Interactive Investor

Best US stocks in November 2020

1st December 2020 11:22

Keith Bowman from interactive investor

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Double-digit gains and Boeing's boom cheered investors last month. We reveal the biggest winners.

US November movers

If February and March are remembered as a time when the full implications of the global pandemic hit investors, then November may go down as a crucial turning point.

US drug maker Pfizer's (NYSE:PFE) announcement regarding the success of its vaccine proved critical. Developed in partnership with BioNTech (NASDAQ:BNTX), the potential cure was found to be more than 90% effective. Further news of vaccine successes followed from both Moderna (NASDAQ:MRNA) and Oxford University/AstraZeneca (LSE:AZN).

The unfolding of the latest US Presidential election and a win for Joe Biden, also played its part. A split of power across both the US house of representatives and the US Senate has often comforted investors, given more limited powers to increase national borrowings for example.   

For US markets, both the Dow Jones and S&P 500 enjoyed significant monthly gains, rising by 11.8% and 10.8% respectively last month. The NASDAQ Composite was up by 11.8%. It was the biggest monthly gain for the Dow Jones index since 1987. 

For stocks, big winners on the Dow included aircraft maker Boeing (NYSE:BA), oil company Chevron (NYSE:CVX) and entertainments giant Walt Disney (NYSE:DIS).

A hoped-for return to the skies for airline customers of Boeing following the rollout of vaccines helped underpin positive sentiment at the Chicago headquartered company. A return may also help Boeing clear inventories of its previously grounded 737 Max aircraft. 

A one quarter gain in the price of both Brent crude and West Texas Intermediate oil during November, on hopes of a return to more normal travel habits, helped oil companies such as Chevron rise by a similar amount. 

As for banks, the reduced likelihood of further bad debt provisions and even the possible writing back of earlier provisions underpinned positive sentiment. JPMorgan Chase (NYSE:JPM) shares rose by a fifth over the month.

Walt Disney, with many of its theme parks closed given pandemic restrictions, rose by just over a fifth as growth in its streaming services, including the late 2019 launched of Disney Plus, are aided investor sentiment. Both a return to business for its theme parks in 2021 and a reopening of cinemas, enabling new film releases, would help see it back firing on all cylinders.

More conservative gains over the month for the Dow included defensive plays such as Procter & Gamble (NYSE:PG) and McDonalds (NYSE:MCD), each up less than 2%. P&G has proved something of a Covid winner, with home cleaning and health care items sought after by consumers battling the virus. Many McDonalds restaurants have reopened on a drive-thru basis. 

Given buoyant November markets, investors may now turn to the prospects for a Santa rally heading into 2021. Much may depend on perceived views for an early January Senate vote in Georgia, not to mention ongoing news of vaccine rollouts and regulatory body approvals. 

Dow Jones - 10 biggest risers in November 2020

Company Ticker Share price change (%)
Boeing Co (The) BA 46.0
American Express Co AXP 30.0
Chevron Corp CVX 25.4
Honeywell International Inc HON 23.9
Walt Disney Co (The) DIS 22.0
Goldman Sachs Group Inc GS 22.0
JPMorgan Chase & Co JPM 20.4
Cisco Systems Inc CSCO 19.8
Dow Inc DOW 16.5
Visa Inc V 15.8

Source: SharePad

Nasdaq 100 - 10 biggest risers in November 2020

Company Ticker Share price change (%)
Moderna Inc MRNA 126
Pinduoduo Inc   PDD 54.3
Tesla Inc TSLA 46.3
Applied Materials Inc AMAT 39.3
Marriott International Inc  MAR 36.6
Ulta Beauty Inc ULTA 33.2
Lam Research Corp LRCX 32.3
Expedia Group Inc EXPE 32.2
MercadoLibre Inc MELI 27.9
Microchip Technology Inc MCHP 27.9

Source: SharePad

These articles are provided for information purposes only.  Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties.  The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.

Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company's or index name highlighted in the article.

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