S&P 500: 6 Stocks That Crushed The Market Last Year Are Doing It Again

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Lightning isn’t supposed to strike the same spot twice. But apparently S&P 500 investors can hit blisteringly hot gains year after year.


Six stocks in the S&P 500 including technology stocks Advanced Micro Devices (AMD) and Teradyne (TER), plus consumer discretionary Chipotle Mexican Grill (CMG), tripled the index’s gain in 2019 and are on pace to do it again this year. That’s based on an Investor’s Business Daily analysis of data from S&P Global Market Intelligence and MarketSmith.

It’s no easy feat. The S&P 500 jumped 28.9% in 2019. So to triple that gain, the stocks had to rise more than 86.7%. And this year the S&P 500 is up 13.4%. That means a stock must be up 40.2% or more to top it by three times.

Seeing such strong back-to-back gains in some stocks highlights the importance of sticking with the winners. Had you invested in the two-peat winners, you’d be up an average of 260% the past two years. That sure beats the S&P 500’s 46% gain during that time.

And the S&P 500 stocks to triple the market’s gains — twice in a row — show important trends.

S&P 500 Information Technology Is Still The Place To Be

Technology continues to dominate. But maybe not the areas you think.

Five of the six S&P 500 “two-peat” stocks are in the information technology sector. But not one of them is a so-called FANG stock. In fact, all but one of the repeat technology standouts are in the semiconductor or semiconductor equipment industry.

AMD is the two-peat stock to beat. If you think its 99.8% jump this year is impressive, just consider the stock’s 148% gain in 2019. No wonder it’s not only a member of the IBD 50 list of top stocks, but also the Big Cap 20. And the company has the fundamentals to back up its stock price. Analysts think AMD will make $1.24 a share in 2020, up nearly 94% from 2019. And next year, profit is seen jumping another 47.6%.

No wonder AMD sports a perfect 99 IBD Composite Rating. It means the company’s stock and fundamentals are superior to 99% of all companies’. That’s just one of the factors you should look at when thinking about investing in AMD.

Where’s tech giant Apple? It gained just 86.2% in 2019, which didn’t quite triple the S&P 500’s rise.

Top S&P 500 Management Matters

Topping the S&P 500 twice in a row isn’t a lucky break. A top management team knows how to shift a company’s resources to get the top return.

Teradyne, also a member of the IBD 50, is helmed by a top CEO, Mark Jagiela. Teradyne was Jagiela’s first job out of college nearly 40 years ago. And his deep knowledge of the semiconductor industry allows him to push the company into emerging areas like robotics to keep it growing.

Investors along for the ride are scoring, too. Teradyne’s stock is already up 69.2% this year. That in itself is impressive. But add the fact that the shares jumped 117.3% in 2019 as well. Like AMD, Teradyne carries a perfect 99 Composite Rating. Profit at Teradyne is see jumping 57% in 2020.

There’s Life Beyond Tech In The S&P 500

With the tech-heavy Nasdaq 100 up roughly 40% in each of the past two years, you might think chips and software are the only places to be. And yet, there’s Chipotle Mexican Grill.

The burrito chain’s stock is red hot this year, jumping 55%. And that’s on top of a 94% jump in 2019. Who says you need to own technology stocks to more than triple your money in three years? Chipotle’s stellar run landed it squarely on Leaderboard, shoulder-to-shoulder with the S&P 500’s top stocks.

It’s a story of recovering from trauma to a better place. The company shook off food quality issues and then suffered through the pandemic in 2020. Earnings are expected to drop by more than 20% this year. But here’s the amazing part. Revenue is on pace to climb 7% in 2020. And because it’s upping its digital efforts and doubling down on carryout, profit is expected to soar 95% in 2021. What should you look at before buying Chipotle stock?

So while 2020 isn’t in the books just yet, these S&P 500 stocks are making the year another one to remember in a good way.

‘Two-Peat’ S&P 500 Stocks

On pace to triple the market’s gain again in 2020 after doing it in 2019

Company Symbol 2019 % Ch. Stock Stock % 2020 Ch.-est. Sector Composite Rating
Advanced Micro Devices (AMD) 148.4% 99.8% Information Technology 99
Teradyne (TER) 117.3% 69.2% Information Technology 99
Lam Research (LRCX) 114.7% 68.2% Information Technology 99
Paycom Software (PAYC) 116.2% 60.1% Information Technology 94
Chipotle Mexican Grill (CMG) 93.9% 55.3% Consumer Discretionary 71
KLA (KLAC) 99.1% 44.6% Information Technology 96
S&P 500 28.9% 13.4%

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