Tired of the S&P 500's three-month losing streak? Help might be on the way in November.
Ten S&P 500 stocks, including information tech plays Advanced Micro Devices and Applied Materials plus consumer discretionary Bath & Body Works, consistently beat the market in November, says an Investor's Business Daily analysis of data from S&P Global Market Intelligence and MarketSmith. All 10 topped the S&P 500's November gains in each of the past five years and gained an average 10% or more during the month.
And topping the S&P 500 in November is no small feat. Historically, November is the best month for the S&P 500, says the "Stock Trader's Almanac."
Investors are hoping November lives up to its reputation to overcome some serious problems. "The combination of higher market interest rates and escalating geopolitical tensions have weighed on equity markets," said John Lynch, chief investment officer for Comerica Wealth Management. "Indeed, the S&P 500 entered correction territory, defined as a drop of 10.0% from its most recent high, in this case, late July."
Hoping For A Stronger November
All eyes are looking at November. It's usually a month that kicks off good things for the S&P 500.
The S&P 500 gained 1.7% in November going back to 1950, says "Stock Trader's Almanac." That ranks it No. 1 of all the months of the year. And lately, November has been even better. Last November, for instance, the S&P 500 shot up 5.4%. In the past five years, the S&P 500 gained 4.1% on average. And it only fell once in the month in the past five years: a negligible 0.8% in 2022. What's more, the S&P 500's "best six months" of the year kicks off in November.
S&P 500 investors could use some good news. They're understandably ground down. Three straight months of losses will do that. The S&P 500 just lost 2.2% during October. That alone isn't so bad. But add it to a 4.9% loss in September and 1.8% loss in August and the declines are starting to add up.
That's where the November winners come in.
Tech Winners In November
The biggest historical winner in November is off to a confusing start: AMD.
The chipmaker reported better-than-expected quarterly results late on the final day of October. But shares lost some ground in after-hours trading. Perhaps the selling sets the stock up for easy gains later in the month? That's definitely the stock's tradition. Shares of the semiconductor maker are up 23.3% on average in November in the past five years. That makes it the top performing S&P 500 stock in that time. AMD stock is already up nearly 20% this year.
To be fair, though, November tends to be a good month for semiconductor makers and other techs overall. Half the stocks that topped the S&P 500 during the month hail from the information technology sector. That includes the second-best S&P 500 stock during the month: Applied Materials. Shares of the chip equipment maker gained more than 18% in November on average the past five years.
Much hinges on the company's expected earnings release on Nov. 16. Analysts think the company's adjusted profit this year will rise nearly 3% to $7.92 a share.
If nothing else, most investors are hoping November simply snaps the S&P 500's losing streak. Hopefully that's not too much to ask.
Top S&P 500 Stocks In November
All topped S&P 500 each of the past five years in the month, gaining 10%-plus on average
years Sector
| Company | Ticker | November % avg. ch. past five | |
|---|---|---|---|
| Advanced Micro Devices | 23.3% | Information Technology | |
| Applied Materials | 18.2% | Information Technology | |
| ON Semiconductor | 16.6% | Information Technology | |
| Bath & Body Works | 14.4% | Consumer Discretionary | |
| AbbVie | 13.0% | Health Care | |
| Analog Devices | 11.5% | Information Technology | |
| ANSYS | 10.6% | Information Technology | |
| CVS Health | 10.5% | Health Care | |
| AMETEK | 10.2% | Industrials | |
| Broadcom | 10.1% | Information Technology |
