A decade ago, the global economy was in recovery and the stage was being set for one of the longest continuous stretches of economic growth in American history.

Still, many companies were in a growing phase and gave massive returns to investors to be the best stocks for 10 Years.

Past can never return but it can be a great teacher. The last 10 years have been very, very good for stock market investors.

Everyone from the investing community would agree with that.

The Russell 1000 large-company index, which tracks the 1,000 biggest U.S. stocks by market value, has gained roughly 252% since the start of the 2010s.

Have you thought; what if you would have invested $1000 in the five best stocks 10 years ago?

In this article, we have discussed 5 best performing stocks in last 10 years as well as other long term performers.

What Is Stock?

Stock refers to a type of financial instrument that represents ownership in a company.

When individuals or institutions purchase stocks, they essentially acquire a portion of the company’s ownership, making them shareholders.

These shares are traded on stock exchanges, allowing investors to buy and sell them in the open market.

Stock ownership entitles investors to a claim on the company’s assets and earnings, as well as the right to vote on certain corporate matters.

What Is the Difference Between Stocks and Bonds?

While both stocks and bonds are investment vehicles, there are fundamental differences between the two.

Stocks represent ownership in a company, as mentioned earlier, whereas bonds represent debt.

When investors buy bonds, they are lending money to the issuer, such as a corporation or government entity.

In return, the issuer promises to repay the principal amount plus interest at a specified future date.

The primary distinction between stocks and bonds lies in their risk and return characteristics.

Stocks are generally considered riskier investments than bonds because their value can fluctuate significantly in response to market conditions and company performance.

On the other hand, bonds are relatively less risky, providing a fixed interest income over the life of the bond.

Best Stocks of Last Decade

Over the past decade, the stock market has witnessed several remarkable success stories, with certain stocks outperforming expectations and delivering substantial returns to investors.

These best-performing best stocks last 10 years have exhibited exceptional growth and resilience, captivating market participants.

They have often been associated with cutting-edge innovations, disruptive technologies, or transformative business models that have revolutionized industries.

Investors who recognized these opportunities early on reaped the rewards of their foresight.

These best stocks last 10 years have demonstrated consistent upward momentum, overcoming economic fluctuations and market uncertainties.

They have leveraged emerging trends and harnessed consumer demand, leading to substantial market capitalization growth.

Their ability to adapt to changing market dynamics, capitalize on strategic partnerships, and deliver impressive financial performance has set them apart from their peers.

These stocks have not only created significant wealth for their shareholders but have also garnered widespread attention and admiration for their exceptional achievements.

The best performing stocks in last 10 years have exemplified the potential for substantial wealth creation.

They have also served as a testament to the power of innovation, adaptability, and strategic vision within the dynamic landscape of the stock market.

Here, we have picked 5 stocks among the best performing stocks in last 10 years.

1. TransDigm Group Incorporated (TDG)

   First in our list of best performing stocks in last 10 years is TransDigm Group (NYSE: TDG).

   The company has established itself as a leading force in the design, production, and supply of aircraft components.

   Its unwavering commitment to manufacturing aviation essentials to exacting standards has propelled it to remarkable success in the stock market over the past decade.

   While their products may seem ordinary, TransDigm ensures they meet the highest specifications for the aerospace industry.

   Their extensive range of offerings includes pumps, motors, controllers, couplings, batteries, and cockpit security systems, among numerous other vital components.

   Reflecting on the past ten years, investing in TDG stock at around $135 in early 2013 would have yielded a staggering return of over 311% by the close of 2022.

   For an initial $1000 investment, you could have acquired 7.5 shares of TDG stock. Considering the stock’s closing price of $629.65 on December 30, 2022, your investment would have grown to a substantial $4,664.

   TransDigm’s impressive financial performance is evident in its fiscal 2022 results, with component sales amounting to approximately $5.43 billion.

   This achievement becomes even more remarkable when compared to their $1.7 billion revenue in fiscal 2012, illustrating the company’s upward trajectory over the past decade.

   Throughout fiscal 2022, TDG maintained a laser focus on its value drivers and cost structure.

   It strategically deployed approximately $2.4 billion in capital, which encompassed the DART acquisition, a special dividend, and share repurchases.

   Consequently, by the end of fiscal 2022, TransDigm boasted an impressive cash reserve of around $3.0 billion.

