Making money in the S&P 500 gets tougher in August. But it’s not impossible.
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All told, you invested $10,000 in January and reinvested your money in Current top stocks in the S&P 500 every month this year, including Constellation energy (CEG) in August, you’ll now have $95,509, according to Investor’s daily analysis of data from S&P Global Market Intelligence and MarketSmith.
That’s an impressive increase in eight months, more than 830%. That’s a feat in a year the S&P 500 is down more than 16% and has faced a bear market all year. That same $10,000 invested in the S&P 500 would be worth only $8,400 now. That’s a $2,600 loss.
While these eight stocks were the biggest gainers, the S&P 500 struggled for the month. The S&P 500 Index fell 3.5% in August. That’s the index’s 9.1% gain in July. It also lasts a long time causing many index investors headaches. And so far, the S&P 500 has fallen in six of the past eight months.
Biggest S&P 500 Winner of the Year
A look at August’s top stocks tells you S&P 500 investors are looking for stability. It’s a recurring theme for the month.
Constellation Energy, an east coast power producer, was the No. 1 stock for the month up more than 23%. The company gained 0.7% on it. It also shows S&P 500 The mood changed in August.
Output is not impressive. But the stability of the company is the most important thing for investors right now. Analysts expect the company’s profits to grow to more than $1 billion, or $2.98 a share, this fiscal year. If they’re correct, that marks a reversal from the $1.24 a share the company lost in 2021. Most impressive, however, is Constellation’s adjusted earnings per share expected. will increase not only this year but also in 2023, 2024, 2025 and 2026 That’s a long way of growth at a time when growth is scarcer.
Also sticking to the theme of stability are other S&P 500 winners for August including Cardinal Health and Nielsen Holdings.. Both stocks are up 15% north for the month as investors applaud the companies’ solid earnings track record. Just like Constellation, analysts expect Nielsen’s earnings per share to grow year-over-year through at least 2027. And it delivers 2.8% a year to boot.
Seeing the plunge into safety is a strong move in the right direction after a surge of speculation in July. Even with EPAM, the No. 1 stock in August, the business is more about long-term contracts and steady growth than fast growth. Shares of the information technology company are up more than 22% for the month.
With the S&P 500 so uncertain, investors seem to be looking for more of a safe bet.
How to turn $10,000 into $95,509 in 8 months
Top S&P 500 stocks every month of the year so far
| Month | Top S&P 500 Stocks | Icon | Stocks up% monthly | Area | S&P 500% monthly ch. | Homeless. backpack. | Cumulative value of a $10,000 investment in January reinvested in the best stocks every month |
|---|---|---|---|---|---|---|---|
| January | Halliburton | (HAL) | 34.4% | Energy | -5.3% | $10,000 | $13,440 |
| February | SolarEdge | (SEDG) | 34.1% | Information Technology | -3.1% | $13,440 | $18,023 |
| Steps are | Nielsen Holdings | (NLSN) | 56.4% | Industries | 3.6% | $18,023 | $28,188 |
| April | (TWTR) | 26.9% | Communication service | -5.4% | $28,188 | $35,771 | |
| maybe | Albemarle | (ALB) | 33.4% | Material | -5.3% | $35,771 | $47,718 |
| June | Common Dollar | (DG) | 11.4% | Consumer goods | -8.4% | $47,718 | $53,158 |
| July | Enphase Energy | (ENPH) | 45.6% | Information Technology | 9.1% | $53,158 | $77,398 |
| August | Constellation energy | (CEG) | 23.4% | Utilities | -3.5% | $77,398 | 95,509 dollars |
Source: IBD, S&P Global Market Intelligence
