Glad the election is over? So are other investors, who pushed the S&P 500 up in November when the voting was done.
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 Axon Enterprise in November, you'd have $295,646 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 2,856%. It's quite a feat given the S&P 500 itself is up just a solid 26.5% so far this year. The same $10,000 invested in the S&P 500, though, would be worth just $12,650 now. That's a gain of $2,650. The S&P 500 soared 5.7% in November, 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 that 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 75% of the stocks in the S&P 500 gained during November. And of those, three stocks jumped more than 30% in just one month.
Top S&P 500 Stock Of November: Axon
The best S&P 500 stock for the month was an industrial play for the second month in a row. This time it's Axon. Shares jumped 5.7% during the month. That's the best one-month gain of any S&P 500 stock all year.
Investors think the maker of law enforcement gear will see a boost in demand during the Trump administration. Analysts think profit will rise 23% this year and 22% next year. The stock already sports a stellar RS Rating of 98 and the Composite Rating is a perfect 99.
Reading The S&P 500 So Far This Year
Monthly S&P 500 winners show how investors bobbed and weaved all year.
The AI rally dominated in January. And, no surprise, AI king Nvidia ruled with its 24.2% monthly rise. In 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 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 the month, while gold miner Newmont took off 17.9%.
And 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 in June came the rally for Caesars Entertainment. 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 lifted utility Vistra by 38.8%. Utilities are seeing huge demand for power to train AI models. Vistra's stock is outperforming the S&P 500 this year. And then in October the boon in travel pushed United Airlines up 38.2%.
What's Coming Next For The S&P 500?
The big question, though, is: Will the S&P 500's power in November flow into December? Historically, investors like to participate in the year-end rally.
And December is often pretty great for stocks, says "The Stock Trader's Almanac." December ranks No. 3 among months for S&P 500 returns going back to 1950, according to the traders' tome. The S&P 500 rises 1.5% in December on average. And it rose about 70% of the time.
Looks like investors might enjoy a strong finish to the year.
How To Turn $10,000 Into $295,646 In 11 Months
| Month | Top S&P 500 stock | Symbol | Monthly gain | Sector | S&P 500 monthly change | 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 | $193,486 |
| November | Axon Enterprise | AXON | 52.8% | Industrials | 5.7% | $193,486 | $295,646 |
