Three stocks go from $10,000 to $25,265 in just 3 months

Investors saw a small S&P 500 rally in March. But there were far more lucrative places to put money into the month — including big-cap tech stocks.

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All things considered, you would have invested $10,000 in January and reinvested your money in the best-performing stock in the S&P 500 every month throughout 2023, inclusive intel (INTC) in March you would now be at $25,265, says Investor’s Business Daily analysis of data from S&P Global Market Intelligence and MarketSmith.

That’s an impressive three-month gain of more than 150%. That’s quite an achievement considering the S&P 500 is up just 5.5% so far this year — after gaining more in January alone. The same $10,000 that was invested in the S&P 500 would now be worth only $10,550. That’s a profit of only $550. March also ushered in a sign of the big bounce in tech stocks.

Has March revived the S&P 500?

Looking back is 20-20. And clearly, few, if any, could have picked the top stock over each of the past three months because it’s not a repeatable strategy. But the staggering numbers are a reminder to investors that gains are to be found in a troubled market.

But it wasn’t easy. March lived up to its reputation as a meh month for the S&P 500, according to Stock Trader’s Almanac. The S&P 500 gained just 2% in March 2023. That’s slightly better than the average 1.1% gain in March since 1950, according to the Almanac. March is historically only the fifth best month of the year.

Top S&P 500 stock in March: Intel

Intel, a long-lagged former market leader in computer chips, was the stock to own in the S&P 500 in March. Shares soared 29% over the month to 32.08 as the S&P 500 inched up.

Analysts are writing off this year as another period of recovery. Adjusted earnings are projected to fall more than 70% to 53 cents a share through 2023. But after that, hopes point to a trend reversal. Analysts expect the company to earn $1.87 per share in 2024, up more than 250% from 2023. And then analysts see another 45% rise in adjusted earnings per share coming in 2025.

But while analysts are optimistic about the company’s growth prospects, many think the company’s stock price is overdue. Analysts give Intel shares a “Hold” rating. And they just think the shares will be worth 28.53 per share 12 months from now, which would be more than 11% down from now.

Read the S&P 500 this year

The twists and turns of each month show how challenging the S&P 500 is making things for investors.

The year started with a bang. Not only was the S&P 500 up 6.2% in January, some gainers over the month rose even more. Warner Bros. Discovery (WBD) increased by more than 56% in just one month.

And then February came with a pullback. Optimism that the Fed has finally cooled inflation with its rate hikes is giving way to fears of more rate hikes to come. Three quarters of stocks in the S&P 500 fell in February. catalytic (CTLT), a healthcare company, was a rare exception, gaining 25.6% for the month.

The big question, however, is whether big-cap tech will continue to outperform in April. The Nasdaq 100 rose more than 7.5% in March alone. And the market tends to do well in April with some tailwinds. Historically, April is the second best month of the year for the S&P 500.

Investors would certainly welcome another month like March.

How to turn $10,000 into $25,265 in 3 months

Sources: S&P Global Market Intelligence, IBD