The S&P 500 index has delivered annualized returns of about 10% since 1957. That closely approximates the growth in the average company’s earnings. If you want to beat the market, you want to look for companies that can grow their earnings well above the average.
Here are two companies that can deliver superior earnings growth and outperform the S&P 500 over the next five years.
1. Tesla
Tesla (NASDAQ: TSLA) shares delivered an 8,500% return to shareholders over the last 12 years, but the stock hasn’t hit new highs since 2021. However, the stock has followed this pattern before. The shares previously delivered modest gains between 2014 and 2018 before rocketing tenfold to their previous high of $414. Here’s why another bull run is coming.
Despite higher interest rates and increasing competition in the electric vehicle (EV) market, Tesla delivered a strong second-quarter update, with…
