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Best-managed company rankings reveal a lot about top tech stocks
If you’re wondering what the best-managed companies in 2024 were, the Wall Street Journal ’s annual rankings are in. The tech sector was well represented this year, as several of Silicon Valley’s biggest names secured the top spots on the list.
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This ranking system is based on principles developed by noted consultant Peter Drucker, whose theory of management is widely employed throughout the business world.
The companies with the three highest scores likely won’t surprise anyone who follows markets. But the fourth spot on the list went to a former tech leader who has struggled significantly throughout 2024, ranking it above several members of the Magnificent 7, considered to be the sector’s most dominant players.
For that reason, these companies are worth a closer look, particularly the criteria by which their management is assessed, as the rankings can offer insight into each stock’s prospects for the coming year.
The best-managed companies of 2024
According to the Wall Street Journal ’s top 250 rankings , the best-managed company of 2024 is Apple ( AAPL ) . While AAPL stock hasn’t performed as well as some other companies on this list, the Journal still ranks it higher than all its peers, with an overall score of 92.1 out of 100. The second and third spots went to Nvidia ( NVDA ) and Microsoft ( MSFT ) , which received scores of 90.1 and 88.8, respectively.
As the outlet notes, the ranking system identifies companies with the most effective management by “examining performance in five areas: customer satisfaction, employee engagement and development, innovation, social responsibility and financial strength.” It adds that ”the ranking is based on an analysis of 35 data inputs provided by 16 third-party sources.”
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The fourth company on the list is Intel ( INTC ) , whose performance this year lags significantly behind its big tech competitors. Ironically, Intel’s CEO recently stepped down, just days after the company lost its spot on the Dow Jones Industrial Average to Nvidia. This prompted Wall Street analysts to reset their forecasts for INTC stock, which is down more than 53% for the year while Nvidia, Apple and Microsoft have all seen significant growth.
Microsoft has consistently ranked the best-managed company for the past four years. However, Apple and Nvidia's finishing above it this year suggests that industry tides may be changing, indicating a shifting sentiment toward Microsoft. While all four top companies are heavily invested in AI, according to Drucker’s principles, Apple’s way of executing its new initiatives is seen as more effective than that of its longtime rival.
Another key takeaway for investors is that social responsibility is one of Drucker’s principles for effectiveness. In recent years, this concept has come under intense scrutiny in the business world as conservative activists have attempted to diminish the importance of social responsibility, specifically diversity, equity, and inclusion (DEI) initiatives.
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One of the field’s most vocal critics is Robby Starbuck, who has targeted many companies for incorporating DEI principles into their business practices. Last week, Walmart ( WMT ) announced plans to roll back its DEI initiatives, and Starbuck praised it as a victory . However, Walmart did not rank among the top picks for best-managed companies of 2024. It landed the 21st spot this year with a score of 71.1, coming in below companies such as Procter & Gamble ( PG ) , Nike ( NKE ) , and Amazon ( AMZN ) .
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What this means for tech stocks in 2025
Starbuck may not believe in the importance of social responsibility, but Peter Drucker did and the Wall Street Journal clearly values his methods of assessment.
This rankings release isn’t likely to impact share prices for the top companies, given the size of industry leaders such as Apple, Nvidia, and Microsoft. However, it could help reassure investors that these companies are in good hands, which suggests they are likely to continue trending upward in 2025.
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Overall, there are plenty of reasons to be bullish on the tech sector’s leading stocks as we turn a new corner into 2025. The appointment of both Elon Musk and fellow Silicon Valley leader David Sacks to Trump’s cabinet suggests that regulations for AI leaders will be rolled back in the coming year.
Investors have even more cause to be optimistic, as many of the industry’s top innovators have maintained effective leadership. These leaders have demonstrated that they can continue growing their companies while still prioritizing DEI initiatives, regardless of what people like Starbuck may claim.
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