The 5 Best Performing S&P 500 Stocks in 2020

The 5 Best Performing S&P 500 Stocks in 2020

Posted On January 4, 2021 3:29 pm

The S&P 500 closed pandemic-ridden 2020 with a 16.1% gain. In fact, the index hit a record high of $3760.2 on December 31, 2020. This performance is impressive since the global economy is still in recession.

While the coronavirus pandemic severely impacted the businesses of most companies last year, it also acted as a growth catalyst for many. Companies that helped businesses and people to continue functioning and delivering products and services during the public health crisis have thrived and their stocks have seen major gains. Also, the exceptional performance of Tesla, Inc. (TSLA – Get Rating) and Etsy, Inc. (ETSY – Get Rating) last year guided them to inclusion in the index.

Along with these two stocks, NVIDIA Corporation (NVDA – Get Rating), PayPal Holdings, Inc. (PYPL – Get Rating), Carrier Global Corporation (CARR – Get Rating) delivered stellar performances in 2020. These companies gained quickly based on the utility of their offerings amid the pandemic. Thus, it is likely, we think, that these companies will post further gains going into 2021 and beyond.

Tesla, Inc. (TSLA – Get Rating)

This EV giant needs no introduction. The company is also involved in making powertrain components and stationary energy storage systems. TSLA has operations in the United States, China, Norway, and internationally. TSLA’s stock has gained 696.4% in 2020.

TSLA recently constructed a production facility in China and intends to make build new facilities in Austin, Texas, and Brandenburg, Germany. The company is also poised to begin operations in India, which has the potential to be a major market for the carmaker.

For the third quarter, the company saw an increase in total revenue of 39% year-over-year. The company’s net income increased by 131% during the same period.

TSLA is expected to see revenue growth of 59.8% for the quarter ended March 31, 2021, and 47.1% in 2021. The company’s EPS is estimated to grow 67% in 2021 and at a rate of 396.5% per annum over the next five years.

How does TSLA stack up for the POWR Ratings?

A for Trade Grade

A for Buy & Hold Grade

A for Peer Grade

A for Industry Rank

A for Overall POWR Rating

The stock is also ranked #1 of 35 stocks in the Auto & Vehicle Manufacturers industry.

About author