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These 3 Stocks Have Annualized +15% Returns Over the Last Decade

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Investors are always looking to beat the market, searching for stocks that deliver consistent long-term gains. And perhaps to the surprise of some, many non-tech stocks have exceeded the S&P 500’s impressive 250% gain over the last decade.

Three stocks – Builders FirstSource (BLDR - Free Report) , Live Nation Entertainment (LYV - Free Report) , and Domino’s Pizza (DPZ - Free Report) – have all outperformed the S&P 500 over the last decade, all posting at least a 15% annualized return.

Below is a chart illustrating the performance of all three over the last decade, with the S&P 500 blended in as a benchmark.

Zacks Investment Research
Image Source: Zacks Investment Research

On top of market-beating returns, all three currently sport a favorable Zacks Rank, reflecting optimism among analysts. Let’s take a closer look at each.

Domino’s Pizza

Analysts have become bullish on Domino’s Pizza’s outlook, helping land the stock into a Zacks Rank #1 (Strong Buy). Impressively DPZ shares have delivered an annualized return of nearly 22% over the last decade vs. the S&P 500’s 13.3%.

Zacks Investment Research
Image Source: Zacks Investment Research

Income-focused investors will undoubtedly appreciate DPZ’s shareholder-friendly nature; DPZ shares currently yield 1.2% annually, with the payout growing by nearly 20% annualized over the last five years.

Zacks Investment Research
Image Source: Zacks Investment Research

The company is expected to witness solid growth, with earnings forecasted to climb 10% in its current year and an additional 15% in FY24. DPZ shares trade at a high multiple but aren’t as expensive on a relative basis, with the current 28.9X forward earnings multiple below the ten-year median of 30.5X and highs of 33.1X in 2022.

Live Nation Entertainment

Live Nation Entertainment, a current Zacks Rank #1 (Strong Buy), has enjoyed positive earnings estimate revisions across nearly all timeframes, with the trend particularly noteworthy for its current fiscal year. LYV shares have provided an annualized return of roughly 18% over the last ten years.

Zacks Investment Research
Image Source: Zacks Investment Research

The company’s revenue has recovered nicely from pandemic lows and has seen a recent acceleration, as shown below. Live Nation Entertainment reported $5.6 billion in sales in its latest quarterly release, improving 27% from the year-ago period.

Zacks Investment Research
Image Source: Zacks Investment Research

And the growth is slated to continue, with earnings forecasted to climb 35% in its current year on 20% higher sales. Looking ahead to FY24, expectations allude to a further 90% jump in earnings paired with a 7% revenue increase.  

Builders FirstSource

Builders FirstSource, a Zacks Rank #1 (Strong Buy), has seen its earnings outlook skyrocket positively, with analysts increasing their expectations sizably over the last several months. Undoubtedly the most impressive of the bunch, BLDR shares have delivered a nearly 40% annualized return over the last decade.

Zacks Investment Research
Image Source: Zacks Investment Research

The company’s shares have been consistently lifted by better-than-expected results in 2023, as shown in the chart below. Just in its latest release, BLDR exceeded the Zacks Consensus EPS Estimate by more than 40% and reported sales 6.6% ahead of expectations.

Zacks Investment Research
Image Source: Zacks Investment Research

Bottom Line

Not all high-flying stocks come from the Technology sector, with many widely outperforming the general market over the last decade.

And that’s precisely the case for Builders FirstSource (BLDR - Free Report) , Live Nation Entertainment (LYV - Free Report) , and Domino’s Pizza (DPZ - Free Report) , with all three delivering annualized returns in excess of 15% over the last decade.

In addition, all three have enjoyed positive earnings estimate revisions, reflecting optimism among analysts and providing fuel for shares to continue climbing.


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