S&P 500 Index.


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The main stock market benchmark for the larger market is the S&P 500 Index. About 500 large-cap companies that trade on American exchanges are monitored for their performance. Despite the fact that high inflation, skyrocketing interest rates, and growing worries about a recession caused the S&P 500 to end the final trading day of 2022 with a sharp decline, it might be a good idea to look back at the index’s historical performance to see how it has generally performed. The S&P 500 rarely experiences years of continuous losses, but when it does, historically the second year is more difficult than the first.  This suggests that equities may suffer more in 2023 than they did in 2022. In its 2023 Outlook Note, investment advisory UBS stated the following: “History shows that growth and earnings continue to deteriorate into market troughs before financial conditions ease materially.”

The year 2023 is one to tread lightly on the stock market and choose your investments wisely. According to Bruce Helmer, co-founder of Wealth Enhancement Group, there are reasons for optimism even though economic uncertainty is still prevalent because China is starting to relax its COVID Zero policies. In the first half of 2023, JPMorgan predicts that the market will “re-test” its 2022 lows; however, the stock market may rise later in the year.

Some market experts are highlighting longer-term historical patterns to reassure investors that bear markets eventually come to an end, despite the fact that past performance is not a predictor of future performance. based on a 2023 prediction made by Commonwealth Financial Network using information from JPMorgan Asset Management.

Investors in this situation should stick with dependable businesses with strong balance sheets, a following of devoted clients, broad reach, and market recognition. These elements make such businesses more resilient to economic volatility than others. While buying quality stocks at a discount is a common strategy for investors (see 11 Best Buy-the-Dip Stocks To Invest In), it is a good idea to keep an eye out for stocks that have a track record of rising share prices. These stocks are probably supported by favorable industry dynamics that the market undervalues, and they may continue to outperform the market. NVIDIA Corporation (NASDAQ: NVDA), Tesla, Inc. (NASDAQ: TSLA), and Apple Inc. are a few of the S&P 500 stocks that have performed the best over the past five years (NASDAQ: AAPL).

Here are the top 10 best-performing S&P 500 stocks over the previous five years:

1. Tesla, Inc. (NASDAQ: TSLA)

Holders of hedge funds: 88

Gains over the previous five years as of January 6: 404.51%

With its shares up nearly 405% as of January 6, Tesla, Inc. (NASDAQ: TSLA) is one of the best-performing S&P 500 constituents over the past five years. In less than three months, Tesla, Inc. (NASDAQ: TSLA) has reduced prices for the Model Y and Model 3 in China. In response to trends in demand, the company also reduced prices in Australia, South Korea, and Japan. By 2030, Tesla is expected to have delivered more than 5 million vehicles.

Alexander Potter, a Piper Sandler analyst, stated that he was “unsurprised” by the decision because he had been anticipating it for many months on January 6, following Tesla, Inc.’s (NASDAQ: TSLA) announcement of “a relatively significant price cut” in China last night. If the volume, mix, fixed costs, and input costs related to China for Tesla, Inc. (NASDAQ: TSLA) do not change significantly, this price cut could result in a decline in EPS of about 70c per share over the course of full year. On shares of Tesla, Inc. (NASDAQ: TSLA), he kept an Overweight rating and a $340 price target. At the end of September 2022, 88 hedge funds were bullish on Tesla, Inc. (NASDAQ: TSLA), compared to 73 funds in the previous quarter. With 4 million shares valued at $1 billion, Cathie Wood’s ARK Investment Management is one of the company’s major shareholders.

2. Eli Lilly and Company (NYSE: LLY)

Holders of Hedge Funds: 75
Gains over the previous five years as of January 6: 317.27%

Human pharmaceuticals are discovered, developed, and sold all over the world by Eli Lilly and Company (NYSE: LLY). Indianapolis, Indiana serves as the company’s corporate headquarters. It was established in 1876. Eli Lilly and Company (NYSE: LLY) and ProQR Therapeutics N.V. (NASDAQ: PRQR), a Dutch biotech company, announced an agreement on December 22 to expand their collaboration on genetic medicines based on RNA editing. One of the top-performing S&P stocks to think about is Eli Lilly and Company (NYSE: LLY), whose shares have increased by over 317% over the past five years as of January 6.

