In this article, we discuss 10 best performing S&P 500 stocks in the last 10 years. If you want to see more stocks in this list, click 5 Best-Performing S&P 500 Stocks in the Last 10 Years.
According to a latest Business Insider report, Jeremy Grantham, a British financier who manages GMO Asset Management, expects the S&P 500 to drop roughly 26% to around 3,000 points over the next year, plummeting about 38% from its December highs. He is also betting against the Nasdaq index and junk bonds in the current market. Grantham told the Reuters Global Markets Forum on September 7:
“This is a more dangerous looking moment in global economics than even the madness of the housing bubble of 2007.”
John Butters, senior earnings analyst at FactSet, reported that analysts have trimmed estimates for Q3 2022 earnings growth by 5.5% since June 30. This is higher than normal and is the largest decline since Q2 2020, when the COVID-19 pandemic and resultant lockdowns led the global economy to become stagnant. Firms have also been highly pessimistic as of late. A total of 240 companies in the S&P 500 cited recession in their earnings conference calls for the third quarter, the highest ever in FactSet’s data since 2010.
Stocks plummeted, government bond yields rose, and the dollar strengthened after investors were caught off guard by excessively high price increases in August. Amid an extremely volatile and uncertain market, investors need to study historic stock trends and focus on predictions for the future while managing their investment portfolios. A wise idea would be to check out the best performing S&P 500 stocks in the last 10 years, since these companies are backed by robust financials, strong dividend profiles, and have had a positive performance record despite market volatility. These include Netflix, Inc. (NASDAQ:NFLX), NVIDIA Corporation (NASDAQ:NVDA), and Tesla, Inc. (NASDAQ:TSLA).
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Our Methodology
We selected the most prominent S&P 500 stocks that have returned tremendously over the last 10 years. We have used YCharts to assess the share price gains in the last decade as of September 13. The hedge fund sentiment around the securities was assessed from Insider Monkey’s Q2 2022 database of about 900 elite hedge funds.
We have ranked the list according to the 10-year share price gains, from lowest to highest.
Best-Performing S&P 500 Stocks in the Last 10 Years
10. Molina Healthcare, Inc. (NYSE:MOH)
Number of Hedge Fund Holders: 34
10-Year Share Price Returns as of September 13: 1,340%
Molina Healthcare, Inc. (NYSE:MOH) is a California-based managed health care services company that caters to low income families and individuals under the Medicaid and Medicare programs. On September 13, Molina Healthcare, Inc. (NYSE:MOH)’s New Mexico division announced that it had collaborated with Pyx Health to increase access to behavioral health services for Molina’s Medicare members. The stock has gained about 1340% in the last 10 years, making it one of the best performing S&P 500 names.
On August 26, Wells Fargo analyst Stephen Baxter raised the price target on Molina Healthcare, Inc. (NYSE:MOH) to $345 from $307 and maintained an Underweight rating on the shares after the California Department of Health Care Services disclosed contract awards for the state’s Medicaid Managed Care program. The awards reflect a best-case scenario for Molina Healthcare, Inc. (NYSE:MOH), the analyst told investors in a research note.
According to Insider Monkey’s data, 34 hedge funds were long Molina Healthcare, Inc. (NYSE:MOH) at the end of Q2 2022, compared to 36 funds in the prior quarter. Jim Simons’ Renaissance Technologies held the biggest position in the company, consisting of 1.7 million shares worth about $481 million.
Like Netflix, Inc. (NASDAQ:NFLX), NVIDIA Corporation (NASDAQ:NVDA), and Tesla, Inc. (NASDAQ:TSLA), Molina Healthcare, Inc. (NYSE:MOH) is one of the top S&P 500 stocks to consider based on historical share price gains.
9. Broadcom Inc. (NASDAQ:AVGO)
Number of Hedge Fund Holders: 66
10-Year Share Price Returns as of September 13: 1,750%
Broadcom Inc. (NASDAQ:AVGO) is an American designer of semiconductor devices. The company operates in two segments – Semiconductor Solutions and Infrastructure Software. On September 1, Broadcom Inc. (NASDAQ:AVGO) declared a $4.10 per share quarterly dividend, in line with previous. The dividend is payable on September 30, to shareholders of record as of September 22. Broadcom Inc. (NASDAQ:AVGO) has paid growing dividends to shareholders for 12 years in a row. In the last 10 years, as of September 13, the share price has climbed 1,750%.
