Stocks that have been spun off from larger homegrown companies stand out as some of the year’s consistent winners. So far in 2024, about 15 companies have completed spinoffs, with General Electric’s aerospace and energy split among the most notable. Shares of GE Vernova have rallied more than 23% since they began trading in late March. The S&P 500 is up nearly 9% in 2024, but is down just over 1% in the second quarter. Other opportunities for investors to participate in spinoffs will come soon. Nineteen other companies are scheduled to complete spinoffs this year, according to Morgan Stanley. “Spin-offs offer investors a unique opportunity to capitalize on unlocked and potentially undervalued value,” Morgan Stanley strategist Todd Castagno wrote in a note this week. The Wall Street bank previously found that spinoffs beat the broader market by more than 2 percent two years after the split, while parent companies underperformed by 8.1 percent. Of course, not all spinoffs are automatic wins. If a company spins off a company in a different sector, the new stock tends to outperform because it’s probably undervalued. Conversely, a split in the same industry may be an indication that the parent company is trying to offload underperforming assets. A cheap valuation may also not indicate a good deal. Wolfe Research previously found that spinoffs with higher valuations trended better — meaning a higher valuation can be an indication of stock quality. Winners and upcoming Roth MKM beneficiaries also recently highlighted the outperformance of spinoff stocks over the past year. GE Vernova is one of the spinoff’s current favorite stocks — which the company said is “buy buy buy.” Industrial company Esab, a Swedish-American company that makes welding and cutting equipment, is another spinoff beneficiary, according to Roth MKM. Esab completed its spin-off from Enovis in April 2022. Roth MKM advises investors to buy the stock on pullbacks. Year to date, shares have rallied nearly 28%. Paper maker Sylvamo is another stock where investors should “get in on the momentum,” according to Roth MKM. Headquartered in Memphis, but with major operations in Latin America, Sylvamo has grown more than 34% in 2024. Sylvamo completed its separation from International Paper in October 2021. Veralto is a more recent spinoff, which launched to trade in October following its split from former parent company Danaher. The stock is showing a “strong new chart,” according to Roth MKM chief market technician JC O’Hara. Shares have rallied nearly 18% year-to-date. Investors can also look for bargains in some of this year’s outstanding lots. According to a list compiled by Morgan Stanley, several healthcare companies will spin off businesses in the second half of 2024. These include Baxter International, which will spin off a kidney care company called Vantive. Baxter has underperformed the market this year, with its shares down 7% year to date and 16% since March 31. Edwards Lifesciences is also slated to spin off its intensive care unit. Although shares of Edwards are down more than 10% so far in the second quarter, the stock remains more than 12% higher for the year. Unilever, the maker of Dove and Ax soaps, plans to spin off its ice cream business in the fourth quarter. Unilever’s U.S.-traded shares are up 8.5% this year, roughly in line with the S&P 500’s gains. — CNBC’s Michael Bloom contributed to this report.