How's a 26.1% gain in a month sound? It's possible with one stock in the S&P 500.
Shares of AI wunderkind Nvidia soared more than 26% in January, making it the best stock in the index for the month, says an Investor's Business Daily analysis of data from S&P Global Market Intelligence and MarketSmith. Just $10,000 invested in the stock coming into the year would be worth $12,614 now. That blows away the S&P 500's 3.3% year-to-date gain.
And being the best stock in January was quite the feat — as it was a solid month for most of the market. The S&P 500's January gain this year was triple what it normally is in the month, says "Stock Trader's Almanac."
Plus, much is going right for the S&P 500 now. "A plethora of big bases for equity indices in the U.S. and abroad, major upside breakouts for the S&P 500, weekly global and U.S. top 15 most active advance-decline (A-D) lines, benign levels for credit spreads, improving financial conditions, solid ... returns in Presidential election years, record highs near $6 trillion for ICI Money Market Funds and middle-aged cyclical and secular bull markets for the (S&P 500) provide a positive backdrop for equities in 2024," said BofA Securities.
Choosing Right Pays Off
January kicked off the S&P 500's new year with gusto. And some serious money is being made.
Ending up with a $2,610 gain on a $10,000 investment with Nvidia in just a month is stellar. The gain on the same $10,000 plunked down on the S&P 500 would be just $330, or 88% less.
And there's no wonder why investors are so enthusiastic about the AI stock. Nvidia is expected to make $12.29 a share in 2024. If that's right it would be a jump of 268%. And analysts think profit will leap another 64% in 2025. Keep in mind, too, the company on Nov. 21 reported quarterly profit that topped expectations by nearly 19%.
But as impressive as Nvidia's run is, it's not alone. A total of eight S&P 500 stocks jumped 15% or more this year. And nearly 30 stocks in the index are up 10% or more this year. That's an important statistic as that's what the S&P 500 has historically returned for the entire year.
Rounding Out The Top 10
Nvidia stock rocked in January. But other S&P 500 stocks weren't far behind.
Computer networker Juniper Networks' stock gain was so close to Nvidia in January you need to go out to two decimal places to break the tie. Shares added 26.12% in the month, turning $10,000 into $12,612. That's just two bucks short of what you would have made in Nvidia (26.14%).
Next up is health care play Catalent. Its shares shot up 18.1% in January. That turned $10,000 into $11,805.
The big question now is how February is shaping up. Historically it's a lousy month, ranking second-to-last with a 0.08% average monthly drop, says "Stock Trader's Almanac." We'll see if the January surge can overcome the perils of February.
Top S&P 500 Stocks In January 2024
| Company | Ticker | January % gain | Sector | Value of $10,000 invested |
|---|---|---|---|---|
| Nvidia | 26.14% | Information Technology | $12,614 | |
| Juniper Networks | 26.12% | Information Technology | $12,612 | |
| Catalent | 18.1% | Health Care | $11,805 | |
| Palo Alto Networks | 17.3% | Information Technology | $11,730 | |
| Advanced Micro Devices | 16.8% | Information Technology | $11,680 | |
| Netflix | 15.6% | Communication Services | $11,558 | |
| W.R. Berkley | 15.4% | Financials | $11,543 | |
| Arista Networks | 15.5% | Information Technology | $11,548 | |
| International Business Machines | 14.9% | Information Technology | $11,487 | |
| Marathon Petroleum | 14.5% | Energy | $11,451 |
