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These are some of the best-performing stocks in the health care sector over the past month

The health care sector is massive and incredibly varied, including companies that make medical equipment or drugs, those that offer medical services, and even those providing insurance in some cases. Within this sector, there are startups that are pre-revenue and working from quarter to quarter to launch an innovative product, major legacy service providers, and everything in between. Investors thus have many options to choose from when focused on health care. At the same time, though, the health care sector is highly complex, and investors are cautioned to familiarize themselves with the ins and outs of health care companies before launching an investment.

Key Takeaways

• Some of the best health care stocks for March 2025, based on 30-day returns, include GRAIL Inc. (GRAL), Akero Therapeutics Inc. (AKRO), and Solid Biosciences Inc (SLDB).
• The best-performing health care stocks in the last month returned at least 41.4%.
• An aging population and increasing medical needs are two factors contributing to massive growth in the health sector.

We examine several of the best health care stocks to watch for March 2025, based on highest 30-day percentage return. We include an explanation of the other factors in our screen below. All data are current as of Feb. 21, 2025.

Best Health Care Stocks to Watch in March 2025
Ticker	Company	Market Cap ($B)	Price ($)	30-Day Return (%)	P/E Ratio
GRAL	GRAIL Inc.	1.4	40.73	116.6	N/A
AKRO	Akero Therapeutics Inc.	3.9	51.84	102.5	N/A
SLDB	Solid Biosciences Inc.	0.4	5.78	77.9	N/A
CADL	Candel Therapeutics Inc.	0.5	11.63	73.6	N/A
ETNB	89bio Inc.	1.6	11.06	68.6	N/A
HIMS	Hims & Hers Health Inc.	10.8	49.28	65.8	114.0
SWTX	SpringWorks Therapeutics Inc.	4.4	58.25	62.9	N/A
LUNG	Pulmonx Corp.	0.4	8.96	46.4	N/A
AXSM	Axsome Therapeutics Inc.	6.7	137.75	43.2	N/A
GHRS	GH Research PLC	0.8	12.51	41.4	N/A

What to Know About the Health Care Sector

The health care sector was among the hardest hit by the COVID-19 pandemic and has yet to fully recover; the sector continues to face a significant labor shortage that has been exacerbated by ongoing inflation concerns. Significant elements of the way health care operations function—from a shift away from in-person medical appointments to changes in insurance and demand for new products, among many others—have forced long-time leaders in the space to reevaluate their offerings and presented openings for upstart firms to gain a foothold. Going forward, the health care sector will wrestle with a growing population of patients who are eligible for Medicaid and Medicare, opportunities presented by AI, and more.

One trend for investors to keep a close eye on is the ongoing popularity of GLP-1 agonists, a type of drug used to treat Type 2 diabetes and to help with weight loss. With about 1 billion people globally living with obesity, the potential market for these drugs is incredibly large. The two leading providers of these drugs are Novo Nordisk A/S (NVO) and Eli Lilly and Co. (LLY), but the market is far from settled.

How We Chose the Best Health Care Stocks

To screen for the best health care stocks this month, we looked at firms listed on either the Nasdaq or the New York Stock Exchange. To ensure we focused on established companies, we filtered out any companies with a share price below $5, with a minimum daily trading volume of under 100,000, and with a market capitalization below $300 million. From that subset of stocks, we ranked companies according to the highest 30-day percentage return.

Notably, all but one of the companies in our results had no P/E ratio. One of the most common reasons for a company to not have a P/E ratio is if it either took a loss or generated no earnings in the given time period, or in the prior-year period for comparison. This makes the calculation of a P/E ratio impossible. For clinical-stage pharmaceutical firms, many of which are pre-revenue or consistently post losses while developing their products, it is common to not have a P/E ratio until the launch of a significant drug product.

Health Care Stock Advantages and Disadvantages

National health expenditures reached $4.9 trillion in 2023, making the health care sector massive. A key benefit health care provides to investors is consistent demand. Because individuals will always have medical needs to be met, the overall demand for health products and services typically remains at least constant and tends to increase over time as populations grow older. Nationwide health care expenditures are expected to surge to $6.8 trillion by the year 2030.

Health care companies are enticing to investors because they are highly incentivized to use and create new technology, both to meet rising demand and to improve the affordability of care they can offer. This focus on innovation may mean that health care stocks offer the potential for short- and long-term gains.

It is common in the sector for individual companies to experience a significant breakout when an important new product is launched—such as a new medical device with broad applications or a blockbuster new drug—or even when clinical trial data is encouraging. Health care stocks often experience astronomical rallies during these moments.

On the other hand, there are some risks to investing in health care companies that investors should be aware of as well. One of the biggest risks is the size and scope of the sector. Due to the technical nature of the work of many health care companies, it can be difficult for outside investors to accurately assess the viability of a company or its products. Additionally, many companies in the space are heavily impacted by legislation, which can change and contribute to volatility.

Undoubtedly there are opportunities for major returns for investors looking to the health care sector. However, no one can predict how a company’s stock may perform. The companies above led the sector in our screen, but past performance is not a guarantee of future returns.

The Bottom Line

The health care sector is massive, complex, and rich with opportunities for investors willing to take the time to understand its ins and outs. Our screen favors companies in the pharmaceuticals space that have experienced strong returns in the last month, occasionally due to the success of a popular drug or other product. But just as some of these firms may rise rapidly, they may also fall just as precipitously, particularly if a promising new product ends up not working as expected.

The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our warranty and liability disclaimer for more info.

As of the date this article was written, the author does not own any of the above securities.

These are some of the best-performing stocks for companies involved in gold production.

Gold is one of the most famous of all safe-haven assets, traditionally included in portfolios as a hedge against inflation and market turbulence. Investors have many ways to access gold—as a physical commodity in the form of jewelry or bullion, through specialized exchange-traded funds (ETFs), and indirectly via investments in the stocks of companies that mine and produce gold.

Key Takeaways

• The top gold-mining companies for March 2025, based on 30-day returns, include SSR Mining Inc. (SSRM), Gold Fields Ltd. (GFI), and Wheaton Precious Metals (WPM).
• Investors looking for exposure to gold without making a direct investment in the commodity itself might consider gold-mining company stocks.
• The price of gold is roughly $2,952 per ounce, as the precious metal has repeatedly set all-time high records in recent weeks.

We explore the best gold stocks for investors to watch in March 2025, based on 30-day returns. Our screen focuses on mining companies that target gold, although many also include other precious metals. Below is a detailed explanation of the methodology we utilize to create our ranking of gold mining company stocks. All data are current as of Feb. 21, 2025.

Best Gold Stocks to Watch in March 2025
Ticker	Company	Market Cap ($B)	Price ($)	30-Day Return (%)	P/E Ratio
SSRM	SSR Mining Inc.	2.1	10.23	29.7	N/A
GFI	Gold Fields Ltd.	16.6	18.70	14.0	13.7
WPM	Wheaton Precious Metals Corp.	30.9	68.05	13.8	50.4
GOLD	Barrick Gold Corp.	31.6	18.30	13.7	15.6
AGI	Alamos Gold Inc.	9.5	22.69	12.4	34.5
DRD	DRDGOLD Ltd.	1.0	11.07	11.7	10.2
AU	AngloGold Ashanti PLC	15.9	31.64	10.0	387.8
AEM	Agnico Eagle Mines Ltd.	48.3	96.10	7.5	26.7
NEM	Newmont Corp.	51.6	45.33	6.6	15.5
FNV	Franco-Nevada Corp.	26.7	138.69	5.5	N/A

What to Know About Investing in Gold

The price of gold was about $2,952 per ounce as of late February 2025. The metal has repeatedly set new records in recent weeks. Ongoing inflation concerns, market instability due to domestic and international geopolitical tensions, and a shifting interest rate environment in 2024 and early 2025 all helped to push gold higher, as investors sought out a stable place to park assets.

While investors typically look to avoid entering a new position while it’s close to a record high, there are many reasons why it may still pay to invest in gold. First, there is no guarantee that gold will fall from its high price point. Further, it can still offer a hedge against inflation, despite the fact that gold is quite expensive. But while gold does not offer some of the benefits of stock investments—such as the prospect of dividend payments—investors looking for indirect access can find it by looking to companies involved in mining and producing this precious metal.

How We Chose the Best Gold Stocks

In our screen, we considered gold-mining companies with shares trading on the Nasdaq or the New York Stock Exchange. We excluded firms with stock prices under $5, with less than 100,000 in average daily trading volume, or with a market capitalization under $300 million. These measures help ensure that our list includes only well-established companies. Finally, we ranked all remaining gold mining companies based on highest 30-day return and excluded any with a negative return during that period.

Following this search, we found a number of gold mining companies with 30-day returns as high as 29.7%. Notably, some of the companies on this list do not have a P/E ratio. This is sometimes the result of a company experiencing net losses in the current and/or prior-year quarter, making it impossible to calculate this metric.

