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Sept. 17, 2015, 1:04 p.m. EDT

10 stocks you should have bought the last time the Fed raised interest rates

Apple, Amazon and Netflix have soared over 1,000% in nine years

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By Philip van Doorn, MarketWatch


Bloomberg News/Landov
Shares of Priceline Group have returned 4,297% since June 29, 2006, the last time the Federal Reserve raised interest rates.

There’s plenty of speculation about whether the Federal Open Market Committee will raise interest rates on Thursday.

If the Federal Reserve’s policy makers do so, it will be the first time the official federal funds rate has increased in nine years.

That rate has been locked in a range of zero to 0.25% since late 2008, and there are loads of arguments in favor of lifting short-term interest rates and against making any move now.

We thought it would be interesting to see which S&P 500 stocks have fared best since the last time the Fed raised interest rates:

Company Ticker Industry Total return - June 29, 2006 through Sept. 15, 2015
Priceline Group Inc. Travel Services 4,297%
Regeneron Pharmaceuticals Inc. /zigman2/quotes/203149337/composite REGN Biotechnology 4,097%
Netflix Inc. /zigman2/quotes/202353025/composite NFLX Movies/ Entertainment 2,456%
Keurig Green Mountain Inc. Food: Specialty/ Candy 2,027%
CF Industries Holdings Inc. /zigman2/quotes/209482112/composite CF Chemicals: Agricultural 1,957%
MasterCard Inc. Class A /zigman2/quotes/207581792/composite MA Finance/ Rental/ Leasing 1,885%
Alexion Pharmaceuticals Inc. Biotechnology 1,790%
Skyworks Solutions Inc. /zigman2/quotes/201417573/composite SWKS Semiconductors 1,585%
Apple Inc. /zigman2/quotes/202934861/composite AAPL Computer and Telecom Equipment 1,376%
Amazon.com Inc. /zigman2/quotes/210331248/composite AMZN Internet Retail 1,256%
Source: FactSet

The S&P 500 Index /zigman2/quotes/210599714/realtime SPX -4.04%  in contrast, has returned 89% in that time.

Read: Where every Fed member stands on raising interest rates.

A lot has changed since June 29, 2006, when the central bank last raised the federal funds rate, by a quarter point to 5.25%.

Even though the U.S. economy emerged from the Great Recession in the second half of 2009 and the unemployment rate has dropped to its lowest level since 2008, rates of all kinds are near record lows. The average rate for a 30-year mortgage loan, for example, was just 3.86% on Tuesday, according to Bankrate.

Read: These stocks might work best when the Fed raises interest rates

/zigman2/quotes/203149337/composite
US : U.S.: Nasdaq
$ 659.20
-8.36 -1.25%
Volume: 560,145
May 18, 2022 4:00p
P/E Ratio
9.34
Dividend Yield
N/A
Market Cap
$73.33 billion
Rev. per Employee
$1.59M
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/zigman2/quotes/202353025/composite
US : U.S.: Nasdaq
$ 177.19
-13.37 -7.02%
Volume: 9.67M
May 18, 2022 4:00p
P/E Ratio
16.08
Dividend Yield
N/A
Market Cap
$84.66 billion
Rev. per Employee
$2.69M
loading...
/zigman2/quotes/209482112/composite
US : U.S.: NYSE
$ 101.61
-6.84 -6.31%
Volume: 3.94M
May 18, 2022 4:03p
P/E Ratio
13.11
Dividend Yield
1.57%
Market Cap
$22.62 billion
Rev. per Employee
$2.79M
loading...
/zigman2/quotes/207581792/composite
US : U.S.: NYSE
$ 335.90
-2.96 -0.87%
Volume: 4.52M
May 18, 2022 4:00p
P/E Ratio
34.95
Dividend Yield
0.58%
Market Cap
$329.68 billion
Rev. per Employee
$828,667
loading...
/zigman2/quotes/201417573/composite
US : U.S.: Nasdaq
$ 101.79
-5.06 -4.74%
Volume: 2.80M
May 18, 2022 4:00p
P/E Ratio
12.36
Dividend Yield
2.20%
Market Cap
$17.19 billion
Rev. per Employee
$479,391
loading...
/zigman2/quotes/202934861/composite
US : U.S.: Nasdaq
$ 140.82
-8.42 -5.64%
Volume: 109.74M
May 18, 2022 4:00p
P/E Ratio
22.89
Dividend Yield
0.65%
Market Cap
$2415.48 billion
Rev. per Employee
$2.51M
loading...
/zigman2/quotes/210331248/composite
US : U.S.: Nasdaq
$ 2,142.25
-165.12 -7.16%
Volume: 5.42M
May 18, 2022 4:00p
P/E Ratio
51.66
Dividend Yield
N/A
Market Cap
$1173.81 billion
Rev. per Employee
$297,107
loading...
/zigman2/quotes/210599714/realtime
US : S&P US
3,923.68
-165.17 -4.04%
Volume: 2.71B
May 18, 2022 4:56p
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Philip van Doorn covers various investment and industry topics. He has previously worked as a senior analyst at TheStreet.com. He also has experience in community banking and as a credit analyst at the Federal Home Loan Bank of New York.

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