S&P 500: Only 7 stocks can grow 500% in 5 years (Tesla isn’t #1)
Not many S&P 500 stocks have enough strength 500% increase in 5 years. But a few show it more than possible.
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by Elon Musk Tesla (TSLA) did: It has grown by 739% in the last 5 years. But it’s not alone or even the best. Six other S&P 500 stocks, including leading managed energy technology company Enphase energy (ENPH) and Solar (SEDG), has grown more than 500% since this time in 2007, according to Investor’s Business Daily analysis of data from S&P Global Market Intelligence and marketSmith.
Thrive in five crazy years
Why are the last 5 years so important to investors? That’s half a decade of history for stocks. You’ve seen companies that can handle anything thrown at them. Political upheaval, a pandemic, a painful but brief recession and now inflation and a decline in globalization plus the threat of another recession, all in 5 five.
“The problem is that the combination of higher costs and lower revenues can hit US companies hard,” said Jack Ablin, strategist at Cresset Capital Management.
Amazingly, the S&P 500 stock has performed quite well over the past five years. And that is saying something.
All 10 of S&P 500 sectors existed five years ago during that time. Technology Selection Sector SPDR Fund (XLK) more than doubled, making it the best performing field. And also the worst sector during that time, Real Estate Select Sector SPDR (XRE), up 15.2%.
What about the S&P 500 itself? Despite everything thrown at it, the SPDR S&P 500 ETF Trust (spy), an increase of nearly 50%. But that’s nothing compared to the winners of this period.
11.223% increase in 5 years!
The biggest winner in the S&P 500 is also one of its newest members: Enphase.
Shares of the solar equipment leader are up more than 11,220% in 5 years. It’s a notable move that could turn a $10,000 investment at the end of 2017 into $1.1 million right now. company only join the S&P 500 by the end of 2020.
It is clear that investors see a lot of promise from clean energy. The #2 S&P 500 winner of the past 5 years has not been Tesla, but SolarEdge. Shares of another S&P 500 solar equipment maker are up nearly 760% in five years. That turned a $10,000 investment into $85,972 for a neat $75,972. SolarEdge’s profits this year are on track to double from five years ago.
That doesn’t take anything away from Elon Musk’s Tesla, another clean energy game. The past five years haven’t been the electric carmaker’s best: It’s lost half of its value this year alone. But the stock is still up more than 738% in five years, making it the third-best stock in the S&P 500. And that’s enough to turn your $10,000 investment five years ago into $73,877.
Lesson? You can still make a lot of money in stocks during one of the most unusual times for the S&P 500.
Huge S&P 500 winners of the past 5 years
Company | Icon | branch | Stocks up in the last 5 years | Earn on investment of $10,000 |
---|---|---|---|---|
Enphase energy | (ENPH) | Information Technology | 11,223.2% | $1,122,321 |
SolarEdge Technology | (SEDG) | Information Technology | 759.7% | $75,972 |
Tesla | (TSLA) | Consumer goods | 738.8% | $73,877 |
Dexcom | (DXCM) | Health care | 686.5% | $68,646 |
Advanced micro-device | (AMD) | Information Technology | 598.6% | $59,860 |
Etsy | (ETSY) | Consumer goods | 586.3% | $58,634 |
Fortinet | (FTNT) | Information Technology | 522.9% | $52,288 |