Ben Laidler, global markets strategist at the investment and trading platform eToro, discusses so-called tenbagger stocks, those that multiply their value tenfold, which “represent only an average of 2.7% of the sixteen developed market indices we have analysed over the past ten years”.
“23 stocks in the current S&P 500 index have been tenbaggers over the last decade. This represents 4.6% of current constituents and is the fourth-highest proportion among the global stock indices we analysed,” he continues. “Australia dominates, with 8.9% of its largest stocks being tenbaggers over the last decade,” the analyst explains.
Where to find the biggest tenbagger stocks (those that multiply their value tenfold)
HOLY GRAIL:
Investing in a stock whose price rises tenfold is the elusive holy grail for many investors, but our analysis shows that such stocks are very rare.
They represent only an average of 2.7% of the sixteen developed market indices we have analysed over the past ten years. It helps to start out as a mid-cap company in the technology sector with strong sales growth. This translates into rising profit margins and a re-rating by investors.
Although the US, led by tech and NVIDIA, ranks prominently (see chart), surprisingly it is Australian miners that dominate, followed by Sweden and Germany.
From Korean chemicals (Kumyang) to Japanese semiconductors (Lasertec), others have also outperformed the US artificial intelligence chip giant, a timely reminder of global opportunities.
US:
23 stocks in the current S&P 500 index have been tenbaggers over the last decade. This represents 4.6% of current constituents and is the fourth-highest proportion among the global stock indices we analysed.
The top five are led by NVIDIA (up 118 times in ten years), ADM (32 times), Tesla (27 times), Broadcom (20 times) and Cadence Design (20 times).
The technology sector dominates the list, with 65% of the ten most influential stocks, while the rest is made up of the healthcare (MOH, LLY, DXCM), transport (ODFL, CPRT), financial (MSCI, FICO) and renewable energy (ENPH) sectors.
WORLD:
Australia dominates, with 8.9% of its largest stocks being tenbaggers over the last decade.
This is almost double the next market on the list.
It is led by lithium stocks Pilbara (320 times) and Liontown (135 times), with miners accounting for 65% of the list. Next comes Sweden, led by tech firm Fortknox (60 times) and defence company Invisio (39 times), followed by Germany, with biofuel producer Verbio (19 times) and construction software firm Nemetschek (18 times).
At the other end, Italy has none and the UK only Games Workshop (14x) and JD Sport (10x), while France has only Sartorius Biotech (9x) and software firm Esker (10x).
Source: Territorioblockchain.com
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