On September 2, Truist analyst William Stein reiterated a Buy recommendation on Broadcom Inc. (NASDAQ:AVGO) but lowered the price target on the shares to $630 from $658. Despite the latest negative tech data, the company posted solid Q2 results, with above-consensus guidance and optimistic sentiment around the supply chain, the analyst told investors in a research note. He contended that investors should purchase Broadcom Inc. (NASDAQ:AVGO) stock for its 3.3% dividend yield, a potential 20% dividend hike this year, and M&A benefits.
According to Insider Monkey’s data, 66 hedge funds were bullish on Broadcom Inc. (NASDAQ:AVGO) at the end of Q2 2022, compared to 71 funds in the earlier quarter. Ken Fisher’s Fisher Asset Management featured as the leading position holder in the company, with roughly 1.5 million shares worth $716.3 million.
In its Q4 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Broadcom Inc. (NASDAQ:AVGO) was one of them. Here is what the fund said:
“However, ClearBridge portfolio companies are responding by supporting their workforces and showing resilience in adapting and thriving. Semiconductor companies ClearBridge owns and engages with have been successful in advancing vaccinations in their global supply chains. In Malaysia, for example, Broadcom Inc. (NASDAQ:AVGO) has taken part in PIKAS, a public-private partnership vaccination program focusing on the workforce in critical manufacturing sectors. By the summer of 2021 Broadcom Inc. (NASDAQ:AVGO) was able to get over 90% of workers in its Penang factory at least one dose of vaccine, and roughly 73% fully vaccinated. Companies in the program also pay the administration cost for vaccinations including cases where the employee is no longer employed by the company before full immunization of the employee.”
8. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Number of Hedge Fund Holders: 87
10-Year Share Price Returns as of September 13: 1,870%
Advanced Micro Devices, Inc. (NASDAQ:AMD) was incorporated in 1969 and is headquartered in Santa Clara, California, operating as a semiconductor company worldwide. On August 30, Advanced Micro Devices (NASDAQ:AMD) disclosed its new Ryzen 7000 series of processors, which was described as the “fastest core” in gaming. The Ryzen 7000 CPUs will utilize the Zen 4 desktop processing architecture and be available from September 27.
On September 7, Stifel analyst Ruben Roy initiated coverage of Advanced Micro Devices (NASDAQ:AMD) with a Buy rating and a $122 price target, appraising its “strong product roadmap” and sustained leadership position against Intel Corporation (NASDAQ:INTC). The present valuation “appears reasonable,” especially compared to other product cycle firms such as NVIDIA Corporation (NASDAQ:NVDA), the analyst added.
According to Insider Monkey’s data, 87 hedge funds were bullish on Advanced Micro Devices (NASDAQ:AMD) at the end of the second quarter of 2022, compared to 83 funds in the preceding quarter. Israel Englander’s Millennium Management is a notable stakeholder of the company, with more than 4 million shares worth $313.40 million.
Here is what Carillon Tower Advisers had to say about Advanced Micro Devices, Inc. (NASDAQ:AMD) in its Q4 2021 investor letter:
“Advanced Micro Devices, Inc. (NASDAQ:AMD) supplies semiconductor chips for central processing units (CPUs) and graphic processing units (GPUs). The firm has been gaining share against its primary competitor in the datacenter server CPU space, as this rival has been unable to match the design and manufacturing capabilities of AMD and its partners. Investors are also looking forward to the closing of the previously announced merger with a semiconductor manufacturer that is another one of the portfolio’s holdings. The merger will increase AMD’s capabilities in the Field Programmable Gate Array (FPGA) chip space, and the combined company should possess the potential to win additional market share in the datacenter chip market.”
7. Monolithic Power Systems, Inc. (NASDAQ:MPWR)
Number of Hedge Fund Holders: 36
10-Year Share Price Returns as of September 13: 2,200%
Monolithic Power Systems, Inc. (NASDAQ:MPWR) is a Washington-based company that develops and sells semiconductor-based power electronics solutions to the computing and storage, automotive, industrial, communications, and consumer end markets. For Q3 2022, Monolithic Power Systems, Inc. (NASDAQ:MPWR) expects revenue in the range of $480 million to $500 million, compared to a $399.68 million consensus. The company forecasts a GAAP gross margin between 58.4% and 59.0% and a non-GAAP gross margin between 58.7% and 59.3%. Monolithic Power Systems, Inc. (NASDAQ:MPWR) is one of the best S&P 500 performers, and the shares have gained about 2,200% over the last 10 years as of September 13.
