Trendrating's Top Ten list of stocks as ranked by our Smart Momentum Score continues to outperform. The month of May ended with all major indices in positive territory. The same was the case for the Trendrating Top Ten holdings. After a brief review of last month's performance, the top ten stocks as ranked on June 1 will be revealed.
While the S&P 500 index finished up 2.16% for the month, the Trendrating Top Ten finished up 6.29%. There wasn't any one stock to point to for this outperformance, but four. Oneok (OKE), Netflix (NFLX), Adobe Systems (ADBE) and NRG Energy (NRG) all finished the month with gains of over 10%. While two companies did end the month with negative performance, they did not detract much from the portfolio performance. Constellation Brands (STZ) and Comerica (CMA) finished down -4.31% and -0.31%, respectively.
YTD, the performance of the Trendrating Top Ten continues to outpace it's benchmark. With a volatile 5 months in the books, Trendrating has returned 16.75% versus 1.19% for the S&P 500. Month by month performance is listed below.
|Date||Trendrating Performance||S&P 500 Performance||Difference|
Turning our attention to month ahead, 5 of the companies have kept their spots in the top ten. Four of the five newcomers have made other top ten lists this year, but were not on the list for the month of May. Those are Nvidia (NVDA), Micron (MU), Activision Blizzard (ATVI) and Align Technology (ALGN), which all had some price corrections in recent months, but are now again showing strong trends. Facebook (FB), on the other hand, is making its first appearing on the top ten list for the year. The stock was hit hard in the days following the Cambridge Analytica news, however, they have since beaten analyst's expectations and the stock is near new highs. The full list can be found below, along with the corresponding Smart Momentum Score.
As a reminder, these stocks are selected using the Trendrating proprietary trend capture model. The top ten list for June are the strongest trending stocks within the S&P 500. As previous months this year have shown, investing in trending stocks has been a winning strategy. While any one name may underperform, the group as a whole offers balance and diversity among the strongest trends for large cap stocks.
Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.