It is noteworthy that not all of the top-performing equities during the previous three decades come from the technology industry. Although tech giants like Apple Inc. (AAPL) and NVIDIA Corp. (NVDA) have unquestionably generated extraordinary profits, excellent performers may be found in many unexpected industries.
Consumer staples, consumer discretionary, and healthcare companies are among the other top achievers. This emphasizes how important diversification is. It also serves as a reminder that certain industries, such as retail footwear, clothes, and homebuilding, are frequently overshadowed by the allure of tech companies. By extending their scope beyond technology, investors can still find promising long-term opportunities in these frequently disregarded sectors.
Important lessons learned
- Promising equities in several areas during the past three decades indicate opportunities that extend beyond the realm of technology.
- In computing, consumer electronics, and artificial intelligence (AI), businesses like NVIDIA and Apple have set the standard for long-term stock success.
- Businesses in sectors like consumer goods and healthcare have the potential to generate significant profits.
- Several high-performing companies, such as Netflix Inc. (NFLX) and Amazon.com Inc. (AMZN), have expanded internationally and into new areas to achieve growth.
- Strong fundamentals and sound management have enabled other high performers to consistently achieve long-term development.
The criteria used to choose the top-performing stocks
We chose equities from the S&P 500 index, which includes big, well-established businesses that are leaders in their respective industries, in order to evaluate the long-term performance of American stocks. The 30-year price returns of every stock were computed to give investors a thorough understanding of its growth, durability, and volatility in the past. A 30-year time perspective helps to better comprehend how these organizations handled shifting market conditions and captures different economic cycles.
Many businesses in a variety of industries have shown incredible development and tenacity during the past 30 years, becoming into market leaders with substantial industry influence. These companies demonstrate the wide range of opportunities available beyond traditional technology stocks, from ResMed’s (RMD) innovative digital health products to Ross Stores’ (ROST) success in off-price retail, Pool Corporation’s (POOL) leadership in backyard products, and Biogen Inc.’s (BIIB) neurological therapies.
Furthermore, companies such as Netflix and Monster Beverage Corporation (MNST) have spearheaded changes in consumer behavior, while behemoths like Amazon and NVIDIA have revolutionized their respective industries.
RMD Inc.
Since its founding in 1989, ResMed has expanded from a tiny startup treating sleep disorders to a global company leading the way in digital health solutions for ailments relating to breathing and sleep.
Devices for treating sleep apnea, a condition in which breathing regularly stops and resumes while you sleep, are the main business of ResMed. The industry has come to rely heavily on the company’s continuous positive airway pressure (CPAP) equipment and masks.
Notable Advances Over the Past 30 Years
ResMed’s growth from a sleep apnea startup to a significant global company is indicative of how the respiratory care industry is changing and moving toward at-home technology for an older population. The company has established itself at the nexus of healthcare and technology thanks to its emphasis on software, cloud-based products, and connected devices.
ResMed has continuously improved its CPAP machines over the years, making them smaller, quieter, and easier to operate. A major advancement in these devices was made possible by the introduction of its AutoSet technology in the 1990s, which automatically modifies air pressure in response to the patient’s needs. This technology allowed for more individualized and comfortable treatments.
Early in the new millennium, ResMed expanded its scope of practice beyond treating sleep apnea to providing patients with chronic obstructive pulmonary disease (COPD) and other long-term respiratory disorders. With this expansion, the company was able to capitalize on the increasing need for non-invasive ventilation equipment, particularly in home care settings. These devices would become increasingly more important when utilized by certain patients following the 2020 pandemic.
Inc. Ross Stores (ROST)
Over the past few decades, Ross Dress for Less and dd’s DISCOUNTS have expanded under the parent company, Ross Stores, which has experienced substantial growth. Ross, one of the biggest off-price retail chains in the country, has steadily grown its presence across the country by providing name-brand clothing and home goods at reduced costs.
Pool Corporation (Pool)
Pool was established in Louisiana in 1981 and went on to become one of the major global wholesale distributors of outdoor leisure items, equipment, and swimming pool supplies, catering to both home and commercial sectors. It was incorporated in 1993. Its product line includes packaged pool kits, landscaping supplies, and necessary pool care supplies including chemicals and spare components.
As of 2024, which S&P 500 index stocks are doing the best?
As of October 2024, the best-performing equities for the year are Constellation Energy Corporation (CEG), NVIDIA, and Vistra Corporation (VST), with returns of impressively high 242%, 165%, and 143%, respectively.
For the last 30 years, what has been the S&P 500 Index’s average return?
The S&P 500 Index produced an annualized return of 8.4% with an average monthly rate of return of 0.70% from September 1994 to September 2024.
The Final Word
Remarkably, not all of the top-performing equities during the last 30 years have been in the technology sector. Unquestionably, tech behemoths like Apple and NVIDIA have produced substantial returns, but non-tech businesses like Ross Stores, Pool, and Monster have also shown remarkable development.
This illustrates the value of diversification and the prospects across a wide range of industries, including as consumer goods, distribution, and retail. Investors that have a narrow concentration on media-friendly tech equities sometimes ignore these sectors. Nonetheless, in order to capitalize on the market’s long-term growth, diversification across sectors is essential.
