In this article, we will be taking a look at the 20 most profitable stocks of the last 20 years.

The stock market has a long history of generating wealth for investors. While past performance doesn’t guarantee future results, studying successful companies can provide valuable insights. By understanding the factors that drive these companies’ growth, we can potentially make better investment decisions in the future. It’s important to remember that investing involves risk, and conducting thorough research is crucial before making any investment decisions.

Investors frequently overlook revenue in favor of profitability when evaluating stocks. Profit is what’s left over after all costs are paid. Revenue is the total amount of goods and services sold. Because it is essential to determine if a business is a growth stock or a value one, profitability is important. To learn more about growth stocks, see 12 Best Growth Stocks to Buy and Hold in 2024. You can also discover some undervalued value stocks by reading 11 Oversold Value Stocks To Buy Now.

The U.S. stock market has seen several major events since 2000, including the dot-com boom and fall, the 2008 financial crisis, a tech boom with trillion-dollar values, and the 2020 pandemic crisis. The S&P’s broader market index produced double-digit yearly returns thirteen times between 2003 and 2023. This strong performance can be largely attributed to the phenomenal returns generated by technology stocks, which significantly boosted the overall return of the large-cap market.

According to a recent estimate, the aggregate market value of the top seven S&P 500 corporations is almost double that of the Japanese market. The head of topical research and global economics, Jim Reid, cautions that this is the most concentrated the US market has ever been.

As interest in growth stocks increases due to the hype surrounding AI and the prospect of rate cuts, these companies’ fortunes are expected to soar. To satisfy market demand, businesses are making significant investments in AI. AI’s impact on altering work patterns was highlighted by Satya Nadella du. According to them,:

“A growing body of evidence makes clear the role AI will play in transforming work. Our own research, as well as external studies, show as much as 70% improvement in productivity, using generative AI for specific work tasks.”

Our Methodology 

To identify the most profitable stocks, we looked at the 20-year annualized returns of publicly traded companies in the US market from 2004 to 2024 and selected and ranked those with the highest 20-year annualized returns.

20. Balchem Corporation (NASDAQ:BCPC)

20-Year Annualized Return: 18.56% 

Balchem Corporation (NASDAQ:BCPC) develops, manufactures, and markets specialty performance ingredients and products for various markets, including nutritional, food, pharmaceutical, animal health, medical device sterilization, plant nutrition, and industrial.

Balchem Corporation reported strong Q1 2024 results with its Human Nutrition & Health segment achieving record sales of $152.7 million, up 15.1%, driven by higher minerals and nutrients sales, leading to record earnings of $33.3 million, up 80.4% year-over-year. Adjusted earnings for this segment reached $38.5 million, a 43.3% increase. However, the Animal Nutrition & Health segment saw sales decline to $53.9 million, down 16.9%, resulting in earnings decreasing to $2.1 million, down 78.3%.Cash flows from operations totaled $33.4 million, with free cash flow at $26.8 million, which was supported by robust net working capital and disciplined capital expenditures, showcasing effective financial management amidst market challenges.

Balchem Corporation (NASDAQ:BCPC)’s Recent highlights include the release of the 2023 Sustainability Report on April 22, emphasizing Corporate Social Responsibility initiatives, and VitaCholine receiving the NutraIngredients-USA 2023 Ingredient of the Year Award for Cognitive Function.

In Q1 2024, there were around 12 hedge fund holders in the stock, up from 8 in the previous quarter. Montanaro Asset Management held the largest position in the company with around 151,000 shares worth $23,397,450. Based on recent analyst forecasts, Balchem has a Moderate Buy rating. The average price target is $170.00, indicating a 6.43% potential increase from the current price of $159.73.

19. Manhattan Associates, Inc. (NASDAQ:MANH)

20-Year Annualized Return: 18.93% 

Manhattan Associates, Inc. (NASDAQ:MANH) specializes in developing, selling, deploying, servicing, and maintaining software solutions tailored for supply chain management, inventory management, and omni-channel operations. MANH’s stock price tripled over the last 5 years.

Manhattan Associates reported robust financial performance in Q1 2024, demonstrating strong profitability and revenue growth. The non-GAAP adjusted EPS increased to $1.03 from $0.80 YoY, which marked significant growth. Profit margins expanded to 21%, up from 18% in Q1 2023, reflecting enhanced operational efficiency. The company’s revenue surged to $254.6 million in Q1 2024 which is a 15.2% increase from $221.0 million in Q1 2023. This was driven by substantial growth in cloud subscription revenue to $78.0 million and services revenue to $132.2 million. This growth was fueled by strong demand for supply chain and omnichannel solutions, a successful transition to cloud-based offerings, and effective global execution.

