If you had to choose the best time to invest in the S&P 500 — it's the six months starting in November. But some stocks do much better than the rest.
Six S&P 500 stocks, including Super Micro Computer, health care firm DaVita and Micron Technology, beat the S&P 500 in the six months from November to April in each of the past five years, says an Investor's Business Daily analysis of data from S&P Global Market Intelligence and MarketSurge.
What's more, these stocks each posted 18% or higher gains in that six-month period on average in the past five years. That's a stellar gain in what's already traditionally the "best six months" of the year for the S&P 500.
"The S&P 500 registered the highest average price return and frequency of advance from November through April vs. any other rolling six-month period of the year," said Sam Stovall of CFRA citing data from "The Stock Trader's Almanac."
The Best Six Months For S&P 500
The period from November to April is a special one for the S&P 500. The returns are usually great.
"Since World War II, the S&P 500 climbed an average of nearly 7% from November to April, while rising only 2% from May to October," Stovall said.
This year, though, has been a little different. The S&P 500 gained more than 15%, a stellar return from April 30 through Oct. 25, Stovall said. That's on top of the 20% jump in the previous November to April run.
"This double-dose of double-digit returns has caused investors to wonder if the market has used up its energy reserves and may be headed for tough times," Stovall said.
Top Stocks In Six-Month Run
There's no doubt tech stocks tend to do well from November to April. Half of the top six S&P 500 stocks in the period are in the information technology sector.
Take high-end computing firm Super Micro as an example. The stock shot up 259% in the six months ended in April 2024. And that's just the garnish on top of a historically strong time for the stock. It jumped an average of nearly 81% from November to April the past five years. Another tech, Micron, saw shares surge 32% in the six-month period on average.
But it's not just a tech phenomenon. Surgery equipment company DaVita jumped an average of 36% on average from November through April. That's three times what the S&P 500 generally returns in a full year.
Is This Year Different?
Some S&P 500 investors might worry the six-month period starting in November this year might disappoint. That's because returns in the six months ended in October were so strong.
"Not according to history," Stovall says. "Prior momentum typically served as a running start to the following November to April period."
Of the prior 12 times that the S&P 500 gained 10% or more in the March to October period, the market added an average of 13% in the subsequent November to April period, rising in price 92% of the time, Stovall says.
That data is "implying that this advance also has further to run," he said.
Top S&P 500 Stocks During 'Six Best Months'
| Company | Ticker | Average | Sector |
|---|---|---|---|
| Super Micro Computer | SMCI | 80.6% | Information Technology |
| DaVita | DVA | 35.7% | Health Care |
| Micron Technology | MU | 31.7% | Information Technology |
| Eli Lilly | LLY | 28.2% | Health Care |
| Fair Isaac | FICO | 25.8% | Information Technology |
| Tractor Supply | TSCO | 18.3% | Consumer Discretionary |
