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All Contents © 2017The Kiplinger Washington Editors
By James Brumley
| October 2016
Do you own any hot stocks that have dished out a 1,000% return in a decade or less? Those are the kind of results you only hear about when they happen to someone else … and all too often, those tales end up being more than a tad exaggerated.
But these kinds of trades aren’t quite as unusual as you might imagine.
The market has dished out several of them over the course of the past 10 years, and it didn’t always necessarily require rolling the dice on some unknown biotech working on a breakthrough cancer drug. Many of these companies were and still are conventional businesses my nearly all standards.
With that as the backdrop, here’s a closer look at 10 hot stocks that would have turned a $100,000 investment into at least a million dollars within 10 years — though most of these would’ve done far better than that. Even investors who were playing with less to start out found their nest eggs changed drastically for the better.
That’s what 10-, 20- and even 30-baggers will do.
A few of these companies are everyday names, but several of these monster winners flew almost completely under most investors’ radars. Here they are, in order of their eye-popping gains:
This slide show is from InvestorPlace, not the Kiplinger editorial staff.
10-Year Return: ~1,030%
Skyworks Solutions Inc. (SWKS) is one of those right-place, right-time stocks that may well have made a few millionaires of those investors who were savvy enough to see where the future of telecommunications was going.
Skyworks Solutions is a semiconductor manufacturer, and it has a hand in several different and growing industries. SWKS a great deal of exposure to the telecom market however, making everything from amplifiers, demodulators, detectors, diodes, modulators, power management devices, receivers, switches and technical ceramics just to name a few.
The proof of the pudding is under the crust. Since 2006, annualized revenue of $774 million has grown to $3.33 billion now.
That’s why SWKS has doled out gains of 1,027% during the past 10 years.
SEE ALSO FROM KIPLINGER: 10 Great Stocks for the Next 10 Years
Karlis Dambrans via Flickr
10-Year Return: ~1,300%
That’s not a misprint. Shares of credit card middleman MasterCard Inc. (MA) — a brand that has been around for a couple generations — have advanced more than tenfold during the past decade. That’s 1,296% (not counting its modest dividend), to be exact.
Like Skyworks, there were fortuitous circumstances behind the heroic rise, however.
In many regards, it was the perfect proverbial storm. The migration from a cash-based spending environment to card-based spending environment reached a frenzied pace after the turn of the century, and that paradigm shift was the rapid growth of e-commerce, which requires payment in any form other than cash.
More than anything, though, MasterCard has managed to soar as much as it has since 2006 because that’s when it went public, and it capitalized on every growth opportunity it had.
In other words, MasterCard was in the right place at the right time. Still, a huge gain is a huge gain, and MA handily qualifies as one of the few truly hot stocks for the past 10 years.
Courtesy PR Newswire
10-Year Return: ~2,010%
Another hot stock that paid off big-time for a few lucky investors who were willing to be patient is Incyte Corporation (INCY), which is up 2,009% for the past decade.
Incyte only has two drugs on the market right now: myelofibrosis and polycythemia vera therapy Jakafi, in the United States, and myeloid leukemia treatment Iclusig, in the United Kingdom. It has more than a dozen other trials underway, though, with a couple nearing the end zone.
Even with just Iclusig and Jakafi, though, Incyte has driven phenomenal growth. Ten years ago the company did $27 million worth of business, and for the past four quarters, the company has generated $941 million worth of revenue.
SEE ALSO FROM KIPLINGER: Best FANG Stocks for Tech Investors to Buy Now
Simone Brunozzi via Flickr
10-Year Return: ~2,020%
Don’t forget to look overseas for names that doled out huge returns over the course of the past decade. Baidu Inc. (BIDU) — often called the Google of China — has also earned a spot on this list of hot stocks with its 2,016% (hey hey!) return since 2006.
Actually, while Baidu initially earned its stripes by becoming China’s top search engine the way Google worked its way to becoming the preferred search engine of the western hemisphere, Baidu (like Google) is so much more than just a means of finding what’s on the web. It facilitates food takeout and delivery, provides a digital wallet and maintains an online on-demand video platform.
They’re all spaces that are not only maturing, but getting crowded with competitors. Yet, Baidu has managed to find ways to maintain double-digit growth of its top and bottom lines.
10-Year Return: ~2,230%
While not every massive winner has to be a biotech stock that ended up creating a blockbuster drug from scratch, obviously there are going to be a few such names on this list.
Regeneron Pharmaceuticals Inc. (REGN) is one of them.
