By Philip van Doorn, MarketWatch
MarketWatch photo illustration/Getty Images, iStockphoto
As we approach the end of 2019, it’s time not only for year-end lists, but end-of- decade lists.
U.S. stocks have had what can only be called an excellent decade. MarketWatch will feature a number of forward-looking articles building on the past decade’s action. Today we’re taking a look back.
The Dow Jones Industrial Average /zigman2/quotes/210598065/realtime DJIA -0.57% returned 165% (with dividends reinvested) and the S&P 500 Index /zigman2/quotes/210599714/realtime SPX -0.30% returned 244% from the end of 2009 through Dec. 5, 2019. We’re not quite at the end of 2019, but if we were, and those figures held, the compounded annual growth rate for the Dow would be 10.2%. For the S&P 500, it would be 13.2%.
That average return for the S&P 500 measures up well when compared with the 10% average for the almost 100-year period of June 30, 1927, through Sept. 30, 2019, the longest period available using custom research.
For the past decade, we reviewed the entire S&P 500, as it is currently constituted, to see which stocks performed best. Among the 500 companies, 46 have traded in their present form for less than 10 years, so they are excluded.
Here’s a list of companies whose stocks performed the best,with reinvested dividends, from the end of 2009 through Dec. 5:
|Company||Ticker||FactSet industry category||Total return - Dec. 31, 2009, through Dec. 5, 2019||Years ranked within top 10 performers|
|Netflix Inc.||/zigman2/quotes/202353025/composite NFLX||Cable/Satellite TV||3,767%||3|
|MarketAxess Holdings Inc.||/zigman2/quotes/202710814/composite MKTX||Investment Banks/Brokers||3,182%||2|
|Abiomed Inc.||/zigman2/quotes/202106417/composite ABMD||Medical Specialties||2,121%||3|
|TransDigm Group Inc.||/zigman2/quotes/203902625/composite TDG||Aerospace & Defense||2,065%||0|
|Broadcom Inc.||/zigman2/quotes/200646538/composite AVGO||Semiconductors||1,919%||1|
|Align Technology Inc.||/zigman2/quotes/200300692/composite ALGN||Medical Specialties||1,458%||1|
|United Rentals Inc.||/zigman2/quotes/204230955/composite URI||Finance/Rental/Leasing||1,434%||1|
|Regeneron Pharmaceuticals Inc.||/zigman2/quotes/203149337/composite REGN||Biotechnology||1,430%||2|
|Ulta Beauty Inc.||/zigman2/quotes/210513442/composite ULTA||Specialty Stores||1,233%||1|
|Amazon.com Inc.||/zigman2/quotes/210331248/composite AMZN||Internet Retail||1,209%||1|
|Extra Space Storage Inc.||/zigman2/quotes/208054924/composite EXR||Real Estate Investment Trusts||1,166%||1|
|Constellation Brands Inc. Class A||/zigman2/quotes/207737284/composite STZ||Beverages: Alcoholic||1,124%||0|
|Nvidia Corp.||/zigman2/quotes/200467500/composite NVDA||Semiconductors||1,117%||2|
|Take-Two Interactive Software Inc.||/zigman2/quotes/204008930/composite TTWO||Recreational Products||1,114%||1|
|Ross Stores Inc.||/zigman2/quotes/202639496/composite ROST||Apparel/Footwear Retail||1,081%||0|
|Fortinet Inc.||/zigman2/quotes/205733290/composite FTNT||Computer Communications||1,079%||1|
|Mastercard Inc. Class A||/zigman2/quotes/207581792/composite MA||Finance/Rental/Leasing||1,078%||1|
|Charter Communications Inc. Class A||/zigman2/quotes/201656355/composite CHTR||Cable/Satellite TV||1,077%||0|
|O'Reilly Automotive Inc.||/zigman2/quotes/207206119/composite ORLY||Specialty Stores||1,060%||1|
|Cintas Corp.||/zigman2/quotes/201631915/composite CTAS||Other Consumer Services||1,053%||0|
You can click on the tickers for more about each company.
The right-most column shows the number of times each stock was among the top 10 performers over the past 10 individual years (including 2019 through Dec. 5).