On December 3, Barclays analyst Carter Gould reiterated an Overweight rating for Eli Lilly and Company (NYSE: LLY) shares and increased the firm’s price target for the stock from $395 to $400. Eli Lilly and Company (NYSE: LLY) was included in 75 hedge fund portfolios at the end of Q3 2022, up from 70 the previous quarter, according to data compiled by Insider Monkey. With 2.5 million shares valued at $802.8 million, Peter Rathjens, Bruce Clarke, and John Campbell’s Arrowstreet Capital is a significant shareholders in the business.

3. Apple Inc. (NASDAQ: AAPL)

Holders of Hedge Funds: 140
Gains over the past five years as of January 6: 192.79%

Apple Inc. (NASDAQ: AAPL) is a California-based company that creates, produces, and sells smartphones, tablets, wearable technology, and accessories all over the world. On January 3, Apple Inc. (NASDAQ: AAPL) reported net revenue growth for its App Store in December, the company’s first growth since June, suggesting that the services sector may have an “upside.” With shares rising by almost 193% during that time, it is one of the best-performing stocks over the past five years.

Ivan Feinseth, an analyst at Tigress Financial, wrote in a research note to investors on January 4 that Apple Inc.’s (NASDAQ: AAPL) short-term production issues present a long-term buying opportunity. The “massive” installed user base, expanding services revenue, and growing ecosystem of the company, according to the analyst, will continue to support accelerating trends and greater shareholder value creation. With a $210 price target, the analyst reiterated his Strong Buy rating on Apple Inc. (NASDAQ: AAPL) shares.

At the end of Q3 2022, 140 hedge funds were bullish on Apple Inc. (NASDAQ: AAPL), up from 128 funds the previous quarter, according to Insider Monkey data. The largest shareholder in the company is Warren Buffett’s Berkshire Hathaway, which has 894.80 million shares valued at $123.6 billion.

4. NVIDIA Corporation (NASDAQ: NVDA)

89 hedge funds own shares of the company.
Gains over the past five years as of January 6: 166.53%

The California-based NVIDIA Corporation (NASDAQ: NVDA) specializes in graphics, semiconductors, and networking solutions in the US, Taiwan, China, and globally. As of January 6, the stock of NVIDIA Corporation (NASDAQ: NVDA) had increased 166.5% over the previous five years, making it one of the S&P 500’s top performers during that time.

Rajvindra Gill, a Needham analyst, maintained a Buy rating and increased the price target for NVIDIA Corporation (NASDAQ: NVDA) shares to $230 on December 19. The analyst’s top pick for 2023 is NVIDIA Corporation (NASDAQ: NVDA), which he also added to the company’s Conviction List. The analyst predicts that the data center market will be volatile in CY23, but he thinks that customers of NVIDIA Corporation (NASDAQ: NVDA) are upgrading to the H100 architecture.

5. Thermo Fisher Scientific Inc. (NYSE: TMO)

92 people own hedge funds

Gains over the previous five years as of January 6: 154.56%

Thermo Fisher Scientific Inc. (NYSE: TMO), based in Massachusetts, is a global supplier of laboratory goods and services, analytical instruments, specialty diagnostics, and life sciences solutions. Thermo Fisher Scientific Inc. (NYSE: TMO) declared a quarterly dividend of $0.30 per share on November 10 in accordance with prior practice. To shareholders with records as of December 15, the dividend is payable on January 16. On November 10, the company also unveiled a $4 billion share repurchase plan.

On January 3, Timothy Daley of Wells Fargo maintained an Underweight rating on Thermo Fisher Scientific Inc. (NYSE: TMO shares)’s while lowering the price target from $525 to $505. The company increased its long-term growth guidance by +200bps to 7%-9% in late 2021, the analyst noted. The analyst views this as a very aggressive barrier in light of Thermo Fisher Scientific Inc.’s (NYSE: TMO) history of consistently providing initial annual guidance with significant room for beat/raise progression throughout the year and his generally bearish outlook on the primary growth drivers for 2023.

6. Danaher Company, Inc. (NYSE: DHR)

Holders of Hedge Funds: 89
Gains over the previous five years as of January 6: 154.04%

An American conglomerate called Danaher Corporation (NYSE: DHR) develops, produces, and sells professional, medical, industrial, and commercial goods and services all over the world. The business is divided into three segments: environmental & applied solutions, life sciences, and diagnostics. On December 6, Danaher Corporation (NYSE: DHR) announced a quarterly dividend of $0.25 per share, the same as before. On January 27, the dividend will be paid to shareholders who had a record as of December 30.