Manhattan Associates, Inc. (NASDAQ:MANH) recently introduced Manhattan Active Maven and Manhattan Assist, enhancing AI capabilities for customer service. They also launched Manhattan Active Supply Chain Planning, unifying planning and execution, and are expanding partnerships with Shopify and Google to enhance e-commerce and analytics capabilities.

In Q1 2024, there were around 32 hedge fund holders in the company. The fund with the largest holding was RGM Capital with 560,037 shares worth $140,138,059. MANH stock holds an average “Strong Buy” rating from 7 analysts. Analysts predict Manhattan Associates (MANH) stock to reach an average target of $248.86 over the next 12 months, with estimates ranging from $225 to $260. This average suggests a 1.07% increase from its current price of $246.22.

18. MicroStrategy Incorporated (NASDAQ:MSTR)

20-Year Annualized Return: 19.09% 

MicroStrategy Incorporated (NASDAQ: MSTR) is a provider of artificial intelligence-powered enterprise analytics software and services, serving global markets including the United States, Europe, the Middle East, Africa, and beyond.

MicroStrategy reported a decline in total revenues for Q1 2024, down 5.5% year-over-year to $115.2 million, primarily attributed to decreases in product support and other services revenues. The company incurred a net loss of $53.1 million, or $3.09 per share, contrasting sharply with a $461.2 million net income in Q1 2023, due to significant impairment charges on digital assets, specifically bitcoin. Despite these challenges, MicroStrategy saw notable growth in its Subscription Services segment, which increased by 22% year-over-year to $23.0 million.

MicroStrategy Incorporated (NASDAQ: MSTR) introduced several enhancements to its AI capabilities, including improvements to its MicroStrategy Auto Bot. The company also made its AI features available in MicroStrategy Cloud for Government (MCG), catering to FedRAMP-authorized customers

In Q1 2024, there were 22 hedge fund holders in the company, up from 16 from the previous quarter. The hedge fund that held the largest shares was Citadel Investment Group with 1,577,700 shares worth $2,689,284,312. MicroStrategy stock is rated as “Strong Buy” by six analysts, who have set a 12-month price target averaging $2,018, with range from 1,800 to 2,890. This suggests a potential increase of 54.96% from its current price of $1,302.09.

17. Exponent, Inc. (NASDAQ:EXPO)

20 Year Annualized Return: 19.30% 

Exponent, Inc. (NASDAQ:EXPO) is an engineering and scientific consulting firm headquartered in Menlo Park, California, offering services in engineering, scientific, environmental, and health consulting. The stock returned only 33% over the last 5 years.

Exponent, Inc. (NASDAQ:EXPO) reported a 3.3% increase in total revenues to $144.9 million for Q1 2024, with net income rising to $30.1 million. The engineering segment, which comprises 84% of revenues, benefited from increased dispute and recall-related work, while the environmental segment grew 1% due to regulatory consulting in the chemical industry. Exponent closed the quarter with $168.7 million in cash and announced a quarterly dividend of $0.28 per share. Looking ahead, they expect flat to low-single-digit revenue growth for Q2 2024 and anticipate a strengthened EBITDA margin, reinforcing strategic resource management to sustain long-term success amidst varying market demands.

In Q1 2024, there were around 21 hedge fund holders in the company, up from 19 in the previous quarter. The company with the largest stake in Exponent, Inc. was Fundsmith LLP with 1,050,120 shares worth $86,834,423. According to one analyst, Exponent’s stock is rated as “Strong Buy,” with a 12-month price target of $100, suggesting a 5.89% increase from the current price of $94.44.

16. Napco Security Technologies, Inc. (NASDAQ:NSSC)

20-Year Annualized Return: 19.97% 

Napco Security Technologies, Inc. (NASDAQ:NSSC) specializes in manufacturing and selling electronic security products for commercial, residential, and institutional markets. The company’s stock price more than tripled over the last 5 years.

Napco Security Technologies, Inc. (NASDAQ:NSSC) reported significant financial achievements in Q1 2024 which is marked by a net margin of 25%. The company’s revenue growth was fueled by a 25% increase in recurring service revenues, reaching $17.3 million, and successful capitalization on industry trends like demand for security solutions and locking hardware. Despite a slight decline in equipment revenues, total net sales increased by 6% to $41.7 million which was supported by a strategic focus on innovation and market expansion, exemplified by new product introductions like the Prima alarm.

