5 Best Performing S&P 500 Stocks in the Last 5 Years

In this article, we discuss 5 best performing S&P 500 stocks in the last 5 years. If you want to see more stocks in this selection, check out 12 Best Performing S&P 500 Stocks in the Last 5 Years. 

5. Thermo Fisher Scientific Inc. (NYSE:TMO)

Number of Hedge Fund Holders: 92

5-Year Share Price Gains as of January 6: 154.56%

Thermo Fisher Scientific Inc. (NYSE:TMO) is a Massachusetts-based provider of life sciences solutions, analytical instruments, specialty diagnostics, and laboratory products and services worldwide. On November 10, Thermo Fisher Scientific Inc. (NYSE:TMO) declared a quarterly dividend of $0.30 per share, in line with previous. The dividend is distributable on January 16, to shareholders of record on December 15. The company also announced on November 10 a $4 billion share repurchase program. 

On January 3, Wells Fargo analyst Timothy Daley lowered the price target on Thermo Fisher Scientific Inc. (NYSE:TMO) to $505 from $525 and maintained an Underweight rating on the shares. The analyst observed that in late 2021, the company upgraded its long-term growth guidance by +200bps to 7%-9%. Given his largely bearish view on primary growth drivers for 2023, the analyst sees this as a very aggressive hurdle under the backdrop of Thermo Fisher Scientific Inc. (NYSE:TMO)’s history of repeatedly setting initial annual guidance with large headroom for beat/raise progression through the year.

According to Insider Monkey’s Q3 data, 92 hedge funds were long Thermo Fisher Scientific Inc. (NYSE:TMO), compared to 93 funds in the last quarter. Thomas Steyer’s Farallon Capital is a significant position holder in the company, with 1.12 million shares worth $569 million. 

Aristotle Atlantic made the following comment about Thermo Fisher Scientific Inc. (NYSE:TMO) in its Q3 2022 investor letter:

“Thermo Fisher Scientific Inc. (NYSE:TMO) is considered one of the world’s leaders in serving science. The company makes and distributes analytical instruments, scientific equipment, consumables and other laboratory supplies. Thermo Fisher Scientific operates in four segments: Life Sciences Solutions, Analytical Instruments, Specialty Diagnostics and Laboratory Product and Biopharma Services. We see Thermo Fisher Scientific as one of the leading management teams in our coverage both through solid execution and savvy Mergers & Acquisitions (M&A). The company is a diversified provider of research and discovery instruments, tools, consumables, and services, and offers a broad-based play on the increased Research & Development (R&D) spend from the biopharma industry. Thermo Fisher Scientific continues to see organic growth in the high single digits with acquisitions increasing their overall portfolio composition and gaining market share.”

4. NVIDIA Corporation (NASDAQ:NVDA)

Number of Hedge Fund Holders: 89

5-Year Share Price Gains as of January 6: 166.53%

NVIDIA Corporation (NASDAQ:NVDA) is a California-based company specializing in  graphics, semiconductors, and networking solutions in the United States, Taiwan, China, and internationally. NVIDIA Corporation (NASDAQ:NVDA) stock has gained 166.5% over the last five years as of January 6, making it one of the best performing S&P 500 members over the period. 

On December 19, Needham analyst Rajvindra Gill raised the price target on NVIDIA Corporation (NASDAQ:NVDA) to $230 from $200 and maintained a Buy rating on the shares. NVIDIA Corporation (NASDAQ:NVDA) is the analyst’s top pick for 2023 and he added it to the firm’s Conviction List as well. While the analyst sees volatility in the overall data center market in CY23, he believes NVIDIA Corporation (NASDAQ:NVDA)’s customers are upgrading to the latest H100 architecture. 

According to Insider Monkey’s data, 89 hedge funds were bullish on NVIDIA Corporation (NASDAQ:NVDA) at the end of Q3 2022, compared to 84 funds in the prior quarter. Ken Fisher’s Fisher Asset Management held a significant position in the company, consisting of 12 million shares worth $1.46 billion.  

Ave Maria made the following comment about NVIDIA Corporation (NASDAQ:NVDA) in its Q3 2022 investor letter:

“NVIDIA Corporation (NASDAQ:NVDA) Corporation primarily designs and sells the accelerated computer hardware and software that is indispensable for autonomous vehicle, gaming, and artificial intelligence applications. Near term uncertainty from the crypto market correction and the semiconductor cycle have weighed on shares and offered an attractive entry point for long-term investors.”

3. Apple Inc. (NASDAQ:AAPL)

Number of Hedge Fund Holders: 140

5-Year Share Price Gains as of January 6: 192.79%

Apple Inc. (NASDAQ:AAPL) is a California-based company that designs, manufactures, and markets smartphones, personal computers, tablets, wearables, and accessories worldwide. On January 3, Apple Inc. (NASDAQ:AAPL) saw net revenue growth for its App Store in December, its first growth since June, which means there could be “upside” in its services segment. It is one of the best performing stocks over the last five years, with shares up nearly 193% over the period. 

On January 4, Apple Inc. (NASDAQ:AAPL)’s short-term production challenges create a long-term buying opportunity, Tigress Financial analyst Ivan Feinseth told investors in a research note. The analyst noted that the company’s “massive” installed user base, growing ecosystem, and expanding Services revenue will continue to support accelerating trends and higher shareholder value creation. The analyst reiterated a Strong Buy rating on Apple Inc. (NASDAQ:AAPL) shares with a $210 price target.

