Top Stock Performances in October 2008

The month of October has mercifully come to a close. The stock markets endured a bloodbath not seen since the market crash of 1987. The Dow lost a whopping 1,526 points or 14.1% and the Nasdaq lost 361 points or 17.4%.

The month of October will definitely be defined by its losers rather than its winners. Drops in share prices of 30, 40 and even 50% were all too-commonplace. However, despite the tough economy and market volatility, there were still a handful of companies that managed to post good performances for the month.

Airlines

The entire airline sector benefited from falling oil prices in October. Crude oil prices fell from almost $100 per barrel at the beginning of the month to less than $70 by the end of the month.

Leading the charge (once again) with an 81% gain was US Airways (LCC: 9.13 -1.19%). Followed closely by United Airlines (UAUA: 0.00 N/A) 78% gain and AirTran’s 76% jump. Republic Airways and Delta Airlines (DAL: 10.95 -0.18%) only managed to eke out gains of 53% and 56% respectively.

VM Ware

VM Ware (VMW: 94.04 -1.58%) has been seemingly battered all year long, so it may surprise some to see it as one of the month’s top performers. The stock climbed over 16% during the month after posting better than expected earnings results. The company did reduce its 2008 forecast, but investors were expecting it to be much worse.

Google

Surprisingly good quarterly results also lifted Google’s (GOOG: 609.86 +0.51%) shares – finishing up 8% for the month. Strong international sales helped drive better than expected top-line growth, but the real story was the fact that the company appears to be reigning in its free spending ways.

Imclone

Imclone’s shares posted a double-digit gain in October to close at $68.76. On October 6, the company agreed to be purchased by Eli Lilly for $70 per share.

Dollar Stores

The bleak economic news and falling stock market was welcome news to the dollar stores. Family Dollar Stores (FDO: 57.32 +0.42%) was up 14% and 99 Cents Only Stores (NDN: 0.00 N/A) gained 11% for the month. Strong same-store sales and expectations that the tough economy will bring in more customers proved to be a strong catalyst for these stocks.