5 Steady-Rising Stocks for 2024

Cast aside in the surge of enthusiasm for all things tech, these five non-tech options are arguably poised for big years ahead.

- LARRY LIGHT

THERE'S NO QUESTION technology stocks are exhilarating. Last year, the ETF tracking the Nasdaq 100-the QQQ-soared 54.8%. But there's a dark side to all that potential upside: Tech stocks are notoriously volatile. The QQQ in 2022 fell a dizzying 32.6%, far more than the market as a whole. Which got us thinking after a year in which tech was the story, what other stocks might have gotten overlooked? Below, we found five steady bets that each enjoyed double-digit returns over the past decade, which speaks to their staying power, a characteristic that Wall Street seers call "quality."

And they're still poised to deliver tech-like returns, while rounding out a broader portfolio.

CME Group (CME)

► 10-YEAR ANNUALIZED PRICE RISE: 12.6%
► MARKET CAP: $72 billion

The world's largest derivatives exchange operator, CME Group, stands apart from the largely plodding share performance of its financial services peers.

Its stock vaulted 31% last year, yet its price/earnings ratio, at 24, is still not much more expensive than the S&P 500 (with a price/earnings ratio of 21), and far cheaper than the QQQ (32).

CME's outperformance doesn't surprise Max Wasserman, cofounder and senior portfolio manager at asset management firm Miramar Capital. Reason: It has great growth potential. "They are very profitable," he says, "and they have more volume in the works."

Indeed, derivatives keep expanding in scope, adding futures and options on all manner of assets, from commodities to currencies to stocks to interest rates, per the World Federation of Exchanges. In dollar terms, derivatives enjoy double-digit annual growth.

Globally, the derivatives market is about seven times the size of the equities market. The recent boost in interest rates actually helped CME, because that increases the need for interest rate hedges, via derivatives.