Investors can only hope that stocks do as well in December as they did it in November. There are certainly some S&P 500 stocks that shine in the final month of the year.
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Nine S&P 500 stocks – including the tech name SkyWorks Solutions (SWKS), health care game Elie Lilly (THERE IS) and energy stock Baker Hughes (BKR) — has beaten the index in December in each of the last five years. Additionally, these stocks all gained 3% or more on average during the month.
And that’s optimistic since December already tends to be one of the best months of the year, according to “Stock Trader’s Almanac.” “Wall Street’s only ‘free lunch’ served before Christmas,” says the Almanac.
How December measures up for the S&P 500
How are stocks performing in December? This is the third best month of the year since 1950, according to the Stock Trader’s Almanac. During the month, the S&P 500 gained an average of 1.5%.
But to be honest, December is somewhat of a wild card. And it’s been disappointing lately, losing 0.8% on average in December over the past five years. Last December, the S&P 500 fell 5.9%. And it lost 9.2% in 2018, marking the worst December since 1931.
But stocks can also surprise on the upside during the month. The S&P 500 gained in 2019, 2020 and 2021 by 2.9%, 3.7% and 4.4% respectively. But a little more than a handful of stocks do even better than that.
S&P 500 stocks that shine in December
When it comes to top performers this month, Skyworks Solutions stands out. The semiconductor designer has not only topped the S&P 500 every December, but it has gained an average of 8.3% during the month over the past five years. Yes, it fell 7.9% in 2018. But it more than made up for it by increasing 23% in 2019.
However, investors fundamentally need to look past a few tough years if they buy now. The company’s adjusted earnings per share are expected to fall 26% in this fiscal year ending January 2024 and a further 6.7% in the fiscal year ending January 2025.
Eli Lilly, the burning weight loss developer and neurological treatments, is also doing particularly well in December. The stock, already up 61% this year, gained on average 7.2% in December. And last year, stocks fell just 1.4%, a drop in the ocean compared to the strong double-digit percentage gains seen in 2019, 2020 and 2021.
Eli Lilly’s financial results are poised to explode next year. Analysts estimate the company will earn $12.31 per share in 2024, an increase of 85% from 2023.
It looks like there’s a lot to look forward to for investors in December.
Best Performing S&P 500 Stocks in December
All at the top of the index for the last five Decembers
| Business | Teleprinter | Avg. change in December. |
|---|---|---|
| SkyWorks Solutions | (SWKS) | 8.3% |
| Elie Lilly | (THERE IS) | 7.2% |
| Baker Hughes | (BKR) | 7.2% |
| Nike | (OF) | 5.4% |
| Sands of Las Vegas | (LVS) | 4.9% |
| Teleflex | (TFX) | 4.2% |
| AES | (AES) | 3.6% |
| Estee Lauder | (HE) | 3.3% |
| Global elastic | (B.G.) | 3.2% |
