For everything, there is a season, and that’s true within the stock market, too. Analysts know that certain stocks’ prices are likely to go up and down with the season. Some retailers, for example, will have a big pop around the holiday season. Others that focus on outdoor categories may have their pop in the spring or summertime. It all just depends. Savvy investors should pay attention to these trends. It gives them a little bit of an edge when it comes to buying low and selling high.
Some of the best stocks to get invested in this winter include companies that operate in the retail, travel, and food and beverage industries. Retailers who see a pop during the winter months include home improvement stores like Home Depot. Home Depot generally sees an increase in sales numbers, particularly in the Northeast and Midwest, during the winter months. They’re some of the top sellers of snow-throwers, shovels, ice melt, and other seasonally appropriate gear. Home Depot is also a strong retail stock generally, so almost any time is a good time to get invested in this company.
Another great retail company to invest in for the winter months is VF Corporation. Most people who don’t work in shoes and apparel won’t recognize that name. Anyone living in a cold climate will, however, recognize the name of their famously warm North Face coats. VF Corporation often peaks in winter annually. For example, January 2018 was the company’s high point for that calendar year. VF Corporation is also behind brands like JanSport, Eastpak, and Timberland. They make plenty of gear that resonates with students and outdoor enthusiasts.
Finally, food and beverage can be another industry to watch for seasonal trends. During the summer months, people are in the market for something cool and refreshing. During the winter months, sales of beverages like coffee, tea, and hot chocolate go up. For coffee shops like Dunkin and Starbucks, there is also almost a built-in guarantee of sales in the early months of each year. That’s because people will redeem the gift cards they received during the holiday season. Restaurants and brands that specialize in hot drinks can also be a good investment during the winter months.