Shares in companies that are spun off from existing firms tend to outperform the S&P 500 by an average of 10% over the subsequent 18-24 months, data compiled by Trivariate show.
Over the last decade, the market capitalization for the Magnificent Seven has grown close to 800 percent. The rest of the S&P 500 has seen its market cap increase by about 150 percent.
Hargreaves Lansdown has revealed its Five shares to watch for 2025. Simon Lambert talks to senior equity analyst Matt Britzman to find out why it chose them.