Making money in the S&P 500 became more difficult again in August. But not impossible.
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All told, if you had invested $10,000 in January and reinvested your money in the top stocks currently in the S&P 500 every month this year, including Constellation energy (CEG) in August, you’d have $95,509 now, says a daily analysis of investor data from S&P Global Market Intelligence and MarketSmith.
That’s an impressive eightmonth gain of over 830%. That’s quite a feat in a year, the S&P 500 is down more than 16% and has been dealing with a bear market all year. The same $10,000 invested in the S&P 500 would now be worth just $8,400. That’s a loss of $2,600.
While those eight stocks jumped the most, the S&P 500 struggled for the month. The S&P 500 fell 3.5% in August. This represents a 9.1% increase in the index during July. It also prolongs the pain for many index investors. And so far, the S&P 500 has fallen in six of the past eight months.
The S&P 500’s Biggest Gainers of the Year
Looking at the top stocks in August tells you that investors in the S&P 500 are trying to find stability. It’s a recurring theme every month.
Constellation Energy, an East Coast energy producer, is the first stock of the month to rise more than 23%. The company yields an additional 0.7%. It also shows how the mood of the S&P 500 changed in August.
The performance is not impressive. But the stability of the company is, which now seems to be more important for investors. Analysts expect the company’s profits to rise to more than $1 billion, or $2.98 per share, this fiscal year. If they’re right, that’s a reversal of the $1.24 per share the company lost in 2021. Most impressive, though, is that Constellation’s adjusted earnings per share are expected to rise not only this year, but also in 2023, 2024, 2025 and 2026. This is a long growth track at a time when growth is thinnest.
Also tied to the stability theme are other S&P 500 gainers in August, including Cardinal Health and Nielsen Holdings.. Both stocks are up north of 15% for the month as investors applaud the companies’ strong earnings records. As with Constellation, analysts think Nielsen’s earnings per share will grow every year now through at least 2027. And it’s yielding 2.8% annually to boot.
Seeing the rush to safety is the right way to go after the surge in more speculative plays in July. Even with EPAM, the #1 stock in August, the business is based more on longterm contracts and stable growth than rapid growth. Shares of information technology stocks are up more than 22% for the month.
With the S&P 500 so uncertain, investors seem to be looking for a safer bet.
How to turn $10,000 into $95,509 in eight months
The top stocks in the S&P 500 in each month of the year so far
| Month | The best stocks in the S&P 500 | symbol | Monthly stock gain % | Sector | S&P 500% monthly cap. | to pray ball | Accumulated investment value of $10,000 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 |
| March | Nielsen Holdings | (NLSN) | 56.4% | industrial | 3.6% | $18,023 | $28,188 |
| April | (TWTR) | 26.9% | Communication services | 5.4% | $28,188 | $35,771 | |
| may | Albemarle | (ALB) | 33.4% | Materials | 5.3% | $35,771 | $47,718 |
| june | Dollar General | (DG) | 11.4% | Discretionary consumption | 8.4% | $47,718 | $53,158 |
| july | Enphase Energy | (ENPH) | 45.6% | Information Technology | 9.1% | $53,158 | $77,398 |
| August | Constellation energy | (Blind) | 23.4% | utilities | 3.5% | $77,398 | $95,509 |