In Q1 2024, there were around 23 hedge fund holders in the company, up from 15 in the previous quarter. Royce & Associates was the largest holder in the company with 404,000 shares worth $16,224,640. The average analyst rating for NSSC stock is “Strong Buy” with a 12-month price target range from $30 to $65, averaging at $51. This suggests a projected decrease of approximately -5.66% from the current stock price of $54.06.

15. Amphenol Corporation (NYSE:APH)

20-Year Annualized Return: 19.98% 

Amphenol Corporation (NYSE:APH) is a leading global manufacturer of interconnect products, sensors, and antennas for a diverse array of end markets, including automotive, broadband, commercial aerospace, industrial, information technology, and military. APH’s stock price more than tripled over the last 5 years.

Amphenol Corporation (NYSE:APH) demonstrated strong profitability and impressive revenue growth in Q1 2024. The company’s adjusted diluted EPS increased by 16% to $0.80 compared to Q1 2023.. Revenue for the quarter reached $3.256 billion, marking a 6% organic growth year-over-year. This growth was driven by strong performances across Amphenol’s segments: Harsh Environment Solutions saw sales of $916 million, up 7% in U.S. dollars and 3% organically; Communications Solutions achieved sales of $1.266 billion, up 12% in U.S. dollars and 11% organically; and Interconnect and Sensor Systems reported sales of $1.075 billion, up 8% in U.S. dollars and 2% organically. Amphenol is in the process of acquiring Carlisle Interconnect Technologies, expected to close by the end of Q2 2024. This acquisition is anticipated to add approximately $0.02 to earnings in the second half of 2024, excluding acquisition-related costs.

In Q1 2024, there were around 51 hedge fund holders in the company, up from 51 in the previous quarter with Select Equity Group being the largest holder in the company with around 5,186,514 shares worth $299,132,195.

The average analyst rating for Amphenol stock is “Strong Buy”, with 12 analysts providing 12-month price forecasts. The average target price is $68.17, ranging from a low estimate of $57.5 to a high estimate of $80. This forecast suggests a modest increase of 0.56% from the current stock price of $67.79.

14. Transcat, Inc. (NASDAQ:TRNS)

20-Year Annualized Return: 20.19% 

Transcat, Inc. (NASDAQ: TRNS) is a leading provider of accredited calibration services, cost control and optimization services, and distribution of professional grade test, measurement, and control instrumentation. TRNS shares returned more than 400% over the last 5 years.

The company reported consolidated revenue of $61 million in Q1 2024, marking an 11% increase year-over-year. Adjusted EBITDA grew by 16% to $8.5 million, accompanied by a 60 basis point expansion over the previous year. Net income for the quarter was $2.95 million which was slightly lower than the $3.07 million reported in the prior year. The revenue growth was attributed to robust demand for Transcat, Inc. (NASDAQ: TRNS)’s diverse service offerings, including calibration and instrument rentals, as well as strong performance in the Service segment, which alone generated $40 million in revenue, up 18% year-over-year.

In Q1 2024, there were around 11 hedge fund holders in the company, up from 9 in the previous quarter. Royce & Associates held the largest position in the company with around 475,939 shares worth $53,033,883. Transcat stock enjoys a “Strong Buy” rating from 2 analysts, with a 12-month price forecast averaging $158, ranging from $156 to $160. This forecast suggests a potential upside of 28.64% from the current stock price of $122.82.

13. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)

20-Year Annualized Return: 20.48% 

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) has emerged as one of the most profitable stocks of the last 20 years, establishing itself as a global leader in semiconductor manufacturing. TSM shares returned more than 300% over the last 5 years.

TSMC is currently advancing with its 2nm (N2) process node which is set for risk production by late 2024 or early 2025, promising enhanced performance and energy efficiency. They are also improving 3D chip stacking for compact, high-performance solutions and developing AI-optimized chip designs to boost efficiency across various applications.

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) reported strong profitability in Q1 2024, with net income reaching NT$225.49 billion ($7.18 billion), an 8.9% increase year-over-year, and earnings per share of NT$8.70 ($1.38 per ADR unit), surpassing analyst expectations. Revenue for the quarter totaled NT$592.64 billion ($18.87 billion), up 16.5% from the previous year which was driven by strong demand for advanced chips, particularly in AI applications utilizing 3nm and 5nm technologies. TSMC’s leadership in technology innovation, serving key clients like Nvidia and Apple, and its dominance in the global foundry market with a 61% share in Q4 2023, underscore its strategic advantages. The shift towards higher-margin products, such as 7nm and smaller chips, further bolstered TSMC’s impressive profitability and market position.

