2019 has been a rough year for initial public offerings (IPO) for a few reasons. Most notably, the WeWork debacle brought an increased level of skepticism, depressing valuations. Valuations for companies relying on itinerant labor were also depressed for companies that just IPO'd like Uber (UBER  ), Lyft (LYFT  ), or GrubHub (GRUB  ) and companies on the verge of going public like DoorDash or Postmates.

2019 has certainly been a great year for stocks, however, equity gains have been largely powered by falling interest rates, economic growth outperforming against recessionary expectations, and dovish monetary policy until October. This is in contrast to market action since October when yields are moving higher, the yield curve is steepening, and risk appetites are soaring. This type of environment is much friendlier to IPOs, and investors are more willing to pay higher multiples.

TradeWeb

The best performing IPO of the year is Tradeweb (TW  ) with a 42.6% gain since its debut in the fall. The company builds electronic financial exchanges to trade securities and derivatives for clients. It's quite expensive with nearly a $10 billion market cap, $770 million in sales, and $145 million in earnings. TradeWeb is growing revenue at a 22% pace and earnings by 55% on a year over year basis.

In part, Tradeweb's an early success and rich valuation are due to its potential for recurring revenue. Once the company builds the electronic system, it is contracted to continue maintaining and operating it. When clients are in the ecosystem, it will naturally lead to more opportunities for revenue growth.

Avantor

Avantor (AVTR  ) is a specialty chemical company that sells its products to customers in the healthcare, pharmaceuticals, and materials space. The stock is up nearly 30% since its debut and is nearing a breakout to new highs. Unlike tech IPOs trading at rich valuations, Avantor has a $10 billion market cap with $6 billion in sales. It sports a reasonable forward price to earnings ratio of 23 especially given 30% gross margins.

Peleton

Despite becoming a national punchline in recent days due to an advertising misfire, Peleton (PTON  ) is a top IPO with a 10% gain since it became public in October. The stock was almost 30% higher earlier in the month but gave back gains following the ad's poor reception.

Peleton is in between a streaming subscription, exercise equipment manufacturer, and high-end customer experience. It's questionable whether the company can continue to grow and execute to justify its valuation. It currently has an $8.3 billion valuation and $1 billion in sales with a 100% quarterly growth rate. It's unprofitable as it pours money into growth and looking to continue making money on subscriptions to its video library.