The new year can be a time of optimism, and many investors may be on the hunt for the next big winner to add to their portfolios. One rarified group of outperformers are the “tenbaggers,” or a stock that has delivered a total return that is 10-times its initial price over a given period of time. With inflation and interest rates at high levels, and many economists predicting a U.S. recession in 2023, it makes sense that investors may be cautious of high-growth plays. However, similar conditions in the past have not slowed down great individual growth stories. “10-baggers historically have occurred more frequently during periods of higher inflation and higher interest rates,” Bernstein’s Toni Sacconaghi said in a note to clients on Nov. 14. For investors who want to find potential tenbaggers with strong track records, the current members of that club might be worth a look. The list below shows stocks in the S & P 500 that have a compound total return of more than 1,000% over the past decade. Additionally, Wall Street analysts are bullish on the stocks, with price target upside of 10% or more and long-term earnings growth estimates of at least 20%. Enphase Energy , which went public in 2012, is the clear standout on the list. The stock has returned more than 10,000% over the past decade, and Wall Street sees long-term earnings growth of more than 60%. The stock has also been resilient. Enphase has gained more 45% in 2022 despite investor interest in solar-related stocks cooling this year. The name on the list with the highest approval rating on Wall Street is Monolithic Power Systems , with a buy rating from roughly 87% of analysts. Monolithic and Advanced Micro Devices are both semiconductor stocks. Chip stocks have historically been cyclical plays, but growth of artificial intelligence is one potential reason that investors are bullish on long-term demand in the space. Another stock on the list that is in an industry many have highlighted as key in the next decade is cybersecurity company Fortinet . Wall Street analysts see upside of about 36% for the stock.
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