Nvidia leads list of 10-bagger stocks the last five years

Nvidia is the latest poster child on Wall Street for “10 baggers,” stocks that soar in price 10 times. But the AI chipmaker’s path to ” 10-bagger ” status included what is also a typical slump (or two) along the way, according to Trivariate Research. The dominant maker of artificial intelligence processors is among the most recent names to climb 10-fold over five years, earning it the coveted 10-bagger designation, according to Trivariate founder and former Morgan Stanley chief U.S. equity strategist Adam Parker. But the history of these stocks also gave Parker a cautionary tale for investors searching for similar, spectacular returns: “no pain, no gain.” In an analysis of 84 ten-baggers, Trivariate found that the average high-performing stock also saw a drawdown of 48% on this journey, with the typical downturn lasting 114 days. “On your path to a 10-bagger, investors are very likely to experience a 6-month period where their big winning stock [gets cut] in half,” Parker wrote in a note to clients last week. To find the 84 stocks, Parker looked for names with market capitalizations over $2 billion and average daily trading volume of at least $30 million. He then screened for stocks that achieved 10-bagger status, and further culled the list to only those that accomplished the feat in the past 25 years. The chart below contains the names that achieved 10-bagger status most recently, along with information on their drawdowns. Note that some names appear more than once if they’ve risen 10-fold during two separate five-year periods. In Nvidia’s case, the stock climbed more than 1050% in a five-year period starting in 2018. During that time, however, shares also saw a pullback that lasted more than 220 days and at one point pulled down the Jensen Huang-led stock by 66%. Other stocks, such as Shopify , saw more concentrated declines that lasted an even shorter time. The e-commerce technology company soared more than 3500% in a five-year period that started in 2016, for example, but collapsed as much as 41% during a correction that lasted just 18 days in 2020. On the other hand, Tesla saw a downturn that lasted more than 360 trading days that at one point dragged down the electric vehicle maker’s stock by 50%. Still, Tesla soared more than 1050% over five years starting in 2012.