October is drawing to a close, and now is an opportune time to look at which stocks performed best and worst during the month.
Overall, October was an unspectacular month for U.S. markets, with the benchmark S&P 500 index down 0.69%. The blue-chip Dow Jones Industrial Average registered a 1% decline on the month, and the technology-laden Nasdaq 100 index slipped 0.56%.
This year’s results run counter to historic trends as October is typically one of the stronger months of the year for the stock market and often leads into a year-end bull run referred to as the “Santa Claus rally.” Among individual stocks, there were some surprising winners and notable losers in October. Here’s a breakdown of the top and bottom performers among the three major U.S. indices.
The Dow Jones Industrial Average
Within the Dow Jones Industrial Average, which is a collection of 30 blue-chip stocks meant to represent a cross-section of the U.S. economy, cloud computing giant Salesforce (CRM) was the best-performing stock in October, rising 8% for its best month since June. Year-to-date, CRM stock is up 12%.
The worst performing stock in the Dow? That distinction goes to sneaker and athletic apparel company Nike (NKE), whose share price declined 14% in October, its worst month since June. NKE stock hit the skids after the company withdrew its financial forecasts for the year and postponed its investor day. Nike’s share price is now down nearly 30% in 2024.
S&P 500 Index
The S&P 500 is an index made up of the 500 largest publicly traded U.S. companies based on market capitalization. With its size and breadth, the S&P 500 is widely viewed as the benchmark stock index in the U.S. And within that big and expansive index, United Airlines (UAL) was the top performing stock in October, gaining a whopping 41% for its best month since December 2009.
UAL stock soared to new heights on better-than-expected financial results and strong guidance. Its share price is up 90% on the year. The worst performer in the S&P 500 in October? Qorvo (QRVO), which makes radio-frequency chips for wireless devices, is at the bottom, with its stock having declined 30%, its worst month since December 2008. QRVO stock fell on weak guidance and is down 37% year-to-date.
Nasdaq 100
Within the Nasdaq 100 index that is heavily weighted with technology stocks, Atlassian (TEAM) was the best performer during October, with the stock of the software company increasing 20%, its best month since December 2023. Despite the October rally, TEAM stock is down 20% on the year.
On the flipside, Super Micro Computer (SMCI) was the index’s worst performer, with its share price down 30% in October, its worst month since August of this year. The high-efficiency server maker’s stock is under pressure due to a growing accounting scandal at the company. SMCI stock had been the best performing stock in the S&P 500 in this year’s first half. But now, its share price is up only 2% on the year.
Is the SPDR S&P 500 ETF Trust a Buy?
The SPDR S&P 500 ETF Trust (SPY), which tracks the benchmark S&P 500 index, has a consensus Moderate Buy rating among 504 Wall Street analysts. That rating is based on 401 Buy, 94 Hold, and nine Sell recommendations assigned in the last three months. The average SPY price target of $643.90 implies 13.25% upside from current levels.
