The 2023 S&P 500 market rally continued in May as investors anticipate an end to Federal Reserve rate hikes as soon as June.
However, investors are still concerned the Fed will be unable to bring down inflation and navigate a soft landing for the U.S. economy. Top 2023 stock market performers include health care stocks with unique catalysts and stocks exposed to artificial intelligence technology. Here are the 10 best-performing stocks of 2023 among companies that trade on major U.S. exchanges and have market capitalizations of at least $1 billion. Returns are through May 31.
| Stock | Year-to-date return as of May 31 |
| SunCar Technology Group Inc. (ticker: SDA) | 315.9% |
| Biomea Fusion Inc. (BMEA) | 302.8% |
| C3.ai Inc. (AI) | 257.6% |
| Riot Platforms Inc. (RIOT) | 254% |
| IonQ Inc. (IONQ) | 212.8% |
| Oscar Health Inc. (OSCR) | 198.4% |
| Marathon Digital Holdings Inc. (MARA) | 186.3% |
| Opera Ltd. (OPRA) | 180.6% |
| Symbotic Inc. (SYM) | 176.2% |
| ImmunoGen Inc. (IMGN) | 175% |
10. ImmunoGen Inc. (IMGN)
ImmunoGen is a biotech company that targets cancer using antibody-drug conjugates, which are cancer-killing toxins attached to specific antibodies using a biodegradable linker. The stock rallied in May when ImmunoGen reported positive phase 3 data for Elahere (mirvetuximab soravtansine) in treating folate-receptor-alpha-positive platinum-resistant ovarian cancer in patients who have received prior chemotherapy. In the first quarter of 2023, Elahere generated $29.5 million in revenue. Investors are hoping more positive data and an expanded label for Elahere could propel the stock even higher. IMGN shares are up 175% this year.
9. Symbotic Inc. (SYM)
Symbotic specializes in supply chain automation and optimization using AI technology. The company’s customers include Walmart Inc. (WMT), Albertsons Cos. Inc. (ACI) and C&S Wholesale Grocers. Symbotic reported impressive 177% revenue growth in its fiscal second quarter. The company also said it completed installations of its current system at multiple customer sites in the quarter and has increased its total deployments by threefold compared to a year ago. The AI trend is red hot on Wall Street, and Symbiotic has been one of the biggest beneficiaries of AI investor enthusiasm in 2023. The stock is up 176.2% this year.
8. Opera Ltd. (OPRA)
Opera is another stock that has benefited from the AI trend. The company specializes in AI-driven digital search and online recommendations. In the first quarter, Opera reported 22% revenue growth, its ninth consecutive quarter of at least 20% revenue growth. The company also launched its first generative AI features directly in its web browser and raised its full-year earnings expectations. Advertising revenue was up 26% from a year ago, driven by Opera Ads. Opera’s search revenue was up 18% from a year ago, and it reported 319 million monthly active users. Opera shares are up 180.6% this year.
7. Marathon Digital Holdings Inc. (MARA)
Marathon Digital is one of the largest Bitcoin miners in North America. Like Riot, Marathon shares have gotten a big 2023 boost from the rebound in the crypto market. In May, Marathon reported a net loss of $7.2 million in the first quarter but said Bitcoin production was up 74% year over year. It also said its cash position increased by $12 million, it reduced its debt by $50 million and it increased its Bitcoin holdings by 3,132 BTC. Bitcoin mining has been far more profitable in 2023 than in 2022, and Marathon’s stock price is up 186.3% this year.
[Read: The History of Bitcoin, the First Cryptocurrency]
6. Oscar Health Inc. (OSCR)
Oscar Health is a health insurer with 1 million members that is primarily focused on U.S. Affordable Care Act exchanges. Oscar shares rallied in February when the company reported impressive membership growth. In May, Oscar reported $1.4 billion in premiums earned in the first quarter, up 50% from a year ago. Oscar’s medical loss ratio, or MLR, of 76.3% in the first quarter was up 1.08% from a year ago. The company guided for full-year MLR of between 82% and 84% and said it’s on track for profitability in 2024. Oscar shares are up 198.4% this year.
5. IonQ Inc. (IONQ)
IonQ is developing and producing quantum computing technology. Quantum computers utilize the power of quantum mechanics to solve problems and perform operations that are too complex for classic computers. Zion Market Research estimates the global quantum computing market will grow 31% annually and reach $5.27 billion by 2030, so it’s understandable why investors would be excited about IonQ. The company reported 115% revenue growth in the first quarter and said it reached its fiscal 2023 technical performance target of 29 algorithmic qubits much sooner than expected. The positive headlines have sent IonQ shares up 212.8% this year.
4. Riot Platforms Inc. (RIOT)
Riot Platforms is another Bitcoin mining company. Cryptocurrency-related stocks tanked during 2022’s “crypto winter.” Rising interest rates triggered a broad market rotation out of cryptocurrency in 2022, sending Bitcoin prices tumbling and making mining far less profitable. So far in 2023, Bitcoin prices are up 64.4%. Riot reported a record 2,115 BTC produced in the first quarter and now holds more than 7,100 BTC on its balance sheet. Riot has a deployed fleet of 94,176 Bitcoin miners with a hash rate capacity of 10.5 exahash per second. The stock is up 254% in 2023.
[See: What’s the Best Cryptocurrency to Buy? 6 Contenders]
3. C3.ai Inc. (AI)
C3.ai is an enterprise software vendor that focuses on building large-scale AI systems to optimize organizational operations. The success of OpenAI’s ChatGPT has made AI a popular trend on Wall Street and has sent C3.ai’s share price soaring. Unfortunately, the company’s underlying business fundamentals have been underwhelming, including negative revenue growth in its fiscal third quarter as it transitions to a consumption model. In addition, short seller Kerrisdale Capital has accused the company of “serious accounting issues,” including inflating its gross profit margins. Still, C3.ai has ridden the AI wave to a 2023 gain of 257.6%.
2. Biomea Fusion Inc. (BMEA)
Biomea Fusion is a clinical-stage biotechnology company developing treatments for genetically defined cancers and metabolic diseases. In March, the stock roughly doubled after Biomea reported positive mid-stage data from its trials of Type 2 diabetes treatment candidate BMF-219. The company said 89% of patients in cohort 3 of its study demonstrated reduced A1c following four weeks of daily 100-milligram dosing. In addition to opportunities in the massive Type 2 diabetes market, Biomea said it plans to test BMF-219 in treating Type 1 diabetes as well. Biomea shares are up 302.8% this year.
1. SunCar Technology Group Inc. (SDA)
SunCar Technology provides after-sales and online auto insurance intermediation services in China. The company went public on May 18 via a special-purpose acquisition company, or SPAC, merger. At the time of the merger, the stock was trading at around $4, but it began to rip higher in the closing days of the month, including a 121% gain on May 31. The only significant news since the SPAC merger was a $22 million private placement with Anji Zerun Private Equity Investment Partnership, which was announced on May 25. The stock finished May at $43.05 and is up 315.9% in 2023.
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2023’s 10 Best-Performing Stocks originally appeared on usnews.com
Update 06/01/23: This story was previously published at an earlier date and has been updated with new information.
