From Netflix To Dominos Pizza, These Stocks Were The Top Performers Of The Decade – Forbes

What a difference a decade makes. At the start of 2010, unemployment in the United States was above 8%, euro zone economies from Greece to Italy were teetering on collapse, and global equity markets were suffering from a lost decade. Fear and uncertainty ruled the day. However, by the end of 2019, a handful of tech companies from Apple and Netflix to Google, Microsoft and Amazon had driven U.S. markets to one of the best ten-year stretches in history, and to record highs.

The S&P 500 Index has more than tripled in value in the last ten years, returning 13.5% annually, as corporate profits and investor animal spirits soared. Long Treasury bond rates have been cut in half from 4.65% to 2.35%, and the U.S. unemployment rate now stands at a rock bottom 3.6%. Over the last ten years, there have been occasional bubbles in everything from pot and crypto to fake meat stocks. There have also been Chinese stock frauds and a few bad actors like Valeant Pharmaceuticals. By and large, markets have remained sane. The S&P 500 price-to-earnings ratio began the decade 17.6-times then depressed corporate profits. Today that multiple has expanded modestly to 21 as corporate profits have risen nearly as briskly as stocks have.

Despite a preponderance of economic noise ranging from a debt crisis in Europe to the flash crash and China tariffs, the biggest driver of the current prosperity has been the flood of easy capital spurred on by Federal Reserve and the European Central Bank. Interest rates in the U.S. have been near 0% for the better part of the decade and in countries like Switzerland and Japan they have actually turned negative. With low rates and dividend yields under pressure, growth stocks have led the way on Wall Streetespecially for companies with digital, rather than hard assets.Information technology, consumer discretionary and healthcare stocks have been stellar performers.Companies like graphics chip maker Nvidia, e-tail and cloud services goliath Amazon and semiconductor maker Broadcom, for example, are up more than 1,000% since 2010. Other sectors like energy were laggards. Thus, as the U.S. has gained energy independence, exploration company stocks like Houstons Apache Corp. fell 74.5% over the decade. Devon Energy is down 63%.

Forbes analyzed the total returns of the larger capitalization stocks in the Russell 1000 and S&P 500 for each calendar year to come up with our list of top performers. You can see the annual winners by clicking on the embedded slide show above. The final panel reveals the top-performing stocks of the decade.

2010: Netflix (218%)

Once amail-orderdvdrental serviceNetflix wasjustgettingintostreaming andrivalBlockbusterwasheadedto bankruptcy.By DecemberNetflix had a $10 billion value.

2011:Dominos Pizza (112%)

When Patrick Doyle took over as CEO inMarch2010, Dominos apologized in TV ads for its terrible pizza. It was the start of an epic turnaround.

2012: Sarepta Therapeutics (477%)

Changed its name fromAVIBioPharmato Sarepta Therapeuticsand laterrevealed abreakthrough inthetreatment of Duchennemusculardystrophy.

2013:Nexstar Media Group (436%)

After a flurry of broadcast station acquisitions, itbecameAmericas largest local television company with 197 stations serving 63% of the U.S. population.

2014:AgiosPharmaceutics (367%)

During third quarter of 2014,itrevealedfast track designationfor its treatmentof patients withmyelogenous Leukemia.

2015:Exelixis(291%)

Biotechfocused onthyroid cancer.With partner Genentechitwon FDA approval ofcobimentinibto treat certain forms of melanoma.

2016:US Steel (319%)

After China slowdown and recession fears,the steel companyreboundedsharply astheglobal economy recovered.

2017:NektarTherapeutics (386%)

Biotechfocused oncancer, lupus, and dermatitis.In November 2017, it received a$150 million upfront payment from Eli Lilly for psoriasis drug. Shares soared.

2018:MongoDB (182%)

Fast growing cloud software and data management unicorn.IPOs in2017 and beginssoaring towards $10 billion valuation in 2018.

2019: Avalara (131%)

Software company specializing in automated tax compliance goes public in June 2018, but its shares dont take off until 2019, after it logs impressive growth.

StockoftheDecade, S&P 500: Netflix(3,915%)

Founder Reed Hastingsstartupis the decadesstock champion. New competition from Disney and Applewill put pressure on share returns from here on.

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From Netflix To Dominos Pizza, These Stocks Were The Top Performers Of The Decade - Forbes