In August, the S&P 500 advanced 2.62 per cent.
Sector leaders were energy, technology, materials, health care and financials with gains of 6.48 per cent, 6.19 per cent, 5.82 per cent, 4.78 per cent and 1.22 per cent, respectively.
There were six sectors that realized negative price returns in August: utilities, industrials, real estate, communication services, consumer staples and consumer discretionary with losses of 5.18 per cent, 2.69 per cent, 2 per cent, 1.23 per cent, 0.79 per cent and 0.09 per cent, respectively.
The top 10 performers in the S&P 500 Index in August were:
- Moderna Inc. (MRNA-Q), up 156 per cent
- Palantir Technologies Inc. (PLTR-Q), up 51 per cent
- Veeva Systems Inc. (VEEV-N), up 40 per cent
- Salesforce Inc. (CRM-N), up 40 per cent
- Paramount Skydance Corp. (PSKY-Q), up 37 per cent
- Newmont Corp. (NEM-N), up 35 per cent
- ServiceNow Inc. (NOW-N), up 33 per cent
- Super Micro Computer Inc. (SMCI-Q), up 31 per cent
- Gartner Inc. (IT-N), up 31 per cent
- Sandisk Corp. (SNDK-Q), up 29 per cent
Stocks with material positive revisions to their average target prices over the past month include:
- Moderna Inc. (MRNA-Q), increased 126 per cent to $109.4 from $48.45
- Arista Networks Inc. (ANET-N), increased 27 per cent to $245 from $192.41
- Workday Inc. (WDAY-Q), increased 26 per cent to $212.14 from $168.87
- Zebra Technologies Corp. (ZBRA-Q), increased 26 per cent to $415.87 from $331.20
- Veeva Systems Inc. (VEEV-N), increased 22 per cent to $293.80 from $241.54.
Year-over-year earnings growth was spectacular in the second quarter with expectations pegged at 53 per cent, according to an Aug. 28 LSEG report. Sectors with the highest forecast earnings growth are energy, communication services, consumer discretionary and technology with growth rates of 142.7 per cent, 114.2 per cent, 90.5 per cent and 78 per cent, respectively.
Looking ahead, year-over-year earnings growth is anticipated to moderate to 29.4 per cent in the third quarter and come in at 26.8 per cent in the fourth quarter.
Earnings growth is forecast to be 34.3 per cent in 2026 and 14.7 per cent in 2027. Last month, earnings growth was forecast to rise 33.3 per cent in 2026 and 13.6 per cent in 2027.
According to LSEG, the forward four-quarter price-to-earnings multiple for the S&P 500 stood at 20.4 times, down slightly from 20.5 times as of Aug. 7.
In the first eight months of 2026, the S&P 500 Index rallied 12.28 per cent.
Now, here’s a look at analysts’ target prices, recommendations, forecast returns and yields for all securities in the S&P 500 grouped by sector and ranked according to their expected price returns (excluding dividend and distribution income).
The posted target price for each security is an average of all available target prices from analysts. A target price typically reflects an expected share or unit price 12 months from now based on an analyst’s financial modelling, such as a discounted cash flow or sum-of-the-parts model. Data is as of August 31.
It’s important to note that high target prices, which imply stellar returns that seem unbelievable may be just that - unrealistic. At times, when a stock price falls analysts may maintain their bullish expectations, inflating the forecast return.
In addition, an outlier (extreme target price) can skew the average target price, to the upside or downside, particularly when the number of analysts covering a stock is low. Don’t let a huge projected gain lure you into a position – it is critical to look at the company and industry fundamentals.