Performance vs S&P
Tier 3 · Market Sentiment · 0.5× weightDid this stock beat just buying the index?
Compares the stock's total price return against the S&P 500 benchmark over the longest available history — 5 years where data exists, falling back to 1 year or YTD for newer listings. Sustained outperformance indicates the equity has generated alpha above the passive benchmark. Scores are capped at 6/10 for 1YR and YTD windows to reflect the shorter and statistically less significant measurement period. The question is consistent regardless of window: did shareholders get compensated for taking individual stock risk over just owning the market?
Five years of market outperformance is signal, not noise. Single-year blowouts can be luck or a favorable macro environment. Consistently beating the index over a full cycle requires a durable competitive advantage and disciplined capital allocation.
The S&P 500 is the universal benchmark regardless of sector. The question is always the same: did shareholders get compensated for taking individual stock risk versus just owning the market?
Outperforming S&P 500 by +20pp or more over 5 years
Roughly in line with the S&P 500 benchmark
Underperforming S&P 500 by -20pp or more