On August 2, Cowen analyst Matthew Ramsay raised the price target on Monolithic Power Systems, Inc. (NASDAQ:MPWR) to $600 from $550 and reaffirmed an Outperform rating on the shares. The analyst noted that macro constraints notwithstanding, there are significant greenfield growth opportunities across multiple end markets, especially in xEV and Datacenter. He said Monolithic Power Systems, Inc. (NASDAQ:MPWR) remains his top pick.
Among the hedge funds tracked by Insider Monkey, 36 funds were bullish on Monolithic Power Systems, Inc. (NASDAQ:MPWR) at the end of June 2022, up from 29 funds in the earlier quarter. Alex Sacerdote’s Whale Rock Capital Management is the biggest position holder in the company, with 729,061 shares worth about $280 million.
Here is what Alger has to say about Monolithic Power Systems, Inc. (NASDAQ:MPWR) in its Q3 2021 investor letter:
“Monolithic Power Systems, Inc. was among the top contributors to performance. Monolithic Power Systems is a semiconductor company that designs, develops and markets high-performance power solutions. Its core strengths include deep system-level applications knowledge, strong analog design expertise and innovative proprietary process technologies, which enable the company to deliver highly integrated products that are energy efficient, cost effective and easy to use. Monolithic serves the consumer, computing and storage, industrial, automotive and communications end markets. Its strong process technology and use of partners to produce silicon wafers is a unique combination that provides the company with an unencumbered ability to innovate and offer nimble yet scaled manufacturing. Shares of Monolithic outperformed after the company said it produced very strong second quarter results and provided third quarter guidance that exceeded consensus expectations. Monolithic’s revenue growth accelerated in an environment in which most analog and broader semiconductor peers have struggled with industry-wide supply constraints. The company is benefiting from its continuous investments in capacity and its ability to carry inventories during previous times of weak demand. The results also underscore the success the company is having with winning contracts to provide sockets, which connect computer motherboards to CPUs. We believe the results increased investor confidence that the company can sustain this strong revenue growth, which is well above the industry average, over the next one to two years.”
6. EPAM Systems, Inc. (NYSE:EPAM)
Number of Hedge Fund Holders: 36
10-Year Share Price Returns as of September 13: 2,250%
EPAM Systems, Inc. (NYSE:EPAM) is a Pennsylvania-based company that offers digital platform engineering and software development services worldwide. The company’s Q2 revenue of $1.2 billion exceeded market consensus by $80 million. On a constant currency basis, revenues were up 40.1% year over year. In Q3 2022, EPAM Systems, Inc. (NYSE:EPAM) expects the revenue to be at least $1.21 billion, reflecting a year-over-year growth rate of at least 22%, versus a consensus of $1.18 billion. GAAP EPS is projected to be at least $1.65 and non-GAAP EPS will be at least $2.48, compared to a consensus of $1.99. EPAM Systems, Inc. (NYSE:EPAM) is one of the best performing S&P 500 stocks in the last 10 years, as the stock has gained about 2,250% over the decade.
On September 13, KeyBanc analyst Thomas Blakey initiated coverage of EPAM Systems, Inc. (NYSE:EPAM) with an Overweight rating and a $510 price target. The stock trades at a discount to historical averages, and the company should reduce its Russian headcount growth in 2023, the analyst told investors.
According to Insider Monkey’s data, 36 hedge funds were bullish on EPAM Systems, Inc. (NYSE:EPAM) at the end of Q2 2022, compared to 38 funds in the last quarter. Stephen Mandel’s Lone Pine Capital is the leading position holder in the company, with 1.26 million shares worth $373.3 million.
In addition to Netflix, Inc. (NASDAQ:NFLX), NVIDIA Corporation (NASDAQ:NVDA), and Tesla, Inc. (NASDAQ:TSLA), EPAM Systems, Inc. (NYSE:EPAM) is on the radar of elite hedge funds.
Here is what Carillon Clarivest Capital Appreciation Fund has to say about EPAM Systems, Inc. (NYSE:EPAM) in its Q1 2022 investor letter:
“Stock selection contributed the most while sector allocation was also positive. An underweight to communication services and an overweight to energy helped performance, while an underweight to consumer staples and an overweight to materials detracted. Stock selection was strong within healthcare and materials but was weak within information technology and industrials. EPAM Systems (NYSE:EPAM) offers information technology services. The company struggled amid geopolitical instability given its 14,000 employees in Ukraine and associated operational, relocation, and travel costs. The Fund sold the stock.”
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Disclosure: None. 10 Best-Performing S&P 500 Stocks in the Last 10 Years is originally published on Insider Monkey.