These are September’s top-performing S&P 500 stocks. Where analysts see them going next
Most analysts think that September’s top-performing stocks could continue their ascent. September is a traditionally dicey for stocks: It’s the worst month of the year for the S & P 500 , according to the Stock Trader’s Almanac . Indeed, the market had a rocky start to the month, but the major averages have largely put in a strong showing after the Federal Reserve’s outsized rate cut . The three major indexes are all on pace to September higher than where they began. The S & P 500 and Dow Jones Industrial Average are both up more than 1% this month, while the tech-heavy Nasdaq Composite is on pace to advance more than 2%. With October right around the corner, CNBC Pro used FactSet data to screen for this month’s top-performing stocks in the S & P 500 and find out where analysts see them going next. Analysts forecast further upside for seven of the 10 stocks on the list. Market data below is current as of Wednesday afternoon. Constellation Energy is up more than 30% on the month, making it September’s second-highest performer in the S & P 500. Shares of the carbon-free energy producer have more than doubled this year. More than 7 out of 10 of the analysts covering the stock have assigned it a buy or overweight rating, according to FactSet. However, consensus price targets suggest a mere 2% of upside. The company made headlines this month with the news that it would be restarting the Three Mile Island nuclear plant and sell the power to Microsoft . Microsoft will purchase electricity in a 20-year agreement to support the needs of its data centers. “This is an attractive deal for CEG,” wrote Morgan Stanley analyst David Arcaro. “Operational risk to bring the plant online appears manageable, the contract is very long (20yrs) and with a strong counterparty. Bringing nuclear online supports the grid, with no emissions and 24×7 operations, and the move has generated strong political support.” The analyst recently raised his price target for Constellation Energy to $313 from $233. This new forecast implies a potential upside of 19% from Thursday’s close. Power company Vistra has surged nearly 196% in 2024, and it’s the top performer in the S & P 500 this month. Vistra leapt 16% on Sept. 20 after peer Constellation announced its Three Mile Island plans. Analysts’ consensus price targets suggest upside of 3.3%, and 91% of analysts covering the stock rate Vistra as a buy or overweight. Earlier this month, Jefferies initiated coverage of the company at a buy rating and named the stock its top pick within the power and utilities category. “Vistra’s timely acquisition of nuclear portfolio Energy Harbor in 2023 gives the company a coveted nuclear portfolio,” wrote analyst Julien Dumoulin-Smith. “Here VST has the ‘traditional’ opportunity set of collocating a data center at one of its nuclear plants but its efficient gas fleet can profit from higher volume.” Dumoulin-Smith added that the company’s “biggest upside angle” is its natural gas volumes. Software firm Palantir Technologies has rallied about 18% in September and 116% in 2024. But Wall Street see a much more dismal outlook going forward. Currently, about 30% of analysts covering the stock rate it as a buy or overweight, and the average price target implies a downside of 27%. Raymond James recently downgraded the stock to market perform from outperform. Analyst Brian Gesuale pointed to the stock’s recent outperformance as a reason for the rating change. “While we remain enthusiastic about Palantir’s longer term positioning in AI, we are downgrading our rating to Market Perform from Outperform given our view that shares need to consolidate stellar gains over the last couple of years and grow into its rich valuation,” he said. Other names on the list of September’s top performers include software giant Oracle and air carrier Delta Air Lines .
