A checkup on the stock market performance of North Carolina’s public corporations.
Our annual report on the performance of the
75 largest public companies based in the state always has us looking for the most consistent success stories. The results routinely show that the steadiest winners rarely are the flashiest businesses.
This year, it’s noteworthy that 23 Tar Heel companies have outperformed the S&P 500 index over the past five years. That compares with only 19 from last year’s list. Betting against the index is challenging.
Still, 10 companies had total returns topping 300% over the same period that the S&P gained 94%. Tripling the index over five years is a remarkable success.
Those 10 businesses, in order, are Kewaunee Scientific, Curtiss-Wright, Coca-Cola Consolidated, Trane Technologies, First Citizens Bancshares, Tanger, Kontoor Brands, Extreme Networks, SPX and EnPro.
Those companies reflect a wide range of sectors, but there are some underlying themes. Opportunistic investments and steady long-term family ownership have been a winning strategy for Coca-Cola Consolidated and First Citizens Bancshares. Trane Technologies, Curtiss-Wright, SPX and EnPro are industrial products companies that have shrewdly focused on fast-growing industries to spur revenue and profit margin growth.
Tanger is proving that brick-and-mortar retailing retains plenty of appeal despite the growth of online shopping. And Wrangler jeansmaker Kontoor is benefiting from a societal shift toward more casual wear.
The list shows how North Carolina is a magnet for skilled CEOs.
We looked at the undergraduate alma maters of the leaders of the 10 top performers, and only two graduated from a North Carolina school. Frank Holding Jr. of First Citizens is a graduate of UNC Chapel Hill, and Coca-Cola Consolidated’s Frank Harrison III is a Duke University alum. Both are scions of longtime N.C. business families.
On the flip side, readers will see that shares of 17 companies had a negative return over the past five years. Reasons for the dismal showings are all over the map. But it’s obvious that leadership matters when it comes to long-term stock market performance.
We appreciate Matt West of Capital Investment Cos. for helping produce
this report.
David Mildenberg is editor of Business North Carolina. Reach him at dmildenberg@businessnc.com.