If you want to know what the best-managed companies will be in 2024, wall street journalThe annual rankings are out.
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The ranking system is based on principles developed by renowned consultant Peter Drucker, whose management theories are widely used throughout the business world.
The three companies with the highest scores probably won’t surprise anyone paying attention to the market. But No. 4, ranked higher than several members of the Magnificent 7 and considered the most dominant player in the industry, is a former tech leader who has struggled through 2024.
As such, these companies deserve a closer look, especially the criteria used to evaluate their management, as the rankings can provide insight into each stock’s prospects for the year ahead.
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Best Managed Companies 2024
according to wall street journalTop 250 list, the best managed company in 2024 is Apple (AAPL) . Although AAPL stock hasn’t performed as well as some other companies on the list, The Wall Street Journal still rates it higher than all its peers with an overall score of 92.1 out of 100. Nvidia (NVDA) and microsoft (Microsoft Corporation) scores were 90.1 and 88.8 respectively.
As the outlet notes, the ranking system determines the most effectively managed companies by “examining performance in five areas: customer satisfaction, employee engagement and development, innovation, social responsibility and financial strength.” “The rankings are based on analysis of 35 data inputs from 16 third-party sources,” it added.
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The fourth company on the list is Intel (international trade center) Its performance this year has lagged significantly behind its big tech rivals. Ironically, Intel’s CEO recently resigned, just days after the company lost its position in the Dow Jones Industrial Average to Nvidia. That prompted Wall Street analysts to recalibrate their forecasts for INTC stock, which is down more than 53% this year, while Nvidia, Apple and Microsoft have all posted significant gains.
Microsoft has been named the best-managed company for the past four years. However, Apple and Nvidia have closed the year above that level, suggesting that industry trends may be changing and that sentiment toward Microsoft is shifting. While all four of the top companies are investing heavily in artificial intelligence, the way Apple executes new initiatives is considered more effective than its long-term rivals, based on Drucker’s principles.
Another important takeaway for investors is that social responsibility is one of Drucker’s effectiveness principles. The concept has come under scrutiny in the business community in recent years as conservative activists have sought to undermine the importance of social responsibility, particularly diversity, equity and inclusion (DEI) initiatives.
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Robby Starbuck is one of the field’s most outspoken critics, taking aim at many companies that incorporate DEI principles into their business practices. Last week, Walmart (WMT) Announcing plans to cancel its DEI program, Starbucks hailed it as a win. However, Walmart did not rank among the top picks for the best-managed companies in 2024. This year it ranked 21st with a score of 71.1, lower than companies such as Procter & Gamble. (PG) Nike (NKE) and Amazon (Amazon) .
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What this means for tech stocks in 2025
Starbucks may not believe in the importance of social responsibility, but Peter Drucker does, and wall street journal Clearly takes his approach to assessment seriously.
Given the size of industry leaders such as Apple, Nvidia and Microsoft, the release of the rankings is unlikely to impact the stock prices of the top companies. However, it may help reassure investors that these companies are well managed, suggesting they may continue their upward trend in 2025.
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Overall, there are good reasons to be bullish on the technology sector’s leading stocks as we head into 2025. Cabinet members, suggesting regulation for AI leaders will be introduced back next year.
Investors have even more reason to be optimistic, as many of the industry’s top innovators have maintained effective leadership positions. These leaders have proven that they can continue to grow their companies while still prioritizing DEI initiatives, no matter what others like Starbucks claim.
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