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Ten Stocks to Outperform the Market 10 Stocks to Outperform the Market – Historical IPO Performance

The stock market has delivered an average annual gain of 10.2% since the establishment of the S&P 500 in 1957. While this is nothing to scoff at, some individual stocks have outstripped this average, beating the market by a wide margin. Below are 10 such stocks that have soared since their Initial Public Offerings (IPOs) and have the potential to continue outperforming the market going forward.

A close-up photo of a black and white share certificate.

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Meta Platforms: 826% return since IPO

Meta Platforms (NASDAQ: META), the parent company of Facebook, Instagram, and WhatsApp, has delivered a stellar 826% return since its IPO in 2012. Despite a roller-coaster ride, including a 76% decline and a subsequent 194% gain in 2023, the company’s record revenue and surging net income herald more potential upside ahead.

Meta’s focus on investing in artificial intelligence (AI) presents a compelling opportunity for further growth, with its stock still trading at an attractive valuation relative to its peers in the technology sector.

Palo Alto Networks: 1,920% return since IPO

Palo Alto Networks (NASDAQ: PANW), a leading cybersecurity company, has seen its stock soar by an astounding 1,920% since its IPO in 2012. The company’s investments in AI-powered cybersecurity solutions, including the successful Cortex XSIAM product, have driven significant revenue growth. With a projected record-high revenue for the current fiscal year, Palo Alto presents a strong investment opportunity amidst the rising costs of cyberattacks.

Alphabet (Google): 6,311% return since IPO

Alphabet (NASDAQ: GOOG, NASDAQ: GOOGL), the parent company of Google, YouTube, and Waymo, has delivered an impressive 6,311% return since its IPO in 2004. While advertising from Google Search remains a key revenue source, its cloud computing platform and AI initiatives are growing in importance, providing potential pathways for further growth. Alphabet stock also trades at an appealing valuation compared to its big-tech counterparts, signaling additional potential upside.

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Netflix: 44,146% return since IPO

Netflix (NASDAQ: NFLX), the streaming giant, has achieved a staggering 44,146% gain since going public in 2002. With a membership base of 247 million, Netflix continues to disrupt the entertainment industry, expanding its market reach and remaining profitable. As a result, it stands as a frontrunner in the streaming space, poised for further market share gains and stock price appreciation.