Gold Advantages and Disadvantages

Before investing in gold mining companies, investors should consider a few important benefits and risks. Advantages of these firms may include their potential to be a leveraged play on gold. As the price of gold rises, the share prices of these companies may rise as well—and they may experience even higher returns thanks to their crucial role in producing gold for physical investment. Rising gold prices can also lead to significant capital gains for gold mining firms when their profits increase as well. Another benefit of gold mining firms is their higher liquidity compared to physical gold. Lastly, investing in bullion, jewelry, or other physical gold products also requires paying for transportation and storage costs—not required when investing in gold mining stocks—and carries the risk of loss or theft.

One of the key potential disadvantages of an investment in a gold-mining stock is that most of these companies do not focus exclusively on gold. This means they are not pure-play gold investments and that they are also subject to fluctuations in other minerals covered by the operations as well. Mining firms tend to have operations scattered around the world in many different locations, so regulations can vary dramatically from one site to another. Monitoring the impact of these regulations can be difficult for investors. Of course, mining firms are also exposed to many other risks and factors that may separate their performance from that of physical gold. And when gold rises, there is no guarantee that the price of shares of a mining firm will also climb.

The stocks listed above are at the top of our list for this month. However, past performance is not a guarantee of any future returns.

The Bottom Line

For investors seeking an alternative to physical gold investments, gold-mining stocks offer an alternative. These companies may provide some degree of indirect access to the gold market. While their prices may correlate with the price of physical gold, that’s not always the case. Still, for some investors, the opportunity to avoid the logistical considerations, liquidity limitations, and other concerns associated with a physical investment in gold makes gold-mining firms a worthwhile alternative.

The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our warranty and liability disclaimer for more info.

As of the date this article was written, the author does not own any of the securities listed above.

These are some of the penny stocks with interesting charts using technical analysis that performed well over the past 30 days

Once a stock price is below $5 per share, it is categorized as a penny stock. Frequently, but not always, penny stocks have small market capitalizations and are prone to high volatility due to low liquidity and trading volumes. Penny stocks can, therefore, provide an opportunity for large, quick gains because a small movement in the price of a penny stock can produce a large percentage gain. But they also carry significant risks compared to more established stocks. To guard against the risks associated with investing in penny stocks, the stocks discussed in this article have a minimum price and volume criteria, along with clear chart patterns and other technical analysis indicators.

Below is an analysis of developing bullish patterns in penny stocks for March 2025, pulled from a screen showing positive one-month performance, a minimum price of $1.50, and 30-day average daily volume of 200,000 shares.

All charts and data are current as of Feb. 25, 2025.

Enel Chile S.A. (ENIC)

• Price: $3.47
• 30-day return: 16.1%
• Average daily trading volume: 482,700
• Exchange: New York Stock Exchange

A bull wedge breakout triggered in the stock of Enel Chile S.A. (ENIC) in December. It has the potential to eventually reach higher targets. In the short term, the stock is extended, but given the bullish potential indicated by the wedge breakout, short-term weakness can be used to identify new bullish setups. Prior to the bearish correction, which took the form of a falling wedge, the stock rose by $2.92, or 297%, over 12 months. This shows that it has the potential to see another sharp advance following the wedge breakout. There is also additional technical evidence supporting higher prices. The wedge formed largely on support of the 200-week moving average (blue) and the long-term downtrend line. Moreover, following the initial breakout, support was successfully tested at the 50-week moving average (orange), and the 20-week moving average recently crossed above the 50-week line.

Gossamer Bio, Inc. (GOSS)

• Price: $1.26
• 30-day return: 35.5%
• Average daily trading volume: 1,610,500
• Exchange: Nasdaq

Gossamer Bio, Inc. (GOSS) is a biopharmaceutical company focused on pulmonary arterial hypertension. The stock of the company has been working on a bottoming process for more than a year and it is starting to show signs of strength. The neckline or mid-section of the pattern is at $1.60. A decisive breakout above that price level triggers a breakout of the bottoming pattern. Recently, a trendline breakout triggered before the stock hit resistance at $1.55, a sign of strength. Volatility had been declining as the price range compressed following a second bottom in June 2024. The convergence of moving averages beginning in April 2024 is representative of this type of price behavior. Very low volatility can lead to sharp moves, and a stock will decline only so much before volatility expands. The stock looks like it is getting closer to a bull breakout on a rally above $1.60.

Tuya Inc. (TUYA)

• Price: $3.53
• 30-day return: 54.8%
• Average daily trading volume: 3,260,800
• Exchange: New York Stock Exchange

Tuya Inc. (TUYA) is a Chinese enterprise software company with an Internet of Things (IoT) cloud platform. The company’s stock recently broke out of a multi-year sideways consolidation bottoming pattern before hitting resistance at $4.63. That rally triggered a continuation of the developing bull trend as a higher swing high was reached. Although the stock is overbought in the near term, a continuation of the bearish correction should lead to a new bullish setup at lower prices. Key potential support may be seen at the prior trend high of $3.10 or a prior interim swing high of $2.50. Nonetheless, a $2.33 or 302% rapid advance prior to the sideways correction, shows the potential of the current advance following a retracement.

Rapid Micro Biosystems, Inc. (RPID)

• Price: $2.82
• 30-day return: 107%
• Average daily trading volume: 315,500
• Exchange: Nasdaq

Rapid Micro Biosystem, Inc. (RPID) is a life sciences technology company in the medical devices industry. Its stock recently completed a sharp advance of $3.17, or 365%, in only eight weeks. The rally triggered a bullish reversal from a consolidation bottom of roughly 19 months. Notice that the breakout in January was proceeded by a bull flag type pattern and successful test of support, first at the 50-day moving average (orange) and then the 20-day moving average (purple). Following a bearish retracement the stock may set up for another bull run. There has only been one sharp rally off the bottom, and the bull trend is potentially still in its infancy. 

Xunlei Limited (XNET)

• Price: $2.77
• 30-day return: 17.9%
• Average daily trading volume: 212,500
• Exchange: Nasdaq

The stock of Xunlei Limited (XNET) broke out of a large rectangle consolidation pattern in late January before eventually finding resistance at a high of $3.75. That high completed a sharp rally of $1.85, or 97.2%, before the stock began a bearish retracement. The bearish retracement is the first pullback following a strong breakout of a long-term sideways pattern, and therefore, the stock may have a chance at another rally once the retracement is complete.

Notice the $1.38 or 162.7% sharp initial rally off the trend low in October 2022. Besides the strength indicated by the pattern breakout, the 200-week moving average was reclaimed during the recent advance for the first time since April 2021. Subsequently, the 20-week moving average confirmed strength by crossing above the 200-day line after being successfully tested as support for the prior few months.  

What to Know About Penny Stocks

Many penny stocks trade via over-the-counter (OTC) markets, which means they have minimal regulatory oversight and little analyst coverage, making it difficult to access accurate company information.

However, the penny stocks we’ve identified in this article are all listed on the New York Stock Exchange or Nasdaq, which means they are subject to the same listing requirements as any other company on these exchanges. These requirements are intended to ensure that only high-quality securities are available for trading on the exchange.

While penny stocks are a riskier investment than established stocks due to their volatility, the potential for high returns is attractive to some investors.

How We Chose the Best Penny Stocks

To screen for penny stocks with interesting chart patterns and other technical analysis indicators, we used the following criteria. Stocks had to have positive one-month performance and be priced under $5.00. To help improve the reliability of the chart patterns, the stocks had to have a minimum price of $1.50 and an average 30-day trading volume of at least 200,000. The stock also had to have at least 24 months of trading history.

The charts were also reviewed for bullish patterns, including breakouts above trendlines, key resistance, and moving averages. Candlestick patterns were also considered, as we looked for signs that pointed to a bullish trend reversal or indications that a trend was strengthening. Still, it’s important to remember that past performance is not a guarantee of future performance.

Penny Stock Advantages and Disadvantages

The low price of penny stocks offers investors high potential for growth, and they can give smaller businesses a platform to access funding. But while these stocks can bring investors significant gains, they also carry the risk of significant losses. There are greater risks associated with investing in penny stocks than with more established stocks.

Penny stocks usually lack liquidity. It can also be difficult to find solid public information about penny stock companies that trade over the counter. Given the additional risks, penny stocks are not suitable for all investors, especially those with a low risk tolerance.

Another disadvantage is that the price patterns may take longer to unfold and single-position drawdowns can be larger than normal, given the higher potential volatility in low-priced stocks.

There are ways to mitigate the added risks, starting with raising the minimum price and average trading volume and selecting penny stocks that trade on the NYSE or Nasdaq. Overall portfolio risk can be contained by allocating only a small amount of total capital to the penny stock market.

By carefully screening, watching, and waiting for price patterns to unfold, investors can access a market environment that has the potential for large gains in a relatively short period of time. But that depends on entering a position at the right time.

