What's the best month for S&P 500 stocks? You're in it: April. And you can thank a small group of stocks for making it happen.
Six stocks in the S&P 500, including consumer discretionary Caesars Entertainment, energy firm Hess and consumer discretionary Amazon.com, topped the S&P 500 each April going back five years, says an Investor's Business Daily analysis of data from S&P Global Market Intelligence and MarketSmith. And they all gained an average 10%, or more, in April, too.
Standing out in April is no small feat. April remains the S&P 500's top month of the year, says "The Stock Trader's Almanac." Some think it's due to tax refunds getting put to work in the market. Another good month would be welcomed by investors battered by volatility all year.
"Just as things were starting to improve ... the Russian invasion of Ukraine began in late February, and while the hostilities are taking place an ocean away from here, the impact of the war will likely be felt here in the form of higher commodity prices and their flow through the rest of the economy," Bespoke Investment Management said. "There's always something."
April Is The S&P 500's Best Month
April continues to show its dominance for the S&P 500. And it's usually a drama-free rally.
The S&P 500 jumped 1.7%, on average, in the month of April going back to 1950, says "The Stock Trader's Almanac." That topped typical gains in any other month. And the market gained in April every year in the past 16 years. And during those years, the S&P 500 did even better, rising 2.5% on average.
Better still? Stocks rarely fall, much less crash in April. Just look at the past five Aprils. The S&P 500 rose in each of them. The smallest gain was 0.3% in April 2018, but a gain nonetheless. And it can be an explosive month on the upside, too, with the S&P 500 soaring nearly 13% in April 2000.
But which S&P 500 stocks are tops in the month?
Caesars Entertainment Gambling On April
When it comes to S&P 500 stocks that dominate in April, casino operator Caesars is in a class of its own. The stock rocketed 18%, on average, just in the month of April going back five years. No other S&P 500 stock comes close.
It's true, shares are down 17% this year so far. But the fact is, outperforming in April is just what Caesars does. Last April, for instance, the stock shot up 11.9%. That easily topped the S&P 500's 5.2% gain that month. And even in April 2017, while the S&P 500 inched up 0.9%, Caesars managed to gain 1.1%.
Analysts seem to hope the company's business will improve starting in April. Caesars is seen posting a loss of $2.04 a share for the March quarter. But that loss is expected to shrink to just 3 cents a share in the quarter ended in June. Meanwhile, analysts think the company will turn a profit of 16 cents a share in the September-ended quarter.
Winning On S&P 500 Energy And Online Retail
S&P 500 energy stocks have been racing higher all year. And April is another good month for one of the key players.
Hess, an oil and gas exploration company, is already up 45% this year so far. And it simply doesn't lose in the month of April.
Hess' stock has gained in April, on average, by 14.3% over the past five years. Some Aprils have been absolutely explosive for the stock. It gained 46.1% in April 2020. Investors won't have to wait long for good news from Hess, either. Analysts think the company, on April 27, will report nearly 7% higher profit of 88 cents a share. And then in the quarter started in April, analysts think Hess' profit will jump nearly 700%.
And coming off a stock split announcement, Amazon is in play. The stock tends to fare well in April, too. It gained 11.9%, on average, in the month going back five years. It even rose 4.3% in April 2017 in a month the S&P 500 barely eked out a gain. Amazon, too, could use some good news. Shares are down 2.1% this year so far as workers attempt to unionize. Should you buy Amazon stock now?
It's understandable for S&P 500 investors to be rattled from the year so far. But April is worth giving a shot.
Best S&P 500 Stocks In April
They topped the S&P 500 in April for five years straight and gained 10% or more during the month on average
| Company | Symbol | Stock % avg. gain in April | Sector |
|---|---|---|---|
| Caesars Entertainment | 18.1% | Consumer Discretionary | |
| Hess | 14.3 | Energy | |
| Meta Platforms | 12.5 | Communication Services | |
| Amazon.com | 11.9 | Consumer Discretionary | |
| Whirlpool | 10.3 | Consumer Discretionary | |
| Constellation Brands | 10.0 | Consumer Staples |
