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

U.S. stock markets are back on a northward trajectory after witnessing volatility in the last couple of months. The broad-market benchmark — the S&P 500 — is hovering around its all-time high. The tech-heavy Nasdaq Composite and the blue-chip Dow have also been in positive territory year to date. 

The ongoing trade and tariff-related negotiations between the United States and China, stability in the U.S. labor market and a systematically declining inflation rate have bolstered market participants sentiment in risky assets like equities.

Most financial researchers are busy talking about an artificial intelligence (AI) revolution, next-generation quantum computing and massive deployment of 5G/6G wireless technologies. While doing this, we are missing out on several non-tech stocks that have appreciated year to date. 

 Here we recommend stocks of five corporate behemoths (market capital > $50 billion) that have provided more than 40% returns year to date. Their current favorable Zacks Rank also indicates more upside in the near term. Each of our picks sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The stocks are Howmet Aerospace Inc. HWM, Newmont Corp. NEM, Philip Morris International Inc. PM, NatWest Group plc NWG and Deutsche Bank Aktiengesellschaft DB.

The chart below shows the price performance of our five picks year to date.

Howmet Aerospace Inc.

Howmet Aerospace is benefiting from solid momentum in the commercial aerospace market, driven by robust build rates and wide-body aircraft recovery. HWM is also witnessing strength in its defense aerospace business on the back of rising U.S. & international defense budgets. 

Robust orders for engine spares for the F-35 program and spares and new builds for legacy fighters augur well for HWM. Given the strength in most of its served markets, HWM has built a sound liquidity position that supports its shareholder-friendly policies.

Howmet Aerospace has an expected revenue and earnings growth rate of 8.5% and 28.6%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 4.2% over the last 30 days. 

Newmont Corp.

Newmont is making notable progress with its growth projects. NEM is likely to gain from several projects, including the Tanami expansion. The acquisition of Newcrest also created an industry-leading portfolio providing opportunities for significant synergies. NEM also remains focused on improving operational efficiency and returning value to its shareholders.

Newmont has received full funds approval for its Ahafo North project, which has reached the execution stage. Commercial production for the project is expected to commence in second-half 2025. NEM remains committed to Ghana, investing $950 million to $1,050 million in development capital for Ahafo North. 

Newmont has an expected revenue and earnings growth rate of 2% and 20.1%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 9.7% over the last 30 days.

Philip Morris International Inc.

Philip Morris has benefited from strong pricing power and an expanding smoke-free product portfolio. PM has been making significant progress on its smoke-free transition, with products like IQOS and ZYN contributing to strong performance. In fact, PM aims to become substantially smoke-free by 2030.

Philip Morris is set for another year of robust growth in 2025, driven by increasing demand across all product categories. PM anticipates positive volume growth for the fifth consecutive year, with an expected increase of 2%. Smoke-free products remain a key growth driver, projected to expand by 12-14%, reinforcing PM’s strategic shift toward reduced-risk alternatives.

Philip Morris has an expected revenue and earnings growth rate of 8.1% and 13.7%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 4.6% over the last 60 days. 

NatWest Group plc

NatWest Group provides banking and financial products and services to personal, commercial, corporate and institutional customers in the United Kingdom and internationally. NWG operates through the Retail Banking, Private Banking, and Commercial & Institutional segments. 

NWG provides personal and business banking, consumer loans, asset and invoice finances, commercial and residential mortgages, credit cards and financial planning services, as well as life, personal and income protection insurance.

NatWest Group has an expected revenue and earnings growth rate of 20.1% and 17.3%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 6.8% over the last 30 days.

Deutsche Bank Aktiengesellschaft

Deutsche Bank’s first-quarter 2025 results were aided by a rise in revenues and lower expenses. DB benefits from a well-diversified deposit base across various client segments and regions. This will likely support the balance sheet and improve its funding base. 

DB’s shifting focus from investment banking to more stable and capital-light businesses has started bearing fruit and driving revenue growth. Moreover, with a solid liquidity profile, DB’s capital distribution seems sustainable.

Deutsche Bank has an expected revenue and earnings growth rate of 12% and more than 100%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 4.2% over the last 60 days.

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This article originally published on Zacks Investment Research (zacks.com).

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