Wall Street: Which 30 stocks have gained the most in the last three decades and what is expected in the future?

The poor performance for the S&P 500 began in July. It happens that the main index of Wall Street, which hit nearly a dozen all-time highs and advanced by approximately 14.5% in the first six months of the year, felt the impact of a strong rotation by investors from large-cap stocks to lower-yield ones, dampening the momentum. The data comes from Dow Jones Market Data, which He said it was the worst July since 2014.

In that context, they met The 30 Best Performing Stocks in the S&P 500 in the last 30 years. The list is headed by Nvidiawith a return in three decades of 322.185%; followed by Amazonfar below, with 249.208%; Monster Beverage Corp with 164.539%; NVR Inc. with 140.431% and Apple with 88.807%.

In the ranking they appear three of the so-called Magnificent Sevenresponsible for the largest profits in the S&P 500 in recent months. To analyze this context, Scope consulted with specialists to get their “view” regarding what can be expected.

Obviously, it must be said that This does not mean that long-term forecasts are completely reliable.but the micro and macroeconomic fundamentals that govern stock prices tend to be more predictable when are measured in years and decades instead of weeks and months. Therefore, investors should focus on capital appreciation long-term rather than short-term gains.

The S&P 500 under the microscope of analysts

In dialogue with this medium, Martina Del Giudiceindependent financial advisor, explains that some S&P 500 companies have demonstrated “an exceptional capacity” to generate value over the past three decades, consistently outperforming the market in terms of performance.

The sectors and companies that have led in performance over the past 30 years are:

• 1. Technology: with companies like Nvidia Corp and Apple At the top, it has been the most prominent sector, driven by constant innovation and the digitalization of the global economy.
• 2. Discretionary consumption: Amazon and Netflix, among other e-commerce and entertainment companies, redefined consumption by quickly adapting to new consumer trends and behaviors.
• 3. Health: Biotechnology and big pharmaceuticals are experiencing significant growth, driven by advances in medical research and increasing demand for health products.

For the analyst, after the last complicated Friday for the international markets, which was followed by a “Black Monday“, the concern among investors is “inevitable” and can cause short-term volatility. However, he argues that companies and sectors that have demonstrated resistance and adaptability in the past, they will probably continue standing out in the future.

He explains that artificial intelligence and cybersecurity will be crucial areas. Likewise, technological innovation will continue to drive growth for both sectors such as health and renewable energy. “In a world where the population will live longer and where the transition to clean energy is gaining momentum as environmental policies become stricter,” says Del Giudice, who warns that, “that said, Investors must continue to focus on resilience and long-term trends to successfully navigate the future.”

Past returns do not guarantee future returns.

In the world of finance, it is common to hear the phrase “Past returns do not guarantee future returns“, comments the investment advisor, Gaston Lentini. To illustrate this, use the examples of Kodak and Intel“Kodak, once a leading company, has plummeted dramatically. Similarly, Intel, once a formidable competitor to Nvidia, has rapidly lost ground to the latter, which has captured much of the market,” he notes.

Lentini argues that this should make you think about the future of Nvidia. Although it has had an exceptional performance in the last four or five years, “it is unlikely that it will maintain those levels of profitability in the near future.” He believes that it would be desirable for the investors of the microchip company if this were not the case, “But it is a projection that should be taken with caution.”.

A sector to follow closely

In line with what Del Giudice has said, Lentini analyses that there are emerging sectors that could offer great opportunities, “like cybersecurity”. Although this sector does not generate 100% annual returns, its importance is growing, and it is expected to become as fundamental as it is today. Coca-cola. Companies like Palo Alto and Microsoftwhich have advanced divisions in computer security, represent options less risky with considerable growth potential for the next 20-30 years.

In contrast, he analyzes that sectors such as tobacco, represented by companies such as Altria, could face challenges as people become more health-conscious and cut back on consumption. These companies could lose relevance and not maintain current profitability levels, Lentini says.

For those investors looking for the next big opportunity, like Nvidia, the strategist recommends diversify and do not bet everything on a single company. Well, the old saying goes “Pearl divers often end up drowned” takes on relevance in this case. “Seeking high returns often involves investing in developing companies, which are less secure. Therefore, it is prudent to involve moderate capital in these risky investments to not to jeopardize our financial position in the market“, he concludes.