According to Insider Monkey’s data, 140 hedge funds were bullish on Apple Inc. (NASDAQ:AAPL) at the end of Q3 2022, compared to 128 funds in the prior quarter. Warren Buffett’s Berkshire Hathaway is the biggest stakeholder of the company, with 894.80 million shares worth $123.6 billion. 

TimesSquare Capital made the following comment about Apple Inc. (NASDAQ:AAPL) in its Q3 2022 investor letter:

“Apple Inc. (NASDAQ:AAPL) designs and manufactures smartphones, personal computers, tablets, and wearable devices. The company reported better than expected revenues, though that came from a lower-than-expected supply chain impact. Apple called out pockets of weakness in wearables as well as home & accessories. Management referenced macroeconomic uncertainty and sounded somewhat guarded when commenting on fourth quarter expectations. In September, Apple introduced four new iPhones with retail prices kept at last year’s levels. Its shares edged forward by 1% in consideration of these developments. We trimmed the position after evaluating the channel which highlighted some consumer demand choppiness.”

2. Eli Lilly and Company (NYSE:LLY)

Number of Hedge Fund Holders: 75

5-Year Share Price Gains as of January 6: 317.27%

Eli Lilly and Company (NYSE:LLY) discovers, develops, and markets human pharmaceuticals worldwide. The company was founded in 1876 and is headquartered in Indianapolis, Indiana. On December 22, Dutch biotech firm ProQR Therapeutics N.V. (NASDAQ:PRQR) announced an agreement with Eli Lilly and Company (NYSE:LLY) to expand the partnership for RNA-editing-based genetic medicines. With shares up over 317% in the last five years as of January 6, Eli Lilly and Company (NYSE:LLY) is one of the best performing S&P stocks to consider. 

On December 3, Barclays analyst Carter Gould raised the firm’s price target on Eli Lilly and Company (NYSE:LLY) to $400 from $395 and reiterated an Overweight rating on the shares.

According to Insider Monkey’s data, Eli Lilly and Company (NYSE:LLY) was part of 75 hedge fund portfolios at the end of Q3 2022, compared to 70 in the prior quarter. Peter Rathjens, Bruce Clarke, and John Campbell’s Arrowstreet Capital is a prominent stakeholder of the company, with 2.5 million shares worth $802.8 million. 

Here is what ClearBridge Global Growth Strategy has to say about Eli Lilly and Company (NYSE:LLY) in its Q3 2022 investor letter:

“In the U.S., we initiated a position in pharmaceutical maker Eli Lilly (NYSE:LLY) as it brings out new drug candidates for diabetes and Alzheimer’s disease. New drugs impact diabetes but have also demonstrated significant weight loss for patients who are overweight and have other co-morbidity issues as a result. Lilly is one of the two key players in diabetes care and we believe the potential market opportunity is much higher than the consensus forecasts as we are seeing evidence of accelerating adoption.”

1. Tesla, Inc. (NASDAQ:TSLA)

Number of Hedge Fund Holders: 88

5-Year Share Price Gains as of January 6: 404.51%

Tesla, Inc. (NASDAQ:TSLA) is one of the best performing S&P 500 constituents over the last five years, with shares climbing nearly 405% as of January 6. Tesla, Inc. (NASDAQ:TSLA) trimmed prices in China on the Model Y and Model 3 for the second time in less than three months. The company also lowered prices in Japan, South Korea, and Australia in response to demand trends. Tesla is set to deliver more than 5 million vehicles by 2030.

On January 6, after Tesla, Inc. (NASDAQ:TSLA) announced “a relatively significant price cut” in China last night, Piper Sandler analyst Alexander Potter said he was “unsurprised” by the decision since he has been expecting this for many months. If Tesla, Inc. (NASDAQ:TSLA)’s China-related volume, mix, fixed costs, and input costs do not alter drastically, then this price cut could drive Tesla, Inc. (NASDAQ:TSLA)’s EPS downward by about 70c per share over a full year. He maintained an Overweight rating and a $340 price target on Tesla, Inc. (NASDAQ:TSLA) shares. 

According to Insider Monkey’s data, 88 hedge funds were bullish on Tesla, Inc. (NASDAQ:TSLA) at the end of September 2022, compared to 73 funds in the last quarter. Cathie Wood’s ARK Investment Management is a prominent stakeholder of the company, with 4 million shares worth $1 billion. 

In its Q2 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Tesla, Inc. (NASDAQ:TSLA) was one of them. Here is what the fund said:

“In 2014, before we began to invest in Tesla (NASDAQ:TSLA), I called Roger to ask whether he thought Elon Musk’s electric car business would succeed. I did not believe that Roger, an owner of dealerships that sell cars powered by internal combustion engines (ICE) would likely have a favorable opinion of Tesla’s prospects. That was principally for two reasons:

First, automobile manufacturing and distribution is unusually complicated, capital intensive, and highly regulated, which makes profitability problematic; second, cars with ICE motors require extensive annual maintenance, and dealer services revenues, not profits from automobile sales, are the most important contributor to profits of perpetual licensed ICE car dealerships.

Penske Automotive Group is principally an ICE car dealer. Since electric cars are powered by batteries and need little service, franchised dealerships are incented to sell ICE, not EV automobiles. Further, Roger had been a long-term director of General Motors. General Motors’ ICE automobile business would be disrupted if Tesla were successful. (click here to read more…)

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