5 Stocks to Buy as Stock Market Gears Up for December Rally
December has historically been a bullish month for stock markets, marked by a notable track record of positive returns since 1950, sharing the top spot with November and April.
It used to be the best month historically in terms of returns, but a sharp drop in December 2018, with the S&P 500 plummeting by -9.18%, moved it to third place in the annual ranking. On average, December boasts a return of +1.51%, with positive performance observed nearly 75% of the time.
Despite December's overall positive trend for the S&P 500, we can identify specific stocks that consistently outperform the market over the past 5 years. Using the InvestingPro tool, we'll explore five of such noteworthy performers in this article.
Skyworks Solutions (NASDAQ:SWKS) semiconductor chips are used in the aerospace market, defense, entertainment, industry, medicine, military, smartphones, tablets, and portable devices.
It reports its results on February 1. The previous ones it presented in November improved revenue and earnings per share (EPS) forecasts.
Source: InvestingPro
The shares rose an average of +8.3% during December over the last five years, highlighting the +23% upside in 2019.
Over the past year, its shares are up +7.45%. InvestingPro models give it a potential of $114.36.
Source: InvestingPro
Headquartered in Indianapolis, Indiana, Eli Lilly and Company (NYSE:LLY) was created in 1876 by Colonel Eli Lilly, a pharmacist and veteran of the American Civil War.
Its dividend yield is +0.77%.
Source: InvestingPro
On February 6, it will present its accounts, and earnings per share (EPS) are expected to increase by +5.84% and actual revenue by +10.97%.
Source: InvestingPro
Its shares are up on average +7.2% in December over the last 5 years.
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