Netflix /zigman2/quotes/202353025/composite NFLX -2.53% is far ahead of the pack, with a spectacular 3,767% return. That translates to a compounded annual growth rate (CAGR) of 44.1%. Amazon.com /zigman2/quotes/210331248/composite AMZN -0.45% ranks 10th, and its 1,209% return translates to a CAGR of 29.3%. Apple /zigman2/quotes/202934861/composite AAPL +1.61% ranks 28th, with a total return of 899% and a CAGR of 25.9%.
It’s interesting that some of the best performers for 10 years weren’t among the top 10 during any individual year. TransDigm /zigman2/quotes/203902625/composite TDG +0.42% , for example, ranks fourth, with a 2,067% return (CAGR of 36%). The company has a very important advantage in the aerospace industry — a high barrier for entry in the market for specialized replacement parts for aircraft. In April, Will Muggia of Westfield Capital Management called TransDigm “the best managed company in America.”
Here’s how the 11 sectors of the S&P 500 have performed from the end of 2009 through Dec. 5, 2019, with dividends reinvested, according to FactSet:
|S&P 500 Sector||Total return - Dec. 31, 2009, through Dec. 5, 2019|
2019 winners — so far
Here are the 20 best-performing S&P 500 stocks for 2019 through Dec. 5:
|Company||Ticker||FactSet industry category||Total return - 2019, through Dec. 5||Total return - Dec. 31, 2009, through Dec. 5, 2019||Years ranked within top 10 performers|
|Advanced Micro Devices Inc.||/zigman2/quotes/208144392/composite AMD||Semiconductors||115%||310%||3|
|Lam Research Corp.||/zigman2/quotes/208077897/composite LRCX||Electronic Production Equipment||98%||632%||1|
|Xerox Holdings Corp.||/zigman2/quotes/201169674/composite XRX||Computer Peripherals||96%||122%||1|
|Target Corp.||/zigman2/quotes/207799045/composite TGT||Specialty Stores||95%||241%||1|
|Chipotle Mexican Grill Inc.||/zigman2/quotes/200781108/composite CMG||Restaurants||90%||818%||3|
|Coty Inc. Class A||/zigman2/quotes/208645074/composite COTY||Household/Personal Care||87%||N/A||1|
|KLA Corp.||/zigman2/quotes/209248041/composite KLAC||Electronic Production Equipment||85%||629%||1|
|Copart Inc.||/zigman2/quotes/200378896/composite CPRT||Miscellaneous Commercial Services||85%||851%||1|
|Arconic Inc.||/zigman2/quotes/216391721/composite ARNC||Aluminum||82%||N/A||1|
|MarketAxess Holdings Inc.||/zigman2/quotes/202710814/composite MKTX||Investment Banks/Brokers||82%||3182%||2|
|MSCI Inc. Class A||/zigman2/quotes/202905332/composite MSCI||Financial Publishing/Services||79%||770%||1|
|ANSYS Inc.||/zigman2/quotes/207638775/composite ANSS||Packaged Software||77%||480%||0|
|TransDigm Group Inc.||/zigman2/quotes/203902625/composite TDG||Aerospace & Defense||76%||2065%||0|
|Qorvo Inc.||/zigman2/quotes/209919828/composite QRVO||Semiconductors||74%||445%||1|
|Applied Materials Inc.||/zigman2/quotes/209393259/composite AMAT||Industrial Machinery||74%||393%||1|
|Leidos Holdings Inc.||/zigman2/quotes/202902477/composite LDOS||Information Technology Services||73%||212%||0|
|Global Payments Inc.||/zigman2/quotes/201234787/composite GPN||Data Processing Services||72%||560%||1|
|Fortune Brands Home & Security Inc.||/zigman2/quotes/202019304/composite FBHS||Building Products||71%||N/A||0|
|Apple Inc.||/zigman2/quotes/202934861/composite AAPL||Telecommunications Equipment||71%||899%||0|
|Tyson Foods Inc. Class A||/zigman2/quotes/201117502/composite TSN||Food: Meat/Fish/Dairy||71%||723%||0|
Once again, the right-most column shows how many times each stock was among the top 10 performers over the past 10 individual years (including 2019) through Dec. 5.
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