Regeneron Pharmaceuticals is the name behind Praluent (alirocumab), Eylea (aflibercept) and Arcalyst (rilonacept). Those are treatments for high cholesterol, macular degeneration and cryopyrin-associated periodic syndromes, respectively.
The work has paid off. Revenue has grown from $63 million in 2006 to $4.6 billion over the course of the past four quarters.
REGN shares have reflected that growth by advancing 2,225% since 2006.
SEE ALSO FROM KIPLINGER: 10 Reasons You Will Never Be a Millionaire
10-Year Return: ~2,300%
Ebix Inc. (EBIX) has dished out more than its fair share of drama over the past decade, though it has been more than fruitful than not during that journey.
Ebix is a software company that designs e-commerce, customer-relations and management platforms for the insurance industry. If the name rings a bell, it may be because in 2012 the SEC scrutinized its numbers, concerned that its accounting statements may not have been exactly accurate. It also was the company implicated in a money laundering scheme by the Department of Justice in 2013. Ebix ran afoul of the IRS around that time as well.
None of the digging any of the government agencies did found anything terribly damning, though — the amazing growth rate the company has managed to achieve for the past several years is on the up and up.
Likewise, the stock’s 2,282% gain since 2006 is equally legitimate.
10-Year Return: ~2,400%
Most investors recognize that Amazon.com, Inc. (AMZN) has done well in recent years, even though its high-growth phase was in the late 1990s and early 2000s when the web was still relatively young.
What most investors may not realize about the e-commerce giant’s stock, however, is that the second 10 years it has been around were almost as rewarding as its first ten. The organization expanded from just books and CDs to a little of everything, including cloud-storage services, on-demand video, electronics and a lateral expansion into foreign markets, and the top line continued to soar.
It has certainly paid off. AMZN stock is up 2,407% for the past 10 years, reaching a record high (again) this month.
SEE ALSO FROM KIPLINGER: 4 Retailer Stocks to Add to Your Shopping List: Amazon, Dick's, Signet, Ulta
John Pasden via Flickr
10-Year Return: ~2,930%
There’s no denying Netflix, Inc. (NFLX) has more than its fair share of fiscal concerns. Its debt and liabilities continue to grow at a faster pace than revenue, and more recently, a whole slew of competition has stepped up to the plate, having learned from what Netflix CEO Reed Hastings did right and did wrong.
On the other hand, there’s also no denying Netflix is responsible for developing the over-the-top market, creating a whole new kind of product. That pioneering has allowed Netflix to entrench itself as the category leader of a new market, and that has kept NFLX on a pedestal whether it deserved to be there or not.
How high does that pedestal reach? Netflix shares are up 2,933% for the past 10 years.
10-Year Return: ~3,300%
AxoGen, Inc. (AXGN) is another biotech rags-to-riches story, though technically speaking, it was a riches-to-rags-back-to-riches affair.
In 1996, AXGN shares were riding high, as Axogen was a promising young medical-technology company working on nerve cell regeneration. The stock reached a record peak of $15 then. Ten years later — 2006 — the stock was practically worthless, as nothing the company did had lived up to expectations.
Another ten years later, and there was promise again. Its Avance and AxoGuard nerve graft products work. They’re not quite the proverbial Big Kahuna of nerve repair the world was hoping for 20 years ago, but it’s impressive all the same.
So too is the stock’s 3,288% 10-year gain.
SEE ALSO FROM KIPLINGER: 7 Battered Biotech Stocks to Buy While They Are Down
10-Year Return: ~3,680%
One wouldn’t think an e-commerce name that was established in 1997 and went online in 1998 — right before access to the internet exploded — would earn a spot among the market’s hottest of the hot stocks beginning eight years later. But there it is. Between 2006 and 2016, Priceline Group Inc. (PCLN) shares have gained 3,682%, making PCLN the No. 1 large-cap listed performer for that time frame.
Granted, Priceline has had the advantage of several acquisitions along the way, picking up TravelWeb in 2004, Booking.com in 2005, Agoda in 2007, TravelJigSaw in 2010, Kayak in 2013, and OpenTable in 2014. It has mustered plenty of organic growth too, though, cross-selling its services among all its properties, and doing so efficiently.
The numbers: Revenue has grown from $1.12 billion in 2006 to $9.8 billion for the past 12 months. Earnings growth has been just as impressive, and just as reliable.
This article is from James Brumley of InvestorPlace. As of this writing, he held none of the aforementioned securities.
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