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It has been exactly 10 years since Steve Jobs resigned as Apples (AAPL) CEO. And Apple stock has definitely lost much of its wow factor in the S&P 500.
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Shares of the tech giant have risen 1.022% since Tim Cook replaced Jobs as Apple CEO on August 24, 2010. Yes, that exceeds the 286% rise in the S&P 500 at that time. But it ranks Apple stock in 45th place for stock gains over that period in the S&P 500. That gain barely places Apple in the top 10% of the current 459 members of the S&P 500 who have been trading since then. according to an Investor’s Business Daily analysis of S&P Global data. Market Intelligence and MarketSmith.
Apple stock is simply no longer the standout S&P 500 stock it used to be.
Apple stock rose 6,712% in the 14 years after Jobs returned to Apple in September 1997 until he resigned for health reasons. This made Apple number 2 in the S&P 500 after just Monster drink (MNST), which climbed 39.344% during that time thanks to the energy drink craze.
And the remarkable 15.839% of Apple stock from 1982 until Jobs ended in 2011 is one of the legends on Wall Street. It ranked third among the S&P 500 at that time.
But now Apple stock is showing its age.
Apple Stock An S&P 500 also ran
All of the S&P 500 stocks that have passed Apple in the past 10 years show how much they are moving down the slower path. Apple, up just 12.8% this year, even lags behind the S&P 500 in 2021 so far.
What’s the best S&P 500 stock since Jobs resigned? Elon musk You’re here (TSLA). It rose 15.281% during that time, hovering around the 1.022% gain in Apple stock. And it’s not just about stock market speculation. Tesla’s revenue since 2010 is up nearly 27,000% from 2011, making Apple’s 320% revenue growth appear pedestrian.
Apple is no longer even the top performing tech stock in the S&P 500 with Cook at the helm. Nvidia (NVDA), led by visionary co-founder Jen-Hsun Huang, wins the honor. Shares of Nvidia, a pioneer of high-performance computer chips, have seen their shares climb 6,539% since Jobs left Apple.
Meanwhile, Apple stocks are being overtaken by many of the stocks of its major competitors. Actions of Amazon.com (AMZN) are up 1,587% since Cook recaptured it, ranking it 20th in the S&P 500 at that time. And even his historic rival Microsoft (MSFT) leads a post-employment Apple stock. Despite Apple’s relentless publicity describing Microsoft as hopelessly outdated, Microsoft stock is up 1.132%, overtaking Apple. Should we buy Apple shares now?
In defense of the apple stock
Apple stock may not be the absolute market leader in the S&P 500. But you won’t find many investors complaining about owning it.
It still makes the list of top stocks in the IBD rankings thanks to strong fundamentals. Apple is expected to earn $ 5.57 per share this fiscal year, up nearly 70% from fiscal 2020. Apple can also at least say that its stock has exceeded the alphabet (GOOGL) 980% increase since Jobs resigned.
And thanks to the powerful iPhone franchise and its almost annuity-like replacement cycle, Apple stocks have invested $ 2.4 trillion in investor portfolios over the past 10 years. This exceeds the gain in market value of any company in the S&P 500. It even exceeds the $ 2.28 trillion in market value earned by No.2, Microsoft. Apple is worth more than any other company in the S&P 500.
Apple also retains its position as the top dividend payer of the S&P 500 in terms of pure dollars, according to the S&P Dow Jones indices. It pays out $ 12.3 billion a year in dividends, second only to Exxon Mobil (XOM) at $ 12.4 billion per year. Apple has also increased its dividend more than any other company in the S&P 500 this year. Also keep in mind that Apple is aggressively buying back its shares.
Therefore, Apple stock may not be the best stock in the S&P 500 anymore, but it is good enough for many. Renowned investor Warren Buffett owns over 40% of Berkshire Hathaway’s US-listed portfolio in this single stock.
Don’t expect Apple stocks to relive their good old days.
Top S&P 500 Stocks After Apple Resigns CEO
| Rank in the S&P 500 | Society | Teleprinter | 10-year share% ch. | YTD% stock ea. | Sector | Market value now (in billions of dollars) |
|---|---|---|---|---|---|---|
| 1 | You’re here | (TSLA) | 15.281% | 0.1% | Consumer discretionary | $ 699 |
| 2 | Nvidia | (NVDA) | 6,539 | 68.2% | Computer science | 548 |
| 3 | DexCom | (DXCM) | 4,417 | 38.7% | Health care | 50 |
| 4 | Align technology | (ALGN) | 3 797 | 30.6% | Health care | 55 |
| 5 | Monolithic power systems | (MPWR) | 3 797 | 32.5% | Computer science | 22 |
| 6 | Abiomed | (ABMD) | 2 884 | 8.6% | Health care | 16 |
| 7 | Adobe | (ADBE) | 2,662 | 31.3% | Computer science | 313 |
| 8 | United Rentals | (TO HATE) | 2 264 | 45.7% | Industrial | 24 |
| 9 | Western Pharmaceutical Services | (WST) | 2 147 | 57.6% | Health care | 33 |
| ten | Generac Holdings | (GNRC) | 2 112 | 82.5% | Industrial | 26 |
| 45 | Apple | (AAPL) | 1,022 | 12.8% | Computer science | 2,475 |
Sources: IBD, S&P Global Market Intelligence, Steve Jobs resigned as CEO of Apple on August 24, 2011
Follow Matt Krantz on Twitter @mattkrantz
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