Only 20 stocks out of the entire S&P 500 Index have remarkable revenue growth. These companies have boosted sales at a rate of at least 10% per year since 2021. This upward trend is expected to continue at least through 2025.
Equity analysts from Goldman Sachs screened these stocks and studied their performance, using what's called the "Rule of 10."
The 'Rule of 10' Has Outperformed The S&P 500
The investment bank noted that rapid and consistent revenue growth has been a key feature of many of today's largest stocks.
From 2013 to 2019, the seven largest publicly traded technology companies have seen their sales increase by an impressive 15% compound annual growth rate (CAGR). They are:
Apple Inc. (NASDAQ:AAPL)
Microsoft Corp. (NASDAQ:MSFT)
Alphabet Inc. (NASDAQ:GOOG) (NASDAQ:GOOGL)
Amazon Inc. (NASDAQ:AMZN)
Meta Platforms Inc. (NASDAQ:META)
NVIDIA Corp. (NASDAQ:NVDA)
Tesla, Inc. (NASDAQ:TSLA)
Meanwhile, the revenues for the S&P 500 as a whole only increased by 4% during the same time frame.
This double-digit increase in annual sales has had a clear positive effect on stock performance.
As for the seven tech giants, they have led the S&P 500 with a remarkable return of 58% so far in 2023. They also eclipsed the 5% gained by the remaining 493 stocks.
Investors who have built a portfolio according to the "Rule of 10" in 2023 outperformed the S&P 500 by 2% and the equally-weighted S&P 500 by 12%.
S&P 500 Stocks That Comply With The 'Rule of 10'
Company
Sector
Market cap ($ bn)
YTD %
2019 to present %
P/E
2022-25E Sales growth CAGR
Enphase Energy (NASDAQ:ENPH)
Information Technology
$22
(40)%
508%
24
27%
Tesla (NASDAQ:TSLA)
Consumer Discretionary
$812
109%
823%
63
26%
SolarEdge Tech (NASDAQ:SEDG)
Information Technology
$15
(10)%
167%
22
24%
Palo Alto Networks (NYSE:PANW)
Information Technology
$78
82%
229%
51
22%
ServiceNow (NYSE:NOW)
Information Technology
$112
41%
94%
51
22%
Paycom Software (NYSE:PAYC)
Industrials
$19
1%
19%
37
21%
Fortinet Inc (NASDAQ:FTNT)
Information Technology
$58
54%
252%
47
21%
DexCom (NASDAQ:DXCM)
Health Care
$49
13%
134%
99
20%
Insulet (NASDAQ:PODD)
Health Care
$21
(1)%
70%
162
19%
Axon Enterprise (NASDAQ:AXON)
Industrials
$14
18%
167%
57
19%
Arista Networks (NYSE:ANET)
Information Technology
$48
31%
213%
26
16%
Ceridian (NYSE:CDAY)
Industrials
$10
3%
(3)%
48
16%
Chipotle (NYSE:CMG)
Consumer Discretionary
$58
52%
152%
43
14%
Intuit (NASDAQ:INTU)
Information Technology
$129
18%
78%
29
13%
Adobe (NASDAQ:ADBE)
Information Technology
$221
44%
47%
29
12%
Cadence Design Systems (NASDAQ:CDNS)
Information Technology
$63
42%
229%
42
12%
Monster Beverage (NASDAQ:MNST)
Consumer Staples
$60
13%
81%
34
12%
Starbucks (NASDAQ:SBUX)
Consumer Discretionary
$113
0%
20%
25
11%
Aptiv (NYSE:APTV)
Consumer Discretionary
$29
8%
6%
19
11%
Salesforce (NYSE:CRM)
Information Technology
$207
59%
29%
26
11%
Read Also: 8 Dow Jones Stocks Were Up Double Digits In The First Half Of 2023. Here's The List And What's Ahead.
オーストラリアでは、moomooの投資商品及びサービスはMoomoo Securities Australia Limitedによって提供され、オーストラリア証券投資委員会（ASIC）の管理を受けております（AFSL No. 224663）。「金融サービスガイド」、「利用規約」、「プライバシーポリシー」などの詳細は、Moomoo Securities Australia Limitedのウェブサイトhttps://www.moomoo.com/auでご確認いただけます。
オーストラリアでは、moomooの投資商品及びサービスはMoomoo Securities Australia Limitedによって提供され、オーストラリア証券投資委員会（ASIC）の管理を受けております（AFSL No. 224663）。「金融サービスガイド」、「利用規約」、「プライバシーポリシー」などの詳細は、Moomoo Securities Australia Limitedのウェブサイトhttps://www.moomoo.com/auでご確認いただけます。
