The S&P 500 saw a significant increase in September, marking its fifth consecutive month of gains. Some stocks experienced remarkable returns during this time.
If someone had invested $10,000 in the top-performing S&P 500 stocks back in January and then reinvested in those that performed best each month, they would now have around $181,172. This figure comes from analysis by Investors Business Daily, which used data from S&P Global Market Intelligence.
This translates to an astonishing profit of 1,712% over seven months, especially when you consider that the S&P 500 overall has gained only 13.3% this year. In fact, September recorded the highest single-month increase for the S&P 500 stocks this year. Comparatively, that same $10,000 invested directly in the S&P 500 is now worth about $11,330, which is a modest profit of $1,330. The S&P rose by 3.1% in September, making it the sixth month of positive growth since the start of the year.
Could October be a downturn for the S&P 500?
Looking back, it’s clear that picking winning stocks every month isn’t exactly a foolproof strategy. But the impressive gains this year serve as a reminder that when the S&P 500 experiences gains, savvy investors can capitalize on high-performing stocks.
Interestingly, nearly half of the S&P 500 stocks saw increases in September, with 14 stocks soaring over 20% in just one month.
Highlighting Top Stocks for September: Warner Bros Discovery
September proved to be a competitive month, but Warner Bros Discovery stood out. The company is positioned for growth following its merger, which created a significant player in the entertainment sector, known as Paramount Skydance.
September was a notable month, as it featured telecommunications stocks taking the top spots. Previously, Albemarle, a manufacturer of additives and chemicals, dominated last month with a 25.2% gain.
Analysts predict Warner Bros will see earnings per share rise by 108% in 2025 but anticipate a 184% drop in 2026. This might raise caution for potential investors since current stock prices are significantly above the 200-day moving average, even though the RS rating is a solid 96 and EPS rating is a respectable 68 out of 99.
Other top performers in September included a mix of companies. For instance, the mobile app platform Applovin saw its stock surge by 48.8%, marking a 120% gain for the year. Meanwhile, Western Digital, a digital storage company, continued to excel, with AI-related stocks increasing by more than 45% during the month.
What’s Ahead for the S&P 500?
The pressing question remains—will the S&P 500 continue to flourish in October? Historically, the month is notorious for dramatic downturns.
Since 1950, October ranks relatively low for S&P 500 performance, averaging just 0.8% gain. Investors also face risks from tariffs and potential layoffs.
After a strong performance last month, there’s cautious hope for further profits, but uncertainty looms.
Turning $10,000 into $181,172 in Eight Months
| Month | Top S&P 500 Stock | Symbol | Monthly Gain | Sector | S&P 500 Monthly Change | Starting Balance | Cumulative Value of Investment |
|---|---|---|---|---|---|---|---|
| January | Constellation Energy | CEG | 34.1% | Utilities | 2.7% | $10,000 | $13,410 |
| February | Super Microcomputer | SMCI | 45.4% | Information Technology | -1.4% | $13,410 | $19,498 |
| March | Dollar General | DG | 18.5% | Consumer Staples | -5.8% | $19,498 | $23,105 |
| April | Palantir Technologies | PLTR | 40.3% | Information Technology | -0.8% | $23,105 | $32,417 |
| May | NRG Energy | NRG | 42.3% | Utilities | 6.2% | $32,417 | $46,129 |
| June | Coinbase Global | COIN | 42.4% | Financial | 5.0% | $46,129 | $65,688 |
| July | Generac Holdings | GNRC | 35.9% | Industrials | 2.2% | $65,688 | $89,270 |
| August | Albemarle | ALB | 25.2% | Communication Services | 1.9% | $89,270 | $111,766 |
| September | Warner Bros Discovery | WBD | 62.1% | Communication Services | 3.1% | $111,766 | $181,172 |
