The S&P 500's annualized total return over the last five years has been roughly 13.5%, but the average stock currently in the index has seen an annualized total return about 2.6 percentage points less at just 10.9%.
Just over 20% of stocks in the S&P 500 have posted annualized returns of 20%+ over the last five years, but below is a list of the 15 companies with the strongest 5-year returns. Each of these stocks has gained more than 40% annually since early 2021!
While NVIDIA (NVDA) is by far the biggest stock on the list of five-year winners and ranks second, Comfort Systems (FIX) - which installs HVAC and building systems - gets the gold with a 5-year annualized total return of 87.2%. Super Micro (SMCI) gets the bronze at 56.9%, followed by Howmet Aerospace (HWM) and EMCOR (EME). Other notables on the list of 5-year winners include Broadcom (AVGO), Arista Networks (ANET), Quanta (PWR), Seagate (STX), and General Electric (GE). While GE struggled during the first 20 years of this century, it has lit fire during the 2020s.
We also looked at returns over the last ten and twenty years to find stocks that have been the most consistent winners over lengthy time frames.
As mentioned earlier, the S&P 500 has returned 13.5% annually over the last five years. Over the last ten years, the index has returned 15.6% annually, while it has gained 10.8% annually over the last twenty years.
In the S&P right now, there are only five stocks that have doubled the index annually over the last five, ten, and twenty years. These five stocks are shown below sorted by current market cap.
Three semiconductor stocks make up the list of five (NVDA, LRCX, KLAC), while the other two are the aforementioned Comfort Systems (FIX) and an Energy stock: Texas Pacific Land (TPL).
While there are only five S&P 500 stocks that have doubled the return of the index itself over the last five, ten, and twenty years, there are ten stocks that have posted 20%+ annualized returns over all three time frames.
These ten stocks are highlighted below, once again led by NVIDIA (NVDA), Lam Research (LRCX), and KLA (KLAC). Additional stocks that have yet to be mentioned are Amphenol (APH), Monolithic Power (MPWR), and Axon Enterprise (AXON).
So far we have only discussed winners, but we'll close with a list of S&P 500 stocks that have struggled mightily in the last two decades. In the index right now, there are nine stocks that have posted annualized total returns of less than 5% over each of the last five, ten, and twenty years.
Some of the more well-known names on the list include Zimmer (ZBH), Baxter (BAX), Conagra (CAG), and Campbell's (CPB).
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