ETFs
5 Best Performing S&P 500 ETF Stocks for May
The S&P 500 jumped 4.3% in May, marking its best month since February. The broad market index rose above the 5,300 mark for the first time during the month, underscoring strong sentiment. Strong corporate earnings, Fed rate cut bets and the current AI boom have pushed stocks higher.
SPDR S&P 500 ETF Trust SPY, the proxy version of the S&P 500 index, gained 2.5% in May. While many stocks have powered the ETF, we’ve highlighted five that have gained double digits and have a solid Zacks Rank #1 (Strong Buy) or #2 (Buy). These are Gen Numérique Inc. GEN, NVIDIA Company NVDA, Vistra Energy Corp. VST, NetApp NTAP and Bath and body work BBWI. You can see the complete list of today’s Zacks #1 Rank stocks here.
Profits rose 6% in the first quarter of 2024, the highest growth rate seen in almost two years. NVIDIA’s blockbuster earnings have sparked huge optimism in the stock market in recent weeks, alongside the global AI boom (read: NVIDIA’s Explosive Earnings: Should You Buy Stocks or ETFs Now?).
The latest data series showed that the US economy is once again on track for another solid rise in GDP in the second quarter. Growth in U.S. business activity accelerated sharply to its fastest pace in more than two years in May, following two months of slower growth, driven by a recovery in the services sector. Consumer confidence, as indicated by the Conference Board Confidence Index, increased in May after three months of decline.
Additionally, Wall Street has become more bullish on stocks given the improving outlook for earnings and economic growth. Over the past two weeks, three equity strategists tracked by Yahoo Finance have raised their year-end targets for the S&P 500. The median target on Wall Street for the benchmark index now stands at 5,250, up from 4 850 on December 30. , according to Bloomberg data.
Let’s take a closer look at the fundamentals of SPY.
Espionage in brief
SPDR S&P 500 ETF Trust holds 503 stocks in its basket, each representing no more than 7% of assets. This suggests a good balance between each security and avoids high concentration. The fund is broadly distributed across the information technology, financials, healthcare and consumer discretionary sectors, each with a double-digit allocation.
SPDR S&P 500 ETF Trust has $529.5 billion in assets under management and charges 9 basis points in fees per year. It trades an average daily volume of 55 million shares and has a Zacks ETF Rank #2 with a Medium Risk Outlook (see: all Large Cap Blend ETFs here).
Below, we’ve highlighted the five best-performing stocks in the ETF mentioned above.
The story continues
SPY Best Performing Stocks
Digital generation is a leading provider of cybersecurity solutions. The company is known for some of the popular brands in security and utilities, including Norton Anti-Virus, Norton Internet Security, and Norton System Works. The stock has rallied about 24% in the past month and represents a 0.03% share in the SPY portfolio.
Gen Digital has an estimated earnings growth rate of 14.3% for the fiscal year (ending March 2025) and a Zacks Rank #2. He has a growth score of B.
Nvidia is the world leader in visual computing technologies and the inventor of the graphics processing unit or GPU. The stock jumped 23.5% in May. Its growth is estimated at 107.1% for the financial year (ending January 2025).
Nvidia represents 6.2% of SPY’s assets and currently holds a Zacks Rank #1. It has a growth score of A.
Vistra Energy is an energy company that provides power and electricity generation, distribution and transmission solutions. The stock jumped 21.6% last month. It represents 0.08% of the SPY portfolio assets.
Vistra Energy has an expected earnings growth rate of 5.8% for this year and a Zacks Rank #2. It has a growth score of A (read: 5 sector ETFs with double-digit gains in May).
NetApp provides enterprise storage and data management software and hardware products and services. The stock is up 15% in May and has an estimated earnings growth of 3.7% for the fiscal year (ending April 2025).
NetApp represents 0.05% of SPY’s assets. He currently has a Zacks Rank #2 and a Momentum Score of A.
Bath and body work is a specialty retailer that is home to America’s Favorite Fragrances, offering exclusive body and home fragrances, scented mists, body lotions and creams, 3-wick candles, room scent diffusers and soap hand liquid. The stock gained 13% in May and represents 0.03% of the SPY portfolio.
Bath & Body Works has an estimated earnings growth rate of 1.8% for the fiscal year (ending January 2025) and a Zacks Rank #2 currently. It has a growth score of A.
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NetApp, Inc. (NTAP): Free Stock Analysis Report
NVIDIA Corporation (NVDA): Free Stock Analysis Report
Gen Digital Inc. (GEN): Free Stock Analysis Report
SPDR S&P 500 ETF (SPY): ETF Research Reports
Vistra Corp. (VST): Free Stock Analysis Report
Bath & Body Works, Inc. (BBWI): Free Stock Analysis Report