In this article, we will take a look at the 12 best performing S&P 500 stocks in the last 10 years. To skip our analysis of the recent trends, and market activity, you can go directly to see the 5 Best Performing S&P 500 Stocks in the Last 10 Years.
There are two types of approaches when it comes to investment, especially stock investments, based on the time period of the investment: “Trading” and “long-term investing”. The former refers to the purchase and sale of any assets (stocks, in our case) with the intention of holding them for a short period of time, typically less than a year. The focus is on short-term price movements to generate quick returns by parsing information about macro trends and other factors.
The second approach, “long-term investing”, refers to the purchase and sale of assets with the intention of holding for long-term, typically more than a year and more than five years in some cases. This approach focuses on the individual quality and value of an asset (such as stock, ETF, bond, etc.) rather than the broader market.
Long-term investments in stocks is one of the best ways to grow wealth over the long term. The S&P 500 Index, a proxy for the U.S. stock market, has historically performed positively on annual basis more often than not. The index has only experienced losses in 26 of the 95 years since 1928. Merely $100 invested in the S&P 500 at the beginning of the period would have grown to a grand total of $624,534.55 by the end of 2022.
The S&P 500 Index is a primary stock market benchmark for the broader market. It tracks the performance of about 500 large-cap companies that trade on U.S. exchanges. The index posted a loss in 2022 but has had a resurgence this year so far. You can read more about the best performing S&P 500 stocks in the last 5 years in our recently published article, 12 Best Performing S&P 500 Stocks in the Last 5 Years. The list, published at the beginning of the year, was led by Tesla, Inc. (NASDAQ:TSLA), followed by Eli Lilly and Company (NYSE:LLY).
The stock market has shed most of its losses collected in 2022 with improvements in the market conditions in terms of lower inflationary pressures, halt in interest rate hikes, and other factors. In addition, latest technological developments, including the notable advancements in the generative artificial intelligence field, have pulled stocks up in recent months. This is evident from the fact that a majority of stocks on our list belong to the technology sector. Our list includes Elon Musk’s EV maker Tesla, Inc. (NASDAQ:TSLA), computing hardware providers Advanced Micro Devices, Inc. (NASDAQ:AMD), and NVIDIA Corp (NASDAQ:NVDA), and defense solutions provider Axon Enterprise, Inc. (NASDAQ:AXON), among others.
Best Performing S&P 500 Stocks in 10 Years
Methodology
We selected the most prominent S&P 500 stocks that have returned tremendously over the last 10 years. We have used stock screeners to assess the share price gains in the last 10 years as of November 13. The hedge fund sentiment around the securities was assessed from Insider Monkey’s Q2 2023 database of about 900 elite hedge funds and has been provided for reference.
We have ranked the list according to the 10-year share price gains, from lowest to highest, to find the 12 best performing S&P 500 stocks in the last 10 years.
12 Best Performing S&P 500 Stocks in the Last 10 Years
10-Year Share Price Returns as of November 13: 1130%
Axon Enterprise, Inc. (NASDAQ:AXON), based in Scottsdale, Arizona, is a leading technology company focused on public safety. Formerly known as TASER International, the company offers TASER energy devices, body cameras, in-car cameras, cloud-hosted digital evidence management solutions, productivity software and real-time operations capabilities.
On November 7, Axon Enterprise, Inc. (NASDAQ:AXON) released its financial results for Q3 2023. Its net revenue increased by 33% y-o-y to $414 million, while net income surged 390% y-o-y to $59 million. The company exceeded consensus estimates for normalized EPS by $0.26 with an EPS of $1.02 for the quarter.
Following the earnings release, Raymond James analyst Brian Gesuale raised the price target for Axon Enterprise, Inc. (NASDAQ:AXON) to $233 from $223 and maintained an ‘Outperform’ rating.
10-Year Share Price Returns as of November 13: 1160%
Fortinet, Inc. (NASDAQ:FTNT), based in Sunnyvale, California, is a leading cybersecurity company with a portfolio of over 50 enterprise-grade products. The company boasts a global customer base of more than 680,000 customers and a global patent portfolio of 1,285 patents.
On November 2, Fortinet, Inc. (NASDAQ:FTNT) released its financial results for Q3 2023. Its revenue increased by 16% y-o-y to $1.3 billion, while net income surged by 39% y-o-y to $323 million. At $0.41, the actual EPS for the quarter exceeded consensus estimates by $0.09.
Following the earnings release, Goldman Sachs analyst Gabriela Borges lowered the price target on Fortinet, Inc. (NASDAQ:FTNT) shares to $60 from $70 while maintaining a ‘Buy’ rating.
As of Q2 2023, Fortinet, Inc. (NASDAQ:FTNT) shares were held by 49 hedge funds out of the 910 prominent hedge funds tracked by Insider Monkey, with a total value of $2.2 billion. Arrowstreet Capital was the largest hedge fund shareholder with ownership of 9.1 million shares valued at $688 million.
