A Review of the 10 Best Performing Growth Stocks from the Past Decade

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Dec 29, 2012
We all love it to see our investments grow. Often, we spend more time searching for stocks that we expect would increase value over the next 10 years.

Have you ever owned stocks that doubled in one year, quadrupled in five years and even grew tenfold in 10 years? I have. But I sold the stocks before they even started to gain. Not one of my best choices.

Only growth can make you rich. If you buy a stock at a low market capitalization and the company grows over the next 20 years with rates around the double-digit rage, your wealth will follow.

So, let’s spend some time and learn from the best growth stocks of the recent decade. Many of the other top stocks were indeed small and obscure, however. Eight of the companies were valued below $100 million a decade ago. And four of the companies still have market caps below $1 billion, even with the remarkable returns they were able to generate over the past decade.

Only two stocks of the best growth stocks from the past decade pay dividends as of now. But they have much more to offer: growth and cash!

Here are my favorite stocks:

Apple (AAPL, Financial) has a market capitalization of $482.44 billion. The company employs 72,800 people, generates revenue of $156.508 billion and has a net income of $41.733 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $58.446 billion. The EBITDA margin is 37.34 percent (the operating margin is 35.30 percent and the net profit margin is 26.67 percent).

Financial Analysis: AAPL has no long-term debt. Due to the financial situation, a return on equity of 42.84 percent was realized. Twelve trailing months earnings per share reached a value of $44.16. Last fiscal year, the company paid $2.65 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 11.61, the P/S ratio is 3.10 and the P/B ratio is finally 4.09. The dividend yield amounts to 2.06 percent and the beta ratio has a value of 1.21.

Priceline.com (PCLN, Financial) has a market capitalization of $30.37 billion. The company employs 6,600 people, generates revenue of $4.355 billion and has a net income of $1.059 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1.452 billion. The EBITDA margin is 33.35 percent (the operating margin is 32.12 percent and the net profit margin is 24.32 percent).

Financial Analysis: The total debt represents 14.48 percent of the company’s assets and the total debt in relation to the equity amounts to 22.34 percent. Due to the financial situation, a return on equity of 48.15 percent was realized. Twelve trailing months earnings per share reached a value of $26.49. Last fiscal year, the company paid no dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 23.00, the P/S ratio is 6.98 and the P/B ratio is 11.8. The beta ratio has a value of 1.27.

Monster Beverage (MNST, Financial) has a market capitalization of $8.95 billion. The company employs 701 people, generates revenue of $1,703.23 million and has a net income of $286.22 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $473.50 million. The EBITDA margin is 27.80 percent (the operating margin is 26.80 percent and the net profit margin is 16.8 percent).

Financial Analysis: The company has no long-term debt. Due to the financial situation, a return on equity of 31.67 percent was realized. Twelve trailing months earnings per share reached a value of $1.82. Last fiscal year, the company paid no dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 28.74, the P/S ratio is 5.25 and the P/B ratio is 9.29. The beta ratio has a value of 0.36.

Take a closer look at the full list of the best performing growth stocks over the past decade. The average P/E ratio amounts to 28.26 and forward P/E ratio is 15.16. The dividend yield has a value of 0.91 percent. Price to book ratio is 8.74 and price to sales ratio 4.30. The operating margin amounts to 23.39 percent and the beta ratio is 1.33. The best growth stocks still grow. For the next five years, earnings are expected to grow by 21.54 percent in average.

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The best performing stocks from the last decade was originally published at long-term-investments.blogspot.com.