- Enphase Energy (NASDAQ:ENPH) – Five-year return of 15,000%.
- Digital Turbine (NASDAQ:APPS) – Five-year return of 4,000%.
- SolarEdge Technologies (NASDAQ:SEDG) – Five-year return of 1,800%
- Tesla (NASDAQ:TSLA) – Five-year return of 1,500%.
- Celsius (NASDAQ:CELH) – Five-year return of 1,300%.
In the past five years, the S&P 500 has returned 89%. Meanwhile, these five companies have returned an average of 4,720% in the same time, outperforming the index by more than 50X. Beating the S&P 500’s performance is no easy task, but these five companies have managed to do so, above and beyond.
Of course, past performance does not indicate or influence future performance. Stocks are valued based on expected future performance. In fact, asset management firms are required by the U.S. Securities and Exchange Commission (SEC) to let clients know that historical returns are not correlated with future returns when bringing up historical returns.
However, impressive historical returns do tell investors a few things. For starters, it indicates that a company’s management has a history of executing well in favor of its shareholders. Whether that be in the form of innovative products, buybacks or a profitable business model, historical returns are evidence of a company’s past actions.
With that said, let’s take a look at five stocks to buy with 1,000% returns in the past five years.
| ENPH | Enphase Energy | $186.68 |
| APPS | Digital Turbine | $38.64 |
| SEDG | SolarEdge Technologies | $302.96 |
| TSLA | Tesla | $982.45 |
| CELH | Celsius | $50.88 |
Stocks to Buy: Enphase Energy (ENPH)
ENPH stock has increased 15,000% in the past five years. The company operates in the solar industry and provides micro inverter solutions, home energy solutions and solar storage. Enphase had its initial public offering (IPO) in 2012 and was priced at $6 a share. Today, the company trades at over $185 per share.
However, the path to positive returns wasn’t easy. From 2012 to 2018, ENPH stock returned -34%. During 2017, the stock traded for as low as 65 cents. Despite six years of poor returns, the start of 2019 marked a major trend change. Since then, Enphase has returned over 3,500%.
This was helped in part by the acceptance of solar power as an energy source. Furthermore, solar energy tax credits from the federal government have incentivized customers to install solar home energy solutions. Today, the Department of Energy (DOE) classifies solar power as “the fastest growing and most affordable source of new electricity in America.”
Digital Turbine (APPS)
Digital Turbine has returned over 4,000% in the past five years. The company utilizes an end-to-end platform for original equipment manufacturers, application developers and other parties. Through its platform, Digital Turbine provides mobile advertisements services.
For example, the company announced a multi-year partnership with Google (NASDAQ:GOOG, NASDAQ:GOOGL) last year. Through the partnership, Digital Turbine will power “app discovery for nearly a billion Android devices globally while simultaneously expanding our footprint across the Android ecosystem including mobile, TV and connected devices.”
At the time of writing, APPS stock has a market capitalization of $3.9 billion, making it the smallest on this list. A low market cap does not necessarily indicate greater expected future performance. However, it does indicate that APPS stock should be a good bet as long as the company’s management is able to execute and partner with other reputable companies. In addition, Digital Turbine operates in a fast-growing market. In 2015, mobile devices accounted for 31.16% of all global website traffic. By Q4 of 2021, that figure had skyrocketed to 54.4%.
Stocks to Buy: SolarEdge Technologies (SEDG)
Like Enphase, SolarEdge operates in the solar energy industry. The company describes itself as a “world leader in smart energy” and provides services for businesses and homeowners.
SEDG stock’s historic rally in 2020 was aided by Congress after it passed an extension of the Investment Tax Credit (ITC). The ITC stated that homeowners are eligible for a tax credit “for a percentage of the cost of a solar photovoltaic (PV) system.” A PV system is comprised of solar panels, an inverter and other hardware to generate sun power into electricity. As part of ITC, consumers are eligible for a 26% tax credit for PV systems installed between 2020 and 2022. In 2023, the tax credit will fall to 22%.
Since 2020, SolarEdge has appreciated by over 190%. From its IPO in 2015 to 2020, the stock increased by over 340%. However, the solar energy tax credit from the ITC is set to expire in 2024, unless Congress decides to renew it. A failure to renew the provision could have detrimental effects for SolarEdge.
Tesla (TSLA)
Tesla is undoubtedly the most popular company on this list, boasting a five-year return of over 1,500%. The historic rise of electric vehicles (EVs) and Tesla’s outspoken CEO Elon Musk have helped power profound returns.
Last year, global EV sales reached 6.75 million units, up more than 108% YOY. Meanwhile, the share of EVs in global light vehicle sales tallied in at 8.3%, almost doubling 2020’s figure of 4.2%. What’s even more impressive is that Tesla is leading the way in EV sales. Last year, Tesla came in first place for most plug-in EV sales globally, selling 936,172 vehicles.
TSLA stock should continue to be a viable investment as long as it can continue growing its market share and brand power. Tesla is currently the fifth-largest company in the U.S. with a market cap of just over $1 trillion.
Stocks to Buy: Celsius (CELH)
Take a stroll in your local grocery and you’ll likely see cans of Celsius in the energy drinks aisle. Celsius produces calorie-burning energy drinks for athletes in a variety of flavors. CELH stock has appreciated over 1,300% in the past five years.
Investors in Celsius aspire for the company to become the next Monster Beverage (NASDAQ:MNST). Why? MNST stock is recognized as one of the greatest investments of all time. Since 2000, the stock has returned over 90,000%. Today, Monster has a 5.9% share of the global sports/energy drink market and is sold in over 100 countries.
Celsius is now expanding into new countries too, like Finland and Sweden. For the nine months ended Sept. 31, the company reported international revenue of $32.9 million, up 18% year-over-year (YOY). Meanwhile, total revenue grew to $210 million, up 121% YOY.
Triple-digit revenue growth is wildly impressive, and investors have their full focus on Celsius as it works to increase its market share.
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
