For the first time in history, there are nine publicly traded US companies worth $1 trillion or more. The list includes Apple, Microsoft, Nvidia, Amazon, Alphabet, Meta Platforms, Tesla, Broadcom, and Taiwan Semiconductor. Berkshire Hathaway is expected to rejoin the group soon.
Just a few years ago, no US company had reached this milestone. However, thanks to the artificial intelligence boom, a resilient US economy, and falling interest rates, membership in the club isn’t exclusive as it once was. Other companies that could join the $1 trillion club include Walmart, Eli Lilly, and JPMorgan Chase.
Walmart is currently one of the biggest surprises on the stock market, with its market cap more than doubling over the last three years. To reach the $1 trillion mark, the company would need a 31% increase in market capitalization, which may be challenging. However, it has competitive advantages that are being recognized by Wall Street, including a lower valuation compared to Costco.
Eli Lilly is now the most valuable pharmaceutical company in the US, thanks to strong sales of its weight-loss and diabetes drugs Zepbound and Mounjaro. The company’s revenue rose 20% in the third quarter, driven by sales growth from these new products. With potential for big sellers outside the US market, Eli Lilly is on track to reach a $1 trillion market cap.
JPMorgan Chase could become the first bank to join the club, with its diversified business model and CEO Jamie Dimon’s balanced stewardship giving it a significant market capitalization advantage. Analysts are hopeful that a looser regulatory framework and potential tax cuts will benefit the bank. With high interest rates making it easier for JPMorgan Chase to earn more money on loans, the company is well-positioned to reach a $1 trillion market cap.
All three companies have competitive advantages and favorable market conditions that could help them join the exclusive club of US companies worth $1 trillion or more.
Source: https://www.fool.com/investing/2024/12/22/3-stocks-that-could-join-the-trillion-dollar-marke