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Investors are always looking to beat the market, searching for stocks that deliver consistent long-term gains. And perhaps to the surprise of some, many non-tech stocks have outperformed the market over the last decade, exceeding the S&P 500’s impressive 220% gain.

Three stocks – Caterpillar (CAT), Live Nation Entertainment (LYV), and Monster Beverage (MNST) – have all outperformed the S&P 500 over the last decade, all posting at least a 15% annualized return.

Below is a chart illustrating the performance of all three over the last decade, with the S&P 500 blended in as a benchmark.

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Let’s take a closer look at each.

Caterpillar

Caterpillar is the world's leading manufacturer of construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives. The stock is a Zacks Rank #1 (Strong Buy), with earnings expectations shifting positively over the last several months.

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CAT shares aren’t valuation stretched given its growth trajectory, with earnings forecasted to climb 40% in its current year on 12% higher revenues. Shares presently trade at a 13.8X forward earnings multiple, beneath the 16.9X ten-year median and high of 21.4X in 2022.

Caterpillar shareholders also get to enjoy steady and consistent dividend payouts, as the company belongs to the elite Dividend Aristocrats club. Shares currently yield 1.9% annually, with the payout growing by 7% annually over the last five years.

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Live Nation Entertainment

Live Nation Entertainment, a current Zacks Rank #1 (Strong Buy), has enjoyed positive earnings estimate revisions across nearly all timeframes, with the trend particularly noteworthy for its current fiscal year.

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The company’s revenue has recovered nicely from pandemic lows and has seen a recent acceleration. Live Nation Entertainment reported $5.6 billion in sales in its latest quarterly release, improving 27% from the year-ago period.

And the growth is slated to continue, with earnings forecasted to climb 57% in its current year on 21% higher sales. Looking ahead to FY24, expectations allude to a further 70% jump in earnings paired with a 7% revenue increase. 

Monster Beverage

Monster Beverage is a marketer and distributor of energy drinks and other alternative beverages. The company’s growth profile is nearly impossible to ignore, with earnings forecasted to climb 40% in its current year on 14% higher sales.

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Value-conscious investors may be steered away from MNST shares, with the current 35.5X forward earnings multiple sitting on the higher end of the spectrum. Still, investors have had little issue forking up the premium given the company’s growth trajectory.

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Bottom Line

Not all high-flying stocks come from the Technology sector, with many widely outperforming the general market over the last decade.

And that’s precisely the case for Caterpillar, Live Nation Entertainment, and Monster Beverage, with all three delivering annualized returns in excess of 15% over the last decade.

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