In this article, we discuss 5 best performing S&P 500 stocks in the last 10 years. If you want to see more stocks in this list, click 10 Best-Performing S&P 500 Stocks in the Last 10 Years.
5. DexCom, Inc. (NASDAQ:DXCM)
Number of Hedge Fund Holders: 56
10-Year Share Price Returns as of September 13: 2,450%
DexCom, Inc. (NASDAQ:DXCM) was incorporated in 1999 and is headquartered in San Diego, California. It is a medical device company, focused on the design, development, and commercialization of continuous glucose monitoring (CGM) systems in the United States and internationally. The stock has gained 2,450% in the last decade as of September 13, and DexCom, Inc. (NASDAQ:DXCM) is one of the best performing S&P 500 constituents.
On July 29, Oppenheimer analyst Steven Lichtman maintained an Outperform rating on DexCom, Inc. (NASDAQ:DXCM) but lowered the price target on the shares to $105 from $131. The analyst believes the post-earnings selloff is a buying opportunity.
According to Insider Monkey’s Q2 data, 56 hedge funds were bullish on DexCom, Inc. (NASDAQ:DXCM), compared to 58 funds in the last quarter. Ken Griffin’s Citadel Investment Group is the leading position holder in the company, with more than 3 million shares worth about $229 million.
Here is what Baron Small Cap Fund has to say about DexCom, Inc. (NASDAQ:DXCM) in its Q2 2022 investor letter:
“DexCom, Inc. is the leading provider of continuous glucose monitoring systems for patients with diabetes. The stock fell along with other premium valuation growth stocks, primarily on multiple contraction. Concern about price competition from Abbott Labs’ Libre product also played a role. Results for the first quarter were solid. Sales increased 22% organically, margins expanded 350 basis points, and the company maintained guidance for continued strong results.
An important new and revolutionary product, the G7, was approved and launched in Europe, and the company expects it to be approved in the U.S. soon. The product is 60% smaller, fully disposable, and designed for extended wear. We remain excited that CGM will become the standard of care for Type 1 diabetics and will be used extensively for Type 2 diabetics as well, which we think will be a major driver of continued sales and profit growth well into the future.”
4. Netflix, Inc. (NASDAQ:NFLX)
Number of Hedge Fund Holders: 95
10-Year Share Price Returns as of September 13: 2,530%
As of September 13, Netflix, Inc. (NASDAQ:NFLX) stock has skyrocketed about 2,530% in the last decade. This makes Netflix, Inc. (NASDAQ:NFLX) one of the strongest performers in the S&P 500 group.
On September 7, Jefferies analyst Andrew Uerkwitz lowered the price target on Netflix, Inc. (NASDAQ:NFLX) to $230 from $243 and kept a Hold rating on the shares after revising his model to factor in U.S. password sharing, the ad-supported tier, and market conditions. He remains “cautiously positive” on Netflix, Inc. (NASDAQ:NFLX) if the company can prove an ad-supported video-on-demand offering raises both ARPU and subscribers higher and maintains its content budget. He thinks Netflix, Inc. (NASDAQ:NFLX) is “an attractively priced stock” and sees the September quarter as significant and “wouldn’t step in front of it”.
Among the hedge funds tracked by Insider Monkey, Netflix, Inc. (NASDAQ:NFLX) was part of 95 hedge fund portfolios at the end of the second quarter of 2022, compared to 109 funds in the prior quarter. Ken Fisher’s Fisher Asset Management is the largest position holder in the company, with 6.5 million shares valued at $1.15 billion.
Here is what L1 Capital International specifically said about Netflix, Inc. (NASDAQ:NFLX) in its Q2 2022 investor letter:
“While it seems an eternity ago, in April Netflix, Inc. (NASDAQ:NFLX) reported Q1 2022 results and gave forward guidance which flashed many red flags. Not only were subscription numbers (and forward guidance) well below expectations, but management also gave new disclosure on the massive extent of password sharing which raises concerns that Netflix is much more mature than we had previously considered, constraining future growth. Management also haphazardly announced it will introduce an advertising-supported subscription tier, albeit currently lacking the necessary capabilities to do so. Despite continuing to produce world-leading content, we have lost confidence in management’s ability to respond to increased competition and a more challenging operating environment. We sold our entire investment in Netflix immediately post Q1 2022 results. Currently we do not consider Netflix to meet our stringent quality criteria to be considered as a potential investment in the Fund.”
3. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 84
10-Year Share Price Returns as of September 13: 4,080%
NVIDIA Corporation (NASDAQ:NVDA), the American semiconductor giant, is one of the best S&P 500 stocks in terms of historical performance. The shares, as of September 13, have gained 4,080% in the last 10 years.
On September 9, after NVIDIA Corporation (NASDAQ:NVDA)’s announcement that the state has offered exemptions for the firm to continue the development of its H100 offering in China and continue supporting U.S. customers of A100 through Chinese manufacturers till March 2023, Evercore ISI analyst C.J. Muse said he believes that NVIDIA Corporation (NASDAQ:NVDA) will potentially be able to offset downside risk given alternative product offerings and likely license approval. While he revised down his Q3 revenue predictions by $250 million to de-risk his model from this impact, the analyst thinks the risk/reward at $135 is “extremely attractive for investors with any sort of duration”. He reiterated an Outperform rating and a $225 price target on NVIDIA Corporation (NASDAQ:NVDA) shares.
