May witnessed a remarkable surge in the stock market, particularly notable for the S&P 500, which recorded its most impressive performance since 2009, closing up by an impressive 4.8%. However, within this surge, there were discernible winners and losers, each with their own narratives shaping their performance.
First Solar emerged as the unequivocal star of the month, experiencing an exceptional gain of 54%. This surge marked its best performance since April 2013, a testament to its resilience amidst a challenging landscape for the solar industry. Despite facing headwinds such as inflation and high interest rates, First Solar, a prominent solar panel technology company, managed to defy industry trends. The company’s stellar performance was largely fueled by its robust first-quarter earnings and revenue, exceeding market expectations on May 1. Furthermore, its optimistic outlook for 2024 added to investor confidence. However, the most significant boost to First Solar came on May 22 when UBS analysts Jon Windham and William Grippin raised their price target on the stock to $270 from $252, while reaffirming their Buy rating. Their research note highlighted the direct link between artificial intelligence and First Solar, sparking a 19% surge in the stock price on that day.
Aside from First Solar, other notable performers in the S&P 500 for May included Vistra Corp, Moderna, HP, and Deckers Outdoor, each showcasing impressive gains driven by various factors unique to their respective industries and market conditions.
Conversely, EPAM Systems, a software-design company, faced significant challenges throughout May, emerging as the worst performer in the S&P 500 with a staggering 24% decline. This downturn represented its largest monthly loss since February 2022, underscoring the severity of its challenges. The descent began on May 9 when the stock plummeted by 27% following EPAM’s first-quarter results, which, while surpassing estimates, were overshadowed by disappointing guidance for the second quarter. The company’s projected adjusted earnings fell short of Wall Street’s consensus, triggering concerns among investors. Moreover, EPAM’s downward revision of its full-year earnings forecast further exacerbated the negative sentiment surrounding the stock.
Joining EPAM Systems as bottom performers in the index for the month were companies like Salesforce, Expedia Group, Global Payments, and Dayforce, each grappling with their unique sets of challenges, ranging from industry-specific headwinds to company-specific issues impacting investor confidence and market sentiment.