Top December Stocks Surge Over 5% Toward Year End

Top December Stocks Surge Over 5% Toward Year End

December: The Stock Market’s Winter Wonderland

Why the Holiday Season is a Goldmine for Investors

Turn your calendar over to December and you’ll see a time that, on average, treats the S&P 500 like a gift from Santa himself. Out of the last 20 Decembers (2003‑2022), 14 of them were marked by an uptick— that’s a solid 70% chance of a positive swing. The average return for the decade is a neat 1 %, which isn’t terribly high, but it’s a consistent boost that keeps most investors smiling.

Seasonality 101: A Quick Primer

Seasonality is the fancy term for the way asset prices naturally dance through the year. Picture a financial calendar where certain sectors have their own “seasonal dance moves.” Some months bring a heavy lift for retail stocks, others see a soft sigh from bonds.

Expert Insight

Cory Mitchell, analyst at Trading.biz, shares a helpful snippet: “There are times of year when certain assets tend to perform very well or poorly. This information is based on historical data. It doesn’t tell us what a stock will do this year, but it does provide potential trade candidates that have performed well at a particular time of year in the past.”

What Does This Mean for You?

With a bit of savvy timing, you can keep more of your hard-earned money—no, you’re not asking for a tax deduction, but a strategic December position will do wonders.

Three Stocks That Love the Holiday Warmth

  • Amazon (AMZN) – As shoppers ignite their gift‑buying spree, Amazon’s sales engine gets a holiday rush. The company’s stock tends to ride that wave and deliver a solid December bump.
  • Apple (AAPL) – The tech giant’s holiday demand—especially for the new iPhone release and Apple Watch—creates a steady climb in December. It’s the holiday version of a “Black Friday” for stocks.
  • Microsoft (MSFT) – With its cloud subscriptions, corporate productivity tools, and holiday IT upgrades, Microsoft sees a particular surge in December buying. Its stock often mirrors that momentum.

Remember, no stock guarantees success—history is like a guidebook, not a crystal ball. But if you like the idea of stepping into December with a cookie in one hand and a carefully curated portfolio three in the other, these three can be solid winter companions.

Ferguson PLC (FERG) +6.24%

Ferguson’s Fiery December: A Look at the Numbers

Ferguson, the plumbing and heating product distributor you’d ask your local DIY‑enthusiast for a wrench, has been turning its stock into a holiday treat. Over the past 13 years, its shares have gone up in December 12 times out of 13 – that’s a 92% success rate that would make Santa himself proud.

Key Stats (No Secret Santa, Just Straight Numbers)

  • Average return on all trades: +6.24% – that’s nicely enough to keep you sipping coffee, not crying.
  • Biggest profit on a closed trade: +16.61% – the kind of gain that makes you think, “Maybe I should have invested in pizza delivery instead.”
  • Biggest loss on a closed trade: -2.93% – a small dip, like dropping a pinch of pepper.
  • Max drawdown (biggest slippage while a trade was open): -6.55% – the fewest black holes in the market, honestly.

Why December’s a Hot Spot

Ferguson’s track record shows that December’s not just a month for holiday shopping – it’s a month where the stock tends to rise, making it a favourite among traders who love a guaranteed “buy the season” vibe. While the numbers are impressive, other stocks in this roundup have an even longer history of December success. Still, if you’re hoping for a little December sparkle in your portfolio, Ferguson’s numbers say it’s worth a look.

Prudential PLC (PRU) +5.3%

Prudential: A December Hero (and a Few Plot Twists)

Prudential is your go‑to for life insurance and smart money moves. Over the past 22 years, this company has turned the December window into a sales‑freaking spectacle:

  • 17 out of 22 yrs – the stock bumped up between Nov 28 & Dec 31 (that’s a 78% success rate).
  • Average gain – a solid 5.3% per year.
  • Highest single‑year jump – a jaw‑dropping 49.8% surge.
  • Sharpest single‑year dip – a free‑fall of -11.26%.
  • Biggest lopsided loss – a tumble of -19.26% in one go.

Why December Works for Prudential

It’s almost as if Prudential becomes a festive champion as the year wraps. The biggest win and the steepest drop both happen in December, proving that even the best can have a rollercoaster blush. But overall, that “December advantage” is a win‑win for investors—more fills than spills, on average.

So, if you’re scouting a company that knows how to keep the holiday lights shining bright, Prudential’s December track record might just be the glitter you’re after.

PulteGroup Inc. (PHM) +5.19%

PutleGroup: Turning November’s Log to December’s Gold

What do you call a homebuilder that’s been building castles for 31 years? A house‑ho! And that’s PutleGroup for you. Over almost three decades, the company’s stock has managed to punch its ticket to the top of the charts between November 27 and December 31 in a whopping 24 out of 31 years—so about 77% of the time.

Financial Highlights (Because Numbers Speak Louder Than Words)

  • Average Return: 5.19% – pretty solid for a market that can be as snappy as a fresh Ikea manual.
  • Biggest Profit: 22.08% – more than a double‑decker’s worth of joy.
  • Biggest Loss: -9.82% – the one time the house didn’t quite build a dream.
  • Biggest Drawdown: -13.58% – a reminder that even sturdy foundations can suffer a little wobble.

PHM: The Veteran of the Home‑Building Trio

If you’re looking for a seasoned prospect, PHM has been around longer than your grandma’s antiques. Its track record? Impressive in December, though its average return sits just a shade below its peers. The takeaway? Experience matters – and December is the month to watch.

Trading strong December stocks

Seasonality is a Bit of a Snap‑Back

Think of seasonality like that old photo that’s great for nostalgia, but you can’t use it to predict the next party’s vibe. The scan we ran looked for stocks that puffed up toward the end of 2023 – a past‑performance banger. But we’re not sure if the same fireworks will pop up next year.

It’s Not the Only Piece of the Puzzle

  • Trend of the Stock – Does it keep climbing, staying steady, or falling apart?
  • Major Indices – The S&P 500 and its pals give you a big‑picture feel.
  • Company Health – Revenue, debt, insider confidence—all vital!

What the Numbers Really Say

Average returns, plus the biggest wins and losses, paint the obvious outcomes. They tell what the end result looked like, not the exciting, chaotic dance that happened in between.

The head‑painful drawdown is especially telling—it shows the warrior losses you need to endure to chalk up that sweet average profit.

Your Playbook: Seize the Seasons, Manage the Risk

Every investor must decide whether they want to ride the seasonal waves, but only if it feels comfortable in their risk‑roost. Balance the sweet spot between patience and daring.

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