Many big N.C.-based companies soared over the past year. But 33 of the 75 showed declines.
By David Mildenberg, Chris Roush and Matt West
It’s conventional investing wisdom that few individuals can top the long-term performance of the S&P 500 Index. That conviction is borne out in Business North Carolina’s annual report on the performance of the 75 largest public companies based in the state.
Only 24 companies on the list did better than the S&P 500’s
Only 24 companies on the list did better than the S&P 500’s 22.7% return for the year ending June 30. (Last year, 27 companies made that mark.)
Over the past five years, 19 companies exceeded the index’s 86% gain.
Still, it’s noteworthy that many larger N.C. companies are run so effectively that they beat the index, which is heavily influenced by the success of a few Big Tech stocks including Amazon, Google and Meta. None are based in North Carolina.
Eleven of the 25 biggest N.C. companies have made more money for five-year “buy and hold” investors than the S&P 500 — a lot more money, in some cases, as shown on a page 52 chart.
Those companies include a diverse array of sectors, though industrial businesses such as SPX, Trane Technologies, Curtiss-Wright and Nucor have shown particularly strong performance. None are flashy, but they score with investors.
The report also reflects rebounding performance by financial companies, which had notably weak results in recent years. Bank of America, Truist, First Citizens, Live Oak, LendingTree and HomeTrust each returned more than 30% over the past year. Their long-term returns still mostly lag the market, however.
Industry consolidation and greater investor interest in larger companies is apparent. Twelve companies now have more than $20 billion in market valuation, compared with only seven N.C.-based enterprises in 2019. The big are getting bigger.
Notable newcomers to the list are No. 31 Six Flags, the Charlotte-based theme-park operator that merged with the Cedar Fair chain; No. 38 Fortrea, a spinoff from Burlington-based Labcorp; and No. 61 flyExclusive, the charter-jet operator based in Kinston.
