Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Best Buy Co., Inc. (BBY), Netflix, Inc. (NFLX), Micron Technology, Inc. (MU): These Three Surprising Stocks Have Led the S&P 500’s 2013 Rally

As the second quarter draws to a close, the S&P 500 (INDEXSP:.INX) hasn’t seen a better first-half return since 1998, with the index having risen nearly 13% through Friday’s close. A loss of 1.5% in June was the index’s first monthly decline all year, but it still managed to remain above the 1,600 even under pressure from uncertainty about the next move for the Federal Reserve and its ongoing efforts to stimulate further economic growth.

But a few of the stocks in the S&P 500 (INDEXSP:.INX) have performed particularly well this year, and some of those names might of the Dow’s stocks have done even better than the overall average. Let’s look at the three stocks in the S&P 500 (INDEXSP:.INX) that have managed to double in price during the first six months of the year and see whether further gains are in the cards for the companies.

Best Buy Co., Inc. (NYSE:BBY)
Best Buy Co., Inc. (NYSE:BBY), up 133.9%

Arguably the most interesting thing about Best Buy Co., Inc. (NYSE:BBY)’s huge gains in 2013 is that most investors remain immensely skeptical about the stock. In particular, naysayers have largely ignored any potential profits from the partnerships that the big-box retailer has managed to score with major technology companies such as Microsoft Corporation (NASDAQ:MSFT) and Samsung to open store-within-store concepts. Yet even if the mini-stores themselves don’t drive sales, they might increase overall customer traffic to Best Buy, and that could reverse the troubling trend that has led the company to consider smaller stores in attempts to cut overhead.

The challenge Best Buy will face is that many of its rivals in the mobile space are looking at similar business models going forward. The advantage Best Buy Co., Inc. (NYSE:BBY) will have over carrier-owned store chains is in carrying multiple carriers under one roof, but that might not be enough to complete a successful turnaround.

Netflix, Inc. (NASDAQ:NFLX), up 128%

The story for Netflix this year has been content, as the company has made deals with outside content providers as well as coming up with its own original content. In arenas ranging from children’s programming to hit series, Netflix has held its own even against some much larger competitors in the space.

Netflix, Inc. (NASDAQ:NFLX) is right to pursue deals as quickly as possible in the hopes of building up a strong enough network effect to hold off potential new competition. The strategy has no guarantee of success, but in combination with its aggressive international growth plans, Netflix, Inc. (NASDAQ:NFLX) could well keep rising and regain levels from before the streaming/DVD split if it can meet its own expectations for growth.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.