In the last 12 months, the S&P 500 has risen nearly 18%, a strong performance if you compare it to different yearly time frames for the previous five years. Having the S&P 500 as one of the main benchmarks to assess the overall health of the U.S economy, we can find a vast variety of stocks that greatly outperform and underperform this index. The following four large cap stocks have considerably outperformed the S&P 500 and their returns are in in excess of 70% or more in the last year.

Vipshop Holdings Limited (VIPS), an online Chinese discount retailer, is up more than 400% over the last year. The stock has clearly respected the 50-day moving average, only dropping below for brief periods between April and May 2014. A potential entry point investors could consider is if the stock price experiences a pullback at $175. The price reached $201.50 on July 2, 2014, retreated, and is pushing toward that level again. A break above that price could signal another short-term advance, keeping the long-term uptrend healthy.

VIPS long-term uptrend

Another excellent performer over the last year is Micron Technology Inc. (MU,) which jumped more than 140% since July 2013. Minor pullbacks have respected the 50-day moving average. A deeper pullback, like the one seen in March and April 2014, breached the 50-day but stayed well above the 200-day moving average. Therefore, a pullback to the 50-day moving average provides a potential entry area, with a stop loss not too far below. The stock made a $34.50 high on July 1, pulled back and is now testing that high again. A break above keeps the long-term uptrend healthy and indicates another short-term advance.

MU long-term uptrend

Facebook, Inc. (FB) is up more than 150% over the last twelve months. That all came earlier in the year, though, as the stock has struggled since putting in a March high at $72.59. The stock remains above its 200-day moving average, and technically the uptrend is still intact as the price has been making overall higher swing highs and higher swing lows. If the price falters here, and is unable to make a new high, then a drop back below $60 (which is near the 200-day moving average as well) means the stock will likely enter a downtrend.

FB top performer

American Airlines Group Inc. (AAL) is up more than 70% over the last year, and after consolidating through much of June and July of 2014, is pushing back towards a resistance of $44.88. Given the overall uptrend, a break above the resistance and out of the consolidation sets up another likely advance for the stock. If the current consolidation sees a downside break--a drop below $37.90, it is likely the stock price will not continue an uptrend. Given that this area was already tested this month, a move higher is more likely than a drop below this area.

AAL uptrend

The Bottom Line

These stocks have been strong for the last year, and continue to exhibit strength and potential for more upside. The one exception is possibly Facebook. While the uptrend remains intact, there hasn't been any progress since March 2014 and moves higher have been more feeble than the advances seen earlier in the year. Having already seen exceptional gains, there isn't really any reason to bail on these stocks just yet.

VipShop Holdings, Micron Technologies and American Airlines are all pushing at resistance, with a break higher indicating more gains, at least in the short-term.

It is recommended to always have an exit strategy for taking profits, possibly placing a stop below a recent low, or just below a moving average that has been tested during the uptrend.

Related Articles
  1. Investing

    Build a Retirement Portfolio for a Different World

    When it comes to retirement rules of thumb, the financial industry is experiencing new guidelines and the new rules for navigating retirement.
  2. Chart Advisor

    ChartAdvisor for September 4 2015

    Weekly technical summary of the major U.S. indexes.
  3. Trading Strategies

    Only Take a Trade If It Passes This 5-Step Test

    Not every moment is a good trading opportunity. Put each trade through this five-step test, so you're trading only at the best profit potential times.
  4. Forex Strategies

    Two Great Currencies To Profit From Oil Volatility

    U.S. dollar crosses with Canadian and Australian dollars offer easy access to crude oil trends due to their tight correlation with energy futures.
  5. Investing

    Redefining the Stop-Loss

    Using Stop-losses for trading doesn’t mean ‘losing money’, but instead think about the money you'll start saving once you learn how they work.
  6. Chart Advisor

    3 Ways to Trade the Rising Volatility

    With volatility increasing in the markets, many are turning to these three volatility-capturing exchange-traded products.
  7. Chart Advisor

    Big Double Top Patterns On the Verge of Breaking

    These stocks have created big double top chart patterns, and are on the verge of breaking the patterns to the downside--a bearish signal.
  8. Chart Advisor

    Gold Struggles to Climb Higher and May Fall Soon

    Traders will be watching the price of gold over the coming weeks. We'll take a look at how a couple major moving averages are suggesting that the next move could be lower.
  9. Technical Indicators

    Use Market Volume Data to Determine a Bottom

    Market bottoms often carve out classic volume patterns that let observant traders make fast and accurate calls.
  10. Stock Analysis

    Net Neutrality: Pros and Cons

    The fight over net neutrality has become an amazing spectacle. But at its core, it's yet another skirmish in cable television's war to remain relevant.
RELATED TERMS
  1. Equity

    The value of an asset less the value of all liabilities on that ...
  2. Fintech

    Fintech is a portmanteau of financial technology that describes ...
  3. Indicator

    Indicators are statistics used to measure current conditions ...
  4. Intraday Momentum Index (IMI)

    A technical indicator that combines aspects of candlestick analysis ...
  5. Hard-To-Sell Asset

    An asset that is extremely difficult to dispose of either due ...
  6. Sucker Yield

    When an investor has essentially risked all of his capital for ...
RELATED FAQS
  1. How do dividends affect retained earnings?

    When a company issues a cash dividend to its shareholders, the retained earnings listed on the balance sheet are reduced ... Read Full Answer >>
  2. Tame Panic Selling with the Exhausted Selling Model

    The exhausted selling model is a pricing strategy used to identify and trade based off of the price floor of a security. ... Read Full Answer >>
  3. Point and Figure Charting Using Count Analysis

    Count analysis is a means of interpreting point and figure charts to measure vertical price movements. Technical analysts ... Read Full Answer >>
  4. What assumptions are made when conducting a t-test?

    The common assumptions made when doing a t-test include those regarding the scale of measurement, random sampling, normality ... Read Full Answer >>
  5. What is the difference between called-up share capital and paid-up share capital?

    The difference between called-up share capital and paid-up share capital is investors have already paid in full for paid-up ... Read Full Answer >>
  6. Why would a corporation issue convertible bonds?

    A convertible bond represents a hybrid security that has bond and equity features; this type of bond allows the conversion ... Read Full Answer >>

You May Also Like

COMPANIES IN THIS ARTICLE
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!