S&P 500 stocks suffered their second monthly drop this year in March. 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 Dollar General in March, you'd have $23,932 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 139%. It's quite a feat given the S&P itself is down a disappointing 4.6% so far this year. The same $10,000 invested in the S&P 500 would be worth just $9,540 now. That's a loss of nearly $500. The S&P 500 sank 7.7% in March, more than erasing its 2.7% rise in January.
Will The S&P Keep Rolling In April?
Hindsight is 20-20. And, clearly, few if any investors could have picked the top stock in each of the past three months, as it's not a repeatable strategy. But the staggering numbers this year remind investors 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 two months of losses, the S&P offered many ways to make money. More than 24% of the stocks in the S&P 500 rose during March. And of those, eight stocks jumped more than 12% in just one month.
Top S&P 500 Stock Of March: Dollar General
The S&P 500 itself was so weak in March that competition to be No. 1 was easy. Dollar General was well positioned. The company sells discounted merchandise. That's a selling point as consumers brace for more inflation.
Much of the gains in the company's stock so far are speculative. Analysts think the company's earnings per share will rise just 8% in 2025. But its profit is seen rising 10% in 2026. This is not the time to buy Dollar General. The RS Rating is just 23 and EPS Rating just 21. The stock is also trading just below its 200-day moving average.
The rest of the top 10 S&P 500 stocks in the third month of the year were a motley crew of mostly beat-up value stocks. Defense contractor Huntington Ingallsgained 16.2%. Demand for military equipment is rising around the world as President Donald Trump rips up alliances with allies. Shares rose nearly 17% in March.
What's Coming Next For The S&P 500?
The big question, though, is: Will the S&P 500's winning streak continue in April? Historically, the odds look good.
April is the second-best month for the S&P going back to 1950, says the "Stock Trader's Almanac." The S&P 500 rises 1.5% in April on average. And it rose nearly 72% of the time. Some of the strength kicks in following the April tax deadline.
This year is a little different with the S&P 500 falling into a correction. Also tariffs are rising along with layoffs. But following a disappointing February and March, investors would welcome some relief.
How To Turn $10,000 Into $23,932 In 3 Months
| Month | Top S&P 500 stock | Symbol | Monthly gain | Sector | S&P 500 monthly ch. | 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 | Huntington Ingalls Industries | HII | 18.5% | Consumer Staples | -7.7% | $20,195 | $23,932 |