   This robust financial position provides them with substantial liquidity and the flexibility to meet diverse capital requirements and seize new opportunities.

   Looking ahead, TransDigm’s stock valuation stands at 28.21 times the forward-looking estimates for next year’s earnings.

   While not considered cheap, it remains within a reasonable range, avoiding the extremes of overvaluation to stand among best performing stocks in last 10 years.

   This indicates a healthy balance between the stock’s market price and the projected future earnings.

2. Exact Sciences Corporation (EXAS)

   Next in our list of best performing stocks in last 10 years Exact Sciences (EXAS).

   EXAS holds a pivotal role in revolutionizing the detection of colon cancer through its non-invasive screening test, Cologuard.

   The company’s dedication to combating cancer, one of the leading causes of death today, has propelled its extraordinary growth over the past decade.

   As a testament to its success, Exact Sciences has emerged as one of the top stocks in the Russell 1000 index over the last ten years, with an astounding average growth rate of 51%.

   In 2012, the company’s total revenues amounted to a modest $4.11 million. Fast forward to 2022, and that figure soared to an impressive $2.08 billion.

   Imagine investing $1000 in EXAS stock a decade ago when its per-share price was $11.60. With this investment, you would have acquired approximately 86 shares.

   By December 30, 2022, with the closing price of $49.51 per share, your account balance would have grown to a remarkable $4,268, marking a staggering 326% increase.

   This remarkable performance confirms that Exact Sciences was indeed one of the most promising stocks of the past decade.

   Exact Sciences is not only revolutionizing cancer detection but also changing the way it is treated.

   The company’s continuous investments over the years have translated into sustainable revenue growth, industry-leading gross margins, and expanding profits.

   These efforts were evident in the recent first-quarter results of 2023, with Exact Sciences’ consolidated revenues reaching $602.5 million, a 24% increase compared to the previous year.

   Additionally, the company managed to significantly narrow its net loss to 42 cents per share, down from a net loss of $1.04 per share in the same period the previous year.

   Furthermore, EXAS is reinvesting a portion of its profits into the development of groundbreaking diagnostics and enhancing the customer experience, fueling an unstoppable innovation engine.

   This forward-thinking approach makes the stock not only an aggressive stock among best performing stocks in last 10 years but even more promising.

3. Amazon.com Inc (AMZN)

   Amazon (AMZN) is the next in our 5 best performing stocks in last 10 years which has proven to be the front face of the digital world with its leading e-commerce website.

   A $1,000 investment in Amazon would have provided a substantial return for the long-term investor.

   The investment would essentially increased in size by over one-third each year for a decade.

   The key to Amazon has been the diversification of the company. The competitive advantage it has in providing services is second to none.

   Amazon consistently adds new products and services for consumer and business customers. Especially, during COVID, its business model was perfectly poised to profit from the pandemic.

   AMZN has been on consistent growth and the diversity of Bezos’ firm always adds to the stock price. The company reported $61.09 billion in revenues in 2012.

   After ten years, Amazon posted a whopping figure of $513.98 billion in 2022.

   AMZN stock has had a compound annual growth rate of 61.78% over the last decade, which is certainly one of the highest in the market.

   We really don’t need to dig much deep into AMZN stock to know why it was on the top list of best stocks for 10 years.

   Back in January 2013, the stock price was around $13 and by the year-end of 2022, it was over $86.

   Analysts are always bullish on the stock. Wells Fargo has rated the stock to Overweight with a price target of $159.

   So, Amazon looks like a great pick not only for best performing stocks in last 10 years but also for investors who don’t mind buying high and selling at a much higher price.

4. Trex Company Inc. (TREX)

   Another best performing stocks in last 10 years in our list is Trex Company (TREX).

   It specializes in the manufacturing and distribution of wood and plastic composite products and their accompanying accessories.

   TREX’s primary focus lies in residential decking and railing applications. Over the years, TREX has experienced remarkable success, with its shareholders reaping the rewards.

   In fact, 2017 proved to be the company’s most prosperous year until 2020, further solidifying its position in the market. TREX’s profitability stems from its consistent growth trajectory.

   Starting with $307 million in revenues back in 2012, the company achieved an impressive milestone in 2022, concluding the year with a remarkable $1.1 billion in revenue.

   Thanks to its noteworthy performance, TREX has established itself as a reliable long-term investment option.

