Most S&P 500 investors believe that Tesla stock is the best possible investment. However, it turns out that you could perform far better. According to an Investor’s Business Daily analysis of data from S&P Global Market Intelligence and MarketSmith, two stocks in the S&P 500, S&P 400 and S&P 600, including consumer discretionary XPEL (XPEL) and consumer staple Celsius Holdings (CELH), outperformed shares of Tesla Inc (NASDAQ:TSLA) both in the last five and ten years. Let’s put some money and numbers behind this discovery. If you had invested $10,000 in XPEL ten years ago, you would have an astounding $4.7 million. If you had invested that $10,000 in Celsius ten years ago, you would likewise have $3.2 million. Both exceed the “mere” $1.2 million that your $10,000 would have been had you consistently invested in Tesla shares. Also, disregard the S&P 500. Just 155% more, or $25,537, would be earned on a $10,000 investment in the S&P 500.
Tesla’s stock has recently been having some difficulties. That’s letting in new leadership. Wedbush analyst Dan Ives stated, “Tesla had some delivery problems in the quarter with some isolated weaker areas in China.” Although Tesla’s justification makes sense on paper, the Street won’t be persuaded, and unresolved concerns about demand challenges will continue until we learn about year-end unit guidance on Tesla’s conference call on October 19th.
However, other investors aren’t sitting around hoping to profit from something other than Tesla shares.
Considering Purchasing Tesla Stock
Tesla stock is difficult to outperform. It requires a superhuman return, nothing less.
Tesla stock has increased by an astonishing 901% over the last five years and by an even greater 12,263% over the last ten. And as a result, several people became billionaires. No big-cap S&P 500 company in the previous five and ten years ever outperformed Tesla shares.
However, recent weakness in its shares—down roughly 9% over the past year—makes it more likely that other firms with better growth rates will surpass it. Six other stocks have outperformed Tesla stock in the last five years, including Enphase Energy, a member of the S&P 500. (ENPH). And three equities outperformed the 10-year growth of Tesla stock.
However, only two of those, XPEL and Celsius, have outperformed Tesla stock in the last five and ten years. It’s essential to pay notice if your performance exceeds that of the Tesla stock.
Tesla-Beaters XPEL, Celsius, A Look
If there is one stock you would want to own over Tesla, it would be XPEL. Amazingly, it also exists in the automotive sector.
Shares of the well-run automotive paint and film manufacturer and retailer have increased by more than 4,250% over the last five years and by 46,671% over the last ten. These two gains outperform Tesla stock by a wide margin. The management team’s audacious turnaround of the business from a precarious position is at the root of much of the company’s success.
Shares were only worth 14 cents each, and the company’s total value was only $4 million ten years ago. Rewind to the present day. Share prices have increased to above 65. The S&P SmallCap 600 company’s current market value is close to $1.8 billion.
Celsius, a drinks manufacturer emphasizing wellness, has a similar roundabout. This outdated corporation traded for barely 28 cents per share a decade ago. Now? The company’s stock has increased by 1,513% over the past five years and about 32,000% over the past ten years. The S&P Midcap 400 business has a market value of around $7 billion. And that is before the implementation of its new distribution agreement with PepsiCo (PEP).
This isn’t being done to discredit Tesla Stock’s incredible performance. But it serves as a reminder of how new leaders are constantly appearing, sometimes in unexpected places.
Featured Image: Megapixl @ Grigvovan