Just when you thought Nvidia stock had everything going for it in the S&P 500, there's yet another plus for the AI champ.
Turns out that Nvidia, plus nine other S&P 500 stocks like United Rentals and Monolithic Power Systems, routinely beat the market in the challenging month of February, says an Investor's Business Daily analysis of data from S&P Global Market Intelligence and MarketSmith. All these stocks topped the S&P 500's returns in the month of February in the past five straight years.
Finding such bankable winners in February is a real asset. It's a difficult month for most S&P 500 stocks. The S&P 500 dropped in two of the past five Februarys. And it posted an average loss of 1.7% during the month on average since 2018.
"February has the reputation of being a digestion month for the S&P 500, following above-average monthly increases and frequencies of advance from October through January," said CFRA's Sam Stovall.
Nvidia Stands Out As S&P 500 Struggles In February
February isn't just a rough month for the S&P 500 lately. Going back to 1950, the S&P 500 lost an average of 0.08% during the month, says "Stock Trader's Almanac." That makes it the second-worst month for the index.
But don't tell Nvidia investors. They've thrived relatively during the month. Shares of Nvidia not only beat the S&P 500 during the month for five years and running. They've skyrocketed 9.1%, on average, during the month. That makes it the best S&P 500 stock during the month.
Last February was a standout, too. Shares of Nvidia jumped nearly 19% in February 2023, blowing past the S&P 500's 2.6% decline. And that's not totally out of character. Nvidia stock jumped 14.2% in February 2020 as the S&P 500 dropped 8.4%.
And Nvidia is turning it on again this year already. Shares are up 42% just in 2024 so far, and February only just started.
Other S&P 500 Champs In February
No S&P 500 stock comes even close to Nvidia this month. But there are some other winners.
Take United Rentals. The stock jumped 6.8% on average in February the past five years. In February 2021, United Rentals even outperformed Nvidia jumping 14.2% in just one month.
Monolithic Power is another February winner. Like Nvidia, it's in the information technology sector. And it's risen 6.3% on average during the month in the past five years.
All these S&P 500 winners highlight that while the market is tough in February, it's still possible to find winners.
"What's more, of the 79 years since 1945, the S&P 500 rose in price in January and February just 37% of the time," Stovall said. "However, when both months registered gains, the S&P 500 recorded a positive full-year total return 100% of the time, rising an average of 24%."
Top S&P 500 Stocks In February
All beat the market five-straight Februarys
| Company | Ticker | Avg. Feb gain (past five years) | Sector |
|---|---|---|---|
| Nvidia | 9.1% | Information Technology | |
| United Rentals | 6.8% | Industrials | |
| Monolithic Power Systems | 6.3% | Information Technology | |
| Old Dominion Freight Line | 5.2% | Industrials | |
| Cadence Design Systems | 4.8% | Information Technology | |
| Ulta Beauty | 4.4% | Consumer Discretionary | |
| Analog Devices | 3.6% | Information Technology | |
| Eaton | 3.3% | Industrials | |
| CSX | 1.5% | Industrials | |
| Teledyne Technologies | 1.0% | Information Technology | |
| S&P 500 | -1.7% |
