Investors are in a gambling mood for S&P 500 stocks again. And it's paying off.
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 Caesars Entertainment in June, you'd have $49,604 now, says an Investor's Business Daily analysis of data from S&P Global Market Intelligence and MarketSurge.
That's an impressive six-month gain of 400%. It's quite a feat given the S&P 500 itself is up a solid 15% so far this year. The same $10,000 invested in the S&P 500, though, would be worth just $11,500 now. That's a gain of just $1,500. The S&P 500 gained 4.7% in June, pushing it up for the fifth month this year since January.
Will The S&P Keep Rolling In July 2024?
Hindsight is 20-20. And, clearly, few if any investors could have picked the top stock in each of the past six 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 half the stocks in the S&P 500 gained during June. And of those, six stocks jumped more than 20% in just one month.
Top S&P 500 Stock Of June: Caesars Entertainment
The S&P 500 itself was impressive in June. But you could have done even better still.
Caesars Entertainment, an operator of gaming properties in 18 states, saw its shares jump 23% in the month. And Caesars Entertainment's stunning gain comes ahead of what analysts think will be a rebuilding year. On Aug. 1 the company is expected to post quarterly revenue of $2.9 billion, in line with revenue a year ago.
The company's adjusted profit per share is seen plunging this year to 3 cents from $3.64 in 2023.
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.
What's Coming Next For The S&P 500?
The big question, though, is: Will the S&P 500's winning streak keep going in July 2024? Historically, investors famously like to sell in May and go away until November.
Even so, July is usually pretty decent for stocks. It's the best month in the third quarter for the S&P 500 going back to 1950, says the "Stock Trader's Almanac." The S&P 500 rises 1.3% in July on average. And it rose more than half the time.
Keep in mind, though, there's no guarantee stocks will keep surging like they have all year. Much depends on whether investors still feel like pushing their luck.
How To Turn $10,000 Into $49,604 In 6 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 | 24.2% | Information Technology | 1.6% | $10,000 | $12,420 | |
| February | Constellation Energy | 38.6% | Utilities | 5.2% | $12,420 | $17,214 | |
| March | Micron Technology | 30.1% | Information Technology | 3.1% | $17,214 | $22,397 | |
| April | Newmont | 17.9% | Materials | -2.6% | $22,397 | $26,406 | |
| May | First Solar | 53.1% | Information Technology | 2.3% | $26,406 | $40,427 | |
| June | Caesars Entertainment | 22.7% | Consumer Discretionary | 4.7% | $40,427 | $49,604 |