Dan Leonard, an analyst with Credit Suisse, downgraded Danaher Corporation (NYSE: DHR) from Outperform to Neutral on January 5 and lowered his price target from $315 to $300. According to the analyst, Danaher Corporation’s (NYSE: DHR) exposure to inventory reductions in the bioprocessing industry and diagnostics could limit its growth in comparison to that of its competitors. Although the analyst thinks the COVID-19 pandemic will benefit Danaher Corporation (NYSE: DHRmolecular )’s diagnostics business in the long run, he sees “several tempering considerations.”

At the end of September 2022, 89 hedge funds were long Danaher Corporation (NYSE: DHR), up from 82 funds the previous quarter, according to Insider Monkey’s data. A significant shareholder of the business is Dan Loeb’s Third Point, which owns 2.70 million shares worth $697.3 million. One of the best S&P 500 stocks to follow alongside NVIDIA Corporation (NASDAQ: NVDA), Tesla, Inc. (NASDAQ: TSLA), and Apple Inc. (NASDAQ: AAPL) is Danaher Corporation (NYSE: DHR).

7. Microsoft Corporation (NASDAQ: MSFT)

Holders of Hedge Funds:269

Gains over the previous five years as of January 6: 151.04%

Worldwide software, services, devices, and solutions are developed, licensed, and supported by Microsoft Corporation (NASDAQ: MSFT). Productivity and business processes, intelligent clouds, and more personal computing make up the company’s three business segments. Microsoft Corporation (NASDAQ: MSFT) disclosed on January 4 that it is reportedly in “advanced talks” to invest at least $10 million or more in California-based startup Gatik, which develops autonomous vehicles. Gatik would use the Azure cloud computing platform from Microsoft Corporation (NASDAQ: MSFT) to assist in developing autonomous truck delivery technology under the terms of this agreement. As of January 6, Microsoft stock had increased by more than 151% over the previous five years, making it one of the S&P 500’s top performers.

Microsoft Corporation (NASDAQ: MSFT) coverage was started by DA Davidson analyst Gil Luria on January 4 with a Buy rating and a $270 price target. The company should be strong going into a global economic downturn, the analyst told investors, so the stock warrants a premium valuation.

8. T-Mobile US, Inc. (NASDAQ:TMUS)

Holders of Hedge Funds: 100

Gains over the previous five years as of January 6: 133.31%

In the United States, Puerto Rico, and the US Virgin Islands, mobile communications services are offered by T-Mobile US, Inc. (NASDAQ: TMUS), an American company. On January 4, T-Mobile US, Inc. (NASDAQ: TMUS) released its preliminary 2022 financial results, which showed significant growth in the number of new postpaid subscribers. In addition to adding 2 million new high-speed Internet customers in 2022, the company reported adding 6.4 million postpaid customers overall, exceeding expectations. One of the top-performing S&P 500 stocks over the past five years is T-Mobile US, Inc. (NASDAQ: TMUS).

According to a research note from JPMorgan analyst Philip Cusick, T-Mobile US, Inc. (NASDAQ: TMUS) preannounced strong customer results for Q4 on January 5. Improved postpaid phone performance was supported by extremely low churn despite some gross ad weakness. The analyst’s favorite communications services stock and the best long-term idea is T-Mobile US, Inc. (NASDAQ: TMUS). He maintained an Overweight rating with a $200 price target on T-Mobile US, Inc. (NASDAQ: TMUS).

9. Mastercard International Inc. (NYSE: MA)

Holders of Hedge Funds:146

As of January 6, 5-Year Share Price Gains were 126.50%.

An international financial technology company based in the United States is called Mastercard Incorporated (NYSE:MA). For account holders, merchants, financial institutions, companies, governments, and other organizations, the business offers integrated products and value-added services. With shares up 126.50% as of January 6, it is one of the best-performing S&P 500 stocks over the past five years.

10. Broadcom, Inc. (NASDAQ: AVGO)

Holders of Hedge Funds: 74

122.65% in 5-Year Share Price Gains as of January 6

The California-based company Broadcom Inc. (NASDAQ: AVGO) creates, develops, and distributes semiconductor products all over the world. On December 8, the business announced a quarterly dividend of $4.60 per share, an increase of 12.2% from the previous dividend of $4.10. On December 30, the dividend was paid out. Additionally, Broadcom Inc. (NASDAQ: AVGO) resumed its $13 billion authorized share repurchase program. With shares up nearly 123% as of January 6, it is one of the best-performing S&P 500 stocks over the past five years.