In Q1 2024, there were around 135 hedge fund holders in the company, up from 105 in the previous quarter. Fisher Asset Management held the largest position in the company with around 29,008,073 shares worth $3,946,548,478.

Four analysts rate TSMC stock as “Strong Buy,” with price targets ranging from $168 to $200, averaging $184.5. This predicts a potential increase of approximately 1.10% from the current stock price of $182.49, emphasizing the high upside potential according to analysts.

12. Quanta Services, Inc. (NYSE:PWR)

20-Year Annualized Return: 20.69% 

Quanta Services, Inc. (NYSE:PWR) offers a wide range of services, including design, installation, repair, and maintenance of infrastructure in the electric power, underground utility, and renewable energy industries.

Quanta Services, Inc. reported robust Q1 2024 financial results with a 14% year-over-year revenue increase to $5.03 billion and a 25% rise in net income to $118.4 million. Their non-GAAP adjusted EPS reached $1.41, surpassing analyst estimates by $0.12. Adjusted EBITDA was $387.3 million, or 7.7% of revenue, with record cash flow from operations at $238 million and free cash flow at $181.2 million.

Quanta Services, Inc. (NYSE:PWR)’s key projects include the SunZia renewable energy transmission line and significant involvement in grid modernization for increased power demand driven by AI and data centers and their recent acquisitions, such as Sherman+Reilly, and strategic divestitures, particularly in oil and gas, align with the company’s focus on core operations and safety.

In Q1 2024, there were 56 hedge fund holders in the company, up from 51 in the previous quarter. Peconic Partners held the largest position in the company with 5,598,565 shares worth $1,454,507,187.

The average analyst rating for PWR stock is “Strong Buy”. Nine analysts have provided 12-month price forecasts for Quanta Services stock, with an average target of $279.78, ranging from a low estimate of $219 to a high estimate of $310. This suggests a potential upside of 9.89% from the current stock price of $254.60.

11. NeoGenomics, Inc. (NASDAQ:NEO)

20-Year Annualized Return: 20.77% 

NeoGenomics, Inc. (NASDAQ:NEO) is a leading provider of cancer-focused genetic testing services and global oncology contract research services. NeoGenomics recently launched a Comprehensive Lung Solution and expanded hematopathology services at ASCO 2024. They presented advancements in spatial biology and next-generation sequencing at AACR 2024, alongside highlighting the EPDegTM platform for targeting challenging proteins.

NeoGenomics reported improvements in Q1 2024 despite a net loss of $27 million, showing a 12% reduction from the previous year and indicating progress toward profitability. The company’s adjusted gross profit rose by 19% to $71 million, which was driven by effective cost management and pricing strategies.

NeoGenomics, Inc. (NASDAQ:NEO)’s total revenue in the period increased by 14% year-over-year to $156 million which was fueled by a robust performance in the Clinical Services segment, which grew by 17% to $135 million. This growth was supported by a rise in average revenue per clinical test and strong adoption of Next Generation Sequencing (NGS) technologies, contributing to over 50% growth in NGS revenue. Despite challenges in the Advanced Diagnostics segment, NeoGenomics’ strategic focus on expanding its testing capabilities and improving operational efficiencies has positioned it well in the competitive oncology diagnostics market.

In Q1 2024, there were 12 hedge fund holders in the company, down from 20 in the previous quarter. Braidwell LP held the largest share in the company with 103,580,000 worth $82,605,050. Analysts rate NeoGenomics stock as a “Strong Buy,” with an average 12-month price target of $19.78. This represents a potential upside of 44.06% from the current price of $13.73, with price forecasts ranging from $17 to $26.

10. SBA Communications Corporation (NASDAQ:SBAC)

20-Year Annualized Return: 20.97% 

SBA Communications Corporation (NASDAQ:SBAC) is a real estate investment trust (REIT) that specializes in providing wireless communications infrastructure.