   Its portability and track record of improvement has secured its place among the top stocks for a decade.

   For those seeking to evaluate the growth of a $1000 investment, the figures are quite promising. With an annual profit of $250 and a growth rate of 25%, the returns are undeniably solid.

   However, it’s important to note that currently, the stock may not be ideal for purchasing, as the mean price target is $62, slightly above its current trading price of $59.

   But its proven ability to be best performing stocks in last 10 years, TREX remains an attractive option for long term investors, provided they identify the right entry point for investment.

5. Microsoft (MSFT)

   Microsoft (MSFT) is last in our list of best performing stocks in last 10 years but definitely is not the least.

   MSFT revolutionized the tech landscape, altering the course of the technological world.

   Revered as a powerhouse during the ’90s and early 2000s, Microsoft’s stock has exhibited impressive performance in recent years.

   Its growth trajectory has tempered compared to the meteoric rise of the 1990s that spawned numerous Microsoft millionaires.

   Even though, MSFT remained a steadfast and secure investment choice, particularly for novice investors.

   Over the past decade, Microsoft has managed to replicate a remarkable growth rate exceeding 25%, resulting in an approximate annual increase of $250 for a $1000 investment.

   A glimpse at MSFT’s stock price history reveals its ascent.

   In early 2013, MSFT shares traded at approximately $27, but by the close of the decade, they had surged to around $240 per share, illustrating significant appreciation.

   Alongside the stock performance, Microsoft’s revenues have been on a consistent upward trajectory.

   In 2012, the company reported total revenues of $77.85 billion, which soared to $198.27 billion by the fiscal year-end in 2022.

   This remarkable journey underscores Microsoft’s enduring strength as a top-performing stock over the course of a decade.

   Despite its already prominent status, Microsoft still holds vast potential for early investors.

   Recently, Wells Fargo bestowed an overweight rating on MSFT, projecting a price target of $400—an upside of nearly 25%.

   This indicates the confidence placed in Microsoft’s ability to deliver sustained growth and value as it secured a strong place among best performing stocks in last 10 years.

In addition, we have picked top-performing stocks across various timeframes: best stocks last 5 years, 3 years, 1 year, 3 months, 1 month, and 1 week.

This comprehensive compilation features the best performers in each respective period, providing valuable insights for investors seeking a range of investment opportunities.

Whether you’re interested in long-term growth or short-term gains, our collection offers a diverse array of stocks to explore.

Investment Criteria for Top Stocks

Investing in stocks requires careful consideration of various factors. While individual preferences and strategies may vary, there are some key criteria commonly used to identify top stocks:

• Company Fundamentals

  Assessing the financial health, profitability, and growth prospects of a company is crucial.

  Factors like revenue growth, earnings per share, debt levels, and competitive advantage should be evaluated.

• Industry And Market Analysis

  Understanding the industry in which a company operates and its position within the market is vital.

  Analyzing trends, competitive landscape, and potential disruptors helps identify companies with growth potential.

• Management Team

  Evaluating the competence and track record of the company’s management team provides insights into their ability to drive growth and make sound strategic decisions.

• Valuation

  Determining whether a stock is undervalued or overvalued is important for potential returns. Metrics like price-to-earnings ratio, price-to-sales ratio, and dividend yield can help assess the stock’s value.

  How To Trade the Best Performing Stocks

  Trading the best performing stocks requires a disciplined approach and careful analysis. Here are some key steps to consider:

• Research And Analysis

  Identify the best performing stocks in the last 10 years or any specific period by conducting thorough research.

  Look for stocks that consistently outperformed their peers and the overall market.

• Technical Analysis

  Use technical indicators and chart patterns to analyze the stock’s price movements and identify potential entry and exit points.

  Tools like moving averages, relative strength index (RSI), and trend lines can assist in this analysis.

• Fundamental Analysis

  Evaluate the company’s financials, earnings growth, market position, and competitive advantage.

  Understand the factors driving the stock’s performance and its future growth prospects.

• Risk Management

  Set a clear risk management strategy by determining the maximum loss you are willing to tolerate on a trade. Implement stop-loss orders to limit potential losses and protect profits.

• Entry And Exit Strategy

  Determine the best time to enter a trade based on technical and fundamental analysis.

  Establish profit targets and consider trailing stop-loss orders to secure gains as the stock price moves in your favor.