According to Insider Monkey’s database, 84 hedge funds were bullish on NVIDIA Corporation (NASDAQ:NVDA) at the end of June 2022, down from 102 funds in the earlier quarter. Phill Gross and Robert Atchinson’s Adage Capital Management is a significant stakeholder of the company, with 2.5 million shares worth around $386 million.
Here is what Baron Fifth Avenue Growth Fund has to say about NVIDIA Corporation (NASDAQ:NVDA) in its Q2 2022 investor letter:
“At the company-specific level, there was a broad correction across the entire portfolio. While four of our holdings contributed to performance, the contribution to absolute returns was less than 100bps combined, as unfortunately none of them were large enough to move the needle. We had 16 investments detracting over 100bps each with NVIDIA (NASDAQ:NVDA), our second largest detractor, costing the Fund 254bps.
NVIDIA’s stock was hit even harder, down 44.4%, impacted by concerns over the health of the consumer, dramatic declines in crypto, and COVID-related lockdowns in China. Despite the sell-off and the increased near-term volatility in its gaming business, NVIDIA’s revenues grew 46% year-over-year with 48% operating margins, driven by continued strength in its data center business as companies across industries adopt AI and ML…” (Click here to see the full text)
2. Enphase Energy, Inc. (NASDAQ:ENPH)
Number of Hedge Fund Holders: 53
10-Year Share Price Returns as of September 13: 6,130%
Enphase Energy, Inc. (NASDAQ:ENPH) is a California-based manufacturer of home energy solutions for the solar photovoltaic industry in the United States and internationally. The stock has gained 6,130% in the last 10 years as of September 13, making it one of the best S&P 500 performers.
Guggenheim analyst Joseph Osha on September 9 downgraded Enphase Energy, Inc. (NASDAQ:ENPH) to Neutral from Buy and retracted his prior $293 price target on the stock after the 55% share price appreciation during the last three months. The analyst said that Enphase Energy, Inc. (NASDAQ:ENPH) “is one of the best-managed and quickly growing companies that we cover”. He noted that his revised stance does not represent a negative assessment of the quality of the business. He contended that Enphase Energy, Inc. (NASDAQ:ENPH) seems fairly valued but he views it as “a company that is less likely to deliver upside relative to our expectations, especially at the current gross margin level”.
According to Insider Monkey’s data, 53 hedge funds were long Enphase Energy, Inc. (NASDAQ:ENPH) at the end of Q2 2022, compared to 57 funds in the last quarter. Philippe Laffont’s Coatue Management is the largest stakeholder of the company, with 1.36 million shares worth about $267 million.
Here is what the ClearBridge Investments Sustainability Leaders Strategy had to say about Enphase Energy, Inc. (NASDAQ:ENPH) in its Q1 2022 investor letter:
“Enphase Energy (NASDAQ:ENPH) is a key solar holding that should be able to take advantage of greater incentives for solar installations in many geographies. The company was also a strong contributor for the quarter, overcoming pressures of a higher discount rate on their strong projected future earnings, raw material inflation and supply chain challenges as their long-term value was reaffirmed.”
1. Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders: 72
10-Year Share Price Returns as of September 13: 14,760%
Tesla, Inc. (NASDAQ:TSLA) is the top S&P 500 performers as of September 13, as the stock has gained 14,760% in the last decade. Tesla, Inc. (NASDAQ:TSLA) announced on September 9 that it is looking to build a lithium refinery on the gulf coast of Texas in an attempt to gain a consistent supply of battery components amid escalating EV demand.
On September 6, Wolfe Research analyst Rod Lache upgraded Tesla, Inc. (NASDAQ:TSLA) to Outperform from Peer Perform with a $360 price target, in line with lifting his 2025 U.S. EV penetration estimate to 20% from 10% and his global EV penetration estimate to 22% from 17.5%. The Inflation Reduction Act “stands out as far and away the most consequential development for the U.S. Auto Industry that we’ve seen in a very long time,” the analyst told investors. He is “incrementally more positive” on Tesla, Inc. (NASDAQ:TSLA) and is raising his 2023 and 2025 EPS estimates to $7.40 and $16 from $6.12 and $12.70, respectively.
According to Insider Monkey’s data, 72 hedge funds were long Tesla, Inc. (NASDAQ:TSLA) at the end of June 2022, compared to 80 funds in the last quarter. Cathie Wood’s ARK Investment Management is a prominent stakeholder of the company, with 1.4 million shares worth over $1 billion.
Here is what Grantham Mayo Van Otterloo & Co. LLC had to say about Tesla, Inc. (NASDAQ:TSLA) in its Q1 2022 investor letter:
“To put the demand growth for clean energy materials into perspective, let’s look at Tesla, Inc. (NASDAQ:TSLA). At its Battery Day last year, Tesla, Inc. (NASDAQ:TSLA) projected three terawatt hours of lithium-ion battery capacity needed in 2030 for the EVs and storage they expect to produce. To reach this target, Tesla alone would gobble up approximately 75% of the world’s current nickel production and four times the world’s current lithium production. These numbers are astounding enough, but when one considers that EVs currently represent just 15% of global nickel demand and about 45% of lithium demand and that Tesla will likely be producing only a small proportion of the world’s EVs in 2030, the implications are staggering. Clean energy materials companies will make a lot more money in the decades to come than they ever have both because they will be selling a lot more metric tons of material and because there are certain to be shortages where supply can’t keep up with the rapidly growing demand.”
You can also take a look at 10 Best Media Stocks To Buy and 13 Largest Lithium Companies In the World.
