S&P 500 stocks suffered their third monthly drop this year in April. But daring investors are still finding ways to make money.
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 Palantir Technologies in April, you'd have $36,711 now, says an Investor's Business Daily analysis of data from S&P Global Market Intelligence and MarketSurge.
That's an impressive three-month gain of 267%. It's quite a feat given the S&P itself is down a disappointing 7% so far this year. The same $10,000 invested in the S&P 500 would be worth just $9,300 now. That's a loss of $700. The S&P 500 sank 5.5% in April, making it the third-straight monthly loss.
Will The S&P Keep Sinking In May?
Hindsight is 20-20. And, clearly, few if any investors could have picked the top stock in each of the past four months, as it's not a repeatable strategy. But the staggering numbers this year remind investors that amazing gains can be scooped up by diligent investors who keep buy lists handy for leaders even when the S&P 500 starts to fade.
In fact, following three months of losses, the S&P offered many ways to make money. More than 37% of the stocks in the S&P 500 rose during April. And of those, four stocks jumped more than 40% in just one month.
Top S&P 500 Stock Of April: Palantir
The S&P 500 itself was so weak in April that competition to be No. 1 was easy. Palantir was well positioned. The company sells high-tech military defense and technology gear to the U.S. government. That's a selling point as the Trump administration tears up decades-old alliances with political allies.
It's hard to find any S&P 500 companies better positioned for Trump's reign than Palantir. Analysts think the company's earnings per share will jump 35% in 2025. And profit is seen rising another 23% in 2026. This is not the time to buy the stock, though. The RS Rating is 99 and EPS Rating is 98. But the stock is also extended past its 200-day moving average.
The rest of the top 10 S&P 500 stocks in the fourth month of the year were a motley crew of mostly beat-up value stocks. Beat-up drugstore chain CVS Health gained 45.2%. Shares rose more than 45% in April. Stable businesses are also in. Tobacco company Philip Morris saw its shares jump 41% in the month. The company's juicy dividend is also a draw.
What's Coming Next For The S&P 500?
The big question, though, is: Will the S&P 500's losing streak continue in May? Historically, the odds don't look great. Many investors like to sell in May and go away.
May ranks just eighth of all 12 months for the S&P 500 performance going back to 1950, says the "Stock Trader's Almanac." The S&P 500 inches up just 0.2% in May on average. The period of May and June is considered a "disaster area" for stocks as many investors take the summer off. And this May, investors also have tariffs along with layoffs to content with.
Following three disappointing months for the S&P 500, investors would welcome some relief. But it's unclear if they'll get it.
How To Turn $10,000 Into $36,711 In 4 Months
| Month | Top S&P 500 stock | Symbol | Monthly gain | Sector | S&P 500 monthly change | Starting balance | Cumulative value of $10,000 investment in January reinvested in best stock each month |
|---|---|---|---|---|---|---|---|
| January | Constellation Energy | CEG | 34.1% | Utilities | 2.7% | $10,000 | $13,410 |
| February | Super Micro Computer | SMCI | 50.60% | Information Technology | -3.0% | $13,410 | $20,195 |
| March | Dollar General | DG | 18.5% | Consumer Staples | -7.7% | $20,195 | $23,932 |
| April | Palantir Technologies | PLTR | 53.4% | Information Technology | -5.5% | $23,932 | $36,711 |
