% year-to-date gain in the first half of 2025, following a significant AI-driven rally in 2023-2024, five non-technology Nasdaq-listed stocks have delivered over 20% returns. These outperformers—Sprouts Farmers Market (SFM), Royal Gold (RGLD), Thomson Reuters (TRI), Woodward (WWD), and Exelixis (EXEL)—are characterized by strong growth, positive guidance, and upward earnings estimate revisions, positioning them as notable investment opportunities amidst broader market uncertainty.

Analysis

Despite the Nasdaq Composite's muted 0.9% year-to-date gain in H1 2025, a significant performance divergence is evident, with select non-technology stocks delivering substantial returns. The article highlights five such companies—SFM, RGLD, TRI, WWD, and EXEL—that have all appreciated over 20% YTD, driven by strong company-specific fundamentals rather than broad market trends. Sprouts Farmers Market (SFM) demonstrates exceptional operational momentum, forecasting 10.5-12.5% net sales growth and posting a 9% upward revision in consensus earnings estimates, with expected earnings growth of 35.5%. Royal Gold (RGLD) is capitalizing on macroeconomic factors, with gold prices near $3,400 per ounce fueling its projected 24.1% revenue and 35.9% earnings growth. In the biopharma sector, Exelixis (EXEL) raised its annual sales guidance on strong demand for its drug Cabometyx, supporting an expected 30.5% earnings growth. Woodward (WWD) benefits from diversified end-markets in aerospace and industrial, raising its guidance despite headwinds from the Boeing work stoppage, though its growth projections (3.7% revenue, 2.1% earnings) are more modest. Thomson Reuters (TRI) represents a more stable profile with low single-digit growth. The common theme is positive earnings estimate revisions across all five, underscoring fundamental strength that is decoupling these stocks from the flat tech-heavy index.

Key Decisions for Investors

• Investors should look beyond broad index performance and identify non-tech companies with strong, idiosyncratic growth catalysts, such as those seeing significant positive earnings estimate revisions.
• Consider positions in companies benefiting from clear secular or macro trends, such as Royal Gold's exposure to elevated gold prices or Woodward's leverage to defense and data center spending.
• For growth-oriented portfolios, Sprouts Farmers Market and Exelixis warrant attention due to their robust double-digit earnings growth outlooks of 35.5% and 30.5% respectively, supported by strong operational execution and product demand.
• Closely monitor company-specific guidance, as the raised outlooks from SFM, EXEL, and WWD serve as key differentiators in a market with low overall momentum.