Chalk up another great month for the S&P 500. And the market's historically best six months of the year are still coming.
If you invested $10,000 in January in the top-performing stock in the S&P 500 at the time and reinvested that in each month's top performer, including United Airlines in October, you'd have $193,486 now, says an Investor's Business Daily analysis of data from S&P Global Market Intelligence and MarketSurge.
That's an impressive 10-month gain of 1,835%. It's quite a feat given the S&P 500 itself is up just a solid 20% so far this year. The same $10,000 invested in the S&P 500, though, would be worth just $12,200 now. That's a gain of just $2,200. The S&P 500 slipped -0.7% in October, lifting it for the eighth month this year.
Will The S&P 500 Get New Leaders In November 2024?
Hindsight is 20-20. And, clearly, few if any investors could have picked the top stock in each of the past 10 months, as it's not a repeatable strategy.
But the staggering gains on S&P 500 stocks this year remind investors amazing gains can be scooped up by diligent investors who stay engaged in the market.
In fact, even in a month the index rose, the S&P 500 offered many ways to make even more money. Nearly 50% of the stocks in the S&P 500 gained during October. And of those, four stocks jumped more than 20% in just one month.
Top S&P 500 Stock Of October: United Airlines
Now there's something you don't see often. The best S&P 500 stock for the month was an airline.
The S&P 500 itself inched higher in October. But your best bet was United Airlines.
United Airlines saw its shares jump nearly 38% in the month. Investors are bullish after the airline on Oct. 15 reported quarterly profit of $3.33 a share, topping views by 5.1%. The stock now sports an RS Rating of 97.
Furthermore, analysts think the company's profit will rise 17% next year. Growth isn't something airlines are known for. That's why the stock sports a 10 EPS Rating, out of 99.
Reading The S&P 500 So Far This Year
Monthly S&P 500 winners show how investors ducked and weaved all year.
The AI rally dominated in January. And of course, AI king Nvidia ruled with a 24.2% monthly rise. February the whole S&P 500 jumped 5.2%, its best monthly gain this year so far. And that month the AI-fueling utility Constellation Energy won with a 38.6% rise.
And then in March, the semiconductors lit it up. Micron Technology jumped 30.1%. And then investors pulled back in April due to worries about inflation. The S&P 500 dropped 2.6% in April, while gold miner Newmont took off 17.9%.
And then in May, solar-power player First Solar rallied. It's a reflection of investors' appreciation that alternative energy will likely play a larger role in keeping power-hungry AI models running. And then June came the Caesars Entertainment rally. In July Mohawk Industries, a maker of building materials, jumped on hopes of homebuilding strength. And in August, packaged food firm Kellanova jumped 40.1% on a buyout offer from privately held candy maker Mars.
In September, the AI boom spread and let utility Vistra jump 38.8%. Utilities are seeing huge demand for power to train AI models. Vistra's stock is outperforming the S&P 500 this year.
What's Coming Next For The S&P 500?
The big question, though, is: Will the S&P 500's power in October flow into November? Historically, investors like to participate in November to cash in on the market's best six months of the year.
And October is often pretty great for stocks, says the "Stock Trader's Almanac." November ranks No. 2 for S&P 500 returns going back to 1950, says the "Stock Trader's Almanac." The S&P 500 rises 1.7% in November on average. And it rose about 70% of the time.
Looks like investors might have more good days ahead.
How To Turn $10,000 Into $193,486 In 10 Months
| Month | Top S&P 500 stock | Symbol | Monthly gain | Sector | S&P 500 monthly ch. | Starting balance | Cumulative value of $10,000 investment in January reinvested in best stock each month |
|---|---|---|---|---|---|---|---|
| January | Nvidia | NVDA | 24.2% | Information Technology | 1.6% | $10,000 | $12,420 |
| February | Constellation Energy | CEG | 38.6% | Utilities | 5.2% | $12,420 | $17,214 |
| March | Micron Technology | MU | 30.1% | Information Technology | 3.1% | $17,214 | $22,397 |
| April | Newmont | NEM | 17.9% | Materials | -2.6% | $22,397 | $26,406 |
| May | First Solar | FSLR | 53.1% | Information Technology | 2.3% | $26,406 | $40,427 |
| June | Caesars Entertainment | CZR | 24.8% | Consumer Discretionary | 4.3% | $40,427 | $50,453 |
| July | Mohawk Industries | MHK | 42.7% | Consumer Discretionary | -0.4% | $50,453 | $71,997 |
| August | Kellanova | K | 40.1% | Consumer Staples | 3.9% | $71,997 | $100,868 |
| September | Vistra | VST | 38.8% | Utilities | 2.0% | $100,868 | $140,004 |
| October | United Airlines | UAL | 38.2% | Industrials | -0.7% | $140,004 | $188,726 |
