The S&P 500 rallied back in May, undoing a third monthly drop in April. And it marked a month of big gains for some stocks.
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 NRG Energy in May, you'd have $52,842 now, says an Investor's Business Daily analysis of data from S&P Global Market Intelligence and MarketSurge.
That's an impressive five-month gain of 428%. It's quite a feat given the S&P itself is down a disappointing 5.3% so far this year. The same $10,000 invested in the S&P 500 would be worth just $9,469 now. That's a loss of $531. The S&P 500 rose 6.2% in May, making it the first positive month this year since January.
Will The S&P 500 Sink In June?
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 66% of the stocks in the S&P 500 rose during May. And of those, three stocks jumped more than 30% in just one month.
Top S&P 500 Stock Of May: NRG
The S&P 500 itself was so strong in May that competition to be No. 1 was fierce. NRG was well positioned. The company sells electrical power and uses nuclear power generation. That's a selling point as the Trump administration signs bills easing rules for nuclear energy.
Analysts think the company's earnings per share will sink 9% in 2025. But profit is seen rising 9% in 2026. This is not the time to buy the stock, though. The RS Rating is 97 and EPS Rating is 77. 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 stocks, including another utility: Constellation Energy. Shares gained 36% in May, putting them up 36% for the year. Super Micro Computer is also continuing to bounce from last year's trouble. Shares of the AI gear maker rose 32% in May.
What's Coming Next For The S&P 500?
The big question, though, is: Will the S&P 500's winning ways continue in June? Historically, the odds don't look great. Many investors like to sell in May and go away.
May ranks just ninth 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 0.02% in June on average. The period of May and June is considered a "disaster area" for stocks as many investors take the summer off. And this June, investors also have tariffs along with layoffs to content with.
Following three disappointing months for the S&P 500, investors welcomed some relief. But it's unclear if they'll get more.
How To Turn $10,000 Into $52,842 In 5 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 | 56.6% | Information Technology | -5.3% | $23,932 | $37,477 |
| May | NRG Energy | NRG | 41.0% | Utilities | 6.2% | $37,477 | $52,842 |