The Bottom Line 

Penny stocks have the potential to sometimes see sharp multi-week or month rallies that, on a percentage basis, exceed expectations. They can present opportunities for investors that are difficult to find otherwise. This article features five interesting charts of penny stocks that had advanced during the prior 30 days and showed upside potential, given the presented technical analysis.

The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our warranty and liability disclaimer for more info.

As of the date this article was written, the author does not own any of the securities listed above.

ETFs can help investors diversify their portfolio through a single investment product

Exchange-traded funds (ETFs) are investment funds that trade on stock exchanges, similar to individual stocks, and typically track an index, sector, commodity, or asset class. They offer investors diversification, as a single ETF can hold a broad mix of securities, reducing risk compared to investing in individual stocks. ETFs also tend to have lower expense ratios than actively managed mutual funds and provide liquidity, allowing investors to buy and sell shares throughout the trading day at market prices.

Key Takeaways

• Leading ETFs offer investors an opportunity to broadly diversify their holdings through a single investment with a low expense ratio and/or higher returns compared to competitors.
• We screened for the equity, bond, fixed income, commodities, and currency ETFs providing the highest one-month total returns for March 2025.
• These funds include CQQQ, ZROZ, ELD, UNG, FXY

Below, we outline the top equity, bond, fixed income, commodities, and currency ETFs that generated the highest returns over the last month. We have excluded leveraged and inverse ETFs, as well as funds with less than $50 million in assets under management (AUM).

All data are current as of Feb. 25, 2025.

Equity ETF with the Best 1-Month Return: Invesco China Technology ETF (CQQQ)

• One-month performance: 26%
• Expense Ratio: 0.65%
• Annual Dividend Yield: 0.23%
• 30-Day Average Daily Volume: 674,130
• Assets Under Management (AUM): $975 million
• Inception Date: Dec. 8, 2009
• Issuer: Invesco

The Invesco China Technology ETF (CQQQ) tracks the FTSE China Incl A 25% Technology Capped Index, investing at least 90% of its assets in Chinese technology stocks. The ETF provides exposure to China’s tech sector and is rebalanced quarterly. As of Feb. 24, its biggest holdings were in shares of Tencent Holdings Ltd, PDD Holdings Inc ADR (PDD), and Meituan.

Bond ETF with the Best 1-Month Return: PIMCO 25+ Year Zero Coupon US Treasury Index Exchange-Traded Fund (ZROZ)

• One-month performance: 4.6%    
• Expense Ratio: 0.15%
• Annual Dividend Yield: 4.54%
• 30-Day Average Daily Volume: 342,904
• Assets Under Management (AUM): $1.54 billion
• Inception Date: Oct. 30, 2009
• Issuer: Allianz Investment Management LLC

This fund seeks to closely track the total return of the BofA Merrill Lynch Long Treasury Principal STRIPS Index before fees and expenses. It provides exposure to long-term U.S. Treasuries, offering yield and duration benefits while potentially reducing trading costs.

Fixed Income ETF with the Best 1-Month Return: WisdomTree Emerging Markets Local Debt Fund (ELD)

• One-month performance: 3.9%
• Expense Ratio: 0.55%
• Annual Dividend Yield: 5.5%
• 1 Month Avg. Volume: 8,317
• Assets Under Management (AUM): $63.6 million
• Inception Date: Aug. 9, 2010
• Issuer: WisdomTree, Inc.

The WisdomTree Emerging Markets Local Debt Fund (ELD) aims to generate high total returns through income and capital appreciation by investing in locally denominated debt from emerging market countries. The ETF’s constituent countries include Brazil, Chile, Colombia, Mexico, Peru, Poland, Romania, Russia, South Africa, Turkey, China, Indonesia, Malaysia, South Korea, and Thailand.

Commodities ETF with the best 1-Month Return: United States Natural Gas Fund LP (UNG)

• One-month performance: 20.5%
• Expense Ratio: 1.06%
• Annual Dividend Yield: N/A
• 30-Day Average Daily Volume: 8,098,913
• AUM: $776.7 million
• Inception Date: April 18, 2007
• Issuer: Marygold

The United States Natural Gas Fund (UNG) is an ETF designed to closely track the daily price movements of natural gas using its Benchmark Futures Contract, primarily the near-month natural gas futures trading on the NYMEX. UNG had a strong one-month performance, as natural gas prices have continued to rally in the face of colder-than-anticipated temperatures across the U.S. and
electricity generation demand from AI.

Currency ETF with the Best 1-Month Return: Invesco Currency Shares Japanese Yen Trust (FXY)

• One-month performance: 4.67% 
• Expense Ratio: 0.4% 
• Annual Dividend Yield: N/A
• 30-Day Average Daily Volume: 204,370 
• AUM: $441 million 
• Inception Date: Feb. 12, 2007
• Issuer: Invesco

The Invesco Currency Shares Japanese Yen Trust (FXY) is an ETF designed to track the price of the Japanese yen through physical yen holdings. The yen serves as Japan’s national currency and is managed by the Bank of Japan, the country’s central bank. The Yen has been rallying recently based on speculation that the Bank of Japan could raise interest rates twice more this year if inflation continues to be elevated.

How We Chose the Best ETFs

We selected the best ETFs across five areas of focus—equities, bonds, fixed-income, commodities, and currencies—utilizing a screener by VettaFi. In each case, we sorted ETFs according to the specified category and ranked them by highest one-month returns. We then filtered out any ETFs that employ a leveraged or inverse strategy, as well as any with less than $50 million in assets under management. Finally, for currencies ETFs, we excluded any funds focused on cryptocurrencies from our screen.

How to Invest in ETFs

To invest in ETFs, start by researching and selecting an ETF that aligns with your financial goals, risk tolerance, and investment strategy—whether it tracks a broad market index, a specific sector, or a commodity. Open a brokerage account with a platform that offers ETF trading, then place an order
just like you would for a stock. Consider factors such as expense ratios, liquidity, and tracking accuracy to ensure you’re getting the best value for your money. Depending on your time horizon and risk tolerance, ETFs typically require minimal maintenance and are often considered long-term, buy-and-hold investments.

The Bottom Line

ETFs are versatile and cost-effective investment options that provide diversification, liquidity, and tax efficiency, making them ideal for both new and experienced investors. With minimal maintenance required, they offer a simple way to gain exposure to broad markets or specific sectors while managing risk.

The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our warranty and liability disclaimer for more info.

As of the date this article was written, the author does not own any of the above ETFs.

These are the top AI stocks based on best value, fastest growth, and most momentum.

February was a turbulent month for AI stocks, driven by the emergence of Chinese startup DeepSeek, which launched an AI assistant aiming to compete with OpenAI and challenge assumptions about the cost and infrastructure required to develop competitive AI models. That triggered a sharp pullback in Nvidia (NVDA) shares.

Microsoft (MSFT) also announced the cancellation of planned AI data center leases, reinforcing speculation of a slowdown in AI demand. Meanwhile, Palantir Technologies (PLTR), which had previously surged on strong AI-driven momentum, tumbled 27% from its all-time high following announced government spending.

Below is an analysis of the top AI stocks for March 2025, screened for best value, fastest growth, and most momentum. All stocks are listed on the Nasdaq or New York Stock Exchange.

All data are current as of Feb. 24, 2025.

Best-Value AI Stocks

Value investing is about finding stocks trading below their true worth, with the expectation that the market will eventually correct the mispricing and the stock price will rise. Investors often use price-to-earnings (P/E) ratio to find stocks that are undervalued, as a lower P/E ratio can indicate that a company is valued at less than its fundamental value.

However, it may take multiple quarters or years before a turnaround materializes.  Some stocks may also remain cheap for a reason, falling into a “value trap,” continuing to underperform despite appearing undervalued. Moreover, the P/E ratio should not be viewed in isolation. Investors should ask why a stock is trading at a discount to its peers and whether that gap is likely to close due to a business recovery, or the market recognizing the value opportunity.

Best-Value AI Stocks
	Price ($)	Market Capitalization ($B)	12-Month Trailing P/E Ratio
Yiren Digital Ltd. (YRD)	6.76	0.66	2.4
i3 Verticals, Inc. (IIIV)	26.83	0.9	5.7
Hut 8 Corp (HUT)	16.6	1.6	8.3

• Yiren Digital Ltd: A fintech company based in China, Yiren Digital operates a financial marketplace connecting investors with borrowers. The company offers payment processing, loan services, insurance products, and ecommerce products. On Feb. 18, Yiren announced it had integrated DeepSeek’s AI technology to enhance operational efficiency, streamline workflows, and improve customer interactions across financial and lifestyle services in China.
• i3 Verticals, Inc: i3 Verticals specializes in developing and acquiring software solutions for the public sector and health care markets. Currently, i3 boasts a number of AI solutions for different industries such as retail, restaurants, and commercial applications. For instance, i3’s intelligent video surveillance system identifies objects, tracks customer behavior, and integrates with point-of-sale data to refine operational strategies for the retail channel.
• Hut 8 Corp. Hut 8 is an energy infrastructure operator and Bitcoin miner with operations across North America, primarily in Canada, New York, and Texas. While primarily a Bitcoin-mining operation, Hut 8 currently has 3.4 megawatts of capacity dedicated to high-performance computing.

