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Best Stocks In September
The equity markets were kind to just about every investor in September, 2010, with the Standard & Poor's 500 index having the best September performance in 70 years. Some investors did much better than that, with many stocks up three- to four-times the index during the month.
IN PICTURES: 4 Biggest Investor Errors
The Top of the Heap
Jabil Circuit (NYSE:JBL) was the best performing stock in the S&P 500 in September, returning 40% to investors that were long on this name. The company gave a cautious outlook on business trends in early August, and headed steadily down all month as investors fled in terror from this name. Jabil Circuit finally caught some traction, as shares moved higher in September, helped in part by the strong general market rally.
Jabil Circuit got an additional boost when the company reported earnings for the fourth quarter of fiscal 2010 last week. The company beat earnings estimates, received upgrades from the sell side and confounded bears.
Also on Top
CarMax (NYSE:KMX) matched the performance of Jabil Circuit during September and returned 40% to investors. CarMax also benefited from a good earnings report, as the company beat earnings guidance by 8 cents and reported comparable store used unit sales up by 4% in the quarter.
During the quarterly conference call, management attributed the strong results to the company's sales force and increased credit availability for customers. "Our 4% used unit comps were driven by improved sales conversion, which was higher due to continued strong execution and the increase in credit availability compared to last year's second quarter," said Tom Foillard, the CEO of CarMax.
Above Expectations
JDS Uniphase (Nasdaq:JDSU) also had a great September, ending the month up 35%. The company reported earnings above expectations at the end of August, and was in line with top line forecasts. Perhaps investors were expecting worse, because the stock rallied hard for the next four weeks.
Investors were also probably encouraged by comments during the quarterly conference, as management reported that the company "continued to see robust demand across all of our segments."
Attracting Interest
Office Depot (NYSE:ODP) was another home-run stock during the month, although there didn't seem to be any company-specific news in September. The stock saw interest from investors attracted by a stock trading near a two-year low, complemented by the general rise in the market in September. Office Depot moved 35% higher in September. (For more stock analysis, check out Top Canadian Dividend Stocks.)
The Bottom Line
The market cliché, "a rising tide lifts all boats," came into play last month. However, many boats rose much higher than the tide, and made investors very happy that they stuck with stocks during September, 2010.
Use the Investopedia Stock Simulator to trade the stocks mentioned in this stock analysis, risk free!
IN PICTURES: 4 Biggest Investor Errors
The Top of the Heap
Jabil Circuit (NYSE:JBL) was the best performing stock in the S&P 500 in September, returning 40% to investors that were long on this name. The company gave a cautious outlook on business trends in early August, and headed steadily down all month as investors fled in terror from this name. Jabil Circuit finally caught some traction, as shares moved higher in September, helped in part by the strong general market rally.
Jabil Circuit got an additional boost when the company reported earnings for the fourth quarter of fiscal 2010 last week. The company beat earnings estimates, received upgrades from the sell side and confounded bears.
Also on Top
CarMax (NYSE:KMX) matched the performance of Jabil Circuit during September and returned 40% to investors. CarMax also benefited from a good earnings report, as the company beat earnings guidance by 8 cents and reported comparable store used unit sales up by 4% in the quarter.
Above Expectations
JDS Uniphase (Nasdaq:JDSU) also had a great September, ending the month up 35%. The company reported earnings above expectations at the end of August, and was in line with top line forecasts. Perhaps investors were expecting worse, because the stock rallied hard for the next four weeks.
Investors were also probably encouraged by comments during the quarterly conference, as management reported that the company "continued to see robust demand across all of our segments."
Attracting Interest
Office Depot (NYSE:ODP) was another home-run stock during the month, although there didn't seem to be any company-specific news in September. The stock saw interest from investors attracted by a stock trading near a two-year low, complemented by the general rise in the market in September. Office Depot moved 35% higher in September. (For more stock analysis, check out Top Canadian Dividend Stocks.)
The Bottom Line
The market cliché, "a rising tide lifts all boats," came into play last month. However, many boats rose much higher than the tide, and made investors very happy that they stuck with stocks during September, 2010.
Use the Investopedia Stock Simulator to trade the stocks mentioned in this stock analysis, risk free!
by
Eric Fox
Eric J. Fox, CFA, is a freelance financial writer and has previous experience working in the asset management industry as an equity analyst and portfolio manager on the buy side. His favorite area to write on is the energy sector and he keeps current on the industry by reading Haynesville Shale, Permian Oil and Gas and various other blogs.
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