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A new month, a new Best Buys List.
Each month, I’ll give an overview of my favorite stocks of the month.
Let’s dive into this update and show you some of my favorite stocks.
May 2026
The S&P 500 rose +4.97% in May.
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Investors are greedy today according to the Fear & Greed Index:
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Best & Worst Performers
This overview shows you the best and worst performers in our investable universe.
Worst performers
The cheaper we can buy great companies, the better.
The biggest decliner this month? Zoetis, losing 32%.
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Zoetis is a leading animal health company that develops and provides medicines, vaccines, and diagnostic products for pets and livestock.
Zoetis fell this month due to weakening pet care demand and intensified competition:
U.S. Companion Animal Weakness: The company reported an 11% decline in U.S. companion-animal sales during the first quarter
Earnings Miss and Guidance Cut: The company earned $1.53 per share, missing the $1.61 analysts had expected, and management lowered 2026 guidance
Intensifying Competition: Competitors have introduced new drugs in Zoetis’ categories and are using aggressive pricing and incentives
Best Performers
Xerox Holdings was this month’s best performer, more than doubling!
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f you want proof that AI hype is driving the market, look no further than this month’s best performers.
Three of our top five gainers shot up for AI-related reasons.
Qualcomm: Known for smartphone chips, Qualcomm shifted its narrative overnight by securing a major hyperscaler customer for its custom data center processors
NetApp ($NTAP): NetApp had record revenue in its flash storage and cloud segments due to customers trying to clean up and organize unstructured data for AI training
United Microelectronics Corp. ($UMC): Had strong monthly sales and progress on its joint 12nm chip program with Intel
But not winner was fueled by artificial intelligence.
Xerox ($XRX) grew revenue by 27% after integrating its Lexmark acquisition.
Michael Burry summed up what happened here well: “My strategy isn’t very complex. I try to buy shares of unpopular companies when they look like road kill, and sell them when they’ve been polished up a bit”.