The Trendrating Top Ten list is compiled using our proprietary Smart Momentum Score to find the strongest trends within the S&P 500. July was the best month for the S&P 500 since January, but some large names weren't along for the ride. Below, we will discuss the top ten holdings from last month and how they performed. We will finish this off with our top ten trending stocks for the month of August.
The holdings for the month of July were outperforming the benchmark by as much as 3% well into the month. Unfortunately, that changed when Netflix (NFLX) and Facebook (FB) released disappointing earnings. The FB drop alone wiped out over $120 billion in market cap. While holding these names was a major detractor for the month, Idexx Laboratories (IDXX) was able to offset some of these losses, finishing up 12.38% for the month. Boeing (BA), Amazon (AMZN) and Align Technology (ALGN) also helped buoy the overall performance.
For the month of July, the Trendrating Top Ten finished down -0.15%. This marks the largest underperformance seen in any month this year. YTD, however, the top trending names have outperformed the S&P 500 by more than 11%, as can be seen in the chart below.
|Month||Trendrating Performance||S&P 500 Performance||Difference|
Turning our attention to August, it should come as no surprise that FB and NFLX are no longer top ten holdings. They were replaced by chip maker Nvidia (NVDA) and the integrated power company NRG Energy (NRG). The other 8 names remain on the list for the month of August. The addition of NRG helps diversify the sector allocation of the holdings, bringing the technology sector weight from 40% down to 30%. AMZN remains the only company to have been listed in this top ten each and every month this year. The full list can be found in the chart below. If market momentum continues, these names should fare well over the next month.
As a reminder, these stocks are selected using the Trendrating proprietary ranking module, only available through the Trendrating subscription. The top ten list for July 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.