Fireworks on the Stock Exchange: S&P 500 Impresses with Strong Gains

The S&P 500 has delivered an impressive performance over the past two years, increasing by approximately 60%. This rapid development stands in stark contrast to the index's long-term average return of about 10% per year. During this period, some stocks have achieved exceptionally high returns, as their solid business models have created immense value in the products and services they offer or intend to offer. Among the profitable stocks are Summit Therapeutics, Carvana, and Nvidia, all of which have seen significant increases in value. However, the question arises: Is it too late for investors to acquire these stocks, or is there still room for growth? The pharmaceutical company Summit Therapeutics is currently drawing investors' attention because its cancer drug, Ivonescimab, produced better results in a lung tumor study than Merck's long-successful Keytruda. While Summit is significantly smaller than the pharmaceutical giants at present, it could achieve considerable revenue through the market approval of its drug. Potential investors should not overlook the risks, especially since the study was conducted in China and may not meet the requirements of the US authorities. Carvana, the online retailer for used cars, is also experiencing a boom, driven by market development and declining interest rates. Furthermore, the company's improved financial metrics have instilled confidence among investors. An increase in demand for used cars could boost business; however, the low gross margin of less than 20% presents a challenge. Carvana needs to manage its operations carefully to avoid negative outcomes, such as the $72 million operating deficit incurred last year.