10-Year Share Price Returns as of November 13: 1190%
Freemont, California-based Lam Research Corporation (NASDAQ:LRCX) is a global supplier of innovative wafer fabrication equipment and services to the semiconductor industry. Founded in 1980, the company employs nearly 18,700 personnel across the globe.
On October 18, Lam Research Corporation (NASDAQ:LRCX) released its financial results for the quarter ended September 24, 2023. Its revenue amounted to $3.5 billion while net income surpassed $887 million. The normalized EPS, at $6.85, surpassed consensus estimates by $0.72.
As of Q2 2023, Lam Research Corporation (NASDAQ:LRCX) shares were held by 69 prominent hedge funds tracked by Insider Monkey, with a total value of $4.1 billion. Notable hedge fund investors included Fisher Asset Management, GQG Partners, and Coatue Management, among others.
10-Year Share Price Returns as of November 13: 1330%
Sunnyvale, California-based Synopsys, Inc. (NASDAQ:SNPS) is an electronic design automation company with a focus on advanced tools for silicon chip design, verification, IP integration, and application security testing.
On August 23, Synopsys, Inc. (NASDAQ:SNPS) announced the acquisition of PikeTec GmbH, a leading solutions provider for the testing and verification of automotive software for control unit systems. Terms of the transaction were not disclosed.
As of Q2 2023, Synopsys, Inc. (NASDAQ:SNPS) shares were owned by 57 hedge funds with a total value of $2.5 billion. Alkeon Capital Management was the largest hedge fund shareholder with ownership of 1.3 million shares valued at $552 million.
In its Q3 2023 investor letter, Aristotle Atlantic Partners, LLC, an investment advisor, made the following comments about Synopsys, Inc. (NASDAQ:SNPS):
“Synopsys contributed to performance in the quarter as the company reported third quarter revenues that were above consensus, additionally the company raised fiscal year guidance for 2023. Synopsys continues to be a key beneficiary from the demand for semiconductors throughout the entire economy, as well as the increasing complexity of semiconductor design, particularly for silicon used in the artificial intelligence (AI) technology stack. The company is also leveraging AI for its design tools which can drive increased usage and improve margins for the company’s tools.”
10-Year Share Price Returns as of November 13: 1430%
Kirkland, Washington-based Monolithic Power Systems, Inc. (NASDAQ:MPWR) is a global company that provides small, highly energy efficient, semiconductor-based, easy-to-use power solutions for systems found in industrial applications, telecom infrastructures, cloud computing, automotive, and consumer applications.
On October 30, Monolithic Power Systems, Inc. (NASDAQ:MPWR) released its financial results for Q3 2023. Its revenue declined by 4% y-o-y to $475 million, while its net income declined by 3% y-o-y to $121 million. The revenue and adjusted EPS figures were nearly in-line with the consensus estimates.
Monolithic Power Systems, Inc. (NASDAQ:MPWR) also announced a new stock repurchase program that authorizes the company to repurchase up to $640 million of its shares. Previously, on September 15, the board of directors had declared a quarterly cash dividend of $1.00 per common share.
10-Year Share Price Returns as of November 13: 1670%
Fair Isaac Corporation (NYSE:FICO) provides analytics software and tools used across multiple industries to manage risk, fight fraud, build customer relationships, optimize operations, and meet government regulations. Headquartered in Bozeman, Montana, the company’s FICO score, has become a fixture of consumer lending in the United States.
On November 8, Fair Isaac Corporation (NYSE:FICO) released its financial results for the quarter ended September 30, 2023. Its revenue increased by 12% y-o-y to $390 million while net income also increased by 12% y-o-y to $101 million.
Following the earnings release, Barclays analyst Manav Patnaik raised the price target for Fair Isaac Corporation (NYSE:FICO) shares to $1234 from $950 and maintained an ‘Overweight’ rating. The price target represents a potential upside of 21.48% based on the share price on November 13.
As of Q2 2023, 46 of the 910 hedge funds tracked by Insider Monkey held shares of Fair Isaac Corporation (NYSE:FICO), valued at $2.2 billion. Dev Kantesaria’s Valley Forge Capital was the largest hedge fund shareholder with ownership of 0.94 million shares valued at $763 million.
10-Year Share Price Returns as of November 13: 1750%
Santa Clara, California-based Palo Alto Networks, Inc. (NYSE:PANW) is a leading global cybersecurity services provider. It serves thousands of customers globally across all sectors.
On November 6, Palo Alto Networks, Inc. (NYSE:PANW) announced an agreement to acquire Talon Cyber Security, a pioneer of Enterprise Browser technology, to enhance its Secure Access Service Edge (SASE) Solution. A week earlier, the company announced an agreement to acquire cloud security start-up Dig Security.
On October 25, Needham analyst Alex Henderson initiated coverage of Palo Alto Networks, Inc. (NYSE:PANW) with a price target of $305 and a ‘Buy’ rating for the shares.
As of Q2 2023, 83 of the 910 hedge funds tracked by Insider Monkey held shares of Palo Alto Networks, Inc. (NYSE:PANW), worth $3.8 billion.
