15 Best Performing Stocks in the Last 3 Months

15 Best Performing Stocks in the Last 3 Months

Hamna Asim
18 min read
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In this article, we discuss 15 best performing stocks in the last 3 months. If you want to skip our detailed discussion about the stock market performance, head directly to 5 Best Performing Stocks in the Last 3 Months. 

Despite a multitude of economic challenges, the US market has experienced a significant boom during the first half of 2023. Given the market decline in 2022, many experts had rather conservative expectations from the stock market. Regardless, the S&P 500 has gained roughly 16% so far this year. One crucial factor for this surge is the contribution of the technology sector. As the world focused on developments in artificial intelligence, technology companies involved in cloud computing and AI-based innovations experienced major gains. The tech-heavy NASDAQ Composite experienced a 31.7% increase year-to-date as of August 15 – the highest first half gain in 40 years. 

Despite the pressure brought on by the Federal Reserve’s aggressive monetary policy, the economy has performed better than expectations. Although the Federal Reserve foresees a 71% chance for a recession within the next year, the probability is certainly lower than initial estimations. This is attributed to restrictive credit conditions enforced by the Fed. However, by 2024, inflation is expected to decrease, while unemployment is forecasted to increase. This could then trigger another response from the Federal Reserve to loosen economic limitations. 

According to Forbes, the major reason for such positive market performance so far in 2023 has been the suppression of inflation, without a recession being set off in the United States. While the consumer price index was close to 3% in June 2023, it had peaked to about 9.1% during 2022. While this has certainly had a positive impact on the market, the Federal Reserve aims to bring inflation down to 2%. Investors believe that the chance for the Federal Reserve to increase interest rates in November 2023 is just 32%. Furthermore, the Labor Department reported that the US economy added over 209,000 jobs in June. While lower than the estimate of 240,000 jobs, the unemployment rate remains at a historic low of 3.6%. Adding to this, the Bureau of Economic Analysis announced that the US GDP growth rate came in at 2.4% for the second quarter of 2023. 

For companies that have reported quarterly earnings, the decline in quarterly EPS is close to 7.3%. This is worse than the decline reported in 2020. However, Wall Street analysts expect earnings to improve over the next two quarters. Moreover, consumer discretionary products have reported the biggest earnings growth in the second quarter, with an EPS 36% higher when compared to the same period last year. In contrast, the energy sector has experienced a decline of 52% in earnings, as compared to the previous year. 

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