Fastest-Growing AI Stocks

Growth investors look for companies with increasing revenue and earnings per share (EPS), believing these metrics signal strong business fundamentals and potential for value appreciation. However, relying on just one of these indicators can present an incomplete picture, as factors like tax law changes, mergers, or one-time gains can distort the numbers.

For a more balanced assessment, we screen AI growth stocks by looking at the most recent year-over-year percentage growth for both revenue and EPS, giving each equal weighting. We also excluded companies with growth rates in either category of 1,000% or more on the grounds that these are likely outliers.

Fastest-Growing AI Stocks
	Price ($)	Market Cap ($B)	EPS Growth (%)	Revenue Growth (%)
Pinterest, Inc (PINS)	36.95	25	828	18
Dynatrace, Inc. (DT)	59	17.7	735	19.5
Innodata, Inc. (INOD)	59.2	1.7	501	127

• Pinterest, Inc: With over half a billion users worldwide, Pinterest is a visual search and discovery platform that aims to help people find inspiration, curate ideas, and shop for products. An early adopter of AI, Pinterest acquired THE YES in June 2022, an AI-powered shopping platform that delivers a personalized feed to users based on their input on brand, style, and size.
• Dynatrace, Inc: Dynatrace provides AI-powered solutions to help businesses monitor, analyze, and optimize their digital ecosystems, allowing customers to detect issues in real time and improve system performance. Dynatrace has expanded its AI engine, enabling organizations to predict and prevent IT issues before they occur.
• Innodata, Inc: Innodata is a global data engineering company that offers services in data curation, transformation, and large language model data sets, as well as consulting along the AI value chain. Driven by strong AI demand, the company reported a 96% increase in revenues for fiscal year 2024 compared to 2023, while deepening its partnership with big tech customers.

AI Stocks With the Most Momentum

Momentum investing is a strategy that seeks to capitalize on existing market trends by investing in stocks that have recently outperformed their peers or the broader market. The core idea is that stocks on an upward trajectory are likely to continue rising as long as the fundamental drivers
behind their growth remain intact.

The momentum strategy has become synonymous with AI, owing to the fast growth of this sector. AI names can generate returns that far outpace established tech names, driven mostly by investor sentiment. While it’s a viable strategy for those with a higher risk tolerance, investors should also focus on the company’s underlying financials to ensure the anticipated growth prospects will materialize.

Here are the AI stocks with the highest total return in the last 12 months.

	Price ($)	Market Cap ($B)	12-Month Trailing Total Return (%)
Quantum Computing, Inc. (QUBT)	6.9	0.94	747
VNET Group, Inc. (VNET)	13.3	3.9	746
Kingsoft Cloud Holdings Ltd. (KC)	18.5	5.2	491

• Quantum Computing, Inc: Quantum Computing is an integrated photonics and quantum technology company focused on developing accessible and affordable quantum computing solutions. Company CEO William McGann recently highlighted the company’s plans to commercialize its technology, advance its thin-film lithium niobate (TFLN) chip fabrication facility, and expand strategic partnerships in AI.
• VNET Group, Inc: VNET serves over 7,500 enterprise customers across more than 30 cities in China, offering data center hosting, cloud solutions, and internet security services. The company recently announced strong third-quarter 2024 reports, driven by rising AI demand. 
• Kingsoft Cloud Holdings, Ltd: Kingsoft is a leading cloud service provider in China. In its third quarter 2024 earnings report, Kingsoft announced the continued expansion of its AI business, which now accounts for 31% of the company’s public cloud revenues.

Advantages of AI Stocks

Mass Disruption

AI is a rapidly evolving sector with applications across nearly every industry, from health care to finance and cybersecurity. As adoption accelerates, AI companies have significant room for revenue expansion and market dominance. Furthermore, ongoing advancements in research and development are enhancing AI models’ reasoning and adaptability, unlocking even greater disruptive potential.

Innovation

AI-driven automation enhances efficiency, leading to reduced costs for businesses. Companies leading in AI development can secure long-term competitive advantages, making them attractive investments in both the short and long term.

Investor Enthusiasm

AI stocks often experience strong investor enthusiasm, driving rapid price appreciation. With ongoing advancements in machine learning, automation, and generative AI, market sentiment remains highly bullish, fueling momentum-driven gains.

Disadvantages of AI Stocks

High Valuations and Market Speculation

Many AI stocks trade at high valuations due to investor enthusiasm and growth expectations. While the AI sector has strong long-term potential, some companies may be overvalued, leading to the risk of significant price corrections. Speculative investments, particularly in early-stage AI companies, can result in inflated valuations that may not be supported by actual revenue or profitability.

Regulatory Risks

AI technology is increasingly facing scrutiny from governments and regulatory bodies worldwide. Concerns over data privacy, algorithmic bias, job displacement, and national security risks could lead to stricter regulations that impact operations and growth prospects. The legal landscape around AI is still in its early stages, and new laws around transparency, intellectual property rights, and ethical AI development are being fleshed out.

Stiff Competition

The AI industry is highly competitive, with major players such as Alphabet (GOOGL), Microsoft (MSFT), Nvidia (NVDA), and OpenAI continuously advancing their technologies. This rapid pace of innovation means that companies that fail to stay ahead may become obsolete. Additionally, emerging AI startups such as DeepSeek can disrupt established players seemingly overnight, making it difficult for investors to predict long-term trends.

The Bottom Line

AI stocks offer significant growth potential, fueled by rapid technological advancements and strong investor enthusiasm. However, high valuations, regulatory uncertainties, and intense competition pose risks that investors must carefully navigate. While AI remains a compelling long-term investment, careful scrutiny of a company’s financials and thorough risk management are essential to avoid speculative bubbles and hype.

The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our warranty and liability disclaimer for more info.

As of the date this article was written, the author does not own any of the above securities.

February saw a sharp selloff in leading tech names, with Nvidia (NVDA) pulling back as competition intensified, particularly from Chinese startup DeepSeek’s new AI chatbot, which aims to challenge OpenAI’s dominance. Meanwhile, shares of Palantir Technologies (PLTR) tumbled 27% from all-time highs following announcements of federal budget cuts, as government contracts account for 40% of the company’s revenue.

The Technology Select Sector SPDR Fund (XLK) ended the month flat, as the broader AI selloff and economic uncertainty weighed on the sector, driven by tariff threats between the U.S. and its trading partners.

Below is an analysis of the top tech stocks for March 2025, screened for best value, fastest growth, and most momentum. All stocks are listed on the Nasdaq or New York Stock Exchange. We excluded stocks with a price under $5, an average daily trading volume of less than 100,000, and a market capof less than $300 million.

All data are current as of Feb. 25, 2025.

Best-Value Tech Stocks

Value investing is about finding stocks trading below their true worth, with the expectation that the market will eventually correct the mispricing. Investors often use price-to-earnings (P/E) ratio, looking for stocks with a low P/E ratio to uncover value. Typically, a lower P/E ratio signals an undervalued stock because it means the company is valued less than its fundamental value. These stocks may offer a stronger return after the market adjusts.

However, bargain hunters must exercise patience, as it may take multiple quarters (or years) before a turnaround materializes. Some stocks may also remain cheap for a reason, falling into a “value
trap,” continuing to underperform despite appearing undervalued. Moreover, the P/E ratio should not be viewed in isolation. Investors should ask why a stock is trading at a discount to its peers and whether that gap is likely to close due to a business recovery, or the market recognizing the value
opportunity.

Best-Value Tech Stocks
	Price ($)	Market Capitalization ($B)	12-Month Trailing P/E Ratio
Yiren Digital Ltd. (YRD)	6.76	0.66	2.4
DoubleDown Interactive Co., Ltd. (DDI)	9.79	0.5	4
I3 Verticals, Inc. (IIIV)	26.83	0.9	5.7

• Yiren Digital Ltd: A fintech company based in China, Yiren Digital operates a financial marketplace connecting investors with borrowers. The company offers payment processing, loan services, insurance products, and ecommerce products. On Feb. 18, Yiren announced it had integrated DeepSeek’s AI technology to enhance operational efficiency, streamline workflows, and improve customer interactions across financial and lifestyle services in China.
• DoubleDown Interactive Co., Ltd Double Down is a gaming company that makes apps for mobile and desktop players. Their three most popular products are DoubleDown Casino, DoubleDown Fort Knox, and DoubleDown Classic Slots. The company ended fiscal year 2024 with 1.36 million average monthly active users, down from 1.75 million the year prior, though average revenue per user increased to $1.30 from $1.09 across the same time period. 
• i3 Verticals, Inc: i3 Verticals specializes in developing and acquiring software solutions for the public sector and health care markets. During its first quarter 2025, i3 saw annualized recurring revenues grow 7.6% compared to first quarter 2024.

