Since it’s the official start to summer, that not only means that surf’s up, but there are nearly two handfuls of stocks which also rise this time of year.
There are nine stocks in the Standard & Poor's 500 that have been reliably stellar performers during the summer, according to a
USA Today analysis of data from S&P Global Market Intelligence.
“These stocks not only beat the market's returns in each of the past five summers, but have generated average gains during the season of 9% or more. Analysts are bullish on all these stocks, calling for them to be worth an average of 19% more in 18 months,” USA Today’s Matt Krantz explains.
The Standard & Poor's 500 has declined in two of the past five summers, including last summer when stocks dropped 8.1%. The average summer rally, or the percent increase from the season's low to the high, is just 9.2%, making it the weakest showing of all four seasons going back to 1964, USA Today cited "The Stock Trader's Almanac" as reporting.
Investors looking to stay in the markets over the summer understandably appreciate "consistency," says James Sinegal, a Morningstar analyst who covers credit card processors. "It’s tough to 'sell in May and go away' when a company is posting good revenue and profitability growth every quarter."
S&P 500 500 stocks that have topped the S&P for the past five years and have gained an average of 9 percent or more in the summer, average percent gains in last five summers:
- Regeneron Pharmaceuticals (23.7 percent)
- Under Armour (15.8 percent)
- L Brands (13 percent)
- ULTA Salon (12.8 percent)
- Celgene (11.9 percent)
- MasterCard (9.9 percent)
- V.F. (9.2 percent)
- Visa (9.1 percent)
- Allergan (9 percent)
Other respected financial voices also see the overall market headed higher despite the usual naysayers.
For one, Wells Capital’s Jim Paulsen argues that the U.S. stock market has more going for it than it did last year.
He gave
Barron's four reasons why this year's stock rally has legs:
- First, the 2016 rally is much “broader” than the participation exhibited by the 2015 stock market rally.
- Second, unlike the 2015 rally, the stock market is not facing any pressure from the bond market this year.
- Third, U.S. economic momentum is far more supportive for the current rally than it was in 2015.
- Finally, in sharp contrast to last year, the current stock market rally has barely improved investor sentiment.
"Climbing a wall of worry has perpetually represented a positive force in this bull market. While it lapsed briefly in 2015, since the January collapse in the stock market this year, “fear” is back providing a good fundamental underpinning for this rally!" he wrote.
"Overall the current rally looks and feels much more sustainable compared to the correction rally in 2015. This rally is benefiting from much broader participation, a total lack of competitive yields pressures, increasingly positive U.S. economic momentum and continued investor pessimism
," he wrote.
(Newsmax wire services contributed to this report).
Related Stories:
© 2025 Newsmax Finance. All rights reserved.