Sweet stocks to own until December
13 companies since 2011 average at least 6% in year- end gains
Investors expect big gains at the end of the year. But only a few stocks actually perennially deliver on the dream.
There are 23 stocks in the Standard & Poor’s 500, including drugmakerMylan, Monster Beverage and VulcanMaterials, that have beaten the market in November and December every year for the past five years, according to a USA TODAY analysis of data from S& P Global Market Intelligence. And 13 of these stocks have also delivered at least 6% average gains during the final two months of the year since 2011.
November and December are two of investors’ favorite months for good reason. December is the year’s best month, with an average long- term gain of 1.7%. November is No. 2, with an average 1.5% gain, Stock Trader’s Almanac says. Any gains would be more than welcome for investors who suffered through a 1.9% decline in October, the month some investors consider to be jinxed.
This time around many investors are bracing for the worst. Gains for the end of this year could be a bit iffy given the Federal Reserve appears poised to boost short- term interest rates and the election introduces a big variable. Some investors question whether stocks will get their usual year- end lift.
“The U. S. economy appears stable, propelled by labor market strength, inventory rebuilding and strong housing market activity,” says Omar Aguilar, chief investment officer of equities at Charles Schwab Investment Management.
“However, a slowdown in consumer confidence and sluggish business expenditures could affect growth in the first half of 2017.”
Some stocks have broken through November concerns before. Mylan, the drugmaker under fire over price hikes for its allergy drug EpiPen, has seen its shares lose nearly a third of their value this year. Lawmakers have grilled the company, raising the threat of regulation, and investors worry about how a new president could affect the industry. ButMylan tends to be a stellar late- year performer. During November and December last year, shares rose 22.6%, which topped the 1.7% decline by the S& P 500 during the same months. Mylan, on average, has gained 12.1% during November and December the past five years.
Monster Beverage, a maker of energy drinks, gets revved up at the end of the year, too. The stock, on average, has gained 11.4% in November and December the past five years. Monster’s shares are down 3.6% this year, but analysts are bullish, saying they could be worth $ 173.47 in 18 months. The company’s shares are typically strong at year’s end as investors position for strong consumer spending, says analyst John Staszak of Argus Research.
Not all the year- end winners make recognizable products. Vulcan sells asphalt and concrete mixes. That might not be all that exciting, but the stock’s 11% average gain during November and December has been. Vulcan shares tend to be strong as the year winds down because investors are jumping in ahead of the beginning of the construction season in the early spring, says Stanley Elliott, analyst at Stifel.