Only one company has grown more than 1000% in the last 10 years, but many stocks have performed above 100%.
In recent years, the Italian stock market (Piazza Affari in Italian) has seen impressive growth, culminating in 2024 with the Ftse Mib index reaching its highest level since 2007, with an increase of 56%.
If we consider the Total Return index, which also takes into account reinvested dividends, the performance jumps to 123.7%, confirming a market in full health.
In this context, some Piazza Affari stocks have stood out for having given investors three-digit returns, with positive variations exceeding 100%. Among these, one stock in particular has grown by over 1,000%. These results testify to the solidity and growth potential of the Italian stock market.
Of the 138 Italian stocks with a market capitalization of more than 200,000 euros, only one company has managed to increase its value by 10 times and six other companies have seen their value grow between 500% and 1,000%, according to studies by Equita Sim and eToro.
Below we analyze the 10 best stocks of the last 10 years, which highlight the most exciting performances and which are making a difference for the portfolios of investors who have focused on Piazza Affari.
Piazza Affari: the 10 best stocks of the last 10 years
At the top of the list is SeSa, which in the last 10 years has added 1,040% of its value thanks to digital transformation, offering companies and organizations technological solutions, consultancy, and vertical applications. SeSa recorded earnings growth at an average annual rate of 21.3%, while the Electronic sector recorded earnings growth at an average annual rate of 13.9%
Following is another IT and digital serviced consultancy company, Reply, which recorded a positive performance of 850% between December 2013 and December 2023. In the third position, we find Amplifon, a world leader in hearing aids, with a positive performance of 780% in the same period.
| Ranking | Ticket | 10-year performance | Market cap | |
|---|---|---|---|---|
| 1 | SeSa | 1040% | €1.46 billion | |
| 2 | Reply | 850% | €5.26 billion | |
| 3 | Amplifon | 780% | €6.59 billion | |
| 4 | Stellantis | 740% | €44.85 billion | |
| 5 | Moltiply | 670% | €1.43 billion | |
| 6 | STMicroelectronics | 620% | €25.91 billion | |
| 7 | Interpump | 540% | €4.27 billion | |
| 8 | Recordati | 470% | €11.03 billion | |
| 9 | Tamburi Investment Partners | 372% | €1.75 billion | |
| 10 | ERG | 370% | €3.62 billion |
How to choose the best stocks on the Italian Stock Exchange
Choosing the best stocks on the Italian Stock Exchange capable of growing consistently in the long term requires a careful evaluation of the fundamental data of the companies. First, it is essential to identify companies with solid balance sheets and reliable management, capable of maintaining financial stability even in times of uncertainty. Companies with constantly growing revenues, increasing margins, and a controlled level of debt tend to offer higher long-term return prospects.
These characteristics are typical of the so-called "tenbaggers", a term coined by the famous fund manager Peter Lynch to describe investments that increase their initial value tenfold.
The most promising sectors to look for these stocks now are those related to technology, where the adoption of new products and services can push stock prices to grow rapidly.
The big absentees
It is surprising (or perhaps not) the absence of large Italian companies in the top 10 places of the best companies on the Milan Stock Exchange over the last 10 years.
The only way to achieve similar performances is to have a solid balance sheet, reliable management, and excellent financial stability.
When revenues are greater than costs, the latter increase along with margins and debt is not a suffocating ivy, this happens: the company grows, investors invest, and the company continues to grow.
Original article published on Money.it Italy 2024-09-10 17:00:49. Original title: I 10 titoli migliori degli ultimi 10 anni su Borsa Italiana
