S&P 500 Sees Best Quarter of the Year: Top 5 Stocks to Watch in October

The S&P 500 enters its best quarter of the year, with data showing strong seasonal tailwinds from October to December. The index has finished higher in 26 of the past 30 fourth quarters and is on a six-year winning streak. Tech stocks are the strongest performers in Q4, with other cyclical sectors also showing strong gains. Top stocks to watch include Alphabet, Microsoft, Netflix, United Airlines, and Coca-Cola, which have historically shown strong performance in October.

The S&P 500 has entered its best quarter of the year, driven by strong seasonal tailwinds from October to December. Over the past 30 fourth quarters, the index has finished higher in 26 instances, maintaining a six-year winning streak Costco (COST) Surpasses Q4 Earn^[1]. Tech stocks have been the standout performers, with other cyclical sectors also showing robust gains.

Among the top stocks to watch are Alphabet, Microsoft, Netflix, United Airlines, and Coca-Cola, which have historically shown strong performance in October. These companies have benefited from the economic recovery and increased consumer spending.

United Airlines Holdings, Inc. (UAL) has announced the launch of its International Remote Baggage Screening (IRBS) initiative, a new U.S. Customs and Border Protection program that eliminates re-checking bags for connecting passengers with checked luggage. This initiative is currently available for United customers traveling from Sydney, Australia to San Francisco, California with a connecting flight. The airline has collaborated with Sydney Airport, BagCheck, and Brock Solutions for this innovative program United Airlines Launches International Remote Baggage Screening Initiative^[3].

Costco Wholesale Corporation (COST) has reported quarterly earnings of $5.87 per share, surpassing the Zacks Consensus Estimate of $5.81 per share. This marks the third consecutive quarter where Costco has exceeded consensus earnings per share (EPS) estimates. The company's revenue for the quarter ended August 2025 was $86.16 billion, slightly missing the Zacks Consensus Estimate by 0.03% Costco (COST) Surpasses Q4 Earn^[1].

Fair Isaac Corporation (FICO), known for its FICO credit scores, has been added to Wells Fargo's Q4 2025 Tactical Ideas List. Wells Fargo expects a positive outlook for FICO due to anticipated mortgage market improvements, with a price target set at $2,300 per share FICO Added to Wells Fargo's Tactical Ideas List for Q4 2025^[2].

The S&P 500's performance in the fourth quarter is expected to be bolstered by these strong earnings reports and innovative initiatives. Investors should keep an eye on these key players as the year comes to a close.