Between 2003 and 2023, the S&P Index posted double-digit annual returns thirteen times, thanks largely to notable returns from technology stocks.
The stock market has a long history of generating wealth for investors. While past performance does not guarantee future results, studying successful companies can provide valuable insights. Understanding the factors driving the growth of these companies can help you make more informed investment decisions in the future. It is important to remember that investing involves risk and that it is crucial to conduct thorough research before making any investment decisions.
Investors often overlook revenue in favor of profitability when evaluating stocks. Profit is what remains after all costs have been paid, while revenue is the total goods and services sold. Determining whether a company is growing or valuable is essential. Over the past twenty years, the US stock market has experienced significant events such as the dot-com boom and bust, the 2008 financial crisis, the tech boom with trillion-dollar valuations, and the 2020 pandemic crisis. Among Between 2003 and 2023, the S&P Index posted double-digit annual returns thirteen times, thanks largely to notable returns in technology stocks.
The aggregate market value of the top seven companies in the S&P 500 is nearly double that of the Japanese market. According to Jim Reid, head of thematic research and global economics at Deutsche Bank, this is the highest concentration ever seen in the US market. Interest in growth stocks has surged amid enthusiasm for artificial intelligence (AI) and the prospect of interest rate cuts. Companies are investing significantly in AI to meet market demand. Satya Nadella highlighted the impact of AI on changing working models, with productivity improved by up to 70% in some specific tasks.
Among the most profitable shares of the last twenty years, we find Balchem Corporation (NASDAQ: BCPC) with an annualized return of 18.56%. Balchem reported strong growth in the Human Nutrition & Health segment with record sales of $152.7 million (+15.1%) and earnings of $33.3 million (+80.4%). However, the Animal Nutrition & Health segment saw sales decline to $53.9 million (-16.9%), with earnings decreasing to $2.1 million (-78.3%). In Q1 2024, Balchem reported an operating cash flow of $33.4 million and a free cash flow of $26.8 million, supported by robust net working capital and disciplined capital expenditures. The company also released its 2023 Sustainability Report and VitaCholine received the 2023 NutraIngredients-USA Award for Ingredient of the Year for Cognitive Function.
Manhattan Associates, Inc. (NASDAQ: MANH) had an annualized return of 18.93%, with revenue growth of 15.2% to $254.6 million in Q1 2024 and a significant increase in EPS non-GAAP at $1.03 (+28.7%). The company saw profit margins increase to 21%, reflecting greater operational efficiency. MANH recently introduced new AI capabilities for customer service and launched Manhattan Active Supply Chain Planning, expanding partnerships with Shopify and Google to improve e-commerce and analytics capabilities.
MicroStrategy Incorporated (NASDAQ: MSTR) delivered an annualized return of 19.09%, with 22% growth in subscription services in Q1 2024, despite a 5.5% decline in total revenue to $115.2 million. The company suffered a net loss of $53.1 million due to significant write-downs of digital assets, particularly bitcoin. However, MicroStrategy has introduced improvements to its AI capabilities, including updates to MicroStrategy Auto Bot and the integration of AI capabilities into MicroStrategy Cloud for the Government.
Exponent, Inc. (NASDAQ: EXPO) had an annualized return of 19.30%, with total revenues of $144.9 million (+3.3%) in Q1 2024 and an increase in net income to $30.1 million. The engineering segment, which accounts for 84% of revenue, benefited from an increase in work related to disputes and recalls. Exponent ended the quarter with $168.7 million in cash and announced a quarterly dividend of $0.28 per share. The company expects single-digit revenue growth for Q2 2024 and a strengthened EBITDA margin.
Napco Security Technologies, Inc. (NASDAQ: NSSC) posted an annualized return of 19.97%, with revenue growth of 6% to $41.7 million in Q1 2024, driven by 25% growth of recurring services revenue at $17.3 million. Despite a slight decline in equipment revenue, Napco saw a net margin of 25%. The company introduced new products such as the Prima alarm and reported strong growth in the recurring services segment.
Amphenol Corporation (NYSE: APH) had an annualized return of 19.98%, with 6% organic growth in revenue to $3.256 billion in Q1 2024 and a 16% increase in adjusted diluted EPS to $0.80. Amphenol saw strong performance in the Harsh Environment Solutions, Communications Solutions, and Interconnect and Sensor Systems segments. The company is in the process of acquiring Carlisle Interconnect Technologies, expected to close by the end of Q2 2024, adding approximately $0.02 to earnings in the second half of 2024.
Transcat, Inc. (NASDAQ: TRNS) posted an annualized return of 20.19%, with consolidated revenues of $61 million (+11%) in Q1 2024 and adjusted EBITDA growing 16% to $8.5 million. The revenue growth was attributed to strong demand for calibration and instrument rental services, with the Service segment performing well, generating $40 million in revenue, up 18% from the prior year.
