| Stock | Price | 52 Week Range | Marketcap | EPS | Dividend Yield | Chart (24H) | Sector | Employees | Last Updated |
|---|---|---|---|---|---|---|---|---|---|
 HP Inc. HPQ | $22.61 | 21.31B | 2.78 | 5.12% | Technology | 58,000 | 11 hours ago | ||
| $54.54 | 216.98B | 2.28 | 3.01% | Technology | 90,400 | 11 hours ago | |||
| $210.28 | 587.97B | 19.75 | 2.66% | Financial Services | 316,043 | 11 hours ago | |||
| $34.39 | 261.46B | 3.21 | 3.02% | Financial Services | 213,000 | 11 hours ago |
May has traditionally been a month of ambivalence for stock traders, often summed up in the adage, “Sell in May and go away.” But this year, the market defied expectations, particularly among Dow Jones Industrial Average (DJIA) components. Certain stocks not only navigated through the anticipated market downturn but also delivered stellar returns, offering investors lucrative short-term opportunities. Let’s dive into the standout performers and explore what drove their impressive gains.
Editor's Note: Analysis and insight for this article were originally sourced from our friends at The Motley Fool
Hewlett-Packard (HPQ) – 18.5% Gain in Turnaround Success!
May saw Hewlett-Packard (NYSE: HPQ) surging with an 18.5% gain, astonishing market watchers. Most of HP’s gains came in the wake of its earnings report, where the stock catapulted 17%. Although investors braced for signs of progress in HP’s turnaround story, they didn’t expect the resilience that the company exhibited. Earnings and net income predictably dipped due to sustained weakness in the PC market. However, promising prospects in areas such as networking, cloud services, and software cast a favorable light on HP’s future.
HP’s success story in May is not just about earnings. The swift progress in its turnaround strategy is winning favor among investors. The market responded positively to the company’s strategic pivot, highlighting its resilience. HP still has a long road ahead, but it’s quickly regaining shareholder confidence. For investors, HP’s ability to navigate through turbulent traditional markets and demonstrate growth in high-potential, alternative sectors substantiates its standing as a robust recovery player.
Analyst Ratings for HPQ:
| Metric | Value |
|---|---|
| Consensus Rating | Overweight |
| Average Price Target | $34.43 |
| Potential Gain | 14.1% |
| Number of Ratings | 15 |
Analysts’ Outlook:
Analysts have a positive outlook on HP Inc., with a consensus rating of Overweight. The average price target of $34.43 suggests a potential gain of 14.1% from the current price. Most analysts believe that HPQ‘s strong portfolio of personal systems and printing businesses, along with its cost-cutting efforts, will drive growth and improve profitability.
Cisco Systems (CSCO) – 15.3% Jump by Defying Tech Trend!
Cisco Systems (NASDAQ: CSCO) posted an enviable 15.3% rise in May, challenging the pessimistic sentiment pervading the tech sector. The surge came on the heels of a remarkable earnings beat, where Cisco showcased its ability to maintain strong gross margins and issued an optimistic forward guidance. Such performance amidst an otherwise sluggish industry environment underscores Cisco’s competitive advantages.
As with HP, Cisco scored most of its share-price advance in a single day, gaining 12% after it beat earnings estimates. With several competitors already having reported their quarterly results showing severe signs of sluggishness, investors anticipated a similar trend from Cisco. Yet, the networking giant’s ability to expand gross margins and issue positive guidance for the fiscal year convinced the market of its enduring strength. The IT industry remains fraught with fears of declining spending this year. Still, Cisco’s strong performance signals an inspiring resilience, making it a compelling pick for stability-seeking investors in tech.
Analyst Ratings for CSCO:
| Metric | Value |
|---|---|
| Consensus Rating | Overweight |
| Average Price Target | $54.41 |
| Potential Gain | 14.1% |
| Number of Ratings | 24 |
Analysts’ Outlook:
Analysts have a positive outlook on Cisco Systems, with a consensus rating of Overweight. The average price target of $54.41 suggests a potential gain of 14.1% from the current price. Most analysts believe that CSCO‘s strong product portfolio, solid execution, and growing software business will drive revenue growth and margin expansion.
JPMorgan Chase (JPM) – 11.4% Surge Through Strong Leadership!
JPMorgan Chase & Co. (NYSE: JPM) saw a notable 11.4% increase in May, driven by key events that reassured investors. A decisive shareholder vote to retain Jamie Dimon’s dual role as CEO and Chairman played a pivotal role in bolstering investor confidence. Stability at the helm is often a critical factor for investor sentiment, and JPMorgan exemplified this.
Additionally, the anticipated benefits from rising long-term interest rates further enhanced JPM’s appeal. Both JPMorgan and Bank of America (NYSE: BAC), which also saw a significant jump of 11%, stand to benefit from the current interest rate environment. An increase in these rates improves net interest income, which is a significant contributor to the banks’ profitability. For investors, JPMorgan stood out as a robust financial sector play, distinguished by strong leadership, legal clarity, and favorable market conditions.
Analyst Ratings for JPM:
| Metric | Value |
|---|---|
| Consensus Rating | Overweight (Buy) |
| Average Price Target | $143.44 |
| Potential Gain | 14.1% |
| Number of Ratings | 24 |
Analysts’ Outlook:
Analysts are bullish on JPMorgan Chase & Co., with a consensus rating of Overweight (Buy). The average price target of $143.44 suggests a potential gain of 14.1% from the current price. Most analysts believe the bank’s strong financial position, diversified revenue streams, and solid loan growth will drive its stock price higher.
Bank of America (BAC) – Legal Win – An 11% Momentum Surge!
Bank of America (NYSE: BAC) recorded an 11% increase in May, driven by a twofold boost. Firstly, the settlement of its lawsuit with mortgage insurer MBIA mitigated investor concerns about potential liabilities, easing a significant burden of uncertainty that had weighed on the stock. Legal clarity was a significant relief for shareholders and had a direct positive impact on stock performance.
Secondly, the prospect of increased profitability from rising long-term interest rates added to BAC’s momentum. Enhanced net interest income, due to higher rates, makes for a compelling investment narrative, especially for those seeking stability and profitability in the banking sector. Bank of America’s legal and financial positioning in May made it a notable stock for investors to watch.
Analyst Ratings for BAC:
| Metric | Value |
|---|---|
| Consensus Rating | Overweight (Buy) |
| Average Price Target | $44.41 |
| Potential Gain | 14.1% |
| Number of Ratings | 25 |
Analysts’ Outlook:
Analysts have a positive outlook on Bank of America, with a consensus rating of Overweight (Buy). The average price target suggests a potential gain of 14.1% from the current price. Most analysts believe that the bank’s strong financial position, diversified business model, and cost-cutting initiatives will drive future growth.
Looking Beyond May
Despite the traditional anticipation of market downturn in May, the performance of stocks like HP, Cisco, JPMorgan, and Bank of America, highlights the importance of individual strategic stock choices. These standout stories offer a blueprint for identifying resilient stocks capable of navigating and outperforming market volatility. As the market continues to challenge expectations, the success stories from these companies advocate for a strategic hold on well-performing stocks, assuring a pathway to sustained returns even amidst broader market fluctuations. Investors should always be vigilant but remember that intelligence and strategic stock selection can yield substantial gains, defying conventional market wisdom.
