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The Best And Worst Stocks of the 10-Year Bull Market

It has been 10 years since the U.S. stock market touched its post financial crisis nadir on Mar 9, 2009. Since then, American stocks have gained despite concerns about global economic growth, anxieties related to central bank policies and tit-for-tat trade war threats. Having said that, the United States and China’s initiative to reach a deal, stabilize interest rates and an uptick in consumer confidence have surely provided the required impetus to stocks.

The current bull run has lifted both the S&P 500 and the Dow Jones index by more than 400%. Since the financial crisis, increase in share prices and dividends helped the broader S&P 500, in particular, add nearly $21 trillion to its value, per the S&P Dow Jones Indices.

In the meantime, the tech-laden Nasdaq has risen more than 500%, mostly led by fast-growing tech bigwigs including the FAANGs. For instance, Apple Inc. AAPL has given its shareholders a 1,373.7% return since the financial crisis, while Netflix, Inc. NFLX returned 6,396.7%. In other words, if you had bought $100,000 in Netflix stock on Mar 9, 2009, you would have been a millionaire by now!

Not all stocks, however, have performed well over the course of the past decade. And the disparity between the top performers and the worst is rather shocking. Some companies, in fact, saw their shares tumble around 90%. Let us take a look at some of the market’s top and bottom dwellers during the 10-year bull phase.

Top Stocks of the Past Decade

The biggest gainer in the past decade, a whopping 23,296.6%, is none other than Jazz Pharmaceuticals plc JAZZ. Around 10 years back, the company was struggling to get approval for its drugs. Its antidepressant Luvox was encountering hurdles, while narcolepsy drug Xyrem needed to gain traction. And how can we forget that the company was compelled to trim 24% of its workforce in 2008 due to earnings pressure.

But things have changed for the better. Xyrem is now the company’s primary brand and Defitelio used for cancer treatment is picking up. Jazz Pharmaceuticals also bought the rights to Defitelio in 2014.

The company currently has a Zacks Rank #3 (Hold). In the past 60 days, Jazz Pharmaceuticals has seen nine earnings estimates move up, while none moved down for the current year. The Zacks Consensus Estimate for earnings rose 3.6% in the same period.

The company is estimated to gain more than 5% in both the current and next quarter. The company has already gained 8.8% in the past month, more than the Medical - Drugs industry’s rise of 2.7%.


Lululemon Athletica Inc.’s LULU shares in the past 10 years scaled an amazing 6,541%. But, the company had its share of ups and downs. It had to recall a few of its black yoga pants due to transparency issue in 2013, compelling the then-CEO Chip Wilson to step down. However, the company managed to notch double-digit growth, purely on brand strength.

The company currently has a Zacks Rank #2 (Buy). In the past 60 days, Lululemon Athletica has seen 14 earnings estimates move up, while none moved down for the current year. The Zacks Consensus Estimate for earnings rose 2.2% in the same period. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


The company’s expected earnings growth rate for the current year is nearly 46%, more than the Textile - Apparel industry’s projected rise of 23.3%. The company has outperformed the broader industry in the past year (+77.4% vs +16.1%).


As said earlier, among the prominent names, Netflix is definitely one. It has been a pioneer in the field of streaming video. It boasts 146.5 million subscribers and by the middle of last year, Netflix had a 51% share of the U.S. streaming market with its nearest rival being Amazon Prime at a 33%.

The company currently has a Zacks Rank #3. In the past 30 days, Netflix has seen one earnings estimate move north, while none moved south for the current year. The Zacks Consensus Estimate for earnings rose 0.5% in the same period.


The company’s expected earnings growth rate for the current year is 51.1%, in contrast to the Broadcast Radio and Television industry’s projected decline of 4.5%. The company has outperformed the broader industry so far this year (+30.6% vs +20.8%).

ABIOMED, Inc. ABMD has been a publicly trading company since 1987. It has made a noteworthy difference for cardiac patients by introducing the first artificial heart to the market. And the company saw its shares jump an incredible 6,108% over the past decade, with the rally picking up in 2017. Impella’s sales growth was predominantly responsible for the rally.

The company currently has a Zacks Rank #2. In the past 60 days, ABIOMED has seen six earnings estimates move up, while one moved down for the current year. The Zacks Consensus Estimate for earnings rose 0.4% in the same period.


The company’s expected earnings growth rate for the current year is 106.1%, more than the Medical - Instruments industry’s projected rise of 15.9%. The company has outperformed the broader industry over the past one-year period (+6.6% vs +2.7%).

DexCom, Inc. DXCM, a key name within the glucose monitor market, yielded a staggering return of 4,044.8% over the past decade. Its partnership with Roche Holding AG RHHBY, acquisition of SweetSpot and FDA approval of the DexCom G4 Platinum, a glucose monitor, are some of the few developments boosting its shares.

The company currently has a Zacks Rank #2. In the past 60 days, DexCom has seen 10 earnings estimates move up, while two moved down for the current year. The Zacks Consensus Estimate for earnings soared 91.7% in the same period.

The company’s expected earnings growth rate for the current year is 53.3%, more than the Medical - Instruments industry’s projected increase of 15.9%. The company has outperformed the broader industry over the past year (+123.5% vs +2.7%).


The Not So Lucky Ones!

Weatherford International plc WFT, Transocean Ltd. RIG and Chesapeake Energy Corporation CHK, to name few, were the worst performers over the past decade. All of them saw their shares plunge more than 70% during the said period.

While huge debt burden was responsible for Weatherford International’s downfall, the arrival of fracking, drop in oil prices and increase in cost of deepwater drilling affected offshore contract drilling service provider Transocean.

Chesapeake is another energy player that took extensive beating when oil prices tanked in 2014-15. The company unfortunately couldn’t recover from the setback completely.

Zacks' Top 10 Stocks for 2019

In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for the year?

Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.

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Netflix, Inc. (NFLX): Free Stock Analysis Report
 
Roche Holding AG (RHHBY): Free Stock Analysis Report
 
Apple Inc. (AAPL): Free Stock Analysis Report
 
ABIOMED, Inc. (ABMD): Free Stock Analysis Report
 
DexCom, Inc. (DXCM): Free Stock Analysis Report
 
Jazz Pharmaceuticals PLC (JAZZ): Free Stock Analysis Report
 
Weatherford International PLC (WFT): Free Stock Analysis Report
 
Transocean Ltd. (RIG): Free Stock Analysis Report
 
Chesapeake Energy Corporation (CHK): Free Stock Analysis Report
 
lululemon athletica inc. (LULU): Free Stock Analysis Report
 
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