Taiwan Semiconductor Manufacturing Company Limited (NYSE: TSM) had an annualized return of 20.48%, with a net profit of NT$225.49 billion ($7.18 billion) in Q1 2024, up 8.9% compared to the previous year. The company has seen strong demand for advanced chips, particularly in AI applications using 3nm and 5nm technologies. TSMC reported further revenue growth through leadership in technological innovation and dominance in the global foundry market with a 61% share in Q4 2023.
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Quanta Services, Inc. (NYSE: PWR) posted an annualized return of 20.69%, with revenue growth of 14% to $5.03 billion in Q1 2024 and a 25% increase in profit net at $118.4 million. The company reported strong financial results with adjusted EPS of $1.41, beating analysts’ estimates. Quanta Services has initiated key projects such as the SunZia renewable energy transmission line and grid modernization to meet rising energy demand.
NeoGenomics, Inc. (NASDAQ: NEO) had an annualized return of 20.77%, with total revenue growth of 14% to $156 million in Q1 2024 and a 19% increase in adjusted gross profit at $71 million. The company posted a robust performance in its clinical services segment, growing 17% to $135 million. NeoGenomics showcased advances in space biology and next-generation sequencing, with a strategic focus on expanding testing capabilities.
SBA Communications Corporation (NASDAQ: SBAC) posted an annualized return of 20.97%, with total revenues of $657.9 million in Q1 2024, a slight decrease from the prior year, but growth of 2.1% in home leasing revenue to $461.5 million. The company acquired 11 sites for $9.2 million and built 76 towers, expanding its global presence. SBA also announced plans to acquire 271 sites by the end of Q3 2024.
Repligen Corporation (NASDAQ: RGEN) had an annualized return of 21.97%, with total revenues of $151.3 million in Q1 2024, despite a 17.2% decrease from the prior year. The company saw 16% growth in new revenue models, with a significant increase in the filtration segment. Repligen has completed the acquisition of Metenova, contributing positively to company performance.
NetEase, Inc. (NASDAQ: NTES) posted an annualized return of 22.02%, with net revenues of RMB26.9 billion ($3.7 billion) in Q1 2024, down slightly from the previous quarter but an increase compared to the previous year. The gaming segment contributed significantly to revenues, with a strong performance in mobile gaming. The company also saw increased revenue in its Youdao and Cloud Music segments.
HEICO Corporation (NYSE: HEI) had an annualized return of 22.46%, with revenue growth of 44% to $896.4 million in Q1 2024 and a 23% increase in net income to $114.7 million. Growth was driven by growing demand for aerospace products and services, with sales expansion in the Flight Support and Electronic Technologies groups.
Simulations Plus, Inc. (NASDAQ: SLP) delivered an annualized return of 23.26%, with total revenue growth of 21% to $14.5 million in Q1 2024 and a 25% increase in revenue of the software. Growth was driven by increased revenue from its Quantitative Systems Pharmacology (QSP) oncology platform and the acquisition of Immunetrics.
Amazon.com, Inc. (NASDAQ: AMZN) had an annualized return of 23.84%, with net sales growth of 13% to $143.3 billion in Q1 2024 and net income of $10, 4 billion. Growth was driven by AWS, with revenue rising 17% to $25.04 billion, and the advertising segment, with revenue growing 24% to $11.8 billion.
Novo Nordisk A/S (NYSE: NVO) posted an annualized return of 24.15%, with sales growth of 25% to DKK 61.0 billion in the Diabetes and Obesity Care segment. The company completed the FLOW trial for semaglutide 1.0 mg and obtained Wegovy approval in the United States for cardiovascular risk reduction.
RadNet, Inc. (NASDAQ: RDNT) had an annualized return of 25.40%, with total revenue growth of 10.5% to $431.7 million in Q1 2024. The company completed the acquisition of Houston Medical Imaging and announced the acquisition of American Health Imaging.
Clean Harbors, Inc. (NYSE: CLH) delivered an annualized return of 27.45%, with revenue growing 5% to $1.38 billion in Q1 2024 and adjusted EBITDA growing 7% at $230.1 million. The company completed the acquisition of HEPACO for $400 million, expanding its field services capabilities.
Finally, NVIDIA Corporation (NASDAQ: NVDA) had the best 20-year annualized return of 39.81%, with revenues of $26.0 billion in Q1 2025, marking an increase of 262% year over year, driven from the Data Center segment. NVIDIA has made significant achievements in the AI and cloud computing industries, with strong demand for its Hopper-based GPUs and the launch of the Blackwell platform for generative AI.
These companies represent examples of notable success in the stock market, showing how a combination of innovation, effective management and response to market trends can lead to significant long-term returns for investors.
| Disclaimer The information and considerations contained in this article should not be used as the sole and principal basis on which to make investment decisions. The reader retains full freedom in his own investment choices and full responsibility in making them, since he alone knows his risk appetite and his time horizon. The information contained in the article is provided for informational purposes only and its disclosure does not constitute and should not be considered an offer or solicitation for public savings. |
Original article published on Money.it Italy 2024-08-25 06:21:00. Original title: I 20 titoli azionari che hanno guadagnato di più negli ultimi 20 anni
