You just doubled your money on S&P 500 stocks from the Covid-19 rally. That’s great — but it’s nothing compared to how some individual stocks did.
The S&P 500 soared 100.2% in just 17 months following the S&P 500 bottoming out on March 23, 2020. It’s the S&P 500’s fastest double ever since World War II, says Ryan Detrick, strategist at LPL Financial. And that means $10,000 put in the SPDR S&P 500 ETF (SPY) is now worth $20,020, says an Investor’s Business Daily analysis of data from S&P Global Market Intelligence and MarketSmith.
Not bad. That’s chump change, though, compared with how the top S&P 500 stocks did in that time.
All told, 11 S&P 500 companies including health care leader Moderna (MRNA) plus consumer discretionary plays Caesars Entertainment (CZR) and Tesla (TSLA), jumped more than 400% from the 2020 low. If you held $10,000 of Moderna at the bottom, it would be worth $140,708, or 1,307%, more now.
That sure tops a double. Should you buy Moderna stock now?
S&P 500’s Double Amid Covid-19 Trouble
That’s not to take away from the S&P 500’s fast doubling. It’s the S&P 500’s fastest 100% rise since World War II, says LPL’s Detrick.
And the market’s latest 100% jump topped the previous record for a doubling by a mile. Until now the record was the rise coming out of the 2008 and 2009 Financial Crisis. But then, it took roughly two years to happen.
Additionally, this latest S&P 500 is lifting nearly all stocks. Upwards of 492 stocks in the S&P 500, or 98%, are up in that time. And more than half the stocks in the S&P 500 doubled.
And impressively still, the S&P 500’s doubling this time involved most of the sectors, too. Seven out of the 11 sectors are up 100% or more from the market’s low in March 2020. The biggest sector winner? The Materials Select Sector SPDR ETF (XLB) is up a blistering 124% in that time. And that’s followed by a 121% rise in the Technology Select Sector SPDR ETF (XLK).
And yet, not a single S&P 500 sector is down in that time. The worst performer is Consumer Staples Select Sector SPDR (XLP). And even it is up 50%.
Investors in the market pulled in a huge score in dollar terms, too. All told, investors hauled in $25.1 trillion on the entire market from the lows, says Wilshire Associates. And had you just put $10,000 on Moderna, you’d have $140,708 now.
The Moderna S&P 500 Miracle
Many S&P 500 analysts think Moderna is overvalued. But the new entrant in the S&P 500 is clearly a standout.
Its 1,307% gain from March 2020 is more than 10 times the 125.3% average gain of S&P 500 stocks. No other S&P 500 stock comes even close. The No. 2 top-performer from the Covid-19 low is casino operator, Caesars. It’s up 737.2% in that time. That turned $10,000 into $83,717. And then it’s Elon Musk’s electric car maker Tesla. Its shares are up 690%, turning $10,000 in March 2020 into $78,999 now.
Moderna’s rise is so sudden and powerful due to its technology’s potential applications. It’s already used in vaccines, which are looking increasingly more vital. Additionally, uses in advanced medicines are on the horizon. Analysts think the company will make more than $12.6 billion, or $29.67 a share, this year. Just a year ago, it was losing money.
So if you own an S&P 500 index fund, congrats. You doubled your money in record time. But in this market, simply doubling your money isn’t going to impress many investors.
Top Stocks While The S&P 500 Doubled
Gains from S&P 500’s 100% rise from March 23, 2020
|Company||Ticker||% ch. from March 2020 low||Sector||What $10,000 is worth now||Composite Rating|
|Caesars Entertainment||(CZR)||737.2%||Consumer Discretionary||$83,716.5||65|
|Penn National Gaming||(PENN)||592.4%||Consumer Discretionary||$69,244.9||34|
|Bath & Body Works||(BBWI)||575.7%||Consumer Discretionary||$67,568.2||83|
|Enphase Energy||(ENPH)||509.0%||Information Technology||$60,901.5||94|
|Discover Financial Services||(DFS)||405.7%||Financials||$50,570.4||85|
|Align Technology||(ALGN)||401.6%||Health Care||$50,156.1||99|
Sources: IBD, S&P Global Market Intelligence
Follow Matt Krantz on Twitter @mattkrantz
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