The 2010s were a fruitful decade for investors as the S&P 500 has surged over 189% so far. Boeing BA drove the Dow to a new record high Monday after the aerospace giant announced that it fired its CEO Dennis Muilenburg amid the 737 MAX crisis.
Overall, Apple AAPL, Facebook FB, and streaming titan Netflix NFLX, along with many other tech stocks, helped drive the strong run over the last decade.
Let’s take a look at some stocks that were standouts this past decade and look poised to carry that momentum into 2020.
Neurocrine BiosciencesNBIX is a neuroscience-based company focused on the discovery and development of novel therapeutics. The company’s cash cow is its valbenazine drug, which is marketed as Ingrezza. The drug is used to treat a condition called tardive dyskinesia, which causes tremors in patients with long-term use of antipsychotics. Ingrezza sales soared roughly 78% in the company’s third quarter to $198.1 million.
The company has been a solid medical growth stock and its most recent quarter can attest, as its total revenue soared over 46% in Q3 to $222 million. The medical giant has seen its shares climb over 3,800% in the 2010s and our estimates don’t see its growth stopping anytime soon.
Neuocrine has submitted New Drug Applications to the FDA for use of Elagolix and Opicapone, which can bolster the firm’s top-line growth for years to come. Our consensus fiscal 2020 estimates call for revenue to grow over 40% to $1.07 billion and for earnings to surge 390% to $3.54 per share. The biomedical company currently sports a Zacks Rank #3 (Hold), with an “A” grade for Growth in the Style Scores system.
AmazonAMZN saw its stock soar over 1,200% in the 2010s thanks in part to its dominance in the e-commerce space. The online retailer has vastly improved the convenience of its Prime membership as it now offers one-day shipping for most items. The impact of its one-day shipping has yielded encouraging results, as its revenue growth in North America accelerated 24.1% and 20.2%, respectively, in the past two quarters.
The new perk will likely be a key catalyst for the company this holiday season as shoppers scramble to complete their shopping in a condensed holiday season. In addition to the company’s digital dominance, Amazon has also established a stronghold in the cloud computing industry through its Amazon Web Services.
Amazon Web Services grew over 34% in the third quarter and our estimates project the growth to continue. AWS is anticipated to grow over 36% to $34.9 billion in fiscal 2019. Our fiscal 2020 estimates call for net revenue to climb 18.5% to $330.7 billion and for earnings to pop 29% to $26.50 per share. The ecommerce and cloud powerhouse currently sits at a Zacks Rank #3 (Hold).
BroadcomAVGO is a semiconductor firm that put together a substantial run over the decade, with its stock up over 1,600%. The company’s software acquisitions of Brocade and CA Technologies helped offset losses in the core chip business and fueled the company's transition to a vertically integrated provider of networking technology. Total revenue in fiscal 2019 increased 8% to $22.6 billion and gross profit margin rose to 55.2% from 51.5%. The company has used the successful integration of its software acquisitions to raise its dividend payout by 23%.
The stock now boasts a dividend with a hefty 3.32% yield that can fatten the returns of this tech giant. In addition to the generous dividend, AVGO stock currently trades for about 13X its forward earnings, which is well below the industry average of over 24.1X.
Looking ahead to the company’s fiscal 2020, our consensus estimates project earnings to pop 8.5% to $23.10 per share and for revenue to rally 10.7% to about $25 billion. The estimated top-line growth would outpace the 8% gain in the previous fiscal year and the anticipated bottom-line jump would be well above the decline it saw in fiscal 2019. AVGO stock sits at a Zacks Rank #3 (Hold).
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Netflix, Inc. (NFLX) : Free Stock Analysis Report
Facebook, Inc. (FB) : Free Stock Analysis Report
The Boeing Company (BA) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Broadcom Inc. (AVGO) : Free Stock Analysis Report
Neurocrine Biosciences, Inc. (NBIX) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research