How To Scan for The Best Performing Stocks

Scanning for the best performing stocks involves using various tools and techniques to identify potential investment opportunities. Here are some approaches to consider:

• Stock Screeners

  Utilize online stock screeners that allow you to filter stocks based on specific criteria, such as market capitalization, sector, financial ratios, and performance metrics.

  This helps narrow down the universe of stocks to those that meet your desired parameters.

• Technical Analysis Scans

  Apply technical analysis scans to identify stocks exhibiting specific chart patterns or technical indicators.

  For example, you can scan for stocks with a strong uptrend, breakout patterns, or oversold conditions.

• Fundamental Analysis Filters

  Incorporate fundamental analysis filters to screen stocks based on financial metrics, such as earnings growth, return on equity (ROE), debt levels, and valuation ratios.

  This allows you to focus on stocks with solid fundamentals.

• News And Market Sentiment

  Stay updated with market news and monitor market sentiment. Look for stocks that are attracting positive attention due to significant developments, partnerships, or industry trends.

How We Make Money

There are several ways to make money from stocks:

• Capital Appreciation

  Investing in stocks with the expectation that their value will increase over time can lead to capital appreciation.

  If the price of a stock rises, investors can sell their shares at a higher price and make a profit.

• Dividend Income

  Some stocks distribute a portion of their profits to shareholders in the form of dividends. Investors who hold dividend-paying stocks can earn regular income from these dividends.

• Stock Splits and Spin-Offs

  In certain situations, companies may split their shares or spin-off subsidiary businesses.

  These events can create opportunities for investors to benefit from changes in share prices and unlock additional value.

Should You Invest in The Hottest Stocks?

Investing in the hottest stocks, especially those that have performed exceptionally well in the last 10 years or remain best stocks last 5 years, may seem tempting.

However, it’s crucial to approach such investments with caution and consider the following factors:

• Past Performance

  While the best stocks last 5 years or even 10 years can provide insights into a company’s success, it does not guarantee future performance.

  The stock market is subject to fluctuations, and historical performance may not be sustained.

• Valuation

  Hottest stocks often attract significant attention, which can drive up their prices and make them overvalued.

  It’s important to assess whether the current valuation of a stock aligns with its fundamentals and growth potential.

• Risk Management

  Investing in hot stocks can involve higher risk due to increased volatility and market speculation. Diversifying your portfolio across different stocks and asset classes can help mitigate risk.

How To Find the Best Stocks

Finding the best stocks involves a combination of research, analysis, and understanding your investment goals. Here are some strategies to consider:

• Fundamental Analysis

  Evaluate a company’s financials, industry position, competitive advantage, and growth prospects.

  Look for stocks with solid fundamentals and a track record of consistent performance.

• Technical Analysis

  Use charts, indicators, and patterns to analyze the stock’s price movements and identify potential trends or reversals.

  Technical analysis can complement fundamental analysis and provide additional insights.

• Research And Stay Informed

  Keep up with market news, industry trends, and company announcements.

  Follow reputable sources, analyze earnings reports, and attend investor presentations or conferences to gain insights into potential investment opportunities.

• Seek Professional Advice

  If you’re unsure about analyzing stocks or lack the time and expertise, consider consulting with a financial advisor or broker.

  They can provide personalized recommendations based on your financial goals and risk tolerance.

An Alternative to Chasing the Best Stocks

Instead of solely focusing on chasing the best stocks last 10 years or any specific period, an alternative strategy is to consider a diversified portfolio approach.

Diversification involves investing in a mix of different asset classes, industries, and geographies to spread risk and potentially enhance returns.

By diversifying your portfolio, you reduce the impact of any individual stock’s performance on your overall investment.

This approach mitigates the risk associated with investing in a single stock that may have performed well historically but could experience downturns in the future.

Furthermore, a diversified portfolio allows you to benefit from a broader range of investment opportunities and balance potential returns with risk.

It provides exposure to different sectors and asset classes that may perform well in various market conditions.

Conclusion

Understanding the concept of stocks, their differences from bonds, and investment criteria for top stocks are crucial for navigating the stock market effectively.

While historical performance can provide insights, it’s important to conduct a thorough analysis and consider individual risk tolerance and investment goals when making investment decisions.

Diversification and maintaining a long-term perspective are key elements in building a successful investment portfolio.