The S&P 500 Index is a market-capitalization-weighted index of the 500 largest publicly traded companies in the U.S. It is widely regarded as the best gauge of large-cap U.S. equities. Some of the largest companies in the index include Microsoft Corp. (MSFT), Facebook Inc. (FB), and Johnson & Johnson (JNJ). The S&P 500’s total return is 5.6% over the past 12 months. This market performance number and the statistics in the tables below are as of June 29.
Here are the top 3 stocks with the best value, the fastest earnings growth, and the most momentum.
Best Value Stocks
These are the stocks with the lowest 12-month trailing price-to-earnings (P/E) ratio. Because profits can be returned to shareholders in the form of dividends and buybacks, a low P/E ratio shows you’re paying less for each dollar of profit generated.
- NRG Energy Inc.: NRG Energy is an integrated power company that produces, sells, and distributes energy and provides energy services in the U.S. On May 7, NRG Energy reported strong free cash flow growth year-over-year (YOY) for Q1 2020, demonstrating what it called “resiliency and stability” during the COVID-19 pandemic.
- Vornado Realty Trust: Vornado Realty Trust is a real estate investment trust (REIT) that owns office, retail, merchandise mart properties, and other real estate and related investments.
- MGM Resorts International: MGM is a holding company that, through its subsidiaries, owns and operates casino resorts. The company’s properties offer gaming, hotel, convention, dining, entertainment, retail, and other amenities. In June, MGM announced the re-opening of many of its most popular properties that had been closed due to COVID-19. The company said that these properties will reopen throughout the summer and with strict protocols for customer and employee safety.
Fastest Growing Stocks
These are the stocks with the highest YOY earnings per share (EPS) growth for the most recent quarter. Rising earnings show that a company’s business is growing and is generating more money that it can reinvest or return to shareholders.
- AmerisourceBergen Corp.: AmerisourceBergen provides generic pharmaceuticals, over-the-counter health care products, home health care supplies and equipment, and related services to health care providers. On May 7, AmerisourceBergen revised downward its adjusted diluted EPS guidance for FY 2020 to between $7.35 to $7.65. The guidance previously was $7.55 to $7.80.
- MGM Resorts International: See above for company description.
- Align Technology Inc.: Align Technology designs and manufactures the Invisalign system, which is a method for treating the misalignment of teeth.
Stocks with the Most Momentum
These are the stocks that had the highest total return over the last 12 months.
- DexCom Inc.: DexCom is a medical device company that designs and develops continuous glucose monitoring systems for people with diabetes.
- NVIDIA Corp.: NVIDIA engages in the design, development, and manufacture of computer graphics processors, chipsets, and related multimedia software. On June 23, NVIDIA announced that it would partner with auto maker Mercedes-Benz. Beginning in 2024, NVIDIA will supply every Mercedes-Benz vehicle with “perpetually upgradeable,” software-defined computing architecture, which is expected to enable point-to-point autonomous driving.
- Regeneron Pharmaceuticals Inc.: Biopharmaceuticals company Regeneron discovers, develops, and markets a variety of pharmaceuticals products for the treatment of a range of conditions. On June 11, the company began the first clinical trials of an anti-viral therapeutic for the treatment and prevention of COVID-19.