Breaking News
0

10 Stocks Powering S&P 500 ETF In The 10-Year Bull Run

By Zacks Investment ResearchStock MarketsMar 12, 2019 10:55PM ET
www.investing.com/analysis/10-stocks-powering-sp-500-etf-in-the-10year-bull-run-200397394
10 Stocks Powering S&P 500 ETF In The 10-Year Bull Run
By Zacks Investment Research   |  Mar 12, 2019 10:55PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

The U.S. stock market bull overcame several challenges over the past decade and recently completed its tenth anniversary. The S&P 500 Index has quadrupled, rallying more than 300%, from the bear-market bottom of 676.53 on Mar 9, 2009 — representing the longest but not the strongest bull market in history. The index pulled in around $21 trillion during this longest bull market mainly driven by cheap money flows and lower interest rates.

Additionally, the United States emerged as a healthier economy withstanding the financial crisis and Great Recession. Record stock buybacks and all-time high dividends also led to a spike in the stock market. Tax reforms passed by President Donald Trump and stronger corporate earnings have boosted the longevity of the bulls lately amid global growth concerns and trade war (read: 10 Top-Ranked ETFs Leading the 10-Year Bull Run).

The proxy version, SPDR S&P 500 ETF Trust (AX:SPY) , which tracks the S&P 500 Index has climbed 260.7% over the past decade. Let’s take a closer look at the fundamentals of SPY and the stocks behind this rally:

Inside The SPY

The ETF holds 505 stocks in its basket, with each security holding no more than 3.73%. This suggests a nice balance across each security and prevents heavy concentration. The fund is widely spread across sectors with information technology, healthcare, financials and communication services being the top four with a double-digit allocation each. It charges 9 bps in fees per year from investors and trades in heavy volume of around 104.8 million shares a day on average. This ensures higher liquidity with a tight bid/ask spread, leading to lower trading costs for investors (read: S&P 500 Back to Above 2,800: SPY ETF Versus IVV).

SPY has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook. Though most of the stocks in the fund’s portfolio have delivered astounding returns during the decade, a few were the real stars, skyrocketing more than 2000%. Below, we have highlighted the 10 best-performing stocks in the ETF over the past decade:

Best Performing Stocks of SPY

Netflix (NASDAQ:NFLX) : The world’s largest video streaming company, with a Zacks Rank #3, surged 6235% and has a massive earnings growth rate of 51.12% for this year. Additionally, the stock belongs to a top-ranked Zacks industry (top 27%).

ABIOMED Inc. (NASDAQ:ABMD) : A provider of mechanical circulatory support devices climbed 5540% and belongs to a top-ranked Zacks industry (top 27%). The company is expected to see earnings growth of 106.12% this fiscal (ending March 2019) and has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Ulta Beauty Inc. (NASDAQ:ULTA) : This Zacks Rank #3 beauty retailer has jumped 5441% and has an earnings growth rate of 17.06% for fiscal (ending January 2020). Though it belongs to a bottom-ranked Zacks industry (bottom 41%), ULTA has a top Growth Score of A (read: 4 Sector ETFs That Crushed S&P 500 in Decade-Old Bull Run).

United Rentals Inc. (NYSE:URI) : This rental equipment company skyrocketed 3543% and has an earnings growth rate projection of 18.76%. It is a triple play stock with a Zacks Rank #3 but belongs to a bottom-ranked Zacks industry (bottom 20%).

Incyte Corporation (NASDAQ:INCY) : This biopharma company has gained 3408% in the past decade. It has a massive earnings growth projection of 102.88% for this year. It falls under the top-ranked Zacks industry (top 29%) but has a dismal Zacks Rank #5 (Strong Sell).

Align Technology Inc. (NASDAQ:ALGN) : This Zacks Rank #3 global medical device company soared 3205% over the past decade and has a solid Growth and Momentum Score of A each. Align Technology is expected to generate earnings growth of 3.25% for this year and falls under a top-ranked Zacks industry (top 20%) (see: all the Large Cap ETFs here).

Regeneron Pharmaceuticals Inc. (NASDAQ:REGN) : This biopharma company have skyrocketed 2877% in the same time frame. The company looks to generate a modest 1.75% in earnings growth this year. The stock has a Zacks Rank #3 and a top Growth and Momentum Score of A each. Additionally, it falls under top-ranked Zacks industry (top 29%).

WellCare Health Plans Inc. (NYSE:WCG) : This Zacks Rank #2 company provides government-sponsored managed care services and has an expected earnings growth rate of 23.21% for this year. It delivered returns of 2746% in the past decade and falls under a top-ranked Zacks industry (top 16%).

Amazon.com, Inc. (NASDAQ:AMZN) : This Zacks Rank #3 e-commerce giant has surged about 2335%. It has an earnings growth rate of 32.67% for this year but belongs to a bottom-ranked Zacks industry (bottom 25%). The stock also has a top Growth Score of A (read: Internet ETFs & Stocks Top Bull Market: Will the Rally Continue?).

Booking Holdings Inc. (NASDAQ:BKNG) : Shares of BKNG have risen 2117% in the past decade. The stock carries a Zacks Rank #3 and a solid Growth and Momentum Score of B and A, respectively. However, it belongs to a bottom-ranked Zacks industry (bottom 25%).

Want key ETF info delivered straight to your inbox?

Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>



Amazon.com, Inc. (AMZN): Free Stock Analysis Report

Netflix, Inc. (NFLX): Free Stock Analysis Report

United Rentals, Inc. (URI): Free Stock Analysis Report

SPDR S&P 500 ETF (NYSE:SPY): ETF Research Reports

ABIOMED, Inc. (ABMD): Free Stock Analysis Report

Regeneron Pharmaceuticals, Inc. (REGN): Free Stock Analysis Report

Incyte Corporation (INCY): Free Stock Analysis Report

WellCare Health Plans, Inc. (WCG): Free Stock Analysis Report

Align Technology, Inc. (ALGN): Free Stock Analysis Report

Ulta Beauty Inc. (ULTA): Free Stock Analysis Report

Booking Holdings Inc. (BKNG): Free Stock Analysis Report

Original post

Zacks Investment Research

10 Stocks Powering S&P 500 ETF In The 10-Year Bull Run
 
10 Stocks Powering S&P 500 ETF In The 10-Year Bull Run

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email