Fastest-Growing Tech Stocks

Growth investors look for companies with increasing revenue and earnings per share (EPS), believing these metrics signal strong business fundamentals and potential for value
appreciation. However, relying on just one of these indicators can present an incomplete picture, as factors like tax law changes, mergers, or one-time gains can distort the numbers.

While growth investing offers the potential for high returns, it also comes with risks, such as inflated valuations, market volatility, and companies failing to sustain rapid expansion. Investors should
be cautious of excessive hype, unsustainable growth rates, and external economic factors that could impact performance. For a more balanced assessment, we employ a dual-metric approach. We equally weight the most recent year-over-year (YOY) percentage growth in both revenue and earnings per share (EPS), giving each consideration to provide a clearer view of each company’s true growth trajectory. In addition, we exclude companies that exhibit extraordinarily high growth rates—specifically, those with quarterly growth exceeding 1,000%—since these are outliers not likely on a sustainable trendline.

Fastest-Growing Tech Stocks
	Price ($)	Market Cap ($B)	EPS Growth (%)	Revenue Growth (%)
Pinterest, Inc (PINS)	36.95	25	828	18
Sportradar Group AG (SRAD)	21.35	6.4	795	28
Dynatrace, Inc. (DT)	59	17.7	735	19.5

• Pinterest, Inc: With over half a billion users worldwide, Pinterest is a visual search and discovery platform that allows people to find inspiration, curate ideas, and shop for products. 2024 was a banner year for Pinterest, with the company achieving its first $1 billion revenue quarter and a record 553 million monthly active users.
• Sportradar Group AG: Sportradar Group AG is a global sports technology company that provides data analytics, betting solutions, and media services to sports organizations, media outlets, and sportsbooks. On Feb. 7, Sportradar announced a long-term extension and expansion of their partnership with Major League Baseball to 2032, with MLB acquiring an equity stake in Sportradar.
• Dynatrace, Inc: Dynatrace provides AI-powered solutions to help businesses monitor, analyze, and optimize their digital ecosystems, allowing customers to detect issues in real time and improve system performance. Dynatrace has expanded its AI engine to shift enterprises from reactive AI solutions to preventive operations, enabling organizations to predict and prevent IT issues before they occur.

Tech Stocks With the Most Momentum

Momentum investing is a strategy that seeks to capitalize on existing market trends by investing in stocks that have recently outperformed their peers or the broader market. The core idea is that stocks on an upward trajectory are likely to continue rising as long as the fundamental drivers
behind their growth remain intact.

This strategy is particularly popular in the tech sector, where innovation, product launches, and market disruptions often lead to rapid stock price appreciation. However, investors must carefully monitor stock valuations, as fast-rising stocks often outpace their fundamentals. When valuations become overstretched, they can form speculative bubbles that are vulnerable to sharp selloffs if market sentiment shifts. Here are the tech stocks with the highest total return in the last 12 months.

Tech Stocks With the Most Momentum
	Price ($)	Market Cap ($B)	12-Month Trailing Total Return (%)
Red Cat Holdings, Inc. (RCAT)	7	0.6	912
Quantum Computing, Inc. (QUBT)	6.9	0.94	747
VNET Group, Inc. (VNET)	13.3	3.9	746

• Red Cat Holdings, Inc: Red Cat is a drone technology company specializing in integrating robotic hardware and software for military, government, and commercial applications. On Feb. 12, Red Cat announced that it had raised up to $20 million in debt financing and applied for $58 million in debt financing from the Department of Defense Office of Strategic Capital.
• Quantum Computing, Inc: Quantum Computing is an integrated photonics and quantum technology company focused on developing accessible and affordable quantum computing solutions. Quantum Computing CEO William McGann recently highlighted the company’s plans to commercialize its technology, open a facility for making thin film lithium niobate (TFLN) chips, and expand strategic partnerships in AI.
• VNET Group, Inc.: VNET serves over 7,500 enterprise customers across more than 30 cities in China, offering data center hosting, cloud solutions, and internet security services. The company recently announced a strong third quarter of 2024 thanks to the success of its data center hosting business, driven by rising AI demand.

Advantages of Tech Stocks

Growth Potential

Tech companies, especially those in emerging sectors like artificial intelligence, cloud computing, and cybersecurity, often experience rapid revenue and earnings growth. Many tech firms have scalable business models that allow them to expand globally, while maintaining high gross margins.

Innovation

The tech industry is constantly evolving, with companies pioneering groundbreaking innovations that reshape entire industries. Investors in leading tech firms can benefit from major technological shifts, such as AI, and automation, creating long-lasting competitive advantages.

Recurring Revenues

Many tech companies, particularly those in software, cloud computing, and digital services, operate on subscription-based or recurring revenue models, ensuring more stable and predictable cash flows. These models provide businesses with greater revenue visibility, reduce dependence on one-time sales, and enhance customer retention through long-term contracts and service integrations. Additionally, recurring revenue helps mitigate economic downturns by offering consistent income streams, while also enabling companies to reinvest in research, development, and expansion

Disadvantages of Tech Stocks

Volatility

Tech stocks are known for their high volatility because rapid technological changes and competitive pressures can lead to significant price fluctuations. They often carry high valuations based on growth expectations, making them susceptible to market corrections if they fail to meet these
projections. Furthermore, regulatory challenges and geopolitical tensions can impact the sector, introducing additional risks and uncertainties for investors.

Valuation Risks

Owing to their high growth potential, many tech companies trade at high earnings or revenue multiples, making them susceptible to overvaluation. If growth expectations do not materialize, these stocks can experience sharp declines, leading to potential losses for investors. Moreover,
early-stage tech companies often allocate a significant portion of their capital to staffing and marketing to sustain their high growth rates. As a result, they tend to remain unprofitable in their initial stages, often relying on outside capital to fund expansion, despite achieving higher gross margins than companies in non-technology sectors.

Regulatory and Competitive Challenges

The tech industry faces increasing scrutiny from regulators on issues like data privacy,
antitrust concerns, and cybersecurity. Tech giants such as Meta Platforms (META)
and Alphabet Inc (GOOGL) are no strangers to regulatory probes and fines.  Additionally, competition is fierce, with companies constantly innovating to maintain their market position, which can erode profitability and market share over time.

The Bottom Line

Tech stocks offer compelling investment opportunities due to their high growth potential, continuous innovation, and recurring revenue models, making them a dominant force in the global economy. AI is set to be a major driver of technological advancements in 2025, with the potential to
disrupt all major industries. However, the sector can be volatile, with regulatory scrutiny expected to increase along with innovation. Investors should exercise caution, ensuring that even the most promising tech stocks are evaluated critically to avoid getting caught up in market bubbles or
speculative hype.

The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our warranty and liability disclaimer for more info.

As of the date this article was written, the author does not own any of the above securities.

VWAGY, TM, and STLA lead the 10 biggest car companies list

Reviewed by Gordon Scott
Fact checked by Vikki Velasquez

The automotive industry is a crucial part of the global economy, producing vehicles that efficiently transport people and goods within nations and across entire regions. These companies manufacture cars, trucks, vans, and sport utility vehicles (SUVs). Some even produce motorcycles, all-terrain vehicles (ATVs), and commercial vehicles like transport trucks and buses.

The biggest auto manufacturers have a large global footprint, selling vehicles to consumers and businesses worldwide. These big companies are mainly headquartered in just a few countries that lead the industry; however, the list of the 10 biggest also includes car companies from other countries.

We look in detail below at the 10 biggest car companies by trailing 12 months (TTM) revenue as of February 2025. Some companies outside the United States report profits semiannually instead of quarterly, so the TTM data may be older than it is for companies that report quarterly. This list is limited to publicly traded companies in the U.S. or Canada, either directly or through American depositary receipts (ADRs).

Important

Some of the stocks below are only traded over the counter (OTC) in the U.S., not on exchanges. This may be because they are foreign companies that do not have sponsored ADRs on traditional exchanges. As a result, trading OTC stocks often carry higher trading costs than trading stocks on exchanges. Additionally, these stocks may be subject to foreign exchange fluctuations. This can lower or even outweigh potential returns.

