The Standard & Poor’s 500 Index, a globally tracked stock index, boasts a roster of hundreds of America’s leading companies.
Historically, it has delivered an average annual return of around 10%, making it a significant benchmark for investors.
Regularly monitored by investors, this index, along with its top-performing stocks, serves as a barometer for the overall market and the economy.
While past performance doesn’t guarantee future success, many top-performing stocks consistently yield solid returns year after year.
Amazon and Apple, for instance, have shown impressive gains over extended periods, making them attractive investment options.
Tracking the best-performing stocks can offer insights into potential future winners.
What you'll learn:
➤ Best Performing S&P 500 Stocks
| Company and Ticker Symbol | Performance in 2023 |
|---|---|
| NVIDIA (NVDA) | 237.7% |
| Meta Platforms (META) | 145.9% |
| Tesla (TSLA) | 109.5% |
| Royal Caribbean Cruises (RCL) | 100.2% |
| Carnival Corporation (CCL) | 96.3% |
| PulteGroup (PHM) | 80.2% |
| Align Technology (ALGN) | 75.5% |
| General Electric (GE) | 75.1% |
| Palo Alto Networks (PANW) | 74.4% |
| West Pharmaceutical Services (WST) | 72.9% |
It’s important to remember that even great stocks can face downturns. Monitoring underperforming stocks is valuable because this year’s laggards might become next year’s leaders.
Identifying a once-strong stock among underperformers could present an opportunity for a value purchase.
➤ Worst-Performing S&P 500 Stocks
| Company and Ticker Symbol | Performance in 2023 |
|---|---|
| Enphase Energy (ENPH) | -52.2% |
| Dollar General (DG) | -43.8% |
| SolarEdge Technologies (SEDG) | -42.6% |
| Etsy (ETSY) | -38.6% |
| The AES Corporation (AES) | -37.7% |
Let’s take a look at the performance of some widely held stocks in the S&P 500:
➤ Performance of Widely Held S&P 500 Stocks
| Company and Ticker Symbol | Performance in 2023 |
|---|---|
| Apple (AAPL) | 44.6% |
| Microsoft (MSFT) | 36.7% |
| Alphabet (GOOGL) | 54.3% |
| Amazon (AMZN) | 64.3% |
| Tesla (TSLA) | 109.5% |
➤ Are these hot stocks a buy?
Investing in individual stocks can be challenging, requiring extensive research and analysis.
However, even investors with limited knowledge can participate in the stock market’s returns.
Investing in an S&P 500 index fund offers a straightforward way to own a piece of hundreds of stocks without the need for in-depth research.
These index funds are available in two main forms: exchange-traded funds (ETFs) and mutual funds.
By investing in an S&P 500 index fund, you can track the index’s performance over time, historically averaging around 10% annually.
This approach provides diversification and often comes with low fees, making it an attractive option for investors of all skill levels.
It’s crucial to remain patient and ride out market volatility if you choose this strategy. Attempting to time the market by selling low and buying high can hinder your long-term returns.
➤ Final thoughts
In summary, keeping an eye on the best-performing stocks offers insights into market preferences, but thorough research is essential for individual stock investments.
Exploring underperforming stocks may reveal future opportunities to buy low and sell high, potentially leading to more lucrative returns.
(Source: Bankrate)