In Q1 2024, SBA Communications reported total revenues of $657.9 million, a 2.6% decrease from $675.5 million in the prior year period. The decline was primarily due to a significant drop in site development revenues, which fell by 49.2% to $29.6 million. However, site leasing revenue which is the main driver of SBA’s profitability, increased by 2.1% domestically to $461.5 million and by 2.8% internationally to $166.8 million. This growth was driven by steady demand for leasing space on SBA’s towers, reflected in the overall site leasing operating profit, which rose by 3.3% to $513.4 million, contributing 98.8% of the company’s total operating profit. The company’s net income surged to $154.5 million, or $1.42 per share, boosted by a $93.0 million non-cash benefit related to revised estimates of the useful lives of towers and certain intangible assets, despite a $28.5 million loss on currency-related remeasurements.

In Q1 2024, SBA Communications Corporation (NASDAQ:SBAC) also acquired 11 sites for $9.2 million and built 76 towers, bringing its total to 39,638 sites globally. The company also spent $13.5 million on land and easements, with total cash capital expenditures of $77.3 million. Additionally, SBA plans to acquire 271 sites for $84.5 million by the end of Q3 2024.

In Q1 2024, there were around 43 hedge fund holders in the company, up from 41 in the previous quarter. Diamond Hill Capital held the largest share in the company with 1,740,688 shares worth $377,207,090.

The average analyst rating for SBA Communications (SBAC) stock is “Strong Buy” based on evaluations from 13 analysts. Their 12-month price forecasts have an average target of $259.92, with a range between $227 and $327. This suggests a potential upside of 35.25% from the current stock price of $192.18.

9. Repligen Corporation (NASDAQ:RGEN)

20-Year Annualized Return: 21.97% 

Repligen Corporation (NASDAQ:RGEN) is a leading provider of advanced bioprocessing technologies and solutions for the biopharmaceutical industry. Repligen specializes in developing and manufacturing products used in the production of biological drugs, including monoclonal antibodies, gene therapies, and vaccines.  The company’s key developments include the launch of the KrosFlo RS10, a bench-scale TFF system for cell and gene therapies, and the completion of customizable 2D and 3D bags for their Fluid Management portfolio.

Repligen Corporation (NASDAQ:RGEN) experienced a revenue decline in Q1 2024, with total revenue dropping 17.2% to $151.3 million from $182.7 million in Q1 2023. However, there were positive areas of growth, including a 16% year-over-year increase in new modalities revenue and double-digit growth in the Filtration franchise. Despite the overall decline, the company reported a book-to-bill ratio of 0.99 for the quarter and 1.03 over the past nine months, indicating a slow but steady market recovery. The recent acquisition of Metenova also continued to meet both revenue and order targets, contributing positively to the company’s performance.

In Q1 2024, there were around 32 hedge fund holders in the company, up from 31 in the previous quarter. Impax Asset Management held the largest share in the company with 681,020 shares worth $124,514,760.

Repligen stock has an average “Buy” rating from 11 analysts. Nine analysts’ 12-month price forecasts average at $193, with estimates ranging from $155 to $220. This predicts a potential increase of 59.81% from the current stock price of $120.77.

8. NetEase, Inc. (NASDAQ:NTES)

20-Year Annualized Return: 22.02% 

NetEase, inc. (NASDAQ:NTES)’s core business revolves around developing and operating online PC and mobile games, both in China and internationally. The company has successfully created popular titles and secured licenses for globally renowned games, contributing significantly to its revenue growth.

NetEase, inc. (NASDAQ:NTES) reported Q1 2024 net revenues of RMB26.9 billion (US$3.7 billion), slightly down from the previous quarter but higher year-over-year. The games segment contributed RMB21.5 billion (US$3.0 billion) which was driven by strong performance in mobile games. Youdao saw revenues of RMB1.4 billion (US$192.8 million).

Cloud Music maintained revenues at RMB2.0 billion (US$281.1 million), with increased gross profit from cost controls and membership sales. Their net income attributable to shareholders was RMB7.6 billion (US$1.1 billion), showing growth from both the previous quarter and year. Non-GAAP net income was RMB8.5 billion (US$1.2 billion), with basic earnings per share at US$0.37 (US$1.84 per ADS), reflecting strong financial performance which was driven by effective operational strategies.

In Q1 2024, there were around 41 hedge fund holders in the company, up from 36 in the previous quarter. Orbis Investment Management held the largest position in the company with 1,551,180 shares worth $160,500,595.

NetEase stock holds a “Strong Buy” rating from seven analysts. Their 12-month price forecasts average $122.86, ranging from $100 to $145. This suggests a potential increase of 28.09% from the current stock price of $95.92.