1. Volkswagen AG (VWAGY)

• Revenue (TTM): $324.46 billion
• Net Income (TTM): $12.25 billion
• Market Cap: $55.2 billion
• 1-Year Return (TTM): -24.2%
• Exchange: OTC

Volkswagen (VWAGY) is a Germany-based multinational automotive manufacturing company. It develops and produces passenger cars, trucks, and light commercial vehicles such as buses. Vehicle models include the Tiguan, Golf, Jetta, Passat, and more. The company stopped making its once-popular Volkswagen Beetle compact car in 2019 due to falling demand for smaller cars. Volkswagen’s best-known luxury brands are Porsche and Audi. The company also manufactures parts and offers customer financing and fleet management services.

2. Toyota Motor Corp. (TM)

• Revenue (TTM): $310.27 billion
• Net Income (TTM): $33.84 billion
• Market Cap: $‪243.3 billion
• 1-Year Return (TTM): -23.7%
• Exchange: New York Stock Exchange (NYSE)

Toyota (TM) is a Japan-based multinational. It was the first foreign manufacturer to build a dominant market share in the U.S. automobile market by setting the industry standard for efficiency and quality. Toyota designs and manufactures cars, trucks, minivans, and commercial vehicles. Vehicle models include the Corolla, Camry, 4Runner, Tacoma, and the Prius, the hybrid electric sedan. Lexus is the company’s luxury car division. Toyota also produces parts and accessories and provides dealers and customers with financing.

3. Stellantis (STLA)

• Revenue (TTM): $156.88 billion
• Net Income (TTM): $5.52 billion
• Market Cap: $37.7 billion
• 1-Year Return (TTM): -48.0%
• Exchange: NYSE

Stellantis (STLA) is a multinational automaker that was created in 2021 through the merger of French automaker Groupe PSA and Italian-American automaker FCA (Fiat Chrysler Automobiles). The company is one of the largest automakers in the world, with a strong presence in Europe, North America, and South America. Stellantis offers a wide range of vehicles, including passenger cars, trucks, vans, and SUVs, under various brands including Peugeot, Citroën, DS, Opel, Vauxhall, Jeep, Ram, Dodge, and Chrysler. The company is headquartered in Amsterdam, Netherlands.

4. Mercedes-Benz AG (MBGYY)

• Revenue (TTM): $147.95 billion
• Net Income (TTM): $10.84 billion
• Market Cap: $60.5 billion
• 1-Year Return (TTM): -14.8%
• Exchange: OTC

Mercedes-Benz (MBGYY) is a German-based multinational automobile manufacturer. The company manufactures passenger cars, vans, off-road vehicles, and commercial vehicles like transport trucks and buses.

5. Ford Motor Co. (F)

• Revenue (TTM): $184.99 billion
• Net Income (TTM): $5.88 billion
• Market Cap: $37.8 billion
• 1-Year Return (TTM): -17.8%
• Exchange: NYSE

Ford (F) is a multinational automotive manufacturer based in Michigan. The company develops, manufactures, and services cars, SUVs, vans, and trucks. Vehicle models include the Mustang, Edge, Escape, F-150, Ranger, and more. The company also provides vehicle-related financing and leasing.

6. General Motors (GM)

• Revenue (TTM): $187.44 billion
• Net Income (TTM): $7.19 billion
• Market Cap: $48.8 billion
• 1-Year Return (TTM): +22.1%
• Exchange: NYSE

General Motors (GM) is a multinational automobile manufacturer. The company designs and manufactures cars, trucks, and automobile parts. It has been a leader in the development of electric cars, first with the Chevy Volt and its successor, the Chevy Bolt. It operates under four major vehicle brands: GMC, Chevrolet, Cadillac, and Buick. The company also offers automotive financing.

7. Honda Motor Co. Ltd. (HMC)

• Revenue (TTM): $144.43 billion
• Net Income (TTM): $6.90 billion
• Market Cap: $45.3 billion
• 1-Year Return (TTM): -21.1%
• Exchange: NYSE

Honda (HMC) is a Japan-based multinational automobile company. It manufactures passenger cars, trucks, vans, all-terrain vehicles, motorcycles, and related parts. Vehicle models include the Civic, Accord, Insight Hybrid, Passport, Odyssey, and more. Acura is the company’s luxury car division. The company also provides financial and insurance services.

8. Tesla Motors (TSLA)

• Revenue (TTM): $97.69 billion
• Net Income (TTM): $7.13 billion
• Market Cap: $942.3 billion
• 1-Year Return (TTM): +45.0%
• Exchange: Nasdaq

Tesla (TSLA) is a manufacturer of electric vehicles and clean energy solutions. Tesla manufactures five electric models: the Model 3, Model S, Model X, Model Y, and Cybertruck. Each model is capable of speeds of more than 135 miles per hour and can accelerate from 0 to 60 in less than 4.8 seconds. Most have a range of more than 310 miles. Tesla provides financing for retail customers.

9. Nissan Motors (NSANY)

• Revenue (TTM): $84.03 billion
• Net Income (TTM): $706.5 million
• Market Cap: $10.7 billion
• 1-Year Return (TTM): -25.7%
• Exchange: OTC

Nissan (NSANY) is a Japan-based multinational automotive company. It designs and manufactures passenger vehicles and related parts. Vehicle models include the Altima, Maxima, Sentra, Versa, Pathfinder, Rogue, Titan, and its LEAF electric car. The company’s luxury division is Infiniti. The company also offers financing and leasing services.

10. BYD Co. Ltd. (BYDDY, BYDDF)

• Revenue (TTM): $682.2 billion
• Net Income (TTM): $33.8 billion
• Market Cap: $146.5 billion
• 1-Year Return (TTM): +90.3%
• Exchange: OTC

BYD Co. Ltd. (BYDDY, BYDDF) is a Chinese multinational corporation that specializes in the design, development, and manufacture of a wide range of products, including electric vehicles, batteries, solar panels, and other renewable energy products. The company is headquartered in Shenzhen, China, and has operations in more than 70 countries around the world. BYD is known for its leadership in the electric vehicle industry and has a strong presence in both the passenger car and commercial vehicle markets. In addition to its core businesses, BYD also has a significant presence in the renewable energy sector and is a leading supplier of solar panels and energy storage systems.

The founders of Tulsa’s Greenwood District

Reviewed by Caitlin Clarke
Fact checked by Kirsten Rohrs Schmitt

The following is an excerpt from Black Fortunes: The Story of the First Six African Americans Who Escaped Slavery and Became Millionaires, by Shomari Wills, which details the origins of Black Wall Street.

Ottawa W. Gurley (aka O.W.) was a turn-of-the-20th-century Black educator, entrepreneur, and landowner who was born to former enslaved Africans. In 1889, after resigning from a position he held with the Grover Cleveland presidential administration, O.W. moved from his home state of Arkansas to Perry, Okla., in order to participate in the Oklahoma Land Grab of 1889. With his wife Emma, he later relocated to Tulsa to seize economic opportunities resulting from the city’s multiracial population boom. Once there, O.W. purchased a 40-acre tract of undeveloped land, where he built a grocery store on a dirt road that ran just north of the train tracks traversing the city.

O.W. later forged a partnership with fellow Black businessman John the Baptist Stradford (aka J.B.), with whom he shared a general distrust of White people. Both men chose to go by their initials instead of their first names. This action was a form of silent protest because men in the South were customarily addressed by their surnames, while boys were called by their first names. Sadly, White men often addressed Black men by their first names as a form of emasculation. By using their initials, O.W. and J.B. circumvented this practice.

O.W. and J.B. occasionally held divergent opinions. For example, while O.W. subscribed to the philosophies of African American educator Booker T. Washington, J.B. favored the more radical views of civil rights activist W. E. B. Du Bois. Despite their differences, the pair worked in lockstep to develop an all-Black district in Tulsa. They subdivided the land into housing zones, retail lots, alleys, and streets, all of which were exclusively available to other African Americans who were fleeing lynchings and other racial horrors.

Key Takeaways

• Ottawa W. Gurley was a Black educator, entrepreneur, and landowner who was born to former enslaved Africans.
• At the beginning of the 20th century, he bought 40 acres of land in Tulsa, Okla.
• Gurley forged a partnership with Black businessman John the Baptist Stradford, and the two developed an all-Black district in Tulsa, which became known as Greenwood.
• When hundreds of African Americans moved to Greenwood for the oil boom, the two became increasingly wealthy.
• Greenwood’s prosperity became legendary in Black America, with Booker T. Washington dubbing it “Black Wall Street.”

The Origin of Greenwood

After O.W. built several square two-story brick boardinghouses near his grocery store, he called the street on which these structures sat Greenwood Avenue, after the Mississippi town from which many of his early residents hailed. Before long, the entire area became known as Greenwood, which soon became the site for a school, as well as an African Methodist Episcopal Church. But O.W.’s crowning project was the Gurley Hotel, whose high quality rivaled that of the finest White hotels in the state.

As hundreds of African Americans emigrated to Greenwood for the oil boom, O.W. and J.B. became increasingly wealthy, with O.W. boasting a reported net worth of $150,000 ($3.6 million adjusted for inflation). O.W. leveraged this fortune to launch a Black Masonic lodge and an employment agency while bankrolling efforts to resist Black voter suppression in the state.

