3 Growth Beasts That Have Beaten the Market in 8 of the Past 10 Years

Core Insights - The article highlights three stocks that have significantly outperformed the market over the past decade: Intuitive Surgical, Nvidia, and Axon Enterprise, with returns ranging from 887% to over 22,120% [2][4][8]. Intuitive Surgical - Intuitive Surgical specializes in robotic-assisted surgical systems, enhancing surgical precision and patient outcomes [3]. - Over the past decade, Intuitive Surgical's shares have increased by more than 887%, with notable underperformance in 2019 and 2022 [4]. - The company has a market capitalization of $202 billion and a gross margin of 66.37%, with projected growth of around 17% in da Vinci procedures this year [6]. - Despite a high price-to-earnings (P/E) ratio of 75, the stock is considered a promising long-term investment due to its innovative products [7]. Nvidia - Nvidia, a leading chipmaker, has achieved returns exceeding 22,120% over the past decade and is currently the most valuable company globally [8]. - The stock has risen 34% this year, with only two years of underperformance against the S&P 500 in 2018 and 2022 [8]. - Nvidia has a market capitalization of $4,364 billion and a gross margin of 70.05%, with significant free cash flow of over $77 billion [10][11]. - The stock trades at a P/E ratio of 44, which is considered high but justifiable given its growth potential in the AI sector [9]. Axon Enterprise - Axon Enterprise, known for its body cameras and less-lethal weapons, has seen its valuation rise by 2,860% over the past decade [12]. - The company had off years in 2015 and 2017 but generated positive returns in 2022 amid market turmoil [12]. - Axon has a market capitalization of $43 billion and a gross margin of 60.31%, but it trades at a high P/E ratio of 171, indicating potential overvaluation [14][13]. - The stock is currently down 10% this year, and while it has strong growth prospects, it is advised to be cautious due to its high valuation [15].