Not many stocks can boast the kind of gains the Magnificent Seven had in 2024. Even fewer can lay claim to outperforming them. But media and entertainment stock TKO Group (TKO) would come second for performance among the Magnificent Seven in 2024. Meanwhile, funds have been scooping up shares of the UFC events organizer.
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Shares have formed a four-weeks-tight formation with a buy point of 149.40, which is also the stock’s all-time high. That is a bullish sign because it shows the stock is able to hold its robust gains.
IBD MarketSurge charts also show shares are holding above the 21-day moving average.
Investors exited the stock on Oct. 24 after the company announced that it had bought certain sports and hospitality assets from Endeavor Group Holdings in an all-stock transaction. Shares fell below the 50-day moving average. Endeavor is a majority holder in TKO Group.
But the stock rebounded amid a post-earnings rally in November.
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Third quarter sales grew 52% to $681.2 million, while earnings of 28 cents per share reversed from a 26-cent loss in the year-ago period. The company revised its full-year sales outlook to the upper end of its previous forecast of $2.670 billion-$2.745 billion.
UFC Events Firm Outperforms With 74% Gain
TKO operates UFC, an organization that provides pay-per-view mixed martial arts events, and WWE, a global wrestling-show company. The stock holds first place in the diversified media industry group, which ranks a strong 33rd among Investor’s Business Daily’s 197 industry groups.
The stock gained 74% in 2024, outperforming Magnificent Seven stock Meta Platforms (META), which rose 65%; Alphabet (GOOGL), which rose 36%; Amazon.com (AMZN), with a 44% gain; Microsoft (MSFT), which gained just 12% in 2024; and Apple (AAPL), which rose 30%.
Even Tesla (TSLA) gained just 63%. Only Nvidia (NVDA) among the mighty seven outperformed TKO stock.
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That outperformance is evident with a single glance at TKO’s chart. The Relative Strength Rating of 92 shows that the stock is in the top 8% for market performance over the past 52 weeks. The Composite Rating of 98 is spectacular. The relative strength line is also rising and near new highs.
Mutual funds are participating as well, as seen by the Accumulation/Distribution Rating of A+. The Allspring Growth Fund (SGRAX) holds shares of TKO stock. The fund is part of the IBD mutual fund index.
| Stock | Ticker | RS Rating | 2024 Gains |
|---|---|---|---|
| Apple | AAPL | 87 | 30% |
| Microsoft | MSFT | 54 | 12% |
| Meta | META | 86 | 65% |
| Amazon | AMZN | 87 | 44% |
| Nvidia | NVDA | 94 | 171% |
| Alphabet | GOOGL | 84 | 36% |
| Tesla | TSLA | 96 | 63% |
| TKO Group | TKO | 92 | 74% |
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