Pushback Within the African American Community

O.W. was eventually appointed as a sheriff’s deputy by the city of Tulsa, where he was responsible for policing the Black population in Greenwood. But as O.W. became increasingly cozy with the White establishment, many members of Tulsa’s Black community began to resent him. In fact, in the Black Star newspaper, its militant Black publisher A.J. Smitherman pejoratively referred to O.W. as “The King of Little Africa.”

Nevertheless, White developers began to emulate O.W. and J.B. by purchasing plots of land located north of the railroad tracks and selling them back to members of the Black community. By 1905, a Black doctor and a Black dentist had launched practices there. The creation of more schools, several hardware stores, and a Baptist church soon followed. Throughout this time, segregation was increasing, as Blacks converged on the north side of the train tracks, while Whites converged on the south side.

When the Oklahoma territory achieved statehood in 1907, segregationist Democrats, led by the White supremacist Bill “Alfalfa” Murray, passed laws that criminalized interracial marriage and prohibited Blacks from obtaining high-wage jobs. These injustices affirmed O.W. and J.B.’s decision to establish a Black-centric community, where Black men and women were shielded from racial hostilities. If White people made threateningly racist remarks, Greenwood’s Black residents often responded aggressively. For example, in 1909, J.B. was walking along Greenwood Avenue when a White deliveryman uttered a racist insult, prompting J.B. to throw the man to the ground, straddle him, and punch his face until it was bloody. J.B. was criminally charged for the beating but was acquitted.

On a separate occasion, J.B. was kicked off a train in Oklahoma for sitting in the first-class car—even though he’d purchased a first-class ticket. When he was asked to move to the Black-only car, he refused to comply. He later filed a lawsuit in an effort to desegregate Tulsa’s trains but was unsuccessful.

Greenwood Prospers

As segregation grew stronger, Greenwood’s Black business district thrived, mainly because residents fed their purchasing dollars back into the local economy while earning their incomes from White employers. This was possible because the migration of oilmen to Tulsa created a spike in demand for domestic help, which enabled Black residents to attain high-paying labor jobs as maids, chauffeurs, gardeners, janitors, shoe shiners, and porters. These workers often earned enough money to send their children to universities like Columbia Law School, Oberlin College, the Hampton Institute, the Tuskegee Institute, Spelman College, and Atlanta University, which positioned them to secure white-collar jobs after graduation.

Greenwood’s prosperity became legendary in Black America, with Booker T. Washington dubbing it “Black Wall Street.”

What Did JB Stradford Do?

JB Stratford founded “Black Wall Street”, together with Ottawa W. Gurley in the early 20th century. Located in Tulsa, Oklahoma, hundreds of Black Americans moved to the thriving district during the oil boom, while the founders amassed greater fortunes.

What Was Black Wall Street Famous For?

Black Wall Street, located in the Greenwood neighbourhood in Tulsa, Oklahoma was one of America’s most prosperous business districts in the early 20th century. The district became an economic powerhouse, with independent schools, banks, hotels, and transit systems.

Who Bought the Land for Black Wall Street?

O.W. Gurley purchased 40 acres of land in 1906 in the Greenwood District of Tulsa, Oklahoma. During that time, Black ownership of land was unheard of. As the business district expanded and thrived, Gurley grew to own 100 of the 600 businesses in operation.

The Bottom Line

Black Wall Street became an enclave for Black entrepreneurs and a gateway for economic prosperity. As a self-sustaining district, it became a beacon of wealth for business owners, while establishing independent school systems and public services. At the time, several millionaires emerged out of the thriving metropolis.

Through 1910 to 1920, the population of the Greenwood district almost quadrupled to 72,000, spanning to 35 city blocks. Thanks to the vision and partnership of founders O.W. Gurley and JB Stradford, the boomtown of Black Wall Street became the nation’s most prosperous hub during the early 20th century.

Copyright © 2018 by Shomari Wills. Reprinted by permission of Amistad, an imprint of HarperCollins Publishers.

There are big differences in how wealth is distributed across the U.S.

Reviewed by Robert C. Kelly
Fact checked by Vikki Velasquez

The United States is arguably one of the most economically well-off places on the planet. The U.S. accounts for 30.8% of global wealth, or $139.9 trillion, according to UBS’s Global Wealth Report 2023 (the most recent report for which such data is available). The second-largest country by global wealth, China, is responsible for 18.6%, or $84.5 trillion. This makes the U.S. the richest country on Earth, in terms of total wealth.

The U.S. also has the most millionaires in the world—38% of the world’s supply, or nearly 22 million adults, according to the UBS Global Wealth Report 2024. Not surprisingly, the country with the second-highest number is mainland China, with 6 million individuals, or 10% of the world’s millionaires. Considering this seemingly limitless potential for economic prosperity, it’s not surprising that more than a million people immigrate to the U.S. each year.

However, that wealth is not distributed equally across all parts of the United States. Income inequality in the U.S. is considerable. Despite nearly $140 trillion in total wealth, 11.1% of the U.S. population lived in poverty in 2023, according to the U.S. Census Bureau.

Another inequality stamp: The median wealth per adult in the United States for 2023 was $112,157. In the highest-ranking country—Luxembourg—it was $372,258.

Key Takeaways

• The United States is the wealthiest country in the world in terms of total global wealth percentage. It also has the world’s most millionaires.
• Though the U.S. is the wealthiest country, that wealth is not distributed evenly; many states have a low median household income and high rates of poverty.
• The states with the highest median household income are Maryland, Massachusetts, and New Jersey.
• The states with the lowest median household income are Mississippi, West Virginia, and Arkansas.

Measuring Wealth: What Median Income Tells Us

Median income is a particularly good way to look at how people are doing, both nation to nation and among states in the U.S. Here’s why.

There are several ways to assess wealth in a given area. A state’s gross domestic product (GDP) offers a glimpse into its overall economic health, but not necessarily how individuals and households are doing.

Mean income (the total of all values divided by the number of values in a dataset—otherwise known as the average) is the primary mathematical value for making comparisons. However, having a large number of high-earning one-percenters or low-income people in a region can skew the end result in revealing how much money individuals earn.

The median gives you a better picture. It is determined by lining up all values in a dataset in numerical order, and then finding the “middle” value. A state’s median income is exactly halfway between what people earn on both sides of the wealth spectrum. That makes median income a much more accurate assessment of what the average American makes annually than the actual average income.

How Race and Gender Affect Income

Structural racism and sexism severely and negatively impact many Americans and their families. Here, we look at individual income to focus on how individual workers are faring.

A significant contributing factor to American income inequality is a disparity in earnings by race. The differences are stark. Controlling for other factors, a 2024 study by Payscale points to a gender pay gap for Black women of $0.80 for every $1 earned by White men. Black men earned 84.6% as much as White men (median weekly earnings) in the fourth quarter of 2024, according to the U.S. Bureau of Labor Statistics.

Additionally, Black and Hispanic families own less wealth than White families. In 2022 (the most recent data available), a typical (median) White family had a wealth of $285,000, while a typical Black family had a wealth of $44,900, and a typical Hispanic family had a wealth of $61,600.

A prominent income gap exists between men and women in the United States. Women make approximately 83 cents for every dollar of men’s wages in an uncontrolled gender pay gap, while women make 99 cents for every dollar in a controlled gender pay gap. Controlled gender pay gaps take into consideration job title, education, experience, industry, job level, and hours worked.

Contributing to these discrepancies: Men constitute 36.4% of minimum-wage workers as of 2023, while women account for just 10.4% of Fortune 500 CEOs as of 2024.

For the fourth quarter of 2024, Asian and White women earn a median of $1,367 and $1,094 per week, respectively; Black women and Hispanic or Latinas earn a median of $978 and $844 per week, respectively. Although all women were more likely to live in poverty than White men in 2019, women of color experienced a higher poverty rate than White women.

Median Household Income

One of the measures of income provided by the U.S. Census Bureau—and the one we chose to use for our state-to-state comparison—is median household (HH) income. This is the total gross income of all persons 15 years or older within a housing unit.

When the Census Bureau measures and compares how different parts of the nation are doing, “median HH Income is perhaps the single most widely used measure of income in the census,” as the Missouri Census Data Center explains. Median household income can include households with only one resident as well as those with multiple residents who are not related (i.e., roommates).

Median household income is different from two other measures that the census uses:

• Median per capita income, which looks at each individual person’s income, rather than treating a household as a singular entity
• Median family income, which only considers households with two or more people related by birth, marriage, or adoption

As of 2023, the most recent available figures, the median U.S. annual household income was $80,610.

Richest States by Median Income

The map above shows the pattern of median income across the U.S. Let’s start with a look at the richest states.

