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Here are the best and worst performing stocks in the S&P 500 for the month of January excluding financials. Compare the implied sales growth priced-in to justify the current trading price (VE Sales Growth) vs. what the company has delivered in sales growth the past 5 years (5 Year Median Sales Growth) to see if the expectations are realistic for the company to achieve. The more realistic the expectations are compared to what has been delivered the more likely the firm will be to out-perform.

Top 10 stocks in January (excluding financials) and Sales Growth Expectations

Worst 10 stocks in January (excluding financials) and Sales Growth Expectations

With just a few trading days under our belt in 2009, these stocks have made the biggest moves so far according to Bespoke.com. Will these stocks continue the January hot/cold streak into the rest of the year or is this just a fluke. Only time will tell. We measured the implied sales growth priced-in to justify their current price (VE Sales Growth) against what these firms have delivered in sales growth for the past 5 years to see which companies have low or reasonable expectations. Companies with low expectations for sales growth priced-in relative to what they have been able to deliver are the ones that are more likely to out-perform.

VE Sales Growth calculated on 1-13-09

These lists exclude financials.

The companies on the top list are ten S&P 500 companies that have seen the best performance in the month of January over the past 5 years. Will these companies be able continue their hot streak in the month of January in 2009? Look for companies on the list that have low expectations for sales growth priced-in to justify their current stock price (VE Sales Growth) compared to what the firm has delivered in revenue growth over the last 5 years (5 Year Median Sales Growth). Companies with low expectations compared to what they have been able to deliver are the companies most likely to out-perform. Consistent returns in January coupled with low sales expectations are the companies you may want to look at as a possible investment.

The bottom list is the worst ten companies in median returns in the month of January over the past 5 years within the S&P 500. You may want to avoid the companies that have experienced tough times in January that also have high sales growth expectations compared to what they have been able to deliver the last 5 years.

S&P 500 Companies with the Best Returns in January – Last 5 Years

S&P 500 Companies with the Worst Returns in January - Last 5 Years