This market is tricky and when you’re looking to make money from it, it becomes important to analyze all the best-performing stocks and compare your portfolio to the current S&P 500 to make an informed decision.
How To Measure Stock Performance
One of the best ways would be to measure stock performance by calculating its year-on-year growth. Simply take a stock’s price at the start of the year and see how much it changed in 12 months.
For example, Tesla’s stock was $744.40 at the start of 2021 and $715.40 at the end of August 2021.
A year is a long enough time for a stock to rise and fall, and it’s also easy to compare yearly returns.
It’s also important to have perspective while measuring stock returns, so you must go a step further and look at the top 1,000 stocks by returns in large-cap, mid-cap, and small-cap.