Special Consideration: District of Columbia

• Median household income: $106,287 (2023)
• Population: 702,250 (July 1, 2024)
• Unemployment rate: 5.5% (December 2024)
• Poverty rate: 14.0% (2023)

The District of Columbia is not a state, of course, but the U.S. Census Bureau includes it among the 50 states when listing median income. Its inclusion makes sense, given the fact that the District’s median income is higher than any state. As is likely unsurprising, the federal government is the largest employer in the nation’s capital.

D.C. has the highest population density in the U.S. along with the second-highest median value of owner-occupied housing units. Despite its high income and small population, D.C. also has the highest poverty rate of any of the richest states.

1. Maryland

• Median household income: $101,652 (2023)
• Population: 6.26 million (July 1, 2024)
• Unemployment rate: 3.1% (December 2024)
• Poverty rate: 9.5% (2023)

Maryland’s private-sector industries were responsible for $382.4 billion in economic output. The Free State also had the largest number of federal jobs per capita in 2020, which makes sense, given its adjacency to Washington, D.C. Both the Social Security Administration and the Food and Drug Administration are headquartered in Maryland.

2. Massachusetts

• Median household income: $101,341 (2023)
• Population: 7.13 million (July 1, 2024)
• Unemployment rate: 4.1% (December 2024)
• Poverty rate: 10.4% (2023)

Massachusetts’ economy was originally heavily dependent on agriculture and maritime trade, though manufacturing would become more prominent in the 19th century. Today, education and professional and business services employ the largest portion of the Bay State’s workforce. Its leisure and hospitality industry is also a major economic powerhouse.

3. New Jersey

• Median household income: $101,050 (2023)
• Population: 9.5 million (July 1, 2024)
• Unemployment rate: 4.6% (December 2024)
• Poverty rate: 9.7% (2023)

Not only does New Jersey have the largest population of the three richest (and the three poorest) states, but it also has the largest population density of any state in the U.S. Healthcare is the Garden State’s largest industry, adding $37 billion to the state economy and employing approximately 488,000 people. New Jersey is also the birthplace of major industries, such as organized baseball, professional basketball, movies, and passenger flights.

Poorest States by Median Income

Now, the opposite end of the spectrum. These states have the lowest median incomes.

1. Mississippi

• Median household income: $54,915 (2023)
• Population: 2.94 million (July 1, 2024)
• Unemployment rate: 3.3% (December 2024)
• Poverty rate: 18% (2023)

Despite 35% of Mississippi land being dedicated to farmland, the federal government is the fourth-biggest employer in the Magnolia State, after trade, transportation, and utilities. In addition to having the highest poverty rate of any state in the country, Mississippi is also known as the “hungriest state” in the U.S., with 20% of its population being food insecure.

2. West Virginia

• Median household income: $57,917 (2023)
• Population: 1.76 million (July 1, 2024)
• Unemployment rate: 4.2% (December 2024)
• Poverty rate: 16.7% (2023)

The Equality State is another case where the federal government is the largest employer, but this time, it hasn’t pushed enough people out of poverty. Before the COVID-19 outbreak, West Virginia’s 1938 unemployment rate was the highest in U.S. history.

3. Arkansas

• Median household income: $58,773 (2023)
• Population: 3.08 million (July 1, 2024)
• Unemployment rate: 3.4% (December 2024)
• Poverty rate: 15.7% (2023)

Agriculture makes up the Natural State’s largest industry, adding $16 billion to the state’s economy each year. Forests comprise 56% of land, 25% of which belongs to the forestry industry. Despite the low income and high poverty rate, several major companies are headquartered in Arkansas, including Tyson Foods and Walmart.

Which State Has the Highest Median Income?

The state that has the highest median income is Maryland, with a median income of $101,652 in 2023. The District of Columbia, which is not a state, has the highest median income overall, with a median income of $106,287 in 2023.

What Is Middle-Class Income?

What is considered middle-class income will depend on a person’s location. A middle-class person in Arkansas may not be a middle-class person in New York City, for example, where the cost of living is much higher. Generally, a three-person household should have an income between $51,967 and $155,902 to be considered middle class.

What Percentage of Americans Make Over $100k?

As of 2024, 37.8% of American households made over $100,000. This is slightly lower than in 2019 but higher than any point before 2019. In fact, before the financial crisis in 2008, it was 30.8%.

The Bottom Line

Though the United States is by far the wealthiest country in the world, income and wealth inequality exist throughout the nation, which can be evidenced in the difference in median income and poverty throughout the states as well as by gender and race across the board.

Correction—Sept. 27, 2024: This article has been corrected to state that Black women earned approximately $0.80 for every $1 earned by White men, according to a 2023 study by Payscale.

Reviewed by JeFreda R. Brown

Direxion Daily Energy Bull 2X ETF (ERX): An Overview

Direxion launched the bull and bear lines of the Daily Energy Shares 2X ETF in November 2008. The $253 million AUM Direxion Daily Energy Bull 2X (ERX) is a leveraged ETF that aims to reproduce 200% of the daily returns of the S&P Energy Select Sector Index (IXE). In other words, for every 1% gain in the underlying index, ERX attempts to produce a corresponding 2% gain.

Prior to March 31, 2020, ERX attempted to produce a corresponding 3x gain.

Key Takeaways

• For traders looking for exposure to the energy sector, the Direxion Daily Energy Bull 2x ETF (ERX) can provide 200% returns.
• Because it uses leverage, it is not intended for long-term holding, but rather a tool for short-term positioning.
• Prior to 2020, the ERX sought a 3x return. Today it is a 2x return ETF.

Direxion ETF Characteristics

ERX is an open-ended fund offered through the Direxion Funds family and advised by Rafferty Asset Management, LLC. Like most double-leveraged ETFs, ERX is actively managed and can come with high costs. Its expense ratio of 0.90% is higher than a typical standard ETF’s but relatively in line with the industry average for a leveraged and indexed ETF. Fund expense ratios do not include brokerage fees or other trading expenses.

To achieve its correct leverage, ERX also invests in financial instruments not found in the IXE portfolio. These instruments can include derivatives like futures contracts, forward contracts, options on securities, equity caps, floors and collars, swaps, short selling, reverse repurchases, and other ETFs.

Direxion is a renowned provider of leveraged and inversely leveraged ETFs, particularly in the double-leveraged space. Its expense limitation arrangement with Rafferty Asset Management extends to all of its fund offerings, which is particularly suitable for investors who prefer actively managed and high-turnover instruments.

ERX Fund Holdings

ERX is an energy ETF that is almost entirely invested in domestic companies in the energy sector. Approximately 91% of the fund is weighted toward Oil, Gas, and Consumable Fuels companies, while the remaining 9% is allocated toward Energy Equipment and Services. The fund’s top holdings include:

• Exxon (23.15%)
• Chevron Texaco (15.37%)
• Conocophillips (8.14%)
• Williams (4.60%)
• Eog Resources (4.53%)

Suitability and Recommendations

ERX allows investors to magnify potential short-term gains through its use of 2x leverage. As it seeks to reproduce daily performance, ERX is structured as a short-term fund and is not designed to track its underlying index for periods longer than one day.

All investments come with risk, but leveraged ETFs can be particularly risky. Any shareholder of ERX or its inverse, the Direxion Daily Energy Bear 2X Shares ETF (ERY), has exposure to a degree of market risk and volatility that greatly exceeds that of most equities. As such, these ETFs should only be considered by investors who understand leverage risk and know how to manage this risk in their portfolio.

Due to its heavy weighting in the energy sector, ERX’s performance is highly dependent on oil and gas prices. Investors should closely monitor the price of energy commodities and energy commodities futures.

What is a Leveraged ETF?

A leveraged ETF uses debt and financial derivates to achieve financial returns greater than an underlying index, fund, or currency. Most leveraged ETFs aim to achieve 2x or 3x daily returns compared to their underlying assets.

What is an Inverse ETF?

An inverse ETF is a fund that is designed to perform opposite to its underlying index. For example, if a particular index falls 10%, an inverse ETF that tracks the index should increase approximately 10%.

Who Should Invest in ERX?

As a leveraged energy ETF, ERX is not suitable for all investors. In general, only investors who understand leveraged funds and have a high appetite for risk should actively trade ERX and other leveraged ETFs. It’s not designed as a buy-and-hold fund, which means investors will have to actively monitor their position to know when to submit buy or sell orders.

The Bottom Line

In general, a 2X ETF is only meant for investors who have experience with leveraged instruments and are comfortable consistently monitoring their own portfolios. ERX is not a buy-and-hold play and is not suitable for fixed-income investors. It has a large bid/ask spread and does not have a consistent yield.

ERX has a track record of large upswings and downswings and is risky due to its leverage. Its beta is around 4.5, meaning that it is nearly 5x more volatile than the S&P 500 index. This could serve as a nice satellite holding for competent investors, but it should never make up the core of a balanced portfolio.