Top Stocks for May 2023
Top stocks this month include First Solar, Oak Street Health, and Fair Isaac Corp., all of which have risen more than 100% in the past 12 months while the Russell 3000 Index, a broad measure of the U.S. stock market, is down almost 7%.
Many companies are grappling with a slowing economy, inflation, and a series of rate hikes by the Federal Reserve. The banking crisis, set off in early March with the collapse of Silicon Valley Bank, has only added to the challenges facing companies and investors.
Below, we list the top five stocks in each category: value, growth, and momentum. All data below is as of May 3.
Value investing is a factor-based investing strategy that involves picking stocks you believe are trading for less than what they are intrinsically worth, usually measured by the ratio of the stock’s price to one or more fundamental business metrics. A widely accepted value metric is the price-to-earnings (P/E) ratio. Value investors say that if a business is cheap compared with its intrinsic value (as measured by its P/E ratio, in this case), then the stock price may rise faster than others as the price comes back in line with the worth of the company. These are among the stocks with the lowest 12-month trailing P/E ratio.
Source: YCharts
These are the top stocks as ranked by a growth model that scores companies based on a 50/50 weighting of their most recent quarterly year-on-year (YOY) percentage revenue growth and their most recent quarterly YOY earnings per share (EPS) growth.
Both sales and earnings are critical factors in the success of a company. Therefore, ranking companies by only one growth metric makes a ranking susceptible to the accounting anomalies of